Allocating $134,800 in these 3 Profitable Dividend Shares May Generate $10,000 in Consistent Passive Income by 2025
There's no shortage of ways to generate passive income, if you've got the time and the stickability. One solid approach is buying dividend stocks. Got a good chunk of cash to invest? Look for high-yield dividend stocks with juicy yields that can pay off in the future. Want some examples? Here are three:
1. Ares Capital
Ares Capital is the largest publicly traded business development company (BDC), investing primarily in middle-market businesses with market caps between $100 million and $1 billion. With assets under management totaling $464 billion, this BDC is a force to be reckoned with. And since BDCs like Ares are obligated to return at least 90% of their earnings to shareholders as dividends, their dividend yields tend to be quite high. In fact, Ares' forward dividend yield is an impressive 8.72%.
Investing $44,933 in Ares could net you nearly $3,920 in passive income by 2025. And with its strong track record of paying a stable dividend for over 15 years, you can feel confident that your income stream won't dry up any time soon. Plus, with the traditional middle market offering a $3 trillion market opportunity and Ares Capital's total addressable market growing due to the convenience and speed of direct lending, the company's business and dividends look like they'll continue to thrive.
2. Enterprise Products Partners
Enterprise Products Partners is one of the biggest midstream energy companies in the U.S., transporting natural gas liquids, crude oil, and petrochemicals with over 50,000 miles of pipeline. Investing in limited partnerships like Enterprise Products Partners can be a bit of a hassle with the added tax filing, but the payoff is worth it – the company offers a forward distribution yield of 6.76%.
Investing $43,926 in Enterprise would provide an annual income of around $3,006. And with Enterprise increasing its distribution for 26 consecutive years, you can bet that this trend is likely to continue in 2025, which means your passive income could be even higher. And let's not forget that Enterprise's revenue is recession-resistant, as its revenue isn't impacted much by fluctuations in oil and gas prices.
3. Verizon Communications
If you're already familiar with Verizon Communications as a telecommunications giant servicing millions of consumers and businesses, you'll be happy to know that it's still a popular income investment. Verizon offers an ultra-high forward dividend yield of 6.79%, making it an attractive option for income investors.
Investing the final one-third of $134,800 in Verizon would yield approximately $3,054 in annual income. And more good news: Verizon's dividend streak is currently at 18 consecutive years and shows no sign of stopping. So, expect 2025 to bring another year of dividend growth.
By investing in these three high-yield dividend stocks, you could potentially earn over $10,000 in passive income by 2025. But remember, it's important to conduct thorough research before making any investment decisions. And if you're looking for more options, there are plenty of ways to find high-yield dividend stocks, from utilizing screening tools like the Morningstar Dividend Leaders Index, to focusing on specific sectors like utilities and finance, to using reliable investment research websites like Investopedia and Seeking Alpha. So, get out there and start shaking that stick for passive income!
Unsurprisingly, these high-yield dividend stocks have attracted interest from fractionators in the finance sector. By 2025, investing in Ares Capital's $44,933 worth of stocks could result in a passive income of nearly $3,920. Moreover, money invested in Enterprise Products Partners' limited partnership could provide an annual income of around $3,006 by 2025, given its consistently increasing distribution. Investing in Verizon Communications, with its high forward dividend yield, could yield approximately $3,054 in annual income by 2025, continuing its 18-year dividend streak.
