3 Dividend Stocks With Yields Between 4.5% and 7% to Power Your Passive Income Stream in 2025
Sunday, Dec 22, 2024 6:24 am ET
4min read In the pursuit of passive income, dividend stocks are a popular choice for investors seeking consistent returns. With yields ranging from 4.5% to 7%, the following three dividend stocks can help power your passive income stream in 2025:
1. TotalEnergies (TTE)
TotalEnergies, a global integrated energy company, offers a 5% dividend yield. With operations in over 130 countries, TTE has a diverse energy mix, including oil, gas, and renewable energy. Its commitment to clean energy investments and a solid dividend track record make it a reliable choice for passive income. TTE's strong financial position, with a debt-to-equity ratio of around 0.3, supports its 5% dividend yield and contributes to the sustainability of its payouts.
2. Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners, a renewable energy-focused company, boasts a 5.4% dividend yield. BEP's extensive portfolio of renewable energy assets, including hydroelectric, solar, wind, and storage, provides stable cash flows through long-term contracts. Its active management approach and consistent growth in distributions make it an attractive option for income investors. BEP's debt-to-equity ratio of around 0.5 indicates a healthy financial position, supporting its 5.4% dividend yield.
3. Enterprise Products Partners (EPD)
Enterprise Products Partners, a midstream energy company, offers a 7.2% dividend yield. EPD's extensive network of pipelines, storage facilities, and processing plants plays a vital role in the transportation and processing of oil and natural gas. Its toll-taker business model, where it charges fees for the use of its infrastructure, provides a stable and predictable income stream. EPD's strong demand for its services and a debt-to-equity ratio of around 0.4 make it a dependable source of passive income.
These three dividend stocks offer attractive yields and have demonstrated consistent dividend growth. However, it's essential to consider their payout ratios and historical growth rates when evaluating their potential as passive income sources. TotalEnergies has a payout ratio of 45%, Brookfield Renewable Partners has a payout ratio of 54%, and Enterprise Products Partners has a payout ratio of 72%. Their historical dividend growth rates are around 5% for TTE and EPD, and 6% for BEP.
In conclusion, TotalEnergