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These 5 Stocks Will Make Me More Than $3,000 in Passive Income This Year

By Keith Speights – Feb 27, 2022 at 5:52AM

Key Points

  • Dividend stocks provide an easy way to generate recurring passive income.
  • My positions in AbbVie, Devon, Brookfield Infrastructure, Innovative and Industrial Properties, and Pfizer should make me well over $3,000 this year in dividend income.

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And they have solid long-term growth prospects.

Easy money. It might seem like an elusive dream. However, investors actually have plenty of opportunities to make money without expending a lot of effort.

Dividend stocks especially stand out as an easy way to generate recurring income. And you don't have to give up on opportunities for growth with some dividend stocks. I can personally attest to this. These five stocks have solid long-term growth prospects and will make me over $3,000 in passive income this year.

A smiling person sitting on a sofa.

Image source: Getty Images.

1. AbbVie

I own 117 shares of AbbVie (ABBV 0.28%). The big drugmaker currently pays a dividend that totals $5.42 on an annualized basis. That means that my stake in AbbVie should make me a little over $634 in income in 2022.

Am I worried that AbbVie's top-selling drug, Humira, faces the loss of exclusivity in the U.S. next year? Not at all. Humira's sales will sink but won't evaporate. AbbVie has other drugs in its lineup that should enable the company to quickly return to growth. 

2. Brookfield Infrastructure

This one is a little complicated. Brookfield Infrastructure Partners (BIP -3.95%) (BIP) and Brookfield Infrastructure Corporation (BIPC -2.56%) (BIPC) share the same underlying business. I initially bought BIP a few years ago but received shares of BIPC when it was created to attract investors who wanted to avoid the tax hassles associated with limited partnerships.

My portfolio now includes 259 shares of BIP and 26 shares of BIPC. Both stocks pay a dividend of $2.16 on an annualized basis. Together, they should provide nearly $616 in income for me this year.

Brookfield Infrastructure owns infrastructure assets across the world, including cell towers, data centers, railroads, ports, toll roads, and more. These businesses generate steady and dependable cash flow for funding those dividends. And there are plenty of growth opportunities with infrastructure globally as well.

3. Devon Energy

Devon Energy (DVN -0.35%) offers a fixed-plus-variable dividend that the company expects will yield around 8% this year. Based on this estimate, my 260 shares of the energy stock should make me in the ballpark of $1,140 in dividend income in 2022.

Could the variable portion of Devon's dividend be lower than anticipated? Maybe, but I doubt it. The company uses up to 50% of its excess free cash flow for its variable dividend. With the current market dynamics in the oil and gas industry, Devon should boost its free cash flow by at least 70% this year.

4. Innovative Industrial Properties

I expect to receive another $318 in dividends from my 53 shares of Innovative Industrial Properties (IIPR -1.01%) in 2022. That amount could be even higher, considering that the cannabis-focused real estate investment trust (REIT) frequently increases its dividend. In just the past three years, IIP's dividend payout has more than tripled.

This is a stock that's also likely to deliver solid gains. IIP makes its money by buying properties from cannabis operators then leasing the properties back to the operators. The more properties it has, the more revenue IIP makes. The company added 31 properties since Oct. 1, 2021, increasing the total properties in its portfolio by nearly 42%.

5. Pfizer

Pfizer (PFE 1.90%) plans to pay quarterly dividends that will total $1.60 this year. My 216 shares of the big pharmaceutical company should make me nearly $346 in dividend income.

I think the prospects that Pfizer's share price will move higher this year also look pretty good. The stock currently trades at only 7.5 times expected earnings. Pfizer's official guidance is for total revenue of around $100 billion in 2022. But the company appears to be really lowballing its outlook for the sales of COVID-19 pill Paxlovid. My hunch is that the drug will make a lot more than $22 billion -- and provide some nice catalysts for Pfizer with its quarterly updates this year. 

Adding it up

Combined, these five stocks should give me passive income of around $3,050 in 2022. In case you were wondering, my combined annual yield tops 4.5%.

I didn't buy these stocks solely because of their dividends. I think the companies have solid long-term growth prospects as well. But to make over $3,000 this year without doing anything -- that's easy money.

Keith Speights owns AbbVie, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Devon Energy, Innovative Industrial Properties, and Pfizer. The Motley Fool owns and recommends Innovative Industrial Properties. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, and Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

Stocks Mentioned

AbbVie Stock Quote
AbbVie
ABBV
$161.63 (0.28%) $0.45
Pfizer Stock Quote
Pfizer
PFE
$51.08 (1.90%) $0.95
Devon Energy Stock Quote
Devon Energy
DVN
$68.28 (-0.35%) $0.24
Brookfield Infrastructure Partners Stock Quote
Brookfield Infrastructure Partners
BIP
$36.03 (-3.95%) $-1.48
Innovative Industrial Properties Stock Quote
Innovative Industrial Properties
IIPR
$119.99 (-1.01%) $-1.22
Brookfield Infrastructure Corporation Stock Quote
Brookfield Infrastructure Corporation
BIPC
$45.68 (-2.56%) $-1.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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