Want $10K in Passive Income Next Year? Here's How to Deploy $122,100 Across 3 High-Yield Dividend Stocks

The Math Behind the Strategy

What if you could turn a five-figure investment into steady five-figure annual returns? That’s precisely what putting $122,100 into three carefully selected dividend stocks could accomplish in 2026. We’re talking about generating roughly $10,000 in reliable passive income—enough to meaningfully supplement your annual cash flow.

The concept is straightforward: identify stocks with strong dividend yields, understand why those payouts are sustainable, and allocate your capital strategically across different sectors. The three stocks below each bring something different to the table.

Ares Capital (NASDAQ: ARCC) – The High Yield Champion

Allocation: $40,700 | Expected Annual Dividend: ~$3,875 | Dividend Yield: ~9.5%

If maximum income is your priority, Ares Capital deserves serious consideration. This business development company (BDC) sports a forward dividend yield hovering around 9.5%—among the highest you’ll find in the dividend-paying universe.

Here’s why the dividend is worth trusting: BDCs must distribute at least 90% of their taxable income to shareholders to maintain tax-exempt status. That’s a structural guarantee. Beyond regulation, Ares Capital has proven its commitment through 65 consecutive quarters of either growing or maintaining its dividend—a 16-year track record that speaks volumes.

The company’s total returns since its 2004 IPO have significantly outpaced both the S&P 500 and the S&P BDC Index, suggesting this isn’t a yield trap masking poor performance.

Energy Transfer LP (NYSE: ET) – The Dividend Growth Story

Allocation: $40,700 | Expected Annual Dividend: ~$3,325 | Dividend Yield: ~8.2%

Energy Transfer operates as a limited partnership in the midstream energy sector, and its distribution yield of approximately 8.2% makes it highly attractive. More compelling is the momentum: this LP has increased its distributions quarterly without interruption since Q3 2021.

Management targets 3-5% annual distribution growth, and the fundamentals support hitting that target. Energy Transfer’s balance sheet is in its strongest position ever, with manageable debt and a distribution coverage ratio that leaves room for growth. Better yet, new revenue streams are materializing—the company has signed multiple agreements to supply natural gas to major data centers operated by Oracle and other cloud infrastructure providers. Concurrent investments in new processing facilities and pipeline expansion should bolster cash generation through 2026.

Pfizer (NYSE: PFE) – The Dividend Aristocrat

Allocation: $40,700 | Expected Annual Dividend: ~$2,800 | Dividend Yield: ~6.9%

Combining the income from Ares Capital and Energy Transfer gets you most of the way to $10,000. Pfizer completes the picture with a 6.9% dividend yield that would contribute roughly $2,800 annually.

What makes Pfizer compelling isn’t rocket-ship growth—the pharma giant projects 2026 revenue between $59.5 billion and $62.5 billion, slightly below 2025 expectations. Instead, it’s the durability. Pfizer has increased its dividend for 16 consecutive years and maintained payments for 345 consecutive quarters spanning nearly nine decades. That longevity isn’t accidental; it reflects management’s unwavering commitment to the dividend and the company’s ability to generate solid free cash flow despite headwinds like declining COVID-19 revenues and upcoming patent expirations.

The Bottom Line

This three-stock portfolio allocates your $122,100 across different yield profiles and sectors—combining the aggressive income of a BDC, the growth potential of midstream energy, and the stability of a pharmaceutical giant. The result should be approximately $10,000 in annual passive income throughout 2026 and beyond, assuming dividends remain consistent or grow modestly.

Of course, where to invest $10,000 or more right now depends on your personal circumstances, risk tolerance, and investment timeline. This framework is one approach among many.