Although capital appreciation is a primary goal for stock investments, stocks with dividends not only have the upside potential for capital gains, but also deliver an income component. While dividends vary widely depending on the type of stock and industry sector, some dividend stocks not only have yields that can be compared favorably to bond issues from rivals in the same industry, but some can deliver junk bond-like double-digit yields without the same credit rating risks.
We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found three companies that combined can generate over $2,500 a year in passive income if you invest just $5,000 in each stock at the time of this writing.
Oxford Lane Capital
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- Stock #1: Oxford Lane Capital Corp. (NASDAQ: OXLC)
- Yield: 18.86%
- Shares for $5,000: 982
- Annual passive income: ~$943.00
Oxford Lane Capital is an asset management closed-end fund. Its specialty is investing in securitized senior secured loans from private corporate borrowers. The company is based in Connecticut and was founded in 2010.
$5,000 invested in the shares at current trading levels would buy 982 shares and would produce roughly $943.00 in yearly income.
ABRDN Income Strategies Fund
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- Stock #2: ABRDN Income Strategies Fund (NYSE: ACP)
- Yield: 17.60%
- Shares for $5,000: 733
- Annual passive income: ~$880.00
Based in the U.K., ABRDN Income Strategies Fund is a closed-end fund managed by Aberdeen Asset Managers and Aberdeen Standard Investments. The fund’s investment focus is in global loan and debt securities.
$5,000 invested at current trading levels would buy 733 shares that would produce about $880.00 in income yearly.
Global Net Lease
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- Stock #3: Global Net Lease Inc. (NYSE: GNL)
- Yield: 17.57%
- Shares for $5,000: 620
- Annual passive income: ~$878.50
Global Net Lease is a New York-based REIT that manages a portfolio of commercial properties with a niche specialty in lease-buyback transactions.
$5,000 invested at current trading levels would buy 620 shares that would produce about $878.50 in income yearly.
$943.00 + $880.00 + 878.50 = $2,701.50 annual cumulative return.
With a number of analysts predicting the return of inflation, any kind of passive income strategies that can help a household budget are worth consideration. Dividend stocks are definitely a relatively high liquidity option to factor into any investment plans if additional income is an imperative.
For additional high-yield dividend stock ideas, check out: 5 Stocks With Double-Digit Yields to Buy Before It’s Too Late.
| Company: | Yield: | Annual Income: |
| Oxford Lane Capital | 18.86% | $943.00 |
| ABRDN Income Strategies Fund | 17.60% | $880.00 |
| Global Net Lease | 17.57% | $878.50 |
| Total: | $2,701.50 |
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