Businessman and investor Robert Kiyosaki’s N.Y. Times bestselling book, Rich Dad, Poor Dad, has sold over 40 million copies worldwide in multiple languages. It is filled with an array of tried and true proven strategies for people to build wealth so that they are not solely reliant on their jobs for their financial well-being.
A key principle that Kiyosaki touts throughout the various asset classes he cites is the notion of generating passive income. Whether it be via real estate, creating an IP, service, or product that generates a regular royalty or comparable payment, or whether it be through investments, passive income is an incontrovertible and necessary component to any wealth creation equation.
We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $4,000 a year in passive annual income if you invest just $5,000 in each stock at the time of this writing:
Eagle Point Credit Company, Inc.
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- Stock #1: Eagle Point Credit Company, Inc. (NYSE:ECC)
- Yield: 19.09%
- Shares for $5,000: 497
- Annual Passive Income: ~$954.50
From its Greenwich, CT base, Eagle Point Credit Company is a closed end financial asset management fund. Focused on high yield Collateralized Debt Obligations in both equity and bond configurations, Eagle Point manages its portfolio with a savvy approach towards using leverage, refinancing at key advantageous interest rate opportunities.
The approach continues to be successful. In its January, 2024 earnings call, CEO Tom Majewski boasted that the cumulative per share dividends since its 2014 IPO exceeded the initial IPO price. This means that any investor who has held the stock for that ten year long term has already made their investment principal back solely in dividends, which are continuing to pay off.
Orchid Island Capital, Inc.
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- Stock #2: Orchid Island Capital, Inc. (NYSE:ORC)
- Yield: 16.94%
- Shares for $5,000: 584
- Annual Passive Income: ~$847.00
A registered Real Estate Investment Trust (REIT), Vero Beach, FL headquartered Orchid Island Capital, Inc. specializes in investments that classify as Residential Mortgage Backed Securities (RMBS). The portfolio includes single resident mortgages, collateralized mortgage obligations (CMO), mortgage pass-through certificates, and other types of mortgage related paper.
Unlike other REITs which might pay quarterly dividends, Orchid Island Capital pays its dividends monthly. Late in 2023, the company did reduce its dividend per share from $0.16 to $0.12, so investors who choose to buy ORC should stay vigilant of any future signs that might indicate any further changes.
TPG Real Estate Finance Trust
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- Stock #:3 TPG RE Finance Trust (NYSE:TRTX)
- Yield: 14.01%
- Shares for $5,000: 733
- Annual Passive Income: ~$700.50
Over the course of its 10-year history, TPG RE Finance Trust has been serving its shareholders as a REIT out of New York City. Eschewing brick and mortar properties for real estate mortgage underwriting, origination, management, and also invests in third party mortgage debt, mortgage related securities, mezzanine loans, and preferred stocks.
As of its February 22nd earnings call, 49% of the company’s portfolio, which is invested in the multifamily sector, was 100% performing. The company also disclosed a new $500 million credit facility with Goldman Sachs, as well as a recently closed new HSBC financing arrangement.
BlackRock TCP Capital Corp.
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- Stock #4: BlackRock TCP Capital Corp. (NASDAQ:TCPC)
- Yield: 12.15%
- Shares for $5,000: 446
- Annual Passive Income: ~$607.50
A separate, wholly-owned subsidiary of the mammoth $10 trillion AUM multinational asset manager, BlackRock Inc., BlackRock TCP Capital Corp. is a fund that invests in high yielding equity and debt instruments in a wide range of industrial sectors, including, but not limited, to: communications, wireless, telecom, media, television, energy, insurance, oil and gas exploration, biotechnology, freight air transportation, and a variety of others.
BlackRock TCP Capital Corp normally invests between $10 million and $35 million in a company, and prefers ownership stake investments. Despite the connection with its New York City parent company, BlackRock TCP Capital Corp is a separately operating entity located in Santa Monica, CA, and has independent governance and latitude in its decision making.
Manhattan Bridge Capital, Inc.
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- Stock #5: Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
- Yield: 9.64%
- Shares for $5,000: 1,054
- Annual Passive Income: ~$482.00
Great Neck, NY real estate finance company Manhattan Bridge Capital, Inc. has been in business for the past 25 years (founded in 1989). Although registered as a Real Estate Investment Trust, Manhattan Bridge Capital, Inc., its business is almost exclusively as a hard money lender in the mortgage origination, underwriting and servicing arena. Primarily operating in New York, New Jersey, Connecticut and Florida, the company’s real estate financing use-of-proceeds include both residential and commercial properties, for acquisition, renovation, and restoration on a short-term, non-banking basis – all collateralized by real estate assets or secured by personal guarantees.
While Manhattan Bridge Capital has been consistent in its dividend payouts since 2013, the company has lagged behind its peers when it comes to profitability and growth metrics. Vigilance on any news announcements that can affect the company’s future prospects should be noted.
Big 5 Sporting Goods Corporation
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- Stock #6: Big 5 Sporting Goods Corporation (NYSE:BGFV)
- Yield: 9.52%
- Shares for $5,000: 952
- Annual Passive Income: ~$476.00
Founded in 1955 and based out of El Segundo, CA, Big 5 Sporting Goods Corporation has a chain of 434 sporting goods retail store outlets. Their stores can be found in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming.
In addition to athletic merchandise and footwear, such as sneakers, outdoor boots, skates, cleats, et. al, Big 5 Sporting Goods also provides competitive team sports equipment, uniforms, accessories and training gear, as well as fishing, hunting, camping, and fitness equipment and support hardware.
Additionally, Big 5 has a collection of its own private label brand merchandise under the names: Golden Bear, Pacifica, Harsh, and Rugged Exposure.
Bottomline
| Company: | Yield: | Annual Income: |
| Eagle Point Credit Company, Inc. (NYSE:ECC) | 19.09% | $ 954.00 |
| Orchid Island Capital, Inc. (NYSE:ORC) | 16.94% | $ 847.00 |
| TPG RE Finance Trust (NYSE:TRTX) | 14.01% | $ 700.50 |
| BlackRock TCP Capital Corp. (NASDAQ:TCPC) | 12.15% | $ 607.50 |
| Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) | 9.64% | $ 482.00 |
| Big 5 Sporting Goods Corporation (NYSE:BGFV) | 9.52% | $ 476.00 |
| Total: | $4,076.00 |
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