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• Passive income is a steady stream of unearned income that doesn’t require active traditional work.
• Ultra-high-yield stocks are a solid idea to generate passive income.
• Grab this free report fast: Access 2 legendary, high-yield dividend stocks Wall Street loves.

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 17 ultra-high-yield stocks that can be purchased for just $5,000 each, for a total of $85,000, yet have the potential to generate a stunning $10,380 in passive income, a massive 12.21% on invested capital. So, as you know, this passive income portfolio is only suitable for those with a higher risk tolerance. 

AGNC Investment

This company has paid solid monthly dividends for years; its current yield is 14.86%. 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.

$5,000 buys 515 shares, which cost $1.44 per year. That’s $742 in passive income. 

Annaly Capital Management

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 invests in:

• Agency mortgage-backed securities
• Mortgage servicing rights
• Agency commercial mortgage-backed securities,
• Non-agency residential mortgage assets
• Residential mortgage loans
• Credit risk transfer securities
• Corporate debts and other commercial real estate investments

$5,000 will purchase 265 shares that pay $2.60 a year. That comes to $690 in passive income. 

Alliance Resource Partners

This company is a leader in the thermal coal business, offers solid diversity, and has a massive 12.16% yield. Alliance Resource Partners L.P. (NASDAQ: ARLP) is a diversified natural resource company that produces and markets coal primarily to utilities and industrial users in the United States.

The company operates through four segments:

• Illinois Basin Coal Operations
• Appalachia Coal Operations
• Oil & Gas Royalties
• Coal Royalties

It produces a range of thermal and metallurgical coal with sulfur and heat contents.

The company operates seven underground mining complexes in:

• Illinois
• Indiana
• Kentucky
• Maryland
• Pennsylvania
• West Virginia

$5,000 lands 200 shares, which churn out a $2.80 dividend each year. That offers $560 in passive income. 

Arbor Realty Trust

This company trades at a ridiculous 8.1 times estimated 2024 earnings and pays a massive 11.70% 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:

• Structured Business 
• Agency Business

Arbor Realty Trust primarily invests in:

• Bridge and mezzanine loans, including junior participating interests in first mortgages
• Preferred and direct equity and real estate-related joint ventures
• Real estate-related notes
• Various mortgage-related securities

$5,000 will scoop up 340 shares, paying a $1.72 dividend each year. That translates to $585 in passive income.

Ares Capital

This high-yielding business development company (BDC) pays a massive 9.49% dividend. Ares Capital Corp. (NASDAQ: ARCC) specializes in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle-market companies.

It also provides growth capital and general refinancing. It prefers to invest in companies engaged in basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

$5,000 will purchase 238 shares that pay a $1.92 dividend yearly. That equals $458 in passive income.

BrightSpire Capital

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 company operates through these segments:

• Senior and Mezzanine Loans and Preferred Equity
• Net Leased and Other Real Estate
• Corporate and Other

$5,000 secures 856 shares, which pay $0.80 per year. That equals $685 per year in passive income.

British American Tobacco

This European giant continues to print money, has a vast product line, and pays a massive 9.46% dividend. British American Tobacco PLC (NYSE: BTI) offers:

• Vapor
• Tobacco heating
• Modern oral nicotine products
• Combustible cigarettes
• Traditional oral products, such as snus and moist snuff

$5,000 will acquire 159 shares that pay $2.97 per share every year. That totals $472 of passive income. 

Dynex Capital

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 agency and non-agency mortgage-backed securities (MBS), including residential, commercial, and interest-only securities.

Agency MBS has 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.

$5,000 will buy 426 shares that pay $1.56 per share every year. That totals $665 of passive income. 

Ellington Financial

This quality mortgage REIT company is a favorite across Wall Street and pays a massive 12.84% monthly dividend. Ellington Financial Inc. (NYSE: EFC), through its subsidiary, Ellington Financial Operating Partnership LLC, 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:

• Prime jumbo
• Alt-A, manufactured housing, and subprime residential mortgage loans
• RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity
• Residential mortgage loans
• Commercial mortgage-backed securities
• Commercial mortgage loans and other commercial real estate debt

$5,000 will grab 411 shares that pay $1.56 per year. That totals $642 in passive income.

Frontline

While off the radar of most investors, this shipping company’s shares could explode higher, and it pays a strong 9.84% dividend. Frontline PLC (NYSE: FRO) engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers.

In a press release earlier this year, the company announced it would sell its five oldest VLCCs (very large crude carriers), built in 2009 and 2010, for an aggregate net sale price of $290 million.

$5,000 will buy 198 shares that pay $2.48 per year. That equals $491 in passive income. 

FS KKR

This is a well-known name on Wall Street, offers a solid entry point at current levels, and pays a staggering 13.90 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 company also seeks to invest in:

• First-lien senior secured loans
• Second-lien secured loans
• Subordinated loans 
• Mezzanine loans

$5,000 will buy 450 shares that pay a $2.80 dividend every year. That equals $695 in passive income. 

Hercules Capital

This highly regarded company across Wall Street pays a giant 10.80% dividend. Hercules Capital Inc. (NYSE: HTGC) is the largest non-bank lender to venture capital-backed companies at all stages of development in a broadly diversified variety of technology, life sciences, and sustainable and renewable technology industries.

With two decades of experience in venture debt, Hercules is uniquely positioned to quickly create innovative financing solutions that perfectly fit within a company’s existing capital structure and map to its business objectives.

$5,000 will acquire 236 shares that pay a $1.92 dividend every year. That equals $453 in passive income. 

Horizon Technology Finance

Paying a stout 10.95% dividend, this stock has tremendous upside potential. Horizon Technology Finance Corp. (NASDAQ: HRZN) is a business development company specializing in lending and investing in development-stage investments.

It focuses on making secured debt and venture lending investments to venture capital-backed companies in these industries:

• Technology
• Life science
• Health care information and services
• Cleantech
• Sustainability 

$5,000 acquires 415 shares which churn out a $1.32 dividend each year. That offers $547 in passive income. 

Mach Natural Resources

This 2023 IPO is trading below the initial price and will pay a reported gigantic 15% 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.

$5,000 will purchase 250 shares that pay a $3 dividend yearly. That equals $750 in passive income.

PennantPark Floating Rate

Almost ignored by Wall Street, this is another business development company with a massive 10.90% dividend. PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle-market companies.

It primarily invests in the United States and, to a limited extent, non-U.S. companies. The fund typically invests between $2 million and $20 million.

The fund also invests in:

• Equity securities
• Preferred stock
• Common stock
• Warrants or options received in connection with debt investments or through direct investments

$5,000 will buy 430 shares that pay a $1.23 dividend every year. That equals $527 in passive income. 

Petrobras

This is a top energy company in Brazil that pays a gigantic 14.12% dividend. Petróleo Brasileiro S.A. (NYSE: PBR) explores, produces, and sells oil and gas in Brazil and internationally. 

The company operates through these segments:

• Exploration and Production
• Refining
• Transportation and Marketing
• Gas and Power

It also prospected, drilled, refined, processed, traded, and transported crude oil from producing onshore and offshore oil fields, shale or other rocks, oil products, natural gas, and other liquid hydrocarbons. 

$5,000 will buy 342 shares that pay $2.07 per year. That equals $706 in passive income. 

Trinity Capital

Based in Phoenix, this business development company pays a massive 14.25% 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 an internally managed business development company that provides diversified financial solutions to growth-stage companies with institutional equity investors.

Trinity Capital’s investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, and equity-related investments.

$5,000 will secure the purchase of 206 shares which pay $2.04 per year. That equals $713 in passive income.

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