Are you looking for a way to generate passive income for financial freedom or retirement without much effort? If so, investing in passive income stocks might be the answer. These stocks are designed to provide a steady stream of income that you can rely on for the long term. Instead of constantly buying and selling stocks, you simply buy them once and let them do the work for you.
However, not all stocks offer high dividend yields. The average dividend yield in the S&P 500 Index is just 1.3%. To earn more income from your stock portfolio, you should consider investing in high dividend stocks with yields above 5%. To help you get started, we have compiled a list of 10 passive income stocks with current yields over 6%.
Below are 10 passive income stocks that not only offer attractive dividend yields but also have strong underlying earnings and sustainable dividends. These companies have durable competitive advantages and dividend payout ratios at or below 70%, indicating that their dividends are secure. So, let’s delve into the world of passive income stocks and explore the top 10 picks.
Passive Income Stock #10: Newtek One Inc. (NEWT)
Newtek One provides financial and business services to small- and medium-sized businesses in the United States. What sets NewTek apart is its diverse income sources, including subsidiaries that offer a wide range of business services and SBA loan issuance. This unique business model ensures a steady stream of income for investors.
Passive Income Stock #9: Verizon Communications (VZ)
Verizon Communications, one of the largest wireless carriers in the country, offers stable dividend income. With a strong network and solid financial performance, Verizon is a reliable investment for passive income seekers.
Passive Income Stock #8: Edison International (EIX)
Edison International, a renewable energy company, reported impressive financial results for the third quarter of 2024. With a focus on clean energy and sustainable dividends, Edison International is a top pick for passive income investors.
Passive Income Stock #7: Ford Motor Co. (F)
Ford Motor Company, one of the oldest automakers in the world, has a diverse revenue stream and strong financial performance. With better-than-expected earnings and revenue growth, Ford is a worthwhile investment for passive income.
Passive Income Stock #6: AES Corp. (AES)
AES Corporation, with operations in 14 countries, is a leader in energy generation. With a solid growth strategy and a strong track record of earnings, AES is a reliable choice for passive income seekers.
Passive Income Stock #5: Enterprise Products Partners LP (EPD)
Enterprise Products Partners, a leading oil and gas storage and transportation company, reported strong fourth-quarter earnings. With a solid distribution coverage ratio and consistent cash flow, Enterprise Products Partners is a top pick for passive income investors.
Passive Income Stock #4: Midland States Bancorp (MSBI)
Midland States Bancorp, a community bank with a long history, reported mixed results for the fourth quarter of 2024. Despite challenges, Midland States Bancorp remains a sound investment option for passive income seekers.
Passive Income Stock #3: Whirlpool Corp. (WHR)
Whirlpool Corporation, a global home appliance company, delivered strong financial results for the fourth quarter of 2024. With a diverse product portfolio and solid sales, Whirlpool is a top choice for passive income investors.
Passive Income Stock #2: MPLX LP (MPLX)
MPLX LP, a Master Limited Partnership formed by Marathon Petroleum Corporation, reported impressive financial results for the fourth quarter of 2024. With strong earnings growth and a healthy debt ratio, MPLX is a promising investment for passive income seekers.
Passive Income Stock #1: Western Union Company (WU)
Western Union Company, a leader in money transfers, reported mixed results for the fourth quarter of 2024. With a global presence and diversified revenue streams, Western Union remains a reliable choice for passive income investors.
In conclusion, passive income stocks offer a great way to build a steady income stream for financial freedom or retirement. By investing in high dividend stocks with strong earnings and sustainable dividends, you can secure a reliable source of passive income for the long term. So, why wait? Start exploring these top 10 passive income stocks and pave your way to financial security.
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