If generating more passive income is on your New Year’s resolution list, consider investing in high-yield dividend stocks. With $50,000 invested in each of five top-performing companies, you can earn nearly $17,500 in dividend income by 2025.
Here are the top picks:
1. Ares Capital (ARCC) – The largest publicly traded business development company, targeting US companies with annual revenue between $100 million and $1 billion.
* Forward dividend yield: 8.67%
* Potential passive income: $4,335 in 2025
2. Energy Transfer LP (ET) – Midstream energy company with a forward distribution yield of 6.54%.
* Expected annual increase in distributions: 3-5%
* Potential passive income: $3,270 in 2025
3. Enterprise Products Partners LP (EPD) – Another midstream energy leader with a distribution yield of 6.51%.
* Long streak of increasing dividends: 26 consecutive years.
* Potential passive income: $3,255 in 2025
4. Pfizer (PFE) – One of the world’s largest pharmaceutical companies with a forward dividend yield of 6.44%.
* Annual sales of at least $1 billion from over a dozen products.
* Potential passive income: $3,220 in 2025
5. Verizon Communications (VZ) – The biggest telecommunications provider with a forward dividend yield of 6.8%.
* Long streak of increasing dividends: 18 consecutive years.
* Potential passive income: $3,400 in 2025
Investing in these five high-yield dividend stocks could bring you nearly $17,500 in passive income by 2025. However, keep in mind that any decline in stock value or potential reductions in dividend payouts should be considered before making an investment decision.
Source: https://www.fool.com/investing/2025/01/07/investing-50000-in-each-of-these-5-stocks-could-ma