Investing

Want $3000 in Passive Income? Invest $3000 Into These Dividend Stocks

John Seetoo

Published: March 6, 2024 9:31 am

In 2023, inflation caused many price increases across the board, with food prices increasing an average of 5.8% overall. 

For those who have investable asset liquidity, adjusting a portfolio to add or increase an income component is a way to help stretch dollars during these inflationary times, and dividend stocks are a handy way to help achieve this goal.

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $3,000 a year in passive annual income if you invest just $3,000 in each stock at the time of this writing:

AGNC Investment Corp.

• Stock #1: AGNC Investment Corp. (NASDAQ:AGNC)
• Yield: 15.14%
• Shares for $3,000: 315
• Annual Passive Income: ~$454.20

Formerly known as American Capital Agency Corp. the company changed its name to AGNC Investment Corp. in 2016. Based in Bethesda, MD, American Capital Agency is a Real Estate Investment Trust (REIT) that primarily invests in collateral mortgage obligations, such as Fannie Mae and Freddie Mac. 

While its dividends have continued unabated since its inception in 2008, American Capital Agency’s stock price and earnings stagnation have raised some concerns among analysts. On the other hand, institutional ownership remains fairly strong, with hedge fund Centiva Capital being the largest to date, with 1.4 million shares as of the 2023 end of the fourth quarter. 

Alliance Resource Partners, L.P.

• Stock #2 : Alliance Resource Partners, L.P. (NASDAQ:ARLP)
• Yield: 14.74%
• Shares for $3,000: 157
• Annual Passive Income: ~$442.20

Allied Resource Partners, L.P., was founded in 1971, and operates from its base in Tulsa, OK. As one of the largest thermal and metallurgical coal producers in the United States, Allied Resource Partners has mining production, sales, energy royalties, and technological mining services and products divisions. 

Presently, the company operates underground mines in Illinois, Indiana, West Virginia, Maryland, and Pennsylvania and also owns 1.5 million oil and gas producing acres of land in the Anadarko, Permian and Williston Basins. 

Brandywine Realty Trust

• Stock #3  : Brandywine Realty Trust (NYSE:BDN)
• Yield: 14.56%
• Shares for $3,000: 728
• Annual Passive Income: ~$436.80

With a concentration in both urban and suburban areas of Philadelphia, PA and Austin, TX, Brandywine Realty Trust is a REIT that owns, develops, and manages a 160 property portfolio amassing 22.6 million square feet of real estate. 

From a financial standpoint, Brandywine has strong liquidity, an untapped unsecured credit line, and successful debt refinancing, significantly reducing interest costs and default risks and the chances of dividend interruptions. 

Trinity Capital, Inc.

• Stock #4: Trinity Capital, Inc. (NASDAQ:TRIN)
• Yield: 13.94%
• Shares for $3,000: 209
• Annual Passive Income: ~$418.20

Founded by Steve Brown on an initial $8 million capitalization, Phoenix, AZ based Trinity Capital has exponentially grown its AUM to over $1 billion (as of December 2023) in the last 16 years. Specializing in the risky niche Venture Debt sector, Trinity Capital specializes in equipment financings, secured loans, and other kinds of investment banking based financial services for early-stage and growth-stage companies in a variety of industries.

Analysts who follow Trinity Capital unanimously rate the stock with either a “buy” or “strong buy” recommendation, and Morningstar recently gave the company an investment grade BBB rating with a “stable” outlook. Considering the relatively high risk of default or bankruptcy from their clients, this is a commendable achievement, and a testament to management’s savvy analytical prowess in choosing financing targets to maximize ROI.

Starwood Property Trust, Inc.

• Stock #5: Starwood Property Trust, Inc. (NYSE:STWD)
• Yield: 9.66%
• Shares for $3,000: 151
• Annual Passive Income: ~$289.80

With headquarters in Greenwich, CT, Starwood Property Trust is a REIT with several divisions. One is a property segment that acquires, manages commercial and multifamily properties. The second is a lending segment that underwrites, acquires, and manages a variety of mortgage types for commercial and residential properties, as well as infrastructure. The third is an investing segment that acquires and manages sub-prime mortgages and real estate related debt for potential re-securitization.

Delek Logistics Partners, L.P.

• Stock #6: Delek Logistics Partners, L.P.. (NYSE:DKL)
• Yield: 9.14%
• Shares for $3,000: 70
• Annual Passive Income: ~$274.20

While films, tv and books have romanticized oil drillers from John D. Rockefeller, T. Boone Pickens, and George Bissell to fictional characters like Daniel Plainview (an Oscar winning performance by Daniel Day-Lewis) in the film There Will Be Blood, the crude oil is useless on its own unless it is able to be transported, refined into a variety of commercial products, and then marketed and sold. Delek Logistics Partners, L.P. engages in this more mundane but solidly profitable other end of the oil and gas industry. 

Founded in 2012 and based in Brentwood, TN, Delek Logistics has facilities in Texas, Tennessee, Arkansas, and Oklahoma. The company raised its dividend in Q3 of 2023 and announced yet another dividend increase in February, 2024.

Physicians Realty Trust

• Stock #7 : Physicians Realty Trust (NYSE:DOC)
• Yield: 8.20%
• Shares for $3,000: 267
• Annual Passive Income: ~$246.00

Headquartered in Milwaukee, WI, Physicians Realty Trust is an Umbrella Partnership REIT (UPREIT) focused on health care properties. As an UPREIT, Physicians Realty owns all of the real estate properties and also serves as the managing partner.

Their leasing clients include hospitals, physicians, and other healthcare delivery entities. 

DHT Holdings, Inc.

• Stock #8 : DHT Holdings, Inc. (NYSE:DHT)
• Yield: 9.21%
• Shares for $3,000: 279
• Annual Passive Income: ~$276.30

Founded in 2005 and operating out of Hamilton, Bermuda, DHT Holdings owns a VLCC (Very Large Crude Carrier) fleet of 24 scrubber-equipped crude oil tankers, with 16 of them well over 300,000 DWT and the other 8 all over 299,000 DWT. The average age of the fleet is only ten years, so extensive fleet replacement for the future horizon should not be unnecessary for at least another 5-10 years. 

Ternium, S.A.

• Stock #9: Ternium, S.A. (NYSE: TX)
• Yield: 8.28%
• Shares for $3,000: 75
• Annual Passive Income: ~$248.40

Registered in Luxembourg over 62 years ago, Ternium is a steel manufacturer and iron ore mining company. Ternium’s product line runs the gamut of steel products, from slabs, round bars, tiles, galvanized products, and billets to pre-engineered metal building systems. The mining segment provides iron ore and pellets.

The company also resells scrap steel and provides engineering and distribution services for housing, construction, automotive, transportation and energy industry clients.

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