Passive income can seem too good to be true! Money in your pocket for doing nothing? However, people make passive income every day. A great way to get started is by investing in dividend stocks. These stocks provide regular payouts, which you can reinvest or use as a source of passive income.
We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found nine companies that combined can generate over $3000 a year in passive income if you invest just $2000 in each stock.
1. Eagle Point Credit Company Inc. (NYSE: ECC)
Source: Kerkez / iStock via Getty Images
Eagle Point Credit Company Inc. (NYSE: ECC) focuses on achieving high income through investing in equity and junior debt tranches. They invest in collateralized loan obligations, which are pools of investments you can purchase. This company focuses on riskier, high-yielding investments.
$2000 invested in the shares at current trading levels would buy 200 shares that would produce $370 in income yearly.
2. Abrdn Income Credit Strategies Fund (NYSE: ACP)
Source: ljubaphoto / E+ via Getty Images
Abrdn Income Credit Strategies Fund (NYSE: ACP) is a company that manages funds with the goal of maximizing profits for investors, much like Eagle Point Credit Company. However, ACP invests in loans and debt instruments across various industries. They have a lengthy track record of managing income-oriented funds.
$2000 invested in the shares at current trading levels would buy 292 shares that would produce $358 in income yearly.
3. Orchid Island Capital, Inc. (NYSE: ORC)
Source: tab1962 / iStock via Getty Images
Orchid Island Capital, Inc. (NYSE: ORC) buys and sells home loans. They do not lend money directly to homebuyers like a bank. Instead, they focus on buying pools of investments, not individual loans. This allows them to make money off of these loans without managing them directly. They also borrow money to buy more pools of loans, allowing them to make even more income.
$2000 invested in the shares at current trading levels would buy 253 shares that would produce $350 in income yearly.
4. AFC Gamma, Inc. (Nasdaq: AFCG)
Source: Cheri Alguire / iStock Editorial via Getty Images
AFC Gamma, Inc. (Nasdaq: AFCG) is an industrial lender in the commercial real estate sector. They are a direct lender, meaning they provide financing directly to borrowers for real estate projects. Their loans are diversified across a wide range of property types, including multi-family housing units and bridges.
$2000 invested in the shares at current trading levels would buy 186 shares that would produce $350 in income yearly.
5. Gladstone Investment Corporation (Nasdaq: GAIN)
Source: mapo / iStock via Getty Images
Gladstone Investment Corporation (Nasdaq: GAIN) is a business development company, which means that it focuses on acquiring businesses. They focus on established, middle-market companies. However, they don’t directly run these companies. Instead, they provide debt and equity capital for them to expand.
$2000 invested in the shares at current trading levels would buy 139 shares that would produce $314 in income yearly.
6. Fidus Investment Corporation (Nasdaq: FDUS)
Source: Tero Vesalainen / iStock via Getty Images
Fidus Investment Corporation (Nasdaq: FDUS) provides loans and investments into medium-sized businesses in the United States. They look for companies that might not qualify for traditional bank loans. Their financing solutions are customized to each company.
$2000 invested in the shares at current trading levels would buy 101 shares that would produce $308 in income yearly.
7. Ares Commercial Real Estate Corporation (NYSE: ACRE)
Source: 2024 Getty Images / Getty Images News via Getty Images
Ares Commercial Real Estate Corporation (NYSE: ACRE) invests in commercial real estate. They lend money to owners of commercial properties, including office buildings and warehouses. They also invest in commercial real estate loans from other lenders. This company diversifies across many types of commercial real estate to help mitigate its risks.
$2000 invested in the shares at current trading levels would buy 234 shares that would produce $306 in income yearly.
8. Granite Point Mortgage Trust Inc. (NYSE: GPMT)
Source: Jirapong Manustrong / iStock via Getty Images
Granite Point Mortgage Trust Inc. (NYSE: GPMT) provides loans to companies for commercial properties. They earn interest on these loans, which they share with their investors through dividends. This company activity manages its portfolio, adjusting it for market trends and individual loan performances.
$2000 invested in the shares at current trading levels would buy 421 shares that would produce $296 in income yearly.
9. KKR Real Estate Finance Trust Inc. (NYSE: KREF)
Source: fizkes / iStock via Getty Images
KKR Real Estate Finance Trust Inc. (NYSE: KREF) is another commercial real estate investor. They provide financing to companies that own commercial buildings. Their main source of income is the interest on these loans, which they pay back as dividends. They’re focused on short-term loans for property improvements.
$2000 invested in the shares at current trading levels would buy 209 shares that would produce $296 in income yearly.
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
