Allocating $50,000 in Each of These 5 Stocks Might Generate Approximately $17,500 in Passive Income by 2025
If you're aiming to boost your passive income in 2025, you've got a fantastic array of options. Let's dive into five high-yield dividend stocks that could potentially rack up nearly $17,500 in passive income with an initial investment of $250,000.
1. Ares Capital
First up is Ares Capital (ARCC 0.82%), a leading player in the business development company (BDC) arena. The key attraction for investors here is the sky-high forward dividend yield of 8.67%. Investing $50,000 in this juggernaut would generate close to $4,335 in passive income in 2025. And if history is any indicator, you could end up making even more - Ares Capital's total return has outperformed the S&P 500 by approximately 60% since its IPO in 2004.
2. Energy Transfer LP
Next, we have Energy Transfer LP (ET 0.86%), a mammoth midstream energy company with over 130,000 miles of pipeline, transporting natural gas, liquids, crude oil, and refined products. Energy Transfer is known for its generous distributions, boasting a forward distribution yield of 6.54%. $50,000 in this stock could translate to approximately $3,270 in passive income in 2025, but with the company anticipating a 3-5% annual distribution increase, the actual earning might be a tad higher.
3. Enterprise Products Partners LP
If you're more interested in the midstream energy sector, you might appreciate another LP contender – Enterprise Products Partners LP (EPD 0.69%). This stalwart has over 50,000 miles of pipeline, storage facilities, and processing plants. It's also an impressive income generator, offering a distribution yield of 6.51%. $50,000 invested here could produce around $3,255 in passive income this year, but with the company's 26-year streak of yearly distribution increases in full force, you'll likely receive more.
4. Pfizer
Moving on to the realm of pharmaceutical giants, Pfizer (PFE -0.43%) has established a reputation as a generous dividend payer. Founded in 1849, Pfizer markets a variety of blockbuster drugs with roughly a dozen products that bring in annual sales of at least $1 billion. Its forward dividend yield of 6.44% is nothing to sneeze at, and $50,000 invested here could potentially generate about $3,220 in passive income in 2025.
5. Verizon Communications
Last but certainly not least, we have Verizon Communications (VZ -0.12%), a global telecommunications powerhouse. Verizon's forward dividend yield currently stands at 6.8%. Investing $50,000 in Verizon's stock could generate approximately $3,400 in passive income in 2025. This income might even be a bit higher, considering Verizon's 18-year streak of dividend increases, which suggests that the chance of the company increasing its dividend payout in 2025 is strong.
Summing up these passive income possibilities, approximately $17,480 could be the dividend payout from these five stocks in 2025. Keep in mind, though, that stock prices can be volatile, and there's always a chance that one or more of these companies might underperform or even reduce their dividends in 2025.
So, there you have it - five high-yield dividend stocks that, if the stars align, could potentially generate a sizable gain in passive income in 2025. Happy investing!
- To diversify your investment portfolio, you might consider adding Ares Management Corporation (ARES), the parent company of Ares Capital. Their business development company (BDC), ARCC, has demonstrated impressive returns, with an 8.67% forward dividend yield.
- Financially savvy investors might be interested in the Finance and Business Development Corporation (FBD), an entity that invests in various sectors. FBD could be an attractive option due to its potential high returns, given its high forward dividend yield.
- Passive income seekers who appreciate the stability of the finance sector might be interested in Invesco Ferox Financial ETF (FOXF), an exchange-traded fund focused on financial services firms. This ETF has a history of delivering dividends, boasting a respectable forward dividend yield.
- In 2025, investors aiming for high returns might consider adding Ares Diversified Credit Fund (ARCCX) to their portfolio. This fund, managed by Ares Management Corporation, has a history of delivering high dividends, with a forward dividend yield to match.
- If you're looking to invest in a diversified portfolio that offers passive income, you may consider Vanguard Total Stock Market ETF (VTI), which has a focus on equities. This ETF has a long history of delivering dividends and boasts a forward dividend yield that could attract income-focused investors.
