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Making money with minimal effort is a dream for many investors, and one way to achieve this is through passive income. Buying stocks that offer attractive dividends is a popular strategy to generate passive income. With the right stocks, a substantial amount of passive income can be earned with an upfront investment. In fact, investing $123,500 in three high-yield dividend stocks could potentially yield $10,000 in reliable passive income by 2024.

Ares Capital (ARCC -0.81%) is an excellent choice for investors looking for dividend income. By investing one-third of the initial amount, approximately $41,167, investors could earn over $4,000 in passive income next year. Ares Capital has a dividend yield of 9.73% and a solid track record of stable or increasing dividends for over 14 years. As a business development company (BDC), Ares Capital is required to distribute a minimum of 90% of its taxable income to shareholders, ensuring a consistent dividend payout.

Investing an additional one-third of the upfront money, approximately $41,167, in Enterprise Products Partners (EPD -0.76%) could generate around $3,100 in passive income in 2024. The midstream energy leader has consistently increased its distribution for 25 consecutive years, with a compound annual growth rate of approximately 7%. Despite economic challenges such as the financial crisis and the oil price collapse, Enterprise Products Partners has maintained steady cash flow, providing confidence in its ability to sustain its attractive dividend.

To complete the portfolio, the remaining one-third of the initial amount, approximately $41,166, could be invested in Verizon Communications (VZ -1.32%). With a dividend yield of slightly over 7%, investors could earn nearly $2,900 in additional passive income next year. Verizon has a track record of increasing its dividend for 17 consecutive years, and recent financial performance showcases its ability to generate strong free cash flow, further solidifying the security of its dividend.

While there are potential risks such as stock price decline or economic downturns, the track records and stability of these three companies offer confidence to investors. Ares Capital, Enterprise Products Partners, and Verizon Communications collectively have the potential to generate approximately $10,000 in passive income by 2024.

Investors should always conduct thorough research and consider their individual circumstances before making any investment decisions. However, with the right stocks and a carefully constructed portfolio, generating a reliable stream of passive income can become a reality.

Disclaimer:

Keith Speights, an investor, has positions in Ares Capital and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.

Please note that the opinions and information in this article are based on the provided text and may differ from The Motley Fool's Premium Investing Services.