Got $1,000? Here's How to Turn It Into a Lucrative Passive Income Stream
Rising interest rates have made turning idle cash into passive income much easier. Unfortunately, many of the most attractive low-risk options, like T-bills and bank CDs, have short durations of less than a year. Because of that, they're not durable options for those seeking long-term passive income streams.
However, for those willing to take on a bit more risk, many attractive investment opportunities could turn $1,000 into a lucrative and lasting passive income stream. Among the more compelling options these days are pipeline stocks. They offer high-yielding dividends backed by long-term contracts and government-regulated rate structures. Because of that, they should be able to sustain and grow their payouts. Three top choices to consider are Oneok (NYSE: OKE), Kinder Morgan (NYSE: KMI), and Williams (NYSE: WMB).
Oneok has a long history of paying dividends. The pipeline company has delivered a quarter-century of dividend stability and growth. It has increased its payout at a 12% compound annual rate since 2000, including by 2% earlier this year. Oneok's dividend currently yields 5.9%. That could turn $1,000 into $59 of annual passive income. For comparison, a $1,000 investment in an S&P 500 Index fund would only produce about $17 of yearly dividend income.
Source Fool.com
