Investing
Want $4,000 in Passive Income? Invest $3,000 Each Into These 10 Dividend Stocks
Published:
24/7 Insights
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships and other similar enterprises where the individual is not actively involved.
Our 24/7 Wall passive income stock research database is a reliable source of the best investment ideas. We have identified 10 ultra-high-yield stocks that can be purchased for just $3,000 each, for a total of $30,000, yet have the potential to generate a stunning $4,000 in passive income, which is a massive 13.33% on invested capital. It should be noted that this passive income portfolio is only suitable for those with a higher risk tolerance.
This company has paid solid monthly dividends for years; its current yield is 14.76%. AGNC Investment Corp. (NASDAQ: AGNC) is a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.
$3,000 buys 310 shares, which will pay $1.44 per year. That equals $446 in passive income.
This mortgage REIT has been around for years and is a top-income idea paying a vast 12.97% dividend. Annaly Capital Management Inc. (NYSE: NLY) is a diversified capital manager in mortgage finance and corporate middle-market lending.
The company investsin:
$3,000 will purchase 150 shares that pay $2.60 a year. That comes to $390 in passive income.
This company trades at a ridiculous 8.1 times estimated 2024 earnings and pays a massive 12.47% dividend. Arbor Realty Trust (NYSE: ABR) invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States.
The company operates in two segments:
Arbor Realty Trust primarily invests in:
$3,000 will scoop up 212 shares, which will pay a $1.72 dividend each year. That translates to $365 in passive income.
Paying a massive 13.58% dividend, this company could be a total return home run. BrightSpire Capital Inc. (NYSE: BRSP) operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe.
The companyoperates through:
$3,000 secures 514 shares, which pay $0.80 per year. That equals $412 per year in passive income.
Paying a hefty 13.24% dividend, Dynex Capital Inc. (NYSE: DX) is a passive income champion for more aggressive investors. It is a mortgage real estate investment trust that invests in mortgage-backed securities (MBS) on a leveraged basis in the United States.
It invests in agencyand non-agency mortgage-backed securities (MBS), including residential, commercial, and interest-only securities.
Agency MBShas a guarantee of principal payment by a U.S. government agency or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac.
$3,000 will buy 254 shares that pay $1.56 per share every year. That totals $396 of passive income.
This quality mortgage REIT company is a favorite across Wall Street and pays a massive 13.32% monthly dividend. Ellington Financial Inc. (NYSE: EFC), through its subsidiary, Ellington Financial Operating Partnership, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States.
The company develops and manages residential mortgage-backed securities (RMBS) backed by:
$3,000 will grab 248 shares that pay $1.56 per year. That totals $387 in passive income.
This is a well-known name on Wall Street, and it offers a solid entry point at current levels, and pays a staggering 15.46 dividend. FS KKR Capital Corp. (NASDAQ: FSK) is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.
The companyalso seeks to invest in:
$3,000 will buy 154 shares that pay a $2.80 dividend every year. That equals $431 in passive income.
This 2023 IPOis trading below the initial price and will pay a reported gigantic 15.46% dividend based on estimates for the rest of the year. Mach Natural Resources L.P. (NYSE: MNR) is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, southern Kansas, and the Texas panhandle.
$3,000 will purchase 153 shares that pay a $3 dividend yearly. That equals $461 in passive income.
Five Smartest Dividend Tech Stocks to Buy With $500 Right Now
This is a top energy company in Brazil that pays a gigantic 14.47% dividend. Petróleo Brasileiro S.A. (NYSE: PBR) explores, produces, and sells oil and gas in Brazil and internationally.
The company operates through:
It also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, shale or other rocks, and oil products, natural gas, and other liquid hydrocarbons.
$3,000 will buy 213 shares that pay $2.07 per year. That equals $441 in passive income.
Based in Phoenix,this business development company pays a massive 13.69% dividend. Trinity Capital Inc. (NASDAQ: TRIN)is a venture capital firm specializing in venture debt to growth-stage companies looking for loans and equipment financing.
The company is aninternally managed business development company and a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors.
Trinity Capital’s investmentobjective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, and equity-related investments.
$3,000 will secure a purchase of 206 shares, which pay $2.04 per year. That equals $422 in passive income.
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.