If generating more passive income is one of your New Year’s resolutions, you have plenty of options for achieving the goal. One of the easiest ways to do so is by investing in high-yield dividend stocks. By investing $50,000 in each of these five stocks, you could potentially make nearly $17,500 in passive income in 2025.
Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It focuses on the growing traditional middle market in the U.S., targeting companies with annual revenue between $100 million to $1 billion. With an ultra-high forward dividend yield of 8.67%, investing $50,000 in Ares Capital could generate $4,335 in passive income this year. Additionally, Ares Capital has historically outperformed the S&P 500 since its IPO in 2004.
Energy Transfer LP (NYSE: ET) operates a vast network of pipelines in the U.S. that transport natural gas, natural gas liquids, crude oil, and other refined products. With a forward distribution yield of 6.54%, investing $50,000 in Energy Transfer could result in around $3,270 in passive income in 2025. The company also expects to increase its distributions annually, potentially leading to higher income over time.
Enterprise Products Partners LP (NYSE: EPD) is another limited partnership in the midstream energy industry, operating over 50,000 miles of pipelines in the U.S. With a distribution yield of 6.51%, investing $50,000 in Enterprise Products Partners could yield around $3,255 in passive income this year. The company has a strong track record of increasing its distribution for 26 consecutive years.
Pfizer (NYSE: PFE) is a global pharmaceutical company with a diverse portfolio of products, including autoimmune disease drugs, cancer therapies, vaccines, and more. With a forward dividend yield of 6.44%, investing $50,000 in Pfizer could result in approximately $3,220 in dividend income this year.
Verizon Communications (NYSE: VZ) is a leading telecommunications provider serving consumers and businesses worldwide. With a forward dividend yield of 6.8%, investing $50,000 in Verizon could generate $3,400 in passive income in 2025. The company has a history of increasing its dividend payout, making it a reliable income-generating stock.
In total, investing in these five stocks could potentially generate $17,480 in passive income in 2025. However, it’s important to note that stock prices can fluctuate, and there is always a risk of dividend cuts. Overall, Ares Capital, Energy Transfer, Enterprise Products Partners, Pfizer, and Verizon are solid choices for investors seeking income.
In conclusion, investing in high-yield dividend stocks can be a lucrative way to generate passive income. By diversifying your portfolio with companies like Ares Capital, Energy Transfer, Enterprise Products Partners, Pfizer, and Verizon, you can build a steady stream of income for the future. Remember to conduct thorough research and consult with a financial advisor before making any investment decisions.
