One of the best ways to generate passive income and protect your portfolio is with dividend stocks.
After all, you’re just not going to make the money you want in today’s low-yielding savings accounts. In fact, you’re lucky if you earn 0.40% these days. So, if it’s dependable income you’re after, one of the best things you can do is invest in higher-yielding stocks, such as those found in real estate investment trusts (REITs), such as:
AGNC Investment Corp.
With a yield of 14.7%, AGNC Investment (NASDAQ: AGNC | AGNC Price Prediction) is a REIT that invests in residential mortgage-backed securities, where principal and interest payments are guaranteed by the U.S. government or a U.S. government agency.
It just declared a 12-cent dividend, which is payable on September 10 to shareholders of record as of Aug. 29.
If you were to invest $10,000 into AGNC, you would own about 1,037 shares. Using an annualized AGNC dividend of $1.44, you could collect about $1,493.28 in passive income per year just for holding the stock.
Ellington Financial
With a yield of about 11.24%, Ellington Financial (NYSE: EFC) invests in residential and commercial mortgage loans, residential and commercial mortgage-backed securities, consumer loans, and asset-backed securities backed by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt, and equity investments in loan origination companies.
It just declared a monthly dividend of 13 cents per share, which is payable on September 30 to shareholders of record as of August.
Even better, as noted by CEO and President Laurence Penn, “We generated net income of $0.45 per share, equating to an annualized economic return of 13.8% for the quarter, with book value per share increasing quarter over quarter to $13.49. Meanwhile, our adjusted distributable earnings per share increased sharply by $0.08 to $0.47, significantly exceeding our $0.39 of dividends.”
With EFC, if you were to invest $10,000, you’d take ownership of 722 shares. Using an annualized dividend of $1.56, you can collect $1,126.32 again just by holding the EFC stock.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) focuses on the acquisition and management of state-licensed cannabis operators. It owns 108 properties across 19 states with 8.9 million rentable square feet. Its dividend yields 13.8% and it last paid out $1.90 per share on July 15. Its next one should be out by September.
With big exposure to cannabis, it could get a boost from President Trump, who recently said he might reclassify cannabis as having a lower danger level. “We’re looking at reclassification,” Trump told CNBC. “We’ll make a determination … over the next few weeks.”
If he does reclassify cannabis as a Schedule 3 drug from Schedule 1, it would allow for more research into the drug, and provide more tax benefits to the cannabis industry – boosting related stocks like Innovative Industrial Properties.
With IIPR, if you bought $10,000 worth of stock, you’d own about 190 shares. Using an annualized dividend of $22.80, you’d earn about $4,332 in passive income.
Two Harbors Investment
With a yield of 13.8%, Two Harbors Investment (NYSE: TWO) invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States.
It just paid out a quarterly dividend of 39 cents, which was payable on July 29 to shareholders of record as of July 3. If you invested $10,000 in TWO, you’d own 985 shares. Using an annualized dividend of $4.68, you could collect about $4,609.80 in passive income.
Sunrise Realty Trust
With a yield of about 11%, Sunrise Realty Trust (NASDAQ: SUNS) is another one of the top REITs to buy and hold. Helping, its Chairman, Leonard Tannenbaum, bought a million shares of SUNS in late January. He paid $12 million. He would buy another 53,175 shares of $550,795 just weeks ago.
In addition, as noted in a company press release, Sunrise Realty Trust “distributed $4.0 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.31 per basic weighted average common share for such period.”
As noted by CEO Brian Sedrish, “As market activity rebounds, we’re seeing more transaction volume and increased demand for financing among borrowers seeking capital for both acquisitions and refinancings.”
If you invested $10,000 in SUNS, you’d own 952 shares. Using an annualized dividend of $1.20, you could collect just under $1,200 in passive income.
Top Gaining Stocks
Top Losing Stocks