High-Yield Dividend Stocks for Passive Income - Investing $50,000 in each of the five high-yield dividend stocks could generate nearly $17,500 in passive income in 2025 [1] - The five stocks include Ares Capital, Energy Transfer LP, Enterprise Products Partners LP, Pfizer, and Verizon Communications [1][2][4][6][8][10] Ares Capital (ARCC) - Ares Capital is the largest publicly traded business development company (BDC) targeting a $3 trillion traditional middle market and a $2.4 trillion market for companies with annual revenue over $1 billion [2] - The company offers an ultra-high forward dividend yield of 8.67%, which would generate $4,335 in passive income from a $50,000 investment in 2025 [3] - Ares Capital's total return has outperformed the S&P 500 by approximately 60% since its IPO in 2004 [3] Energy Transfer LP (ET) - Energy Transfer LP operates over 130,000 miles of pipeline in the US, transporting natural gas, natural gas liquids, crude oil, and refined products [4] - The company has a forward distribution yield of 6.54%, which would generate around $3,270 in passive income from a $50,000 investment in 2025 [5] - Energy Transfer expects to increase its distributions by 3% to 5% annually [5] Enterprise Products Partners LP (EPD) - Enterprise Products Partners LP operates over 50,000 miles of pipeline in the US, along with storage facilities, natural gas processing trains, fractionators, and deepwater docks [6] - The company offers a distribution yield of 6.51%, which would generate around $3,255 in passive income from a $50,000 investment in 2025 [7] - Enterprise has increased its distribution for 26 consecutive years, with expectations of continuing this trend in 2025 [7] Pfizer (PFE) - Pfizer, founded in 1849, is one of the world's largest drugmakers, with products including autoimmune disease drugs, cancer therapies, migraine therapies, and vaccines [8] - The company has a forward dividend yield of 6.44%, which would generate roughly $3,220 in passive income from a $50,000 investment in 2025 [9] Verizon Communications (VZ) - Verizon Communications is one of the largest telecommunications providers, serving consumers and businesses globally [10] - The company has a forward dividend yield of 6.8%, which would generate $3,400 in passive income from a $50,000 investment in 2025 [11] - Verizon increased its dividend for the 18th consecutive year in September 2024, with a high likelihood of further increases in 2025 [11] Total Passive Income Potential - The combined passive income from investing $50,000 in each of the five stocks is estimated at $17,480 in 2025, with potential for small increases to reach $17,500 or more [12] - These stocks are considered solid options for income-seeking investors in 2025 [13]
Investing $50,000 in Each of These 5 Stocks Could Make You Nearly $17,500 in Passive Income in 2025