Want $4,000 per Year in Passive Income? Invest Just $2,500 in These High-Paying Dividend S
November 30, 2025
Can building wealth be exciting? Absolutely, it can. You can invest a mere $2,500 per asset in a handful of stocks and exchange traded funds (ETFs) to generate a surprisingly robust income stream.
Is it possible to get $4,000 in passive income, though? It could be possible if you pick out five stocks/ETFs and buy $2,500 worth of each of them, for a total investment of $12,500.
Then, to earn $4,000 per year, you would need to achieve an average yield of at least $4,000 / $12,500 or 32%. This can be done with two high-yield stocks and three Roundhill ETFs.
Importantly, these assets should represent income-positive businesses, either directly through shares or indirectly through derivatives. Granted, there’s always the risk that the yields of these assets could get cut. Still, with that risk in mind, you could try out this passive income master plan to potentially collect $4,000 per year.
Oxford Lane Capital Corp. (OXLC)
Jumping right into our plan, you can start with a $2,500 allocation into shares of Oxford Lane Capital Corp. (NASDAQ:OXLC). To sum it up, Oxford Lane Capital Corp. is an investment company that principally focuses on collateralized loans.
First and foremost, Oxford Lane Capital Corp. should be sufficiently capitalized to pay out its dividends. On that topic, we can observe that Oxford Lane Capital Corp. reported $81.35 million in GAAP-measured net investment income in 2025’s third quarter. Therefore, the company doesn’t appear to be in imminent danger from a financial standpoint.
Regarding our target of an average annual yield of at least 32%, OXLC stock will put you on the right track. At the moment, Oxford Lane Capital Corp. provides a forward annual dividend yield of 34.43%, so we’re definitely in the ballpark and swinging for the fences.
Icahn Enterprises (IEP)
Now, here’s another interesting pick for yield hunters. Hedge-fund billionaire Carl Icahn is the founder and chairman of Icahn Enterprises (NASDAQ:IEP), a diversified holding company that delves into energy, real estate, consumer goods, pharmaceuticals, and more.
Financially speaking, Icahn Enterprises should be able to pay its dividends for the foreseeable future. Notably, in the third quarter of 2025, Icahn Enterprises recorded $287 million in net income attributable to the company.
You may be wondering about the annual yield, though. As it turns out, Icahn Enterprises provides a forward annual dividend yield of 26.11%. That’s below our average yield target of 32%, but we’ll now add a few Roundhill funds to boost your earning prospects.
Three ETFs to Pump Up Your Passive Income
The next part of the plan is to invest $2,500 into three different high-yield ETFs. These funds, offered by Roundhill, use shares and derivatives known as swaps to generate weekly cash distributions for investors.
We’re only going to deal with financially firm businesses today, and it’s safe to say that Microsoft (NASDAQ:MSFT) fits that description. Using shares and swaps, the Roundhill MSFT WeeklyPay ETF (CBOE:MSFW) aims for “enhanced returns corresponding to 120% of” Microsoft stock’s performance.
Like the other ETFs I’ll mention today, the Roundhill MSFT WeeklyPay ETF delivers cash payments on a weekly basis. Furthermore, the MSFW ETF advertises a 39.61% expected annual distribution rate, so now we’re back on track to earn $4,000 per year in total.
Next in line is the Roundhill NFLX WeeklyPay ETF (CBOE:NFLW). This utilizes similar shares-and-swaps trading strategies to MSFW, but it’s based on the price moves of Netflix (NASDAQ:NFLX) stock instead of Microsoft stock.
Netflix is the U.S. king of content streaming, so this may de-risk the NFLW ETF somewhat. In any case, it’s surely hard to resist the Roundhill NFLX WeeklyPay ETF’s 47.17% yearly distribution rate.
Additionally, you could purchase a $2,500 share stake in the Roundhill BABA WeeklyPay ETF (CBOE:BABW). This is yet another weekly-paying Roundhill fund, and as you probably figured out, it’s based on Alibaba (NYSE:BABA) stock.
It’s not a terrible idea to diversify your focus beyond U.S. borders, and Alibaba is truly a global powerhouse in the e-commerce arena. Besides, the Roundhill BABA WeeklyPay ETF currently has an eye-catching distribution rate of 34.95%.
Ready, Set, Grow
Since you know the plan now, the math is quite easy to follow. Adding up the yields of the five aforementioned stocks/ETFs and dividing by five, we end up with 36.45%.
Hence, we’re comfortably above our goal of achieving a 32% annual yield, or income of $4,000 on a $12,500 total investment. So, if you’re prepared to accept the risks, including possible dividend cuts and share-price volatility, feel free to boost your account’s rapid-growth potential with OXLC, IEP, MSFW, NFLW, and BABW.
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