Investing

Want $3,000 In Passive Income? Invest $1,000 Into These 15 Dividend Stocks

Kristin Hitchcock

Published: April 24, 2024 10:30 am

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found 15 companies that combined can generate over $3,000 a year in passive income if you invest just $1,000 in each stock.

The Big Picture

Dividend stocks are super important for wealth building. They offer two benefits: cash payouts from company profits (dividends) and stock growth. You can also reinvest your dividend payout for an even faster growth. You basically get to take advantage of compound interest twice. Some dividend stocks even commit to paying their investors a certain dividend, though most do not. 

Here are the stocks we recommend investing in if you want to make $3,000 a year in passive income:

1. CVR Partners, LP

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CVR Partners, LP (NYSE: UAN) produces nitrogen fertilizer for agricultural and industrial companies. Because fertilizer is consistently needed for agriculture, this company can provide consistent profits and dividends, which is one reason we recommend it. 

$1,000 invested in the shares at current trading levels would buy 13 shares that would produce $346 in income yearly.

2. Diana Shipping Inc.

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Diana Shipping Inc. (NYSE: DSX) owns and operates dry cargo ships, leasing them for international transport. This older, established company potentially offers predictable dividends. 

$1,000 invested in the shares at current trading levels would buy 347 shares that would produce $296 in income yearly.

3. Berry Corporation

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Berry Corporation (Nasdaq: BRY) is in the oil industry. It operates several oilfields and manages the whole process, from finding and extracting the oil. Oil is a very volatile commodity. However, BRY’s involvement across the industry offers some stability. 

$1,000 invested in the shares at current trading levels would buy 347 shares that would produce $279 in income yearly.

4. Medical Properties Trust, Inc.

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Medical Properties Trust, Inc. (NYSE: MPW) is a real estate investment trust that focuses on healthcare facilities. It owns several healthcare facilities and leases them to healthcare providers. 

They distribute a large portion of their income as dividends, making them attractive for income generation. 

$1,000 invested in the shares at current trading levels would buy 221 shares that would produce $189 in income yearly.

5. Eagle Point Credit Company Inc. 

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Eagle Point Credit Company Inc. (NYSE: ECC) finances companies. It focuses largely on middle-market companies, which are typically well-established. Eagle Point acts as a lender, and the interest payments it collects translate into dividends for its investors. 

$1,000 invested in the shares at current trading levels would buy 100 shares that would produce $185 in income yearly.

6. Invesco Mortgage Capital Inc

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Invesco Mortgage Capital Inc. (NYSE: IVR) is another mortgage REIT focusing on residential mortgages. Like Medical Properties Trust, its structure leads to regular interest payments, encouraging consistent dividends. 

$1,000 invested in the shares at current trading levels would buy 119 shares that would produce $185 in income yearly.

7. Oxford Lane Capital Corp

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Oxford Lane Capital Corp. (Nasdaq: OXLC) invests in secured loans for middle-market companies, similar to ECC. Its loan portfolio typically generates a steady stream of income, so it regularly distributes dividends. 

$1,000 invested in the shares at current trading levels would buy 201 shares that would produce $182 in income yearly.

8. Abrdn Income Credit Strategies Fund 

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Abrdn Income Credit Strategies Fund (NYSE: ACP) invests in many debt instruments. They’re a closed-end fund, so they can offer pretty high dividends. However, their prices will fluctuate more than other stocks. 

$1,000 invested in the shares at current trading levels would buy 152 shares that would produce $179 in income yearly.

9. Global Net Lease, Inc.

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Global Net Lease, Inc. (NYSE: GNL) invests in net lease properties. Simply put, this means that the tenant must pay most of the expenses and upkeep for the property. This gives the company a stable income, translating to stable dividends. 

$1,000 invested in the shares at current trading levels would buy 146 shares that would produce $175 in income yearly.

10. Orchid Island Capital, Inc.

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Orchid Island Capital, Inc. (NYSE: ORC) provides mortgages for real estate investors. They focus solely on real estate financing, which can be a volatile market. However, they offer some extra stability because they finance real estate investors. 

$1,000 invested in the shares at current trading levels would buy 120 shares that would produce $175 in income yearly.

11. AFC Gamma, Inc.

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AFC Gamma, Inc. (Nasdaq: AFCG) invests in consumer loans. They purchase “bundles” of loans acquired by financial institutions, which lowers the risk. They have a steady income stream, leading to consistent dividends, too. 

$1,000 invested in the shares at current trading levels would buy 92 shares that would produce $175 in income yearly.

12. TPG RE Finance Trust, Inc

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Like many of the companies on this list, TPG RE Finance Trust, Inc. (NYSE: TRTX) is another real estate investment trust that finances commercial real estate. Because it focuses on commercial properties, it provides pretty stable dividend payouts. 

$1,000 invested in the shares at current trading levels would buy 131 shares that would produce $165 in income yearly.

13. Gladstone Investment Corporation

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We recommend investing in Gladstone Investment Corporation (Nasdaq: GAIN) for high dividend yields. This company provides debt and equity capital to small and mid-sized businesses. Its investment strategy generates income. However, the success of individual companies can directly affect their dividends.

$1,000 invested in the shares at current trading levels would buy 70 shares that would produce $157 in income yearly.

14. BlackRock TCP Capital Corp. 

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BlackRock TCP Capital Corp. (Nasdaq: TCPC) also provides pretty stable dividends. Like a few other companies on this list, it provides loans and financing to middle-market companies. It’s very similar to ECC and OXLC. Its loan portfolio offers a steady income stream for those looking for dividends. 

$1,000 invested in the shares at current trading levels would buy 70 shares that would produce $157 in income yearly.

15. Fidus Investment Corporation

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You should also consider Fidus Investment Corporation (Nasdaq: FDUS). This company provides financing for well-established businesses, allowing it to diversify. However, its business model is also a bit more complex than others on this list. 

$1,000 invested in the shares at current trading levels would buy 50 shares that would produce $154 in income yearly.