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Investing $50,000 in Each of These 5 Stocks Could Make You Nearly $17,500 in Passive Income in 2025
ARCCAres Capital(ARCC) The Motley Fool·2025-01-07 10:46

High-Yield Dividend Stocks for Passive Income - Investing 50,000ineachofthefivehigh−yielddividendstockscouldgeneratenearly50,000 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 3trilliontraditionalmiddlemarketanda3 trillion traditional middle market and a 2.4 trillion market for companies with annual revenue over 1billion[2]−Thecompanyoffersanultra−highforwarddividendyieldof8.671 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 50,000investmentin2025[5]−EnergyTransferexpectstoincreaseitsdistributionsby350,000 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 50,000investmentin2025[7]−Enterprisehasincreaseditsdistributionfor26consecutiveyears,withexpectationsofcontinuingthistrendin2025[7]Pfizer(PFE)−Pfizer,foundedin1849,isoneoftheworld′slargestdrugmakers,withproductsincludingautoimmunediseasedrugs,cancertherapies,migrainetherapies,andvaccines[8]−Thecompanyhasaforwarddividendyieldof6.4450,000 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 50,000investmentin2025[9]VerizonCommunications(VZ)−VerizonCommunicationsisoneofthelargesttelecommunicationsproviders,servingconsumersandbusinessesglobally[10]−Thecompanyhasaforwarddividendyieldof6.850,000 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 50,000investmentin2025[11]−Verizonincreaseditsdividendforthe18thconsecutiveyearinSeptember2024,withahighlikelihoodoffurtherincreasesin2025[11]TotalPassiveIncomePotential−Thecombinedpassiveincomefrominvesting50,000 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 17,480in2025,withpotentialforsmallincreasestoreach17,480 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]