Want $4,000 per Year in Monthly Passive Income? Invest Just $2,500 in These Dividend Stocks

Core Insights - The article discusses investment strategies to generate passive income through high-yield stocks and ETFs, emphasizing that significant returns can be achieved with relatively small investments [3][6]. Investment Opportunities - Eagle Point Credit Company (ECC): Generated $52 million in total investment income in Q3, with a forward annual dividend yield of 29.79%. The company has a consistent track record of paying monthly dividends and plans to continue this practice into 2026 [5][8][9]. - Horizon Technology Finance Corporation (HRZN): Originated $3.8 billion in venture loans to over 360 companies, offering a forward annual dividend yield of 20.5%. The company reported $14 million in net investment income for Q3 2025, indicating financial stability for continued dividend payments [10][11]. ETFs for Income Generation - YieldMax Single-Stock ETFs: These ETFs, including those for Microsoft (MSFO), Exxon Mobil (XOMO), and PayPal (PYPY), offer expected annual distribution rates ranging from 38.02% to 52.69%. They utilize options-trading strategies to achieve high yields and provide weekly cash distributions [14][15][17]. - The combination of ECC, HRZN, and three YieldMax ETFs can potentially raise the average yield to 37.23%, allowing for over $4,000 in annual income from a $12,500 investment [18]. Summary of Financial Metrics - Eagle Point Credit Company: Q3 GAAP net income of $15.5 million, with a total investment income of $52 million [8]. - Horizon Technology Finance Corporation: Q3 net investment income of $14 million, indicating a solid financial position [10].