Got $1,000? These 2 High-Yielding Dividend Stocks Could Turn It Into Nearly $65 of Passive Income in 2025
Sunday, Dec 29, 2024 5:17 am ET
2min read As we approach the new year, many investors are looking for ways to generate passive income and grow their wealth. With a $1,000 investment, you can start building a portfolio of high-yielding dividend stocks that could generate significant income in 2025. In this article, we'll explore two dividend stocks that could turn your $1,000 investment into nearly $65 of passive income in 2025.
1. Rio Tinto (RIO) - A mining giant with a strong dividend track record
Rio Tinto is a global mining company with a strong track record of paying dividends to its shareholders. The company operates in various commodities, including iron ore, copper, aluminum, and diamonds. Rio Tinto has consistently increased its dividend over the past five years, with a compound annual growth rate (CAGR) of approximately 14%. In 2024, the company paid a dividend of $4.00 per share, representing a yield of around 7.4%.
To estimate the potential income from Rio Tinto in 2025, we'll assume a 10% capital appreciation and a 7.4% dividend yield. With a $1,000 investment, you would own approximately 136 shares of Rio Tinto. Assuming a 10% capital appreciation, the value of your investment would grow to $1,100. With a 7.4% dividend yield, you would receive approximately $81.40 in dividends in 2025.
2. AES Corporation (AES) - A global energy company with a focus on renewable energy
AES Corporation is a global energy company that focuses on power generation and utility services, with an emphasis on renewable energy. The company has a history of steady dividend growth, with a 2% increase in December 2024, marking 11 years of consecutive dividend increases. In 2024, AES paid a dividend of $0.36 per share, representing a yield of around 5.3%.
To estimate the potential income from AES in 2025, we'll assume a 15% capital appreciation and a 5.3% dividend yield. With a $1,000 investment, you would own approximately 113 shares of AES. Assuming a 15% capital appreciation, the value of your investment would grow to $1,135. With a 5.3% dividend yield, you would receive approximately $60.19 in dividends in 2025.
Combining the potential income from both Rio Tinto and AES, your $1,000 investment could generate nearly $65 of passive income in 2025. Keep in mind that these estimates are based on certain assumptions, and actual results may vary. However, these two dividend stocks offer attractive yields and strong dividend growth histories, making them excellent choices for income-oriented investors.
In conclusion, investing in high-yielding dividend stocks like Rio Tinto and AES Corporation can provide a steady stream of passive income. With a $1,000 investment, you can generate nearly $65 of passive income in 2025 by investing in these two dividend stocks. As always, it's essential to do your own research and consider your risk tolerance and investment goals before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
