Investing in high-quality dividend stocks can be an attractive way to generate passive income, especially during market downturns or sideways trading. Between 2023 and the end of 2024, the S&P 500 gained 53.2%, but this strong performance has left the index with a relatively expensive valuation.
To counterbalance this, investors should consider dividend stocks like Coca-Cola (KO), Unilever (UL), and LyondellBasell (LYB). These companies offer attractive yields, stable growth, and strong dividend payment histories.
Coca-Cola benefits from its global diversification, with bottling partners in over 200 countries. This network simplifies the business and achieves high operating margins of 29.2%. With a 3.1% yield and low price-to-earnings ratio, Coke is an attractive option for investors seeking steady income.
Unilever, on the other hand, boasts a dirt-cheap dividend stock with a yield of 3.4%. The company’s balanced business model, solid operating margins, and inexpensive valuation make it an appealing choice for investors. With a $2,000 investment, Unilever can generate around $68 in passive income.
LyondellBasell has fallen far enough, with its stock price hovering near a four-year low. However, the company’s solid balance sheet and manageable leverage ratios ensure it can continue to fund its dividend payment. Although the yield is high at 7.4%, consensus estimates suggest the company should still be able to cover its expenses in 2025.
Investing $2,000 in each of these stocks could generate significant passive income: $62 from Coca-Cola, $68 from Unilever, and $148 from LyondellBasell. Considering their attractive yields, stable growth, and strong dividend payment histories, these three dividend stocks are worth buying now for long-term investors seeking reliable passive income growth.
Source: https://www.fool.com/investing/2025/01/10/all-it-takes-is-2000-invested-in-coca-cola-and-eac