We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found six companies that combined can generate over $6000 a year in passive income if you invest just $3000 in each stock.
Many dividend stocks have a high yield, allowing you to make substantial income.
1. BlackRock Energy and Resources Trust (NYSE: BGR)
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BlackRock Energy and Resources Trust (NYSE: BGR) is an investment company focusing on companies’ stocks in the energy sector. Their goal is to provide investors with a total return, utilizing dividends and capital appreciation.
Simply put, they pool investor money to buy stock in energy companies. They’re looking for their stock price to rise and provide dividend payouts.
$3000 invested in the shares at current trading levels would buy 233 shares that would produce $196 in income yearly.
2. Diana Shipping Inc. (NYSE: DSX)
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Diana Shipping Inc. (NYSE: DSX) owns and operates a fleet of dry bulk vessels. These vessels transport commodities, including coal, grain, and iron ore. They travel all over the world. All of their ships are chartered on medium to long-term contracts.
They make money off of the leasing of these vessels.
$3000 invested in the shares at current trading levels would buy 1003 shares that would produce $888 in income yearly.
3. Medical Properties Trust, Inc. (NYSE: MPW)
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Medical Properties Trust, Inc. (NYSE: MPW) is a real estate investment trust that focuses on healthcare facilities. Although it does not operate hospitals directly, it acquires and develops hospitals, rehab centers, and other healthcare buildings.
They lease these properties to hospital professionals, typically under long-term agreements. Therefore, their rent payments are guaranteed.
$3000 invested in the shares at current trading levels would buy 1003 shares that would produce $567 in income yearly.
4. Invesco Mortgage Capital Inc. (NYSE: IVR)
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Invesco Mortgage Capital Inc. (NYSE: IVR) is a real estate investment trust focusing on mortgages. They purchase securities that pool together individual mortgages, allowing them to invest in many mortgages without having to manage them.
They may also invest in individual mortgage loans. Their primary goal is to provide investors with a steady income stream via dividends. They may aim for some stock gain, but this isn’t their main purpose.
$3000 invested in the shares at current trading levels would buy 326 shares that would produce $555 in income yearly.
5. Abrdn Income Credit Strategies Fund (NYSE: ACP)
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Abrdn Income Credit Strategies Fund (NYSE: ACP) is a closed-end fund primarily focusing on loans and bonds. They invest in tons of companies across the world. They look to generate a steady income stream, paid through regular dividends. They often invest in riskier debt, as these yield higher payments.
$3000 invested in the shares at current trading levels would buy 423 shares that would produce $537 in income yearly.
6. Orchid Island Capital, Inc. (NYSE: ORC)
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Orchid Island Capital, Inc.(NYSE: ORC) is a publicly traded finance company that specializes in investing in mortgage-backed securities. These financial assets are created by pooling together a group of individual home mortgages. These securities are often guaranteed by government agencies, which means that there is a low risk of default.
By investing in mortgage-backed securities, Orchid Island Capital generates returns for its shareholders while also helping to provide liquidity to the housing market. The company carefully selects the securities it invests in, using a combination of quantitative analysis and experienced human judgment to identify opportunities that offer attractive risk-adjusted returns.
This company leverages their investments, meaning they may use borrowed money. This process allows them to earn more and lose more.
Their income comes mostly from interest payments on the underlying mortgages.
$3000 invested in the shares at current trading levels would buy 348 shares that would produce $525 in income yearly.
7. TPG RE Finance Trust, Inc. (NYSE: TRTX)
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TPG RE Finance Trust, Inc. (NYSE: TRTX) provides financing to commercial property owners. It invests the money it raises from investors in these properties. Its goal is to provide returns to these investors through a combination of cash and stock prices.
This company manages a large portfolio of commercial mortgage loans.
$3000 invested in the shares at current trading levels would buy 397 shares that would produce $495 in income yearly.
8. BlackRock TCP Capital Corp. (Nasdaq: TCPC)
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BlackRock TCP Capital Corp. (Nasdaq: TCPC) provides lending to middle-market businesses. They primarily provide secured loans to these businesses and mostly focus on established companies.
This company lends to other companies with a history of good performance and strong financials. Therefore, there is a good chance the loan will be repaid.
$3000 invested in the shares at current trading levels would buy 294 shares that would produce $462 in income yearly.
9. AGNC Investment Corp. (Nasdaq: AGNC)
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AGNC Investment Corp. (Nasdaq: AGNC) is a real estate investment trust specializing in the mortgage market. They mostly invest in mortgage-backed securities. They purchase securities that pool together many individual mortgages, mostly those secured by the government. Because of the government backing, the loans are likely to be repaid.
Often, this company uses borrowed money to leverage their returns, but this decision can also increase their risk.
$3000 invested in the shares at current trading levels would buy 311 shares that would produce $459 in income yearly.
10. Ellington Financial Inc. (NYSE: EFC)
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Ellington Financial Inc. (NYSE: EFC) invests in diverse financial assets. They function as an investment manager, using their expertise to manage their diverse portfolio of financial assets. They generate attractive returns, which is why they are on this list.
$3000 invested in the shares at current trading levels would buy 263 shares that would produce $444 in income yearly.
11. Two Harbors Investment Corp. (NYSE: TWO)
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Two Harbors Investment Corp. (NYSE: TWO) is another real estate investment trust focusing on residential mortgages. They purchase securities that pool together individual home mortgages guaranteed by the government. This backing reduces the risk of defaulting.
The company, through one of its subsidiaries, caters to a vast portfolio of conventional loans, which require regular monthly payments from borrowers. The subsidiary is responsible for collecting these payments on behalf of the company. In return for their services, they receive a servicing fee, which is usually a percentage of the total amount collected.
$3000 invested in the shares at current trading levels would buy 236 shares that would produce $438 in income yearly.
12. CION Investment Corporation (NYSE: CION)
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CION Investment Corporation (NYSE: CION) is a business development company that specializes in providing financing to middle-market companies. It primarily invests in secured debt, which is considered less risky because it provides collateral for the lender in the form of the borrower’s assets. In the event of a default, the lender has a higher chance of claiming the borrower’s assets to recover their investment.
As a business development company, CION Investment Corporation is committed to helping companies achieve their goals while also providing value to their investors. They have a team of experienced professionals who work hard to identify investment opportunities that offer attractive returns while also minimizing risk.
Their main goal is to generate income through interest payments and capital appreciation, though they mostly aim to earn interest income.
$3000 invested in the shares at current trading levels would buy 274 shares that would produce $438 in income yearly.
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