Investing $50,000 in Each of These 5 Stocks Could Make You Over $20,600 in Passive Income in 2026

By Keith Speights | January 06, 2026, 5:04 AM

Key Points

Want a great idea for a New Year's resolution? Generate more passive income this year. As is the case with most New Year's resolutions, though, this one is easier said than done.

However, it's not extremely difficult if you have a significant amount of cash to invest. You'll also require good places to put that cash, but that's the easy part. Investing $50,000 in each of these five stocks could make you over $20,600 in passive income in 2026.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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1. Ares Capital

Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). It has a $28.7 billion portfolio invested in 587 portfolio companies representing 35 industries. Ares Capital's portfolio is significantly more diversified than those of its peer BDCs.

The company's forward dividend yield is roughly 9.4%. A $50,000 investment in Ares Capital would generate passive income of almost $4,700 at that level. The good news is that the BDC seems unlikely to reduce its dividend. Ares Capital has maintained or grown its dividend for 65 consecutive quarters and counting.

2. Energy Transfer LP

Energy Transfer LP (NYSE: ET) is a leading midstream energy company. It operates natural gas, natural gas liquids (NGLs), crude oil, and refined products pipelines throughout the U.S., as well as storage facilities, processing facilities, and terminals.

This limited partnership (LP) offers a distribution yield of around 8%. Buying $50,000 worth of its units should provide a little over $4,000 in passive income this year. The distribution appears to be reliable. Energy Transfer boasts the strongest financial position in its history.

3. MPLX LP

MPLX LP (NYSE: MPLX) is another LP that's a major player in the North American midstream market. Over 10% of the natural gas produced in the U.S. flows through the company's pipelines.

Like Energy Transfer, MPLX pays a distribution that yields roughly 8%. An initial investment of $50,000 should generate around $4,000 in passive income in 2026. The actual amount could be even higher, though. MPLX has increased its distribution by 12.5% in each of the last two years and grew it by 10% in each of the two previous years.

4. Rithm Capital

Rithm Capital (NYSE: RITM) is a real estate investment trust (REIT) with businesses that address multiple aspects of the real estate sector. It owns properties, as traditional REITs do, but also services mortgages and provides private credit.

REITs are similar to BDCs in that they must return at least 90% of profits to shareholders as dividends to be exempt from federal taxes. Rithm Capital has generated substantial profits recently, with its forward dividend yield exceeding 9.1%. A $50,000 investment in the stock would produce passive income of more than $4,500 this year at that level.

5. Verizon Communications

Verizon Communications (NYSE: VZ) is undoubtedly the most well-known name on the list. The telecommunications giant provides wireless services to millions of businesses and consumers worldwide.

There are two things to like about Verizon's dividend. First, the company has increased its dividend for 19 consecutive years. Second, Verizon's forward dividend yield of north of 6.8% is quite attractive. If you invested $50,000 in this telecom stock, you should be able to make a little over $3,400 in passive income in 2026.

A couple of caveats

I'd be remiss if I didn't point out two things about investing $50,000 each in these five stocks. Most importantly, this approach does not create a diversified investment portfolio. Also, there is a possibility that one or more of the companies mentioned could reduce their dividend payouts. That said, if you want to generate significant passive income in 2026, Ares Capital, Energy Transfer, MPLX, Rithm Capital, and Verizon appear to be solid stocks to buy.

Should you buy stock in Ares Capital right now?

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Keith Speights has positions in Ares Capital, Energy Transfer, and Verizon Communications. The Motley Fool has positions in and recommends Ares Capital. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

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