Owning a rental property is a popular method that people consider when looking for ways to generate passive income. That goal has become even more mainstream as platforms like Airbnb have grown.

Yet it takes a lot of effort to create "passive" income from rentals, whether it is performing regular repairs and maintenance, dealing with tenants, or working to keep the property occupied.

Stock market investors have much easier income options in the form of dividend stocks. These investments are truly passive in that you simply lay out cash and then collect quarterly payouts, which tend to rise with each passing year.

With those benefits in mind, let's look at a few attractive dividend giants that can get you more than $1,000 in annual income combined starting in year 1.

Put some cash into Coca-Cola

Coca-Cola (KO) has nearly all the factors that investors look for when seeking steady dividend growth. It is the market share leader in a large, expanding industry. And Coke capitalizes on that premium position, as illustrated by attractive financial metrics like profit margin and cash flow. Compare the beverage giant's 28% operating profit against rival PepsiCo's 14% rate, for example.

Coke is adept at converting most of its earnings into the resources that fund a rising dividend payment. Free cash flow landed at $10 billion last year, translating into nearly 25% of sales.

On the downside, investors are seeing weaker demand trends recently as consumer spending patterns shift back toward pre-pandemic norms. Most Wall Street pros are looking for Coke's sales to be flat this year, in fact.

In exchange for that short-term pressure, you can own a Dividend King at a relative discount, given that the stock underperformed the Dow Jones Industrial Average over the past year. And with Coke's 3.2% dividend yield as of this writing, a $20,000 investment in the stock would generate about $640 of annual passive income.

Garmin will lead the way

In the consumer device world, Garmin (GRMN 0.29%) gets relatively little attention compared to massive competitors like Apple. But this GPS device specialist deserves a spot on your dividend watch list all the same.

Garmin is growing faster than Apple, having boosted sales by 8% in 2023 compared to Apple's modest declines. Garmin's newest introductions in niches like smartwatches and fitness trackers proved popular even as consumer spending shifted away from these areas. "We are very pleased with our 2023 financial performance," CEO Cliff Pemble told investors in late February.

The company is highly profitable, even though its margins have contracted from their pandemic records. Garmin converted more than 20% of sales into operating profit last year and is targeting a similarly strong result for 2024. Keep in mind that, unlike Coca-Cola, Garmin isn't automatic about boosting its dividend with each passing year. Those hikes tend to be modest, given the company's focus on growth.

You'll still get a hefty yield from this consumer device stock (2% compared to Apple's 0.6%). Put roughly $20,000 into this investment, then, and you'll get $400 in annual passive income to start.

Neither Coke nor Garmin stocks are guaranteed to rise in the next year, and you could see losses simply due to a broader market pullback. However, patient investors can look past volatility like that and focus on the bright outlook for these businesses over the next several years.

In the meantime, electing to have the dividends automatically reinvested will help amplify your returns. And it won't take any effort on your part.