Want $3000 In Passive Income? Invest $1250 Into These 12 Dividend Stocks

Investing

Published: February 22, 2024 8:30 am

Dividend stocks provide two ways to make money: dividends and capital appreciation. Dividend stocks provide regular cash payments, which you can pocket or reinvest. Reinvesting dividends helps you benefit from compounding, allowing your wealth to grow more over time.

These stocks can also appreciate just like any other stock. Potentially, this can boost your overall return if you decide to sell at a later date.

Companies that pay regular dividends are often financially stable and mature, sometimes offering lower volatility than high-growth stocks. They’re often a safer choice than growth stocks, but not always.

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found 12 companies that combined can generate over $3000 a year in passive income if you invest just $1250 in each stock.

1. CVR Partners, LP (NYSE: UAN)

This company specializes in producing fertilizer, which is used in many agricultural niches.

CVR Partners, LP (NYSE: UAN) operates large-scale nitrogen fertilizer facilities. Their focus is mostly on two types of fertilizer: urea ammonium nitrate and ammonia. Both of these are used by many agricultural niches. They use a unique petroleum coke gasification process, making their method a bit more environmentally friendly than traditional methods.

$1250 invested in the shares at current trading levels would buy 17 shares that would produce $432 in income yearly.

2. Diana Shipping Inc. (NYSE: DSX)

This company owns several shipping ships, and they make income by renting out spaces.

Diana Shipping Inc. (NYSE: DSX) is a shipping company that operates dry bulk vessels. They rent these large cargo ships to transport unpackaged commodities like coal, grain, fertilizer, and iron ore. This company owns around 40 dry bulk vessels and is a long-standing company. They provide several catering options, generating revenue from several different commodities.

$1250 invested in the shares at current trading levels would buy 432 shares that would produce $370 in income yearly.

3. Berry Corporation (NasdaqGS: BRY)

This corporation produces oil and natural gas, from exploration to packaging.

Berry Corporation (NasdaqGS: BRY) produces oil and natural gas. They explore new fields for oil and gas, develop these fields, and sell these products. They use seismic surveys and drilling to assess potential reserves. This company then develops by drilling additional wells, installing pipelines, and building other infrastructure needed for production.

$1250 invested in the shares at current trading levels would buy 183 shares that would produce $348 in income yearly.

4. Medical Properties Trust, Inc. (NYSE: MPW)

By owning and renting hospital buildings, this company ensures a steady flow of income.

Medical Properties Trust, Inc. (NYSE: MPW) invests in real estate by owning hospital facilities. They rent these properties to healthcare providers under long-term agreements. The rent automatically increases over time to keep up with inflation. They primarily invest in acute care hospitals, but they also invest in specialty hospitals.

$1250 invested in the shares at current trading levels would buy 351 shares that would produce $230 in income yearly.

5. Eagle Point Credit Company Inc. (NYSE: ECC)

ECC invests in equity and junior debt CLOs.

Eagle Point Credit Company Inc. (NYSE: ECC) is an investment company. They are non-diversified, meaning they invest in a limited number of assets compared to some other investment companies. They also have a fixed number of shares and don’t typically buy back their own shares like other funds do.

$1250 invested in the shares at current trading levels would buy 125 shares that would produce $230 in income yearly.

6. Oxford Lane Capital Corp. (NasdaqGS: OXLC)

Unlike most companies, this one is a closed-end fund, meaning they have a fixed number of shares.

Oxford Lane Capital Corp. (NasdaqGS: OXLC) is a management investment company. They pool money from investors and invest it into assets. Their main goal is to maximize their portfolio’s return, growing the overall value of their investments. They balance this goal with risk mitigation, balancing their overall risk.

$1250 invested in the shares at current trading levels would buy 245 shares that would produce $227 in income yearly.

7. Abrdn Income Credit Strategies Fund (NYSE: ACP)

This company invests in bonds, bank loans, structured financing products, and similar debt and loan instruments.

Abrdn Income Credit Strategies Fund (NYSE: ACP) is an actively managed fund that’s main goal is to deliver a high current income. They invest in a range of different products, including bank loans, high-yield bonds, and emerging markets. They collect income through interest payments and dividends, primarily.

$1250 invested in the shares at current trading levels would buy 183 shares that would produce $223 in income yearly.

8. Global Net Lease, Inc. (NYSE: GNL)

Primarily, GNL purchases properties from a company and then leases them back to the same company for a long-term period.

Global Net Lease, Inc. (NYSE: GNL) is a real estate investment trust that specializes in commercial properties. They largely invest in single-tenant properties across the United States, Western Europe, and Northern Europe. Their properties are long-term and net-lease. Therefore, tenants are responsible for most operating expenses.

$1250 invested in the shares at current trading levels would buy 155 shares that would produce $218 in income yearly.

9. Orchid Island Capital, Inc. (NYSE: ORC)

ORC borrows money to purchase more investments than they could otherwise, allowing them to potentially gain more.

Orchid Island Capital, Inc. (NYSE: ORC) is a real estate investment trust specializing in residential mortgage-backed securities. Simply put, they invest in bundles of home loans – mostly those that are guaranteed by U.S. government agencies. This guarantee helps reduce the risk of the party defaulting on the loan.

$1250 invested in the shares at current trading levels would buy 149 shares that would produce $218 in income yearly.

10. TPG RE Finance Trust, Inc. (NYSE: TRTX)

27 Floors Of Unfinished L.A. Luxury Skyscraper Tagged With Graffiti — This company provides some niche loans, such as those for construction and bridges.

TPG RE Finance Trust, Inc. (NYSE: TRTX) is a commercial real estate finance company. They operate primarily as a balance sheet lender. This means that they use their capital to acquire and manage first mortgage loans secured by institutional properties. They mainly loan to borrowers who own income-producing commercial properties.

$1250 invested in the shares at current trading levels would buy 221 shares that would produce $206 in income yearly.

11. BlackRock TCP Capital Corp. (NasdaqGS: TCPC)

TCPC only invests in companies with established market positions, lowering some of their risks.

BlackRock TCP Capital Corp. (NasdaqGS: TCPC) is a finance company that focuses on direct lending to medium-sized companies. It operates primarily as a business development company and works primarily with established companies with strong market positions. Their main goal is to provide high returns for their shareholders.

$1250 invested in the shares at current trading levels would buy 112 shares that would produce $192 in income yearly.

12. AGNC Investment Corp. (NasdaqGS: AGNC)

AGNC uses leverage to invest in residential mortgages, making money off of the interest.

AGNC Investment Corp. (NasdaqGS: AGNC) is a real estate investment trust. They largely invest in residential mortgage-backed securities that are created by government-sponsored enterprises. By investing in pools of guaranteed loans, they reduce the risk of the borrower defaulting.

$1250 invested in the shares at current trading levels would buy 131 shares that would produce $191 in income yearly.

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