Generating a consistent passive income stream doesn't have to be complicated. While rental properties require active management, dividend-paying stocks offer a hands-off approach that can provide a reliable source of income.
By investing approximately $31,000 across these three high-yield stocks, you could secure around $3,000 in annual dividend income, offering the potential for steady cash flows in the future.
- AT&T: A 6.82% Yield
AT&T (T -1.13%) has simplified its operations by spinning off DirecTV and WarnerMedia, positioning itself as a focused telecom business once again. Despite the loss of pop culture references, income investors can still benefit from its attractive dividend yield. With an investment of $14,700, you can expect $1,000 per year in annual dividend income. Steady growth in cash flows from phone and internet subscribers suggests the possibility of future dividend raises. AT&T generated $13.6 billion in free cash flow over the past year, and its recent streamlining efforts have contributed to a 9% year-over-year increase in first-quarter operating income. For income investors seeking a high yield and potential dividend growth, AT&T appears to be a promising choice.
- Medical Properties Trust: A 15.1% Yield
For investors seeking immediate high yields, Medical Properties Trust (MPW 2.24%) is a real estate investment trust (REIT) that owns a portfolio of around 444 hospitals and related facilities. REITs are attractive to income-seeking investors due to their tax advantages and dividend obligations. Although Medical Properties Trust has not raised its dividend recently, its stock price has declined significantly, resulting in an enticing yield. With an investment of just $6,700, you could receive $1,000 in annual dividend income. The company leases out its facilities to operators under long-term net leases, ensuring reliable cash flows. While some tenants have faced challenges, and one did not pay rent in the first quarter, Medical Properties Trust expects sufficient funds from operations (FFO) to cover its dividend. Despite potential risks, the current yield makes this REIT worth considering.
- Ares Capital: A 10.26% Yield
Ares Capital (ARCC 0.32%) operates as a business development company, benefiting from tax advantages similar to REITs. By investing $9,750, you could receive $1,000 in annual dividend income. Ares Capital primarily lends to midsized companies with reliable cash flows, which are often overlooked by large banks. This strategy allows Ares Capital to maintain a wide profit margin. The company's investments primarily collect interest at floating rates, resulting in an average yield increase from 8.1% to 10.9% year over year. In the first quarter, its investment income rose by 46%. While unpaid loans increased slightly, it remains at a manageable level for now. Monitoring this figure in future quarters is advisable.
Investing in these high-yield stocks can provide a pathway to building a reliable passive income stream.
Something strange is happening in our financial system.
According to analysts at UBS, more than 50,000 retail locations could shut their doors in the months ahead.
Already, Walmart, Foot Locker, Bed Bath & Beyond, and Macy's are cutting stores.
And former Home Depot CEO Bob Nardelli recently issued a grim warning:
“We're going to see a lot of bankruptcies. [This is] different than anything I have seen in my 52 years…”
What does it all mean for your family and your money?
Amid all the turmoil predicted by Nardeni and UBS, Prins has found a single firm that could be the canary in the coal mine foreshadowing the next major crisis in America.
All it takes is one look at this troubling chart to see why –
Dr. Prins says:
“This chart tells you everything you need to know about the next crisis in America.
In short, what we're about to see is a currency crisis – but not the kind of currency crisis most folks expect.
This firm – along with many others – will almost certainly go bankrupt as a result.”
According to Dr. Prins, our money is about to change forever… and the overhaul is set to happen in just a few weeks.
To help folks prepare, she's recorded a briefing that explains all the details of what she calls a ‘reset' to our financial system. In it, she lays out all the evidence of this currency crisis, and what you can do to prepare.