How to Generate $10K+ in Passive Income in 2024 with $97,182 Invested in These 3 Funds – The Motley Fool


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“Make $10,000 in Passive Income Next Year: Here’s How You Can Do It In Just 5 Minutes!”

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Could you make an extra $10,000 of passive income in just five minutes? Believe it or not, it’s not out of the question. All you need is an initial investment of $97,182 and the perfect combination of funds to generate passive income for the next year. Discover how you can get started with these three funds and make over $10,000 in passive income by 2024.

Invest in Cohen & Steers Infrastructure Fund
Begin your journey towards passive income success with the Cohen & Steers Infrastructure Fund (UTF 0.38%). With its impressive 8.69% distribution yield, investing one-third of your $97,182 principal (which amounts to $32,394) could potentially rake in $2,815 in passive income for the coming year.

The fund focuses primarily on infrastructure-related assets, including stocks, bonds, and derivatives. Its top holdings include NextEra Energy, American Tower, Southern Company, Transurban Group, and TC Energy. Despite its 12-month price downtrend, the fund’s distributions managed to make its total return higher than most. In fact, the fund’s management believes that infrastructure is an ever-growing asset class that could produce higher total returns in the long run with lower volatility than global equities.

In addition, Cohen & Steers Infrastructure Fund is a closed-end fund (CEF) which comes with a 2.19% expense ratio (paid out of distribution yields). It also leverages itself with up to 30.97% borrowed funds to increase its distributions.

Try DoubleLine Yield Opportunities Fund
If you’re after even higher distribution yields, look no further than the DoubleLine Yield Opportunities Fund (DLY 0.34%). This CEF provides a 9.46% distribution yield, which means that with your $32,394 investment, you could potentially earn $3,064 in passive income next year.

The fund is managed by billionaire Jeffrey Gundlach and his deputy chief investment officer, Jeffrey Sherman, so you can rest assured that your money is in the hands of bond market experts. DLY invests in a wide spectrum of assets with an emphasis on income production. It also uses leverage up to 19.29% to increase its distributions.

Go All in with PIMCO Dynamic Income Opportunities Fund
Go straight for the gold with PIMCO Dynamic Income Opportunities Fund (PDO 1.31%) and its impressive 12.72% distribution yield. Investing the remaining $32,394 from your original $97,182 should generate a tidy $4,121 in passive income in 2024, bringing the total to an encouraging $10,000.

PIMCO Dynamic Income Opportunities Fund plans to generate high total returns with an income-centric approach. Its portfolio holds mortgages, commercial mortgage-backed securities, and high-yield credit assets, all with a leverage ratio of 40.4% (mostly via reverse repurchase agreements).

Two Caveats to Keep in Mind
Though these three funds could certainly make you $10,000 in passive income with an $97,182 initial investment, there are two important elements to keep in mind. First, it’s possible that one or more of the CEFs could reduce their distributions in 2024. Second, their prices could drop enough to offset the income you make from distributions. So, be sure to consider both factors before you invest.

Keith Speights has positions in Cohen & Steers Infrastructure Fund, DoubleLine Yield Opportunities Fund, and Pimco Dynamic Income Opportunities Fund. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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