Core Insights - High-yielding dividend stocks are becoming harder to find as the S&P 500's dividend yield has dropped to less than 1.2%, nearing its lowest level on record [1][2] Group 1: Clearway Energy - Clearway Energy offers a dividend yield of 6.3%, supported by long-term, fixed-rate power purchase agreements (PPAs) that provide stable cash flow [4][5] - The company plans to distribute 70% to 80% of its cash flows as dividends while investing the remainder in renewable energy projects, aiming for over 20% cash flow per share growth in the next two years, which could lead to a dividend increase of more than 10% by the end of 2027 [5][6] - Clearway has multiple growth drivers, including repowering wind farms and acquiring new projects, with expectations of 5% to 8% annual cash flow growth beyond 2027 [6] Group 2: Realty Income - Realty Income has a dividend yield of 5.4% and pays dividends monthly, making it attractive for passive income investors [8] - The REIT has a strong history of dividend increases, having raised its payment 132 times since 1994, with a compound annual growth rate of 4.2% [8][9] - Realty Income's diversified portfolio and long-term triple net leases provide stable cash flow, with a significant $14 trillion investment opportunity in NNN real estate [9] Group 3: Verizon - Verizon leads the group with a 6.4% dividend yield, supported by substantial cash flows from consumer and business services [10][11] - The company expects $38 billion in operating cash flow this year, allowing for investments in network expansion, acquisitions, and debt repayment [11] - Verizon has a strong track record of dividend increases, recently marking its 19th consecutive annual increase, with expectations for continued growth [12] Group 4: Investment Opportunity - Clearway Energy, Realty Income, and Verizon are highlighted as strong options for investors seeking high-yielding dividends backed by solid financial profiles and consistent dividend growth [13]

Core Insights - Generating dividend income from stocks is an effective strategy for passive income while remaining invested in the market, especially when the S&P 500 is experiencing significant returns [1][2] Group 1: Dividend Stocks - Investing $28,000 in equal parts of ExxonMobil, Whirlpool, and the Vanguard Utilities ETF can yield at least $1,000 in annual dividend income [3] - ExxonMobil has a strong history of dividend growth, having raised its payout for 42 consecutive years, with a current forward yield of 3.4% [5][6] - The company maintains a conservative payout ratio of 68% over the past five years, ensuring financial health while rewarding shareholders [7] Group 2: Whirlpool - The recent sell-off of Whirlpool stock following a Federal Reserve rate cut presents a buying opportunity, as lower rates typically benefit the company [10] - Whirlpool's competitive positioning is expected to improve due to tariffs on Asian competitors, which will favor domestic producers [12][13] - The stock offers a 4.7% dividend yield, making it attractive for both income-seeking and speculative investors [13] Group 3: Utilities Sector - The utility sector is currently outperforming the S&P 500, driven by steady cash flow and increasing power demands, particularly due to AI [14][21] - AI's demand for power is creating opportunities for utility companies, especially those with off-grid solutions [18][21] - The Vanguard Utilities ETF offers a low expense ratio of 0.09% and a 2.8% yield, making it a simple way to invest in the growing demand for power [22]

Core Insights - The SPDR Portfolio S&P 500 High Dividend ETF is recommended for dividend-seeking investors due to its potential for passive income generation [1][4] - The current low-interest-rate environment makes dividends from stocks increasingly important for passive-income portfolios [2][3] ETF Overview - The SPDR Portfolio S&P 500 High Dividend ETF tracks the S&P 500 High Dividend Index, consisting of 80 high-yield stocks with equal weight assigned to each stock [6] - The ETF's largest sector allocation is in real estate at 22.4%, followed by consumer staples (16.7%), financials (15.5%), utilities (12.9%), and healthcare (8%) [6] Comparison with Other ETFs - In contrast, the SPDR S&P 500 ETF Trust has a significant allocation in information technology at 34.6%, with lower yields of 1.1% compared to the 4.7% yield of the SPDR Portfolio S&P 500 High Dividend ETF [7][8] Cost Efficiency - The SPDR Portfolio S&P 500 High Dividend ETF has a low expense ratio of 0.07%, which is lower than the average expense ratio of 0.14% for equity index ETFs in 2024 [9][10] Performance Metrics - Over the last five years, the SPDR Portfolio S&P 500 High Dividend ETF has returned an annualized 14.8%, slightly outperforming the S&P 500 ETF's 14.6% return, although it has higher volatility [11] - The ETF is expected to deliver strong returns and lower volatility in the current market environment due to its focus on dividend-paying stocks [12]

Target Corporation (NYSE:TGT) is included among the 12 Best Stocks to Buy Now for Passive Income.  How Target’s (TGT) Dividend History Strengthens its Passive Income Appeal Target Corporation (NYSE:TGT) ranks among the largest retailers in the US and is one of the few national chains offering a broad range of products. Throughout most of its history, it has been a reliable growth driver. The company operates across urban, suburban, and rural areas, with stores in all 50 states. Although Target Corporati ...

