Want $8,665 A Year In Passive Income, Invest $25,000 In These High Yield Stocks

One of the best ways to build wealth is with dividend stocks.

Look at Realty Income (NYSE:O), for example.

The real estate investment trust (REIT) has been paying out a monthly dividend for 30 years. Its latest dividend of $0.2685 per share will be paid on June 13.

Annualized, that’s a $3.222 per share dividend.

Assuming you invest $25,000 in Realty Income, you’d own just over 443 shares. That multiplied by a $3.222 annualized dividend would hand you a passive income of just over $1,427.

That’s just one example. There are hundreds more. If you were to invest $25,000 into each of the stocks below, you could earn an additional $8,665 this year.

Coca-Cola

With $25,000, you can take ownership of 350 shares of Coca-Cola (NYSE: KO) – which currently yields $1.97 a year. That will hand you a yearly dividend of $689.50 a year.

Better, you can make even more money from future KO stock appreciation – especially with recent stock upgrades. For example, Barclays just raised its price target on KO to $73 with an overweight rating. The firm cites brand popularity among investors and strong earnings.

BNP Paribas analysts also say that as compared to other consumer peers, Coca-Cola continues to hit on all cylinders and stands out fundamentally within the group. Plus, the company is still admired by Warren Buffett.

“At 94 years of age, I’ve been able to drink whatever I like to drink,” he stated as he picked up one of his Coke cans. Buffett reaffirmed his commitment to Coca-Cola as a core Berkshire holding, referencing how the firm has been confident in keeping Coca-Cola one of Berkshire’s largest positions, as noted by Seeking Alpha.

Southwest Airlines 

With $25,000, you can take ownership of 744 shares of Southwest Airlines (NYSE: LUV) – which currently yields 72 cents a year. That will hand you $535.68 in yearly income.

Helping, insiders have been buying stock.

On April 28, David Hess paid $200,000 for 7,500 Southwest shares, an average price of $26.52. On April 29, board member Pierre Breber paid $268,900 for 10,000 Southwest shares, an average price of $26.89 each. Board member Gregg Saretsky paid $100,200 for 3,670 shares at an average price of $27.29 each.

Analysts at Jefferies just upgraded LUV to a hold rating, noting:

“Southwest is adopting major data-driven strategy changes that we agree with, including greater cabin segmentation with paid assigned and extra legroom seats, redeye flying, international partnerships, rationalized capex, and fleet monetization.”

In addition, analysts at Deutsche Bank also upgraded the stock to a buy with a $40 price target. The firm believes the stock could see even more gains on the heels of Southwest Airlines’ deal with Elliott Investment Management.

“Southwest is in the middle of the largest transformation in company history and we are confident that its new board and management team will execute its transformation plan with considerable success,” added Deutsche Bank.

AGNC Investment 

With $25,000, you can take ownership of 2,747 shares of AGNC Investment (NASDAQ: AGNC)  – which currently yields $1.44 a year. That will hand you a yearly dividend of $3,955.68.

AGNC Investment provides private capital to the U.S. housing market. It has also paid solid monthly dividends for years. And it provides private capital to enhance liquidity in the residential real estate mortgage markets and, in turn, facilitate home ownership in the United States. In addition, the company invests in agency residential mortgage-backed securities (agency RMBS) on a leveraged basis.

We should also note that AGNC buys debt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the GSEs), or by a United States Government agency, such as the Government National Mortgage Association.

Annaly Capital Management

With $25,000, you can take ownership of 1,315 shares of Annaly Capital Management (NYSE: NLY) – which currently yields $2.65 a share per year. That will hand you a yearly dividend of $3,484.75, which isn’t a bad payout at all.

Annaly Capital is involved in the mortgage finance business.

The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities.

Helping, earnings have been solid. Its first-quarter EPS for distribution was 72 cents, which exceeded analyst expectations of 70 cents.

Also, as noted by CEO and Co-Chief Investment Officer David Finkelstein, “We were pleased to deliver a 3% economic return in the first quarter, as well as an increase to our common stock dividend, with each of our three investment strategies contributing positively to our return.”

The post Want $8,665 A Year In Passive Income, Invest $25,000 In These High Yield Stocks appeared first on 24/7 Wall St..