4 Passive Income Stocks

THE MONEY IDEA💡
4 Passive Income Stocks

Investing in dividend stocks is an excellent strategy for generating passive income. With many companies offering attractive payouts, here are five high-quality dividend stocks yielding over 5% that you should consider adding to your portfolio. These stocks not only provide substantial income but also have strong growth prospects for the future.

Let’s go.

THE MONEY IDEA💡
4 Passive Income Stocks

Dominion Energy (NYSE: D)

• Stable Dividend Yield: Dominion Energy offers a dividend yield of approximately 5.5%, providing a solid income stream.

• Government-Regulated Rates: The utility’s income is backed by government-regulated rate structures, ensuring stable and predictable revenue.

• Sustainable Investments: Dominion is focused on transitioning to lower-carbon energy, which supports both environmental goals and future earnings growth.

• Dividend Stability: The company aims to reduce its dividend payout ratio from 80% to 60%, strengthening its financial foundation.

• Future Growth Potential: With investments targeting a 5% to 7% annual growth rate in operating earnings, Dominion is positioned to eventually start growing its dividend again.

Realty Income (NYSE: O)

• Attractive Dividend Yield: Realty Income offers a dividend yield close to 6%, providing a steady income stream.

• Diverse Portfolio: The REIT owns a diversified portfolio of commercial properties, generating consistent cash flow.

• Monthly Dividend Increases: Realty Income has declared its 126th dividend increase since going public in 1994, with an annual growth rate of 4.3%.

• Growth Potential: The REIT expects to grow its cash flow per share by 4% to 5% annually, driven by rent growth and property acquisitions.

• Strategic Expansion: By adding new property types and expanding into new regions, Realty Income enhances its ability to continue growing its dividend.

Verizon (NYSE: VZ)

• Robust Dividend Yield: Verizon offers a dividend yield of over 6.5%, providing a significant income stream.

• Strong Cash Flow: The telecom giant generated $18.7 billion in free cash flow last year, well above its $11 billion in dividend payments.

• Debt Reduction: Excess free cash flow is being used to reduce leverage, strengthening Verizon’s balance sheet.

• Dividend Growth Record: Verizon has increased its dividend for 17 consecutive years, the longest streak in the U.S. telecom sector.

• Future Potential: Investments in 5G technology, coupled with cost reductions and debt repayment, are expected to boost Verizon’s revenue and free cash flow, supporting further dividend increases.

Enbridge (NYSE: ENB)

• High Yield: Enbridge’s dividend yield exceeds 7.5%, making it one of the highest-yielding stocks in the market.

• Predictable Income: The Canadian pipeline and utility company’s revenue is secured through long-term contracts and regulated rate structures.

• Expansion Projects: Enbridge has a robust pipeline of expansion projects, including a significant acquisition of three gas utilities from Dominion.

• Growing Cash Flow: The company expects its cash flow per share to grow by 3% annually through 2026 and by 5% per year thereafter.

• Consistent Dividend Growth: Enbridge has a 29-year streak of increasing its dividend, reflecting its commitment to returning value to shareholders.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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