Supplementing your retirement, or even aiming for financial independence before your old age… the idea is attracting more and more French people. Faced with the erosion of purchasing power and uncertainties about pensions, some choose to build their own additional income. Persistent inflation and fear of a reduction in benefits reinforce this trend.
Real estate investment, stock market, dividends… the strategies vary, but all are based on discipline and the long term, as well as rigorous and regular management of investments. Living in Spain since 2014, Franck B., 52, decided in 2020 to methodically structure his assets to generate passive income. In four years, its annual dividends have increased from a few tens of euros to several thousand. What is his method?
Target 10% net return
It all started in September 2020, during a discussion with a colleague about financial independence. “I had heard about it before, without really paying attention, but this time, it resonated with me», says Franck B. He begins by putting his accounts in order and listing his assets precisely. Then it is formed by reading Rich dad, poor dad by Robert Kiyosaki, What if you knew enough to beat Wall Street by Peter Lynch or The Intelligent Investor by Benjamin Graham, to better understand market mechanisms.
He hesitates between real estate and the stock market. The leverage effect of credit attracts him, but he cannot find an operation offering 10% net return, his objective. He then turned to the stock market, which he discovered was more accessible than he imagined, via a PEA opened by his father in 1997. In March 2021, he bought his first shares, notably Accor, then Stellantis and Air Liquide, which remains his most important line today.
“I no longer buy shares without dividend»
Gradually, Franck B. refines his method: he targets companies capable of paying regular dividends. Inspired by Brazilian investor Luiz Barsi and Warren Buffett, he favors solid and profitable companies. “I no longer buy shares without a dividend, with some exceptions“, he specifies. And, according to him, the results follow. Its annual dividends go from 530 euros in 2022 to 2,200 euros in 2023, then almost 4,000 euros in 2024. For 2025, it hopes for around 7,000 euros.
His goal? Reach the million euros to be able to use your time “as he sees fit“. He invests a sum every month by automated transfer and keeps precise accounts using tables. There remains one obstacle: a tax resident in Spain, he recently discovered that the tax advantages of his French PEA do not apply there. A point which could weigh on the future profitability of its strategy.
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