Dividend expat is a term used to describe an expat who lives off passive income earned from his investment portfolio.

The term was coined by MrFreeat33 who retired early in SE Asia and lives off of his monthly dividend checks across his vast stock portfolio.

Many large companies traded on publicly traded stock exchanges such as NYSE or NASDAQ and pay quarterly dividends to their shareholders.

These quarterly dividend checks add up if you continue to pump money into your portfolio, live below your means, and continue to monitor your investments closely.

Once the passive income from your portfolio gets large enough, you can retire early overseas in a country with a much lower cost of living. Hench the term “Dividend expat”.

Read More: 3 Reasons Why You May Want to Become a Dividend Expat