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Want $1,500 in Annual Passive Income? Invest $1,500 in Each Of These 10 Stocks
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24/7 Wall Street Insights
- The Federal Reserve’s rate cut to calm market speculation may potentially re-fuel higher inflation and possibly trigger a recession.
- Dividend stocks offer one of the most flexible asset class variations to suit the widest range of investor requirements.
- Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock”, plus get our 2 best dividend stocks to own today.
At the time of this writing, the Federal Reserve announced a 50 basis point Fed Funds rate cut, presumably to address the anxiety in the markets. Unfortunately, Will Hild of Consumer Research and a number of macro economists and fund managers believe it will fuel higher inflation and possibly reignite a trend towards a recession. With inflation spiking prices on food and fuel by over 100% on some items, Americans across the nation who are barely hanging on risk a future price squeeze in the upcoming weeks. With limited available recourse on the table, passive income from dividend stocks may be one of the few options.
24/7 Wall Street has a voluminous database of dividend stocks that have been published in a wide assortment of combinations to demonstrate sample diversified portfolio varieties. A $15,000 total investment, divided into 10 separate $1,500 stock allocations, would return a cumulative annual return of $1,577.40 per year, which is an overall average APY of 10.51%. This is based on market price at the time of this writing, so one should check for any market changes if interested in taking action.
Hercules Capital, Inc.
Stock: Hercules Capital, Inc. (NYSE: HTGC)
Yield: 12.37%
Shares for $1,500: 77.3
Annual Dividend Amount: $185.55
Firmly focused on the venture debt and growth capital space, Hercules Capital supplies capital to all types of private companies from the start-up stage all the way up to pre-IPO stage and, in certain situations, beyond. Hercules Capital’s $3.6 billion portfolio has a track record of financing over 650 companies. It operates out of Palo Alto, CA
Blue Owl Capital Corporation
Stock: Blue Owl Capital Corporation (NYSE: OBDC)
Yield: 11.74%
Shares for $1,500: 101.76
Annual Dividend Amount: $176.10
Blue Owl Capital’s $192 billion total AUM is roughly half in the credit markets, with strategic capital and real estate making up the balance. As a Business Development Company (BDC), New York based Blue Owl deploys a range of debt origination tools that include: senior secured loans, unsecured, subordinated, and mezzanine loans, and use of proceeds can be growth based acquisitions, product or market expansions, recapitalizations, or refinancings.
Blue Owl targets middle to upper tier US client companies with $10 million to $250 million EBITDA, or $50 million to $2.5 billion in annual revenues.
SLR Investment Corp.
Stock: SLR Investment Corp. (NASDAQ: SLRC)
Yield: 10.85%
Shares for $1,500: 99
Annual Dividend Amount: $162.75
SLR Investment Corp. is a transactionally focused New York BDC. The company underwrites debt finance in the form of secured first or second lien loans, subordinated debt, mezzanine loans, and minority equity stakes for midland upper-middle market US companies. SLR Investment Corp. provides $5 million to $100 million per transaction for qualifying companies with $15 million to $100 million EBITDA on $50 million to $1 billion in revenues. Average maturity of financings are three years.
Golub Capital BDC, Inc.
Stock: Golub Capital BDC, Inc. (NASDAQ: GBDC)
Yield: 12.03%
Shares for $1,500: 100.8
Annual Dividend Amount: $180.45
In 2023, New York based Golub Capital won all three Lender of the Year, Senior Lender of the Year, and BDC Manager of the Year in the Americas awards from Private Debt Investor (PDI), and has won 24 PDI awards since 2013.
Golub’s One-Stop Loans, which are secured by priority first liens on the issuer’s assets, are one of the keys to its success. They comprise over 80% of $70 billion Golub’s portfolio, so its defaults are abnormally low for the industry. Another fact to consider is that Golub raised its dividend twice in 2023, so business has been good for them.
Blackstone Secured Lending Fund
Stock: Blackstone Secured Lending Fund (NYSE: BXSL)
Yield: 11.27%
Shares for $1,500: 49.7
Annual Dividend Amount: $169.05
With over $11.3 billion AUM, Blackstone Secured Lending Fund is NY asset manager Blackstone’s own Business Development Company arm, structured as a closed-end fund.
