Unlock a Stream of Passive Income in 2025
If generating passive income is a top priority for you this year, you’re in luck. Investing in high-yield dividend stocks can provide a lucrative source of revenue. By allocating $50,000 to each of the five stocks outlined below, you could potentially earn nearly $17,500 in passive income in 2025.
Ares Capital: A Leader in Business Development
Ares Capital, the largest publicly traded business development company (BDC), targets a vast market of U.S. companies with annual revenue between $100 million and $1 billion. With an ultra-high forward dividend yield of 8.67%, a $50,000 investment in Ares Capital could generate $4,335 in passive income this year. Historically, the company’s total return has outperformed the S&P 500 by roughly 60% since its initial public offering in 2004.
Energy Transfer LP: A Midstream Energy Powerhouse
Energy Transfer LP operates an extensive network of over 130,000 miles of pipeline in the U.S., transporting natural gas, natural gas liquids, crude oil, and refined products. The company’s forward distribution yield of 6.54% makes it an attractive option for income seekers. A $50,000 investment in Energy Transfer LP could translate to around $3,270 in passive income in 2025, with potential for further growth as the company expects to increase its distributions by 3% to 5% annually.
Enterprise Products Partners LP: A Midstream Energy Leader
Another limited partnership in the midstream energy industry, Enterprise Products Partners LP, operates over 50,000 miles of pipeline in the U.S. and boasts a diverse range of assets. With a distribution yield of 6.51%, a $50,000 investment in the LP could produce around $3,255 in income this year. The company’s impressive track record of increasing its distribution for 26 consecutive years suggests that investors can expect continued growth.
Pfizer: A Pharmaceutical Giant
Founded in 1849, Pfizer has become one of the world’s largest drugmakers, with a portfolio of products including autoimmune disease drugs, cancer therapies, and vaccines. The company’s forward dividend yield of 6.44% makes it an attractive option for income investors. A $50,000 investment in Pfizer stock could generate roughly $3,220 in dividend income this year.
Verizon Communications: A Telecommunications Giant
As one of the largest telecommunications providers, Verizon Communications serves consumers and businesses worldwide. With a forward dividend yield of 6.8%, a $50,000 investment in the telecom giant’s stock could generate $3,400 in passive income in 2025. The company’s history of increasing its dividend for 18 consecutive years suggests that investors can expect continued growth.
Adding it All Up
By investing $50,000 in each of these five stocks, you could potentially earn a total of $17,480 in passive income in 2025. With even small dividend increases, you could receive $17,500 or more in dividend payments this year. While there are risks involved with investing in the stock market, these five companies have a strong track record of providing income to their shareholders.
Don’t Miss Out on the Next Big Opportunity
If you’re worried about missing out on the next big investment opportunity, our expert team of analysts can help. They issue “Double Down” stock recommendations for companies that are poised for growth. With a proven track record of success, these recommendations can help you unlock significant returns on your investment.
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