How does a holding company make money?

A holding company makes money through its ownership of assets and subsidiaries. A holding company does not sell any product, manufacture anything, or conduct any other business operations. The purpose of a holding company is to hold the controlling stock or membership interests in other companies.

Although this is not a traditional way to make money, using ownership of other companies to make money is how a holding company functions. Holding companies receive dividends which are parts of a company's profits. Holding companies own multiple parts of multiple companies, which means that the dividends can get more and more.