These 5 High-Yield Dividend Stocks Should Make Me $3,000 in Passive Income This Year

Nearly everyone has to work for their money. But too few put their money to work for them. There are plenty of ways to do it. My favorite method is investing in stocks.

Stocks can make you money in a couple of key ways. Their share prices can appreciate. Some also pay dividends. My portfolio currently includes 12 high-yield dividend stocks. But some of them will generate more money for me than others. These five high-yield dividend stocks should make me over $3,000 in passive income this year.

My fabulous five

The top stocks for passive income that I own right now are (listed in alphabetical order):

Data source for current dividend yields: Google Finance.

I initially invested a total of a little over $36,100 in these five stocks. Based on their current dividend payments, they'll generate around $3,050 in income for me in 2023, some of which I've already received. That translates to an average yield of 8.45%. 

Of course, it's possible that I could make more or less than $3,050. Some of the companies could, and almost certainly will, increase their dividends. Perhaps one or two of them could reduce their dividend payout. However, I'm confident that the actual passive income I receive will be more than $3,000.

Also, you might have noticed that my dividend yield based on cost basis, what I paid for the stocks, differs from the current dividend yield quite a bit in some cases. AbbVie especially stands out. The big drugmaker has increased its dividend significantly since I first bought the stock. I initiated a stake in Medical Properties Trust only a few weeks ago. Its share price has fallen since then, boosting its dividend yield.

What I like about these stocks

I initially bought shares of AbbVie because its valuation was attractive. I thought the company had a good strategy for dealing with the then-pending loss of U.S. exclusivity for its top-selling drug Humira. I also liked that AbbVie was on course to become a Dividend King. I still like AbbVie's valuation and post-Humira strategy. And the stock did attain Dividend King status -- just as I expected.

My purchase of Brookfield Infrastructure was made mainly because I believed that the demand for infrastructure would provide a long-term tailwind. I haven't changed my view whatsoever.

I anticipated that Devon Energy would take off as the global economy recovered from the COVID-19 pandemic. That proved to be the right call. I also liked Devon's juicy dividend. Although the stock has lost momentum in recent months with falling oil prices, my hunch is that it will rebound as oil prices rise yet again.

Enterprise Products Partners' steady track record was one of the top draws for me. The midstream energy company has increased its distribution for 24 consecutive years. I also expect that the demand for the natural gas and natural gas liquids that flow through the company's pipelines will increase.

As mentioned, I bought shares of Medical Properties Trust recently. My view is that many investors are focusing too much on the healthcare REIT's short-term headwinds and not on its much better longer-term prospects. I also like Medical Properties Trust's valuation and, of course, its really high dividend yield.

Putting the money to work

What do I plan to do with the $3,000 or so I'll make in dividend income this year from these five stocks? I'll reinvest it. I won't necessarily buy more shares of these five stocks, but it's possible that I could add to my positions in one or more of them. The important thing is that I will definitely put the money to work.