When your account size grows, so does your earning potential. With a total cash account of $200,000, you can invest $50,000 in four stocks or exchange traded funds (ETFs) and possibly collect $50,000 worth of annual passive income.
It’s not magic or pure luck. Rather, it’s a matter of finding a couple of dividend champion stocks and some high-yield ETFs. To receive $50,000 in annual dividends/distributions from a $200,000 total investment, you’ll need an average yield of at least $50,000 / $200,000, or 25%.
Getting there will require some risk tolerance, but that’s to be expected when you’re earning big annual rewards in the form of cash payouts. Hence, if you’re ready, we’ll begin with two great stocks for dividend enthusiasts.
TriplePoint Venture Growth BDC Corp. (TPVG)
Today’s first stock selection is TriplePoint Venture Growth BDC Corp. (NYSE:TPVG). This firm provides debt financing primarily to venture growth stage companies.
An important consideration is whether TriplePoint Venture Growth BDC Corp. is income-positive, as this will provide an indication of whether the company can afford to pay its dividends. As it turns out, TriplePoint Venture Growth BDC Corp. passes that test as it reported $10.31 million in third-quarter 2025 net income.
Furthermore, TriplePoint Venture Growth BDC Corp. shares carry a forward annual dividend yield of 16.95%. That’s not as high as our average overall yield goal of 25%, but we’ll get caught up soon enough.
FS KKR Capital Corp. (FSK)
The first part of the plan is to invest $50,000 into TPVG stock. Now, the second step is to buy $50,000 worth of FS KKR Capital Corp. (NYSE:FSK) shares.
FS KKR Capital Corp. is a firm that offers credit solutions to private middle-market U.S. companies. It’s encouraging to know that the company is income-positive as it recorded $159 million in Q3 2025 net investment income.
In addition, FS KKR Capital Corp. pays an enticing forward annual dividend yield of 17.36%. Although we’re still below our 25% average yield objective, we can catch up by adding a couple of ETFs into the mix.
Roundhill to the Rescue
The final part of the plan is to invest $50,000 into one Roundhill ETF and $50,000 into another Roundhill ETF. That way, we’ll easily surpass a 25% overall yield and thereby earn $50,000 in yearly cash payments (assuming there are no dividend/distribution yield cuts).
The following two Roundhill funds pay out their cash distributions every week, which is a nice feature. To sum it up, these ETFs use sophisticated trading strategies involving shares and swaps to derive passive income for the investors.
To kick it off, we’ll check out the Roundhill AMZN WeeklyPay ETF (CBOE:AMZW). This ETF pays weekly distributions and aims for “enhanced returns corresponding to 120% of” Amazon (NASDAQ:AMZN) stock’s weekly price performance.
Granted, there’s volatility risk as AMZW’s share price can fluctuate. On the other hand, it’s surely hard to resist the Roundhill AMZN WeeklyPay ETF’s 29.16% annual distribution rate.
Our second fund to consider for a $50,000 allocation is the Roundhill GOOGL WeeklyPay ETF (CBOE:GOOW). This basically works in the same way as the AMZW ETF, except it’s based on the price moves of Alphabet (NASDAQ:GOOGL) stock.
Again, you can look forward to weekly cash payouts with this Roundhill fund. And, to get us much closer to our 25% overall yield objective, we can observe that the Roundhill GOOGL WeeklyPay ETF pays an annual distribution rate of 49.48%.
Can You Handle the Risks?
Before we calculate our final average yield, we need to consider the risks involved with this passive income plan. While it’s “easy” to sit back and collect the distributions, you might be uncomfortable with the share-price volatility of TPVG, FSK, AMZW, and GOOW.
Moreover, the annual yields observed today aren’t guaranteed to hold in the future. Any or all of the stated yields are subject to reduction or elimination at any time, so bear that in mind.
At long last, we’re ready to determine if we achieved our goal of a 25% average annual dividend/distribution yield across all four stocks/ETFs. To calculate this, we only need to add up the four annual yields and divide by four.
The average yield is 28.24%, so we cleared the bar and found a way to potentially collect $50,000 per year from a $200,000 total investment. With the aforementioned risks in mind, you’re now equipped to bring home regular cash payments and hopefully build up your long-term portfolio.
