15 Best Passive Income Stocks to Buy Right Now

Core Insights - The article discusses the growing interest in passive income, particularly through dividend investing, as a means for individuals to enhance their earnings [1] - Companies that initiate regular dividends have shown to outperform the market significantly, with an average outperformance of 650 basis points in the six months following a dividend announcement [1] - Dividend payments provide stability during uncertain market conditions and high valuations, making them attractive to investors [1] Group 1: Dividend Stocks Overview - The article identifies 15 top passive income stocks, focusing on those with a market capitalization of at least $10 billion and a history of increasing dividends for at least 10 consecutive years [3] - The selected stocks are ranked based on their potential upside, with a minimum forecasted upside of 10% [3] Group 2: Johnson & Johnson (NYSE: JNJ) - Johnson & Johnson has a remarkable dividend record, having raised its payout for 63 consecutive years, demonstrating resilience despite challenges like patent expirations [9] - The company reported third-quarter sales of $24 billion, reflecting a 6.8% increase year-over-year, indicating steady growth in its pharmaceutical portfolio [9] - Johnson & Johnson is recognized for its focus on innovative medicine and MedTech, positioning itself well for future growth [10] Group 3: Cisco Systems, Inc. (NASDAQ: CSCO) - Cisco Systems has been upgraded to a Buy rating, with an upside potential of 10.11%, supported by strong operating margins and a positive outlook for fiscal year 2026 [11][12] - The company reported record revenue of $14.88 billion for fiscal Q1 2026, a 7.53% increase from the previous year, driven by demand for AI infrastructure [13] - Cisco has consistently raised its dividends for 18 years, maintaining a strong position in IT infrastructure and AI solutions [14] Group 4: Bank of America Corporation (NYSE: BAC) - Bank of America has an upside potential of 10.28% and is viewed positively by Morgan Stanley, which maintains an Overweight rating and a $70 price target [15][16] - The bank aims for a 16% to 18% return on tangible common equity, supported by steady revenue growth and a reduction in expense ratios [16] - Bank of America has invested over $5 billion in expanding its financial centers and market presence across the U.S. from 2014 to 2024 [18]