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

"Is it possible to get $4,000 in passive income, though? It could be possible if you pick out five stocks/ETFs and buy $2,500 worth of each of them, for a total investment of $12,500. Then, to earn $4,000 per year, you would need to achieve an average yield of at least $4,000 / $12,500 or 32%. This can be done with two high-yield stocks and three Roundhill ETFs. Importantly, these assets should represent income-positive businesses, either directly through shares or indirectly through derivatives."

"First and foremost, Oxford Lane Capital Corp. should be sufficiently capitalized to pay out its dividends. On that topic, we can observe that Oxford Lane Capital Corp. reported $81.35 million in GAAP-measured net investment income in 2025's third quarter. Therefore, the company doesn't appear to be in imminent danger from a financial standpoint. Regarding our target of an average annual yield of at least 32%, OXLC stock will put you on the right track."

Allocating $2,500 to each of five stocks or ETFs (total $12,500) can potentially yield $4,000 annually if the portfolio achieves an average 32% yield. The plan combines two high-yield stocks and three Roundhill ETFs that represent income-positive businesses, either through shares or derivatives. Yields can be cut, so investors should account for that risk. Oxford Lane Capital Corp. (OXLC) focuses on collateralized loans and reported $81.35 million in GAAP-measured net investment income in 2025's third quarter, suggesting sufficient capitalization to pay dividends. OXLC currently provides a forward annual dividend yield of 34.43%. Icahn Enterprises (IEP) is a diversified holding company founded and chaired by Carl Icahn.

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