12 Best Stocks to Buy Now for Passive Income

Core Insights - The article discusses the rise of side hustles and highlights the best dividend stocks for passive income, indicating a growing trend among individuals seeking additional income sources [1][2][3]. Side Hustle Trends - Over 36% of Americans engage in side gigs, earning an average of $530 per month, with Gen Z leading this trend [2] - The global side hustle market was valued at $556.7 billion in 2024, and in March 2025, the US saw a 6.4% increase in new business applications [2] - 55% of full-time workers are interested in turning hobbies into businesses, reflecting a shift towards formal entrepreneurial ventures [2] Dividend Stocks as Passive Income - Dividend stocks provide a reliable source of passive income, appealing to retirees and those seeking stable earnings during market fluctuations [3] - Investors often reinvest dividends to purchase additional shares, potentially increasing both dividend income and overall investment value over time [4] Methodology for Stock Selection - The article utilized Insider Monkey's database of nearly 1,000 hedge funds as of Q2 2025 to identify stocks with strong dividend policies, sound financials, and a history of dividend growth, focusing on those with a minimum yield of 4% as of September 22 [6] Hedge Fund Interest - The article emphasizes the importance of stocks favored by hedge funds, noting that imitating top hedge fund picks can lead to market outperformance [7] Company Highlights - Arbor Realty Trust, Inc. (NYSE:ABR): A real estate investment trust with a dual strategy in structured and agency loan origination, offering a quarterly dividend of $0.30 per share and a yield of 10.26% as of September 22 [8][10] - Universal Corporation (NYSE:UVV): A global agricultural company recognized as a Dividend King, with a history of 55 consecutive years of dividend increases, paying a quarterly dividend of $0.82 per share and a yield of 5.99% as of September 22 [11][13] - Guess?, Inc. (NYSE:GES): An international apparel company that has paid dividends for 18 consecutive years, recently increasing its quarterly dividend by 25% to $0.225 per share, with a yield of 5.35% as of September 22 [14][16]