Sure, most of us have to work hard initially to save enough to get the passive income stream flowing. While there are lots of ways to make money passively, my favorite strategy is investing in dividend stocks.

Dividend stocks have long been a favorite for investors seeking reliable passive income. First, a conservative payout ratio of under 50% signals that the company isn't overextending itself to maintain dividends.

Invest for the long haul with a balanced portfolio. Find out why these three stocks are ideal for stability, income, and growth in retirement.

Dividends can be a great way to generate income from stocks, no matter what the market is doing. But only if the companies paying the dividends are reliable. That's why Dividend Kings -- or companies that have paid and raised their dividends for at least 50 years -- are so elite.

These four passive income stocks are often overlooked by investors and are dividend wonders. They are rated Buy at top Wall Street firms too.