Passive income 10k per year

 https://finance.yahoo.com/news/want-10-000-passive-income-105000036.html

Want to make $10,000 in passive income this year? Invest roughly $115,000 in these three safe high-yield dividend stocks.

1. Ares Capital

I think Ares Capital (NASDAQ: ARCC) is a great stock to buy with the first one-third of the initial $115,000. The company's dividend yield of 9.49% would enable you to make well nearly $3,638 in passive income this year.

Ares Capital offers such a high yield primarily because of its business structure. As a business development company (BDC), it must return at least 90% of its income to shareholders in the form of dividends to be exempt from federal taxes.

Of course, the company must generate plenty of income in the first place to have enough to pay dividends. That's not a problem for Ares Capital. It generated net income of over $1.5 billion last year based on generally accepted accounting principles (GAAP), more than doubling its 2022 total.

Ares Capital has paid a dividend every quarter for 14 years with no cuts. The BDC's highly diversified portfolio and strategy of focusing on the upper end of the middle market lowers its risk level. CEO Kipp deVeer also recently confirmed that increasing numbers of large, high-quality companies are coming to Ares Capital for financing because of "the stability that we provide through market cycles."

2. Energy Transfer

Investing another $38,333 (one-third of the initial $115,000) in Energy Transfer (NYSE: ET) could also enable you to rake in a boatload of passive income. The midstream energy provider pays a distribution that yields 8.93%. That's enough to make you over $3,420 this year.

Those distributions should be highly dependable. Energy Transfer's earnings jumped 15% year over year in the fourth quarter of 2023 to $1.3 billion. The company had around $970 million in cash flow left over in Q4 after paying its distributions.

I like that Energy Transfer is investing in growth. The company closed on its acquisition of Crestwood Equity Partners in November 2023. Thanks to this deal, Energy Transfer now operates more than 125,000 miles of pipeline in the U.S.

I also like that the company's management has plenty of skin in the game. Roughly 11% of Energy Transfer's units are owned by executives and independent board members. That's more than five times greater insider ownership than its peers.

3. Enterprise Products Partners

There's another ultra-high-yield midstream energy stock that can make you a lot of money. Enterprise Products Partners (NYSE: EPD) boasts a distribution yield of 7.72%. Investing the final one-third of the initial $115,000 would generate close to $2,960 in passive income in 2024.

Enterprise Products Partners has a lot in common with Energy Transfer. Both companies operate extensive pipeline networks. Both also own other midstream energy assets, including storage facilities and terminals.