All It Takes Is $10,000 in Each of These 3 Dividend Stocks for $1,700+ a Year in Passive Income
Do you need a ton of money to generate passive income? Nope — at least not if you invest in dividend stocks.
Of course, the more money you have to invest, the more passive income you can make. However, an initial investment of $30,000 — $10,000 in each of three high-caliber dividend stocks — could make you over $1,700 per year in passive income.
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1. Enterprise Products Partners
Enterprise Products Partners (EPD -0.79%) is a leading midstream energy company that operates more than 50,000 miles of pipeline. A $10,000 investment in pipeline stock generates roughly $590 per year, thanks to Enterprise’s 5.9% distribution yield.
Enterprise Products Partners
Today’s Change
(-0.79%) $-0.30
Current Price
$37.75
Key Data Points
Market Cap
Day’s Range
$37.75 – $38.19
52wk Range
$30.01 – $40.16
Volume
2.5M
Avg Vol
3.3M
Gross Margin
12.77%
Dividend Yield
5.84%
That passive income should be highly reliable. Enterprise Products Partners has increased its distribution for 28 consecutive years. It has ample cash flow from operations to cover the distributions at current levels. Enterprise also has a clear growth runway, driven by rising demand for natural gas produced in the U.S.
2. Realty Income
Realty Income (O +0.24%) ranks among the world’s largest real estate investment trusts (REITs). It owns 15,588 properties leased to 1,798 clients representing 92 industries. With a forward dividend yield of around 5.2%, an initial investment of $10,000 in Realty Income would generate $520 in annual income.
Today’s Change
(0.24%) $0.15
Current Price
$62.51
Key Data Points
Market Cap
Day’s Range
$62.16 – $62.91
52wk Range
$55.86 – $67.94
Volume
4.8M
Avg Vol
5.8M
Gross Margin
50.82%
Dividend Yield
5.18%
Even better, you should be able to count on the REIT’s dividends to both flow and grow. Realty Income has increased its dividend for 31 consecutive years and has paid a dividend for 673 consecutive months.
3. Verizon Communications
Verizon Communications (VZ +0.15%) is a well-known name to many investors. It’s the world’s seventh-largest communication services company by market cap. Verizon provides wireless and internet services to millions of customers. And it’s a favorite among income investors, with a forward dividend yield that tops 6%. An investment of $10,000 would give you over $600 in passive income per year.
Today’s Change
(0.15%) $0.07
Current Price
$47.06
Key Data Points
Market Cap
Day’s Range
$46.09 – $47.06
52wk Range
$38.39 – $51.68
Volume
20.5M
Avg Vol
27.8M
Gross Margin
45.71%
Dividend Yield
5.94%
Although Verizon doesn’t have quite the track record of Enterprise Products Partners and Realty Income, the telecom giant has increased its dividend for 20 consecutive years. Its free cash flow continues to grow, boosting the chances this streak will continue.
Putting it together
The math is simple: Investing $10,000 each in Enterprise Products Partners, Realty Income, and Verizon should give you roughly $1,710 in passive income over the course of one year. That amount could easily be higher since all three companies are likely to grow their dividends.
To be sure, any or all of these stocks could decline, even if only temporarily. But if you’re seeking passive income, these dividend stocks look like great picks.
Keith Speights has positions in Enterprise Products Partners, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.
