Want $3,500 per Year in Passive Income? Invest Just $2,500 in These Supersized Dividend Stocks

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November 20, 2025 at 1:37 PM
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Quick Read

  • ZIM Integrated Shipping Services (ZIM) is a long-established business offering a 40% annual dividend yield.

  • Invesco Mortgage Capital (IVR) earns interest income from real estate assets and offers a 18.66% annual yield for dividend seekers.

  • The Roundhill META WeeklyPay ETF delivers a 38.38% distribution rate with strategies based on META stock.

  • If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here

Want more income with less effort and capital? You’ll need to choose your investments carefully, but it’s possible to achieve amazing results with just $2,500 invested in a few stocks and exchange traded funds (ETFs).

To help you along, I’ve picked out three individual stocks and two ETFs. If you allocate $2,500 toward each of them, that would amount to a $12,500 total investment.

Then, if your objective is to receive $3,500 in expected yearly dividends/distributions, you’ll need to achieve an average annual yield of at least $3,500 / $12,500 or 28%. This is easier said than done, but it is possible so let’s take a look at the five high-yielding stocks/funds I’ve selected for you.

ZIM Integrated Shipping Services (ZIM)

Today, we’re coming out swinging with a giant-yield individual stock pick. The first stock to consider is ZIM Integrated Shipping Services (NYSE:ZIM), an Israeli global shipping company that’s been around since 1945.

Impressively, ZIM Integrated Shipping Services operates in more than 90 countries and serves around 33,000 customers. In the third quarter of 2025, ZIM Integrated Shipping Services generated $123 million worth of net income.

It’s helpful to know that ZIM Integrated Shipping Services is a profitable business, as this provides some assurance that the company can afford to pay its dividends. Right now, you can invest $2,500 in ZIM stock and capitalize on the 40.48% forward annual dividend yield.

Already, we’re above the targeted average yield of 28% to achieve $3,500 in yearly passive income. Still, you’ll want to stay diversified in your portfolio, so we’ll move on to the other four stock/ETF picks.

Invesco Mortgage Capital (IVR)

The second individual stock to consider for a $2,500 purchase is Invesco Mortgage Capital (NYSE:IVR), a real estate investment trust (REIT) primarily focused on mortgage-backed securities and other mortgage-related assets. REITs are sometimes known for providing substantial dividend yields, and Invesco Mortgage Capital definitely fits into this category.

Invesco Mortgage Capital consistently collects net interest income from real estate assets, and the company reported $17.6 million in Q3 2025 net income attributable to common stockholders. At the moment, there’s doesn’t appear to be any reason for Invesco Mortgage Capital to slash or eliminate its dividends.

With an 18.66% forward annual dividend yield, Invesco Mortgage Capital stock should entice smart-money dividend seekers. Next up, we’ll add three ETFs to help keep our average yield above the 28% mark.

Raise the Bar With Three Ultra-Yield ETFs

Buying $2,500 worth of each of these funds should, assuming their yields aren’t reduced, bring you closer to the goal of $3,500 in annual passive income. Be aware, though, that these ETF picks involve an elevated level of risk.

We’ll kick off our trio of funds with the Roundhill META WeeklyPay ETF (CBOE:METW). Offering weekly cash distributions, the METW ETF targets “enhanced returns corresponding to 120% of” the weekly performance of Meta Platforms (NASDAQ:META) stock.

The fund trades META stock shares as well as sophisticated derivatives known as swaps. Certainly, Meta Platforms stock has performed well over time. Therefore, it could make sense to take advantage of the Roundhill META WeeklyPay ETF’s eye-catching 38.38% expected annual distribution rate.

Two other stocks that have gained substantial value over the long term are Apple (NASDAQ:AAPL) and Costco Wholesale (NASDAQ:COST). Much like it does for META stock with METW, Roundhill offers ETFs that use shares and swaps to target 120% of the weekly price performance of AAPL and COST.

As you would probably assume, the Roundhill AAPL WeeklyPay ETF (CBOE:AAPW) pays weekly distributions and is centered around the price moves of Apple stock. Currently, the fund’s distribution rate is 29.93%.

Today’s last pick for a $2,500 allocation is the Roundhill COST WeeklyPay ETF (CBOE:COSW), which deploys shares and swaps to aim for returns corresponding to 120% of COST stock’s weekly performance. This is another fund that will cut you a paycheck every week, and the yearly distribution rate for COSW is 35.27%.

Mission Accomplished

When we add up the dividend/distribution yields of ZIM, IVR, METW, AAPW, and COSW and then divide by five, we get an average expected annual yield of 32.54%. Thus, if none of the yields of these assets are reduced, we may anticipate aggregate passive income exceeding our objective of $3,500.

Not only that, but some of the payouts will occur on a weekly basis. So, if you can tolerate a certain level of risk, you can try out this five-asset income-generation plan today.

The New Report Shaking Up Retirement Plans 

You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.

The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.