In a televised address on Dec. 17, President Donald Trump announced a one-time Christmas bonus for a specific group of U.S. military personnel.
“I am … proud to announce that more than 1,450,000 military service members will receive a special, we call ‘warrior dividend,’ before Christmas,” Trump said (1).
He added that the payment amount was chosen for its symbolism.
“In honor of our nation’s founding in 1776 we are sending every soldier $1,776,” he said, noting that the checks “are already on the way.”
A news release from the Department of War detailed who is eligible (2): “Active-duty service members in the pay grades of O-6 and below as of Nov. 30, as well as reserve component service members on active-duty orders of 31 days or more as of Nov. 30, are eligible for this one-time payment.”
Trump linked the payout to higher-than-expected revenue, citing tariffs and recent legislation.
“We made a lot more money than anybody thought because of tariffs and the bill helped us along,” he said. “Nobody deserves it more than our military and I say congratulations to everybody.”
Tariff revenue and competing ideas for what comes next
Tariffs have been bringing in notable monthly sums. In November, customs duties totaled $30.76 billion (4), down slightly from October’s $31.35 billion (5).
Trump has floated several ideas for using that revenue. He has suggested income taxes could be cut “completely” if tariff revenue becomes “so large,” though critics have argued that replacing income tax revenue with tariffs is “mathematically impossible.”
He has also promoted a separate concept: a broader “tariff dividend” for low- and middle-income Americans, writing on Truth Social in November that “a dividend of at least $2,000 a person (not including high income people!) will be paid to everyone.” He did not return to that proposal on Wednesday.
You don’t have to wait for Washington to build your own income stream
However tariff revenue is ultimately used, investors have long relied on their own passive-income strategies. Here are three straightforward ways people often start.
Build your own dividend stream
In investing, a dividend is a portion of a company’s profits paid to shareholders—most commonly every quarter.
Dividend-paying stocks can generate income without requiring you to sell your shares. As John D. Rockefeller once said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”
While stock prices can swing, companies with consistent histories of paying—and increasing—dividends can provide steadier cash flow. Over time, reinvested dividends may compound into a meaningful stream of income.
If you don’t want to choose individual stocks, dividend-focused exchange-traded funds (ETFs) can offer a simpler route. These funds hold diversified baskets of dividend-paying companies across sectors.
With platforms like Robinhood, you can invest in ETFs like the Vanguard S&P 500 to begin building long-term savings.
Robinhood has 24/7 support, and you won’t pay any commission fees on stocks, ETFs and options.
Their platform also offers both a traditional IRA and a Roth IRA, so you can benefit from tax-efficient retirement investing. Even better, new Robinhood customers can also get a free stock curated from top American companies once you sign up and link your bank account to the app.
Earn rental income without becoming a landlord
Real estate is another widely used path to recurring income. Traditional rental properties can produce monthly cash flow, and real assets are often seen as a hedge against inflation because rents and property values may rise with the cost of living.
But being a landlord can be demanding: tenant screening, rent collection, maintenance costs, and repairs—all on top of the hurdles of saving for a down payment and qualifying for a mortgage.
Today, some investors use real estate crowdfunding instead. Platforms like Arrived offer exposure to rental homes without buying a property directly.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, without having to mow lawns, fix leaky faucets or handle difficult tenants.
The typical process: you browse available properties, choose how many shares to buy, and then receive any positive rental income distributions associated with the investment.
Another option is Lightstone DIRECT, which offers accredited investors access to multifamily and industrial real estate, with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.
Over nearly-four decades, their team has delivered performance across multiple market cycles—including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.
With Lightstone DIRECT, investors can access that proprietary deal flow.
Lightstone also invests at least 20% of its own capital in every deal—roughly four times the industry average—positioning the firm’s incentives alongside those of its investors.
Let your cash hatch its own income
Passive income doesn’t require a huge portfolio. Even uninvested cash can earn more than it would sitting in a typical low-interest account.
High-yield savings accounts (HYSAs) are a common starting point: they’re generally low-risk and still allow access to funds when needed. The gap between rates can be meaningful. While the national average savings APY is 0.39%, some online banks offer substantially higher returns—sometimes 10 times more.
A high-yield option like a Wealthfront Cash Account is one way to grow emergency savings while keeping money accessible.
A Wealthfront Cash Account can offer a base variable APY of 3.25%, and new clients can receive a 0.65% boost for the first three months, for a total APY of 3.90% provided by program banks on uninvested cash—an amount described as eight times the national deposit savings rate in the FDIC’s December report.
With no minimum balances or account fees, 24/7 withdrawals and free domestic wire transfers, the account is designed to keep cash available. Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
