Investing

Want $5,000 In Passive Income? Invest $5,000 Into These 5 Dividend Stocks

Kristin Hitchcock

Published: April 25, 2024 8:30 am

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 $5,000 in each stock.

Why It Matters

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Dividend stocks are a great wealth-building tool. They provide a regular cash flow stream on top of any stock appreciation prices. Dividend-paying stocks tend to have reduced portfolio volatility, as the companies are often better established. 

In certain tax brackets, qualified dividends may be taxed at a lower rate than other types of income, such as interest on bonds.

1. United Parcel Service, Inc.

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The United Parcel Service (NYSE: UPS), usually referred to as UPS, is a major American company that provides shipping, receiving, and supply chain management services worldwide. 

They’ve been around since 1907 and are one of the largest delivery chains globally. They’re most known for their reliable ground shipping services. They also have retail locations called UPS Stores, which provide shipping packaging. 

$5,000 invested in the shares at current trading levels would buy 35 shares that would produce $257.95 in income yearly.

2. CVR Partners, LP

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CVR Partners (NYSE: UAN) is a company that makes and sells nitrogen fertilizer in the United States. It mostly produces ammonium nitrate and ammonia, which many farmers commonly utilize. They sell ammonia to industrial and agricultural customers. 

They primarily sell to agricultural customers. However, they also work with retailers and distributors. 

$5,000 invested in the shares at current trading levels would buy 65 shares that would produce $1,730 in income yearly.

3. Berry Corporation

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Berry Petroleum Company (Nasdaq: BRY) is an independent energy company that explores and produces oil and natural gas. It mainly operates in the western United States. Their primary area of operation is the San Joaquin Basin in California, but they also have operations in Utah’s Uintah Basin and Piceance Basin.

For the most part, this company focuses on long-lived oil reserves. 

$5,000 invested in the shares at current trading levels would buy 65 shares that would produce $1,395 in income yearly.

4. Medical Properties Trust, Inc

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Medical Properties Trust (NYSE: MPW) is a real estate investment trust focusing on the healthcare sector. It invests in healthcare facilities like hospitals and clinics. However, it doesn’t own or operate these facilities itself. Instead, it leases them to healthcare operators. These operators are responsible for most of the expenses, not MPT. 

This way, they can collect a steady rental income without managing the hospitals’ day-to-day operations. This is also one of the cheaper ultra-yield dividend stocks.  

$5,000 invested in the shares at current trading levels would buy 1,131 shares that would produce $945 in income yearly.

5. Eagle Point Credit Company Inc.

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Eagle Point Credit Company (NYSE: ECC) primarily invests to generate income for investors. It invests in collateralized loan obligations, focusing on junior debt proportions. 

For this reason, they provide a lot of income to their investors, as that’s their primary goal!

$5,000 invested in the shares at current trading levels would buy 501 shares that would produce $925 in income yearly.