Altria Group, Inc. (NYSE:MO) is included among the 12 Best Stocks to Buy Now for Passive Income.  How Altria Group (MO) Supports Long-Term Passive Income Goals Altria Group, Inc. (NYSE:MO) is an American company that specializes in the production and marketing of tobacco and related products. The company has seen sales volumes drop as smoking rates decline in the US, but the addictive nature of tobacco gives it pricing power that helps maintain steady cash flow. While relying on price hikes isn’t a long- ...

Core Viewpoint - Franklin Resources, Inc. (NYSE:BEN) is recognized as one of the best stocks for passive income, boasting a strong dividend history and a significant asset management portfolio [1][4]. Group 1: Company Overview - Franklin Resources, Inc. manages a diverse range of investments, including equities, fixed income, alternatives, multi-asset strategies, and cash management, with assets under management (AUM) reaching $1.61 trillion in Q3 FY25 [2][3]. - The company's strength is attributed to its scale, broad product lineup, and global distribution network, which includes mutual funds, ETFs, separately managed accounts, and alternative strategies [3]. Group 2: Financial Performance - The company has demonstrated consistent performance with 49 consecutive years of dividend growth, currently paying a quarterly dividend of $0.32 per share and offering a dividend yield of 5.28% as of September 22 [4]. Group 3: Strategic Advantages - Key drivers of Franklin Resources' success include maintaining large AUM, aligning products with market shifts, and effectively integrating acquisitions such as Putnam and Apera Asset Management [3]. - The company's global reach, strong regulatory oversight, and tight cost control are essential for sustaining its competitive edge [3].

Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as a strong investment option for passive income, particularly for 2025, due to its stable cash flow and consistent dividend payments [2][4]. Group 1: Company Overview - Enterprise Products Partners L.P. is a midstream company based in Houston, Texas, focusing on natural gas and crude oil pipelines [2]. - As a master limited partnership (MLP), it provides a distribution that is well protected, with a coverage ratio of 1.7 times by distributable cash flow [2]. Group 2: Financial Stability - The company holds an investment-grade credit rating, which contributes to its financial stability [3]. - Enterprise Products Partners can rely on its strong balance sheet to manage short-term challenges, although such scenarios are unlikely due to its fee-based business model [3]. - The company's performance is more dependent on energy demand rather than fluctuating oil and gas prices, leading to resilient cash flows even during periods of weak commodity prices [3]. Group 3: Dividend Performance - Enterprise Products Partners offers a quarterly dividend of $0.545 per share, resulting in a dividend yield of 6.94% as of September 22 [4]. - The company has a strong track record of increasing its payouts for 27 consecutive years, making it one of the best stocks for passive income [4].

Core Viewpoint - Guess?, Inc. (NYSE:GES) is recognized as one of the best stocks for passive income due to its consistent dividend payments and strong brand presence in the apparel industry [1][4]. Company Overview - Guess?, Inc. is an international apparel and accessories company known for its denim, casualwear, and lifestyle collections, connecting with customers through retail stores, wholesale partnerships, and licensing agreements [2]. Business Strategy - The company's success is attributed to maintaining strong brand value, expanding its global presence, and utilizing multiple distribution channels. Strategic acquisitions, product innovation, and impactful marketing are essential for keeping the brand relevant [3]. - Expansion efforts in Europe and Asia are aimed at reducing reliance on any single region, while sustainability initiatives and acquisitions, such as rag & bone, further enhance growth [3]. Financial Performance - Guess?, Inc. has made regular dividend payments for 18 consecutive years, with a recent 25% increase in its quarterly dividend to $0.225 per share. The stock currently has a dividend yield of 5.35% as of September 22 [4].

Arbor Realty Trust, Inc. (NYSE:ABR) is included among the 12 Best Stocks to Buy Now for Passive Income.  Why Arbor Realty Trust (ABR) Stands Out Among Passive Income Stocks Image by Steve Buissinne from Pixabay Arbor Realty Trust is a real estate investment trust company. It operates with a two-pronged strategy, running both a Structured Loan Origination and Investment platform and an Agency Loan Origination and Servicing business. The structured side focuses on bridge loans, mezzanine financing, and pr ...

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]