Passive income can seem too good to be true! Money in your pocket for doing nothing? However, people make passive income every day. A great way to get started is by investing in dividend stocks. These stocks provide regular payouts, which you can reinvest or use as a source of passive income.
We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found nine companies that combined can generate over $3000 a year in passive income if you invest just $2000 in each stock.
1. Eagle Point Credit Company Inc. (NYSE: ECC)
This company invests in high-reward, high-risk CLOs, sharing their profits with their shareholders.
Eagle Point Credit Company Inc. (NYSE: ECC) focuses on achieving high income through investing in equity and junior debt tranches. They invest in collateralized loan obligations, which are pools of investments you can purchase. This company focuses on riskier, high-yielding investments.
$2000 invested in the shares at current trading levels would buy 200 shares that would produce $370 in income yearly.
2. Abrdn Income Credit Strategies Fund (NYSE: ACP)
ACP invests opportunistically in undervalued debt securities.
Abrdn Income Credit Strategies Fund (NYSE: ACP) is a company that manages funds with the goal of maximizing profits for investors, much like Eagle Point Credit Company. However, ACP invests in loans and debt instruments across various industries. They have a lengthy track record of managing income-oriented funds.
$2000 invested in the shares at current trading levels would buy 292 shares that would produce $358 in income yearly.
3. Orchid Island Capital, Inc. (NYSE: ORC)
ORC’s main income is interest paid on home loans, which they share with their shareholders.
Orchid Island Capital, Inc. (NYSE: ORC) buys and sells home loans. They do not lend money directly to homebuyers like a bank. Instead, they focus on buying pools of investments, not individual loans. This allows them to make money off of these loans without managing them directly. They also borrow money to buy more pools of loans, allowing them to make even more income.
$2000 invested in the shares at current trading levels would buy 253 shares that would produce $350 in income yearly.
4. AFC Gamma, Inc. (Nasdaq: AFCG)
On top of providing direct loans to commercial products, AFC Gamma has niche expertise in the cannabis industry.
AFC Gamma, Inc. (Nasdaq: AFCG) is an industrial lender in the commercial real estate sector. They are a direct lender, meaning they provide financing directly to borrowers for real estate projects. Their loans are diversified across a wide range of property types, including multi-family housing units and bridges.
$2000 invested in the shares at current trading levels would buy 186 shares that would produce $350 in income yearly.
5. Gladstone Investment Corporation (Nasdaq: GAIN)
GAIN is a financial partner for mature businesses that are looking to grow and expand.
Gladstone Investment Corporation (Nasdaq: GAIN) is a business development company, which means that it focuses on acquiring businesses. They focus on established, middle-market companies. However, they don’t directly run these companies. Instead, they provide debt and equity capital for them to expand.
$2000 invested in the shares at current trading levels would buy 139 shares that would produce $314 in income yearly.
6. Fidus Investment Corporation (Nasdaq: FDUS)
This company provides both debt and equity capital, providing flexible financing solutions to companies.
Fidus Investment Corporation (Nasdaq: FDUS) provides loans and investments into medium-sized businesses in the United States. They look for companies that might not qualify for traditional bank loans. Their financing solutions are customized to each company.
$2000 invested in the shares at current trading levels would buy 101 shares that would produce $308 in income yearly.
7. Ares Commercial Real Estate Corporation (NYSE: ACRE)
ACRE invests in commercial buildings by providing direct loans.
Ares Commercial Real Estate Corporation (NYSE: ACRE) invests in commercial real estate. They lend money to owners of commercial properties, including office buildings and warehouses. They also invest in commercial real estate loans from other lenders. This company diversifies across many types of commercial real estate to help mitigate its risks.
$2000 invested in the shares at current trading levels would buy 234 shares that would produce $306 in income yearly.
8. Granite Point Mortgage Trust Inc. (NYSE: GPMT)
This company was founded in 2003.
Granite Point Mortgage Trust Inc. (NYSE: GPMT) provides loans to companies for commercial properties. They earn interest on these loans, which they share with their investors through dividends. This company activity manages its portfolio, adjusting it for market trends and individual loan performances.
$2000 invested in the shares at current trading levels would buy 421 shares that would produce $296 in income yearly.
9. KKR Real Estate Finance Trust Inc. (NYSE: KREF)
KKR focuses on well-established companies with a positive track record of managing properties, helping lower their overall risk.
KKR Real Estate Finance Trust Inc. (NYSE: KREF) is another commercial real estate investor. They provide financing to companies that own commercial buildings. Their main source of income is the interest on these loans, which they pay back as dividends. They’re focused on short-term loans for property improvements.
$2000 invested in the shares at current trading levels would buy 209 shares that would produce $296 in income yearly.
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