We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found five companies that combined can generate over $5,000 a year in passive income if you invest just $6000 in each stock.
To reach this amount of income, it’s important to invest in ultra-yield dividends.
1. Goldman Sachs BDC, Inc. (NYSE: GSBD)
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Goldman Sachs BDC, Inc. (NYSE: GSBD) is a financial company that mostly invests in middle-market companies. It practices “business development,” which is simply providing financing to established businesses.
The company acts as a lender for these companions. Instead of raising money from a bank, though, it uses the money from its investors (you) to fund these investments.
$6000 invested in the shares at current trading levels would buy 396 shares that would produce $720 in income yearly.
2. Medical Properties Trust, Inc. (NYSE: MPW)
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As the name suggests, Medical Properties Trust, Inc. (NYSE: MPW) is a real estate investment trust that invests in healthcare facilities. They own hospitals and rehab centers worldwide and then lease them out to healthcare operators.
They don’t run the hospitals themselves. Instead, they’re a landlord of medical properties. They focus largely on long-term leases, which help provide a steady income.
$6000 invested in the shares at current trading levels would buy 1363 shares that would produce $1134 in income yearly.
3. Invesco Mortgage Capital Inc. (NYSE: IVR)
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Invesco Mortgage Capital Inc. (NYSE: IVR) is another real estate investment trust. However, they focus on mortgage investments. They invest in mortgage-backed securities and similar assets.
This process allows them to generate income for investors by collecting interest on these investments. The overall goal is to provide a steady stream of income to shareholders, which is exactly what you want in a dividend stock.
$6000 invested in the shares at current trading levels would buy 653 shares that would produce $1110 in income yearly.
4. Abrdn Income Credit Strategies Fund (NYSE: ACP)
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Abrdn Income Credit Strategies Fund (NYSE: ACP) invests in debt investments, generating income for investors. They particularly target loan and debt securities. When choosing what to invest in, they choose options that provide a high level of current income.
However, this also means that they potentially focus on riskier debt that may offer a higher return but carries a greater chance of default. Their main focus is not on capital appreciation, like a traditional trust fund. Some growth is typically there, but it isn’t their main focus.
$6000 invested in the shares at current trading levels would buy 864 shares that would produce $1074 in income yearly.
5. Global Net Lease, Inc. (NYSE: GNL)
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Like many companies on this list, Global Net Lease, Inc. (NYSE: GNL) is a real estate investment trust that purchases commercial properties worldwide. It mostly purchases single-tenant properties and leases on a net lease basis. In other words, tenants are responsible for most of their expenses.
Their properties are in the United States, Western and Northern Europe.
$6000 invested in the shares at current trading levels would buy 794 shares that would produce $1050 in income yearly.
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