For a long time, investors looking for passive income didn’t have much choice. Interest rates were below inflation, so the only way to avoid diminishing buying power was to buy dividend shares. That isn’t the case any more – inflation has fallen to 3.2% and a 30-year government bond comes with a 4.6% yield. But I still think dividend stocks are a better choice for investors looking to generate extra cash. According to money.co.uk, the mean average amount held in a UK savings account is £17,365. Investing that in a 30-year government bond could generate just under £800 per year in extra income. That’s not bad, but I think it’s possible to do better. The big advantage dividend stocks have is that the amount a business pays out to its shareholders can grow over time. Over 30 years, this can make a big difference. For example, shares in Bunzl (LSE:BNZL) come with a 2.15% dividend yield, but the company has been increasing its dividend by 7% per year over the last decade. If this continues, someone who invests £17,635 in Bunzl stock today could potentially receive £35,272 in passive income over the next 30 years. That’s much higher than the...