Kayne Anderson Energy Infrastructure Fund, Inc.
Stock: Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN)
Yield: 7.89%
Shares for $1,500: 134.6
Annual Dividend Amount: $118.35
Kayne Anderson Energy Infrastructure Fund, Inc. is a closed end mutual fund that invests at least 80% of its AUM in publicly traded North American energy infrastructure companies. The company defines “energy infrastructure” to include utilities, midstream oil and LNG infrastructure companies, and renewable energy companies. Based out of Houston, TX, Kayne Anderson Energy Infrastructure Fund, Inc. has $2.64 billion AUM.
Calamos Global Dynamic Income Fund
Stock: Calamos Global Dynamic Income Fund (NASDAQ: CHW)
Yield: 8.68%
Shares for $1,500: 216.4
Annual Dividend Amount: $130.20
Based in Naperville, IL, the Calamos Global Dynamic Income Fund is a balanced, closed-end mutual fund. It uses the MSCI World Index and Merrill Lynch Global Broad Markets Index for its benchmarks. Its total $709.82 million AUM portfolio is roughly half in equities with the rest in fixed-income, cash, and other assets. Income-oriented investors will appreciate that it pays dividends monthly.
BlackRock Capital Allocation Term Trust
Stock: BlackRock Capital Allocation Term Trust (NYSE: BCAT)
Yield: 11.03%
Shares for $1,500: 92.4
Annual Dividend Amount: $165.45 M
As the largest asset manager on the planet, BlackRock has many irons in the proverbial financial fire. The $1.793 billion Capital Allocation Term Trust is a closed-end fund containing a mix of growth stocks and income producing debt securities to provide both regular monthly dividends as well as upside appreciation. As a term trust, it is scheduled to terminate in 2032, unless there is a vote to renew the trust’s operations.
Blackstone Strategic Credit 2027 Term Fund
Stock: Blackstone Strategic Credit 2027 Term Fund (NYSE: BGB)
Yield: 11.48%
Shares for $1,500: 121.4
Annual Dividend Amount: $172.20 M
The Blackstone Capital Allocation Term Trust Strategic Credit 2027 Term Fund was created with a limited lifespan in mind, which, barring a vote to the contrary, is scheduled to dissolve on or about September 15, 2027.
Since its inception and during its remaining time left, this specialized $577 million AUM fund has invested solely in fixed income instruments ranging from senior to high-yield corporate bonds, the fund also utilizes derivatives, leverage, repos, reverse repos, credit-linked notes, and foreign currency hedging to both enhance returns and aid in risk mitigation.
LMP Capital and Income Fund Inc.
Stock: LMP Capital and Income Fund Inc. (NYSE: SCD)
Yield: 7.82%
Shares for $1,500: 86
Annual Dividend Amount: $117.30
FranklinTempleton/Legg Mason’s LMP Capital and Income Fund describes itself as “a diversified, blended mutual fund”.
NY headquartered LMP Capital and Income Fund invests its $369 million+ AUM portfolio in a variety of large cap stocks and investment grade bonds rated A- or higher, as well as REITs and both energy and non-energy limited partnerships. The LMP Capital and Income Fund portfolio invests globally, so its 94% common stock holdings contain non-US securities as well as US ones as of August.
| Name | Yield | Amount |
| Hercules Capital, Inc. (NYSE: HTGC) | 12.37% | $185.55 |
| Blue Owl Capital Corporation (NYSE: OBDC) | 11.74% | $176.10 |
| SLR Investment Corp. (NASDAQ: SLRC) | 10.85% | $162.75 |
| Golub Capital BDC, Inc. (NASDAQ: GBDC) | 12.03% | $180.45 |
| Blackstone Secured Lending Fund (NYSE: BXSL) | 11.27% | $169.05 |
| Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) | 7.89% | $118.35 |
| Calamos Global Dynamic Income Fund (NASDAQ: CHW) | 8.68% | $130.20 |
| BlackRock Capital Allocation Term Trust (NYSE: BCAT) | 11.03% | $165.45 |
| Blackstone Strategic Credit 2027 Term Fund (NYSE: BGB) | 11.48% | $172.20 |
| LMP Capital and Income Fund Inc. (NYSE: SCD) | 07.82% | $117.30 |
| Total Annual Dividend Income | $1,577.40 |
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