Elon Musk mentions a potential $5,000 ‘DOGE dividend’ to American taxpayers — could this actually happen? Strategies for securing substantial passive income regardless of governmental actions.
How would receiving an additional $5,000 feel?
This concept was proposed to Elon Musk, the billionaire CEO of Tesla, who also heads the Department of Government Efficiency (DOGE) — an initiative aimed at minimizing wasteful expenditure and unnecessary regulations.
In a post on X, James Fishback, CEO of Azoria, emphasized, “President Trump and @ElonMusk should declare a ‘DOGE Dividend’ — a tax rebate sent to every taxpayer, funded solely by a fraction of the total savings generated by DOGE.”
Fishback’s proposal pointed out that as DOGE aims for $2 trillion in government savings, 20% of that ($400 billion) could be redistributed to American taxpayers.
“$400 billion in DOGE-driven savings divided by 79 million tax-paying households equals a $5,000 ‘DOGE Dividend’ check for each tax-paying household,” the proposal indicates.
Musk’s response?
“Will check with the President,” he replied.
It remains uncertain if Musk has spoken directly with President Donald Trump about this. However, during his speech at the FII Priority Summit in Miami Beach, Trump acknowledged the proposal.
“There’s even a new idea under consideration to return 20% of the DOGE savings to American citizens, while another 20% is used to pay down debt, because the numbers are extraordinary, Elon, hundreds of billions…,” Trump stated. “We’re contemplating giving 20% back to American citizens and 20% to reduce debt.”
But don’t get overly excited just yet — experts are skeptical that these checks will actually be sent out.
“While a future stimulus check isn’t entirely out of the question and could serve as a goodwill gesture to showcase the money that has been saved through these cuts… the reality is the likelihood of checks being sent out is quite low,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. “Even with the possible savings from recent cuts, stimulus checks represent a substantial expense for a government already burdened by debt and not facing a pandemic-level emergency.”
There are also questions regarding the actual savings generated by DOGE.
Musk aims to achieve a dramatic reduction of $2 trillion in federal spending. However, DOGE has only claimed estimated savings of $55 billion to date. Bloomberg highlighted that DOGE’s website accounted for only $16.6 billion of those savings.
“It’s completely unrealistic for DOGE to save $2 trillion,” Jessica Reidl, a senior fellow at the Manhattan Institute, told CBS. “Washington is encountering annual budget deficits that will likely exceed $3 trillion in the coming years. Distributing dividend checks to taxpayers would be wholly imprudent.”
The good news? You don’t have to wait for the government to issue checks — intelligent investors have discovered numerous ways to generate their own dividend income. Here are three simple strategies to get started.
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Dividends refer to payments made by companies to their shareholders out of their earnings, usually on a quarterly schedule. While the idea of a DOGE dividend from the government hangs in uncertainty, many corporations consistently return cash to investors through dividends.
Investments in dividend-paying companies can create a reliable source of passive income — and sometimes, these figures even attract Musk’s attention.
In 2023, when it was reported that Berkshire Hathaway, the investment giant founded by legendary investor Warren Buffett, earned $704 million in dividends from Coca-Cola within a year, Musk couldn’t help but comment on X, “Berkshire Hathaway high on Coke.”
While stock prices may vary, companies that reliably pay dividends allow investors to earn income without needing to sell their shares. High-quality firms like Coca-Cola can even grow these dividends over time, enhancing the income stream.
Nonetheless, remember that past performance doesn’t guarantee future results. When selecting a dividend stock, don’t focus solely on its payout or yield. Take the time to assess the company’s business fundamentals, and if you’re following Buffett’s approach, seek companies with lasting competitive advantages.
Real estate is another favored method for generating ongoing income. Owning a rental property allows you to earn consistent monthly cash flow as tenants pay rent.
It also serves as a popular hedge against inflation, as property values and rental income tend to increase alongside living costs.
Even Musk has supported this method, once stating: “It is generally advisable to own tangible assets like a home or shares in companies that produce good products, rather than holding cash during periods of high inflation.”
However, while real estate investing offers recognizable benefits, being a landlord presents its own set of challenges. Managing a property involves responsibilities such as tenant selection and screening, collecting rent, and addressing maintenance and repair issues (often at your own expense) — and that assumes you can save enough for a down payment and secure a mortgage to buy the property initially.
The good news? Nowadays, you don’t need to buy a property outright to enjoy the perks of real estate investing. Crowdfunding platforms enable everyday investors to buy shares in rental properties without the large down payments or management headaches typically tied to real estate ownership.
Meanwhile, real estate investment trusts (REITs) offer an additional option for those wanting exposure to this asset class.
High-yield savings accounts provide a low-risk method for generating passive income while ensuring your funds remain accessible. These accounts frequently offer higher interest rates compared to traditional savings accounts, enabling your money to grow without the need for long-term commitments. This option is ideal for those seeking a secure, liquid source of passive income with minimal risk or effort.
Presently, some banks and financial institutions are offering high-yield savings accounts with interest rates exceeding 4.5%.
In the U.S., the majority of savings accounts are backed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This insurance safeguards depositors in case the bank fails, ensuring their funds remain secure and accessible.
This article is for informational purposes only and should not be interpreted as financial advice. It comes without any warranty.
