How to generate $100/month or $1200/year of passive income?

A fast and relative easy way will be to DIY your own REITS portfolio, you can easily get 5% dividend on this. That will cost around $24,000 of capital. If you are lazy or not sure which reits to pick, can consider the REITS ETF to start with and adjust from there.

Hi Matthew,

A reasonable dividend yield is 4%. Hence, to generate $1200/yr you will be looking at $30K in capital. This can be done by investing $10K a year over 3 years.

You'll have access to a variety of instruments that can achieve this 4%, it could be REITs, equities or even Unit Trusts (actually, most will achieve more than 4% yield). They each have pros and cons so you will want to understand their chacteristics before you start (this part can be an essay, so I won't elaborate too much). Do note that Unit Trusts can pay dividends monthly, which no other instrument can.

Why 4%? Well, I prefer to be conservative. Dividend payouts can and have been cut before in bad times, so if you invest $30000 expecting 5% and get 4% in the end, it won't feel too painful.