We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive income using $5,000 of capital in each stock.

Stock #1: Arbor Realty Trust Inc. 

Arbor Realty Trust Inc. (NYSE: ABR)  is a real estate investment trust that provides a variety of commercial real estate financing solutions. The company originates and invests in mortgage loans, mezzanine loans, and equity investments secured by multifamily, single-family rental, and other commercial properties.

Arbor has several company-specific advantages that have enabled it to consistently produce outsized risk-adjusted returns for its investors. As a leader in the commercial real estate finance industry for over 25 years, Arbor’s functional and ethical management team has broad industry expertise in complex commercial property transactions, an outstanding long-term track record of performance, and a highly respected business brand. This company-specific competency is also complemented by a robust and diversified portfolio, which is comprised of an extensive network of expert and capable local debt origination partners operating in various geographies and focused on multiple property types.

Arbor’s combination of broad industry expertise, extensive track record of consistent performance, and portfolio diversification has uniquely positioned the company to capitalize on opportunity and continue providing its investors with attractive returns. 

An investment of $5,000 invested in the shares at current trading levels would buy 387 shares that would produce $522 of income yearly.

Stock #2: Annaly Capital Management Inc.

Annaly Capital Management Inc. (NYSE: NLY) is a real estate investment trust that invests primarily in mortgage-backed securities issued by government-sponsored enterprises such as Fannie Mae, Freddie Mac, and Ginnie Mae. MBS are bonds that are backed by a pool of mortgages, such as home loans or commercial real estate loans.

NLY’s competitive advantages are not only quantitative (millions of dollars in returns) but also qualitative (experienced hands able to fully comprehend and deal with the volatile MBS market and mitigate risks). NLY not only applies state-of-the-art technology in its risk management system, but it has also proven itself against various capital market upheavals over time. The company’s strong financial position and ample cash reserves give it leeway to adapt flexibly to market changes while offering investment opportunities. 

An investment of $5,000 in the shares at current trading levels would buy 259 shares which would produce $690 of income yearly.

Stock #3: PIMCO Dynamic Income Fund 

PIMCO Dynamic Income Fund (NYSE: PDI) is a closed-end fund investing primarily in a diversified portfolio of global fixed-income securities, including corporate bonds, emerging market debt, and securitized assets. It aims to achieve high current income and capital appreciation through the majority of holdings worldwide.

PIMCO’s investment advisory team, experienced management approach, and wide coverage area account for PDI’s edge. With a solid record in managing fixed-income investments, the fund’s investment advisor PIMCO has an impressive numerical record. The fund’s portfolio managers possess a depth of experience in analyzing and selecting fixed-income securities for themselves. Utilizing a rigorous investment process to identify opportunities that meet the fund’s objectives PDI achieved this at its inception and continues using it for success now. PDI’s active management approach empowers the fund’s portfolio managers to adjust the mix of stocks and other investment products it holds in response to changing market conditions, thus seeking to maximize returns while controlling risk. With its global presence, PIMCO provides the fund access to an entire array of investment opportunities across different regions and asset classes. 

An investment of $5,000 invested in the shares at current trading levels would buy 263 shares that would produce $685 of income yearly.

Stock #4: CBRE Global Real Estate Income Fund

CBRE Global Real Estate Income Fund (NYSE: IGR) invests in real estate securities on a global basis. The CBRE Global Real Estate Income Fund’s competitive edge lies in access to CBRE’s comprehensive global real estate platform. CBRE essentially the world’s biggest commercial real estate services and investment organization, operates in over 100 countries. Such international presence provides CBRE Global Real Estate Income Fund with unique insights into real estate markets anywhere in the globe. CBRE can leverage its unique database and analytical capacities to better understand the real estate market than anyone else. It is therefore a vital tool for fund managers to track property markets all over the globe. This allows it to notice and capitalize on investment opportunities not seen by others.

$5,000 invested in the shares at current trading levels would buy 984 shares which would produce $713 in income yearly.

Stock #5: Chicago Atlantic Real Estate Finance Inc.

Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) is a mortgage REIT. specializes in commercial real estate financing. It has an advantage over the competition in senior corporate lending in this market area – one that comes from having industry-experienced professionals, totally familiar with and having operated through multiple economic cycles. Chicago Atlantic Real Estate Finance’s competitive advantage lies not only in its seasoned management team but also in the company’s balanced, disciplined investment approach, and long-term relationships with both borrowers and brokers. The management team of Chicago Atlantic Real Estate Finance is familiar with the commercial real estate lending market. They have gone through several economic cycles and, as a result, they can understand and capture the best investment opportunities. As an added advantage, Chicago Atlantic Real Estate Finance’s strict investment style, which insists on ‘knowing the borrowers and understanding loans’, has enabled the company to maintain steady performance without high default rates. The company’s close ties to borrowers and brokers provide it with a source of high-quality lending opportunities that will continue.

$5,000 invested in the shares at current trading levels would buy 305 shares that would produce $690 in income yearly.

About the Author: Amit Nar has an intense passion for the stock market and would love to hear from you on X @alphaintelligence or on The Market Institution discord where he is an instructor.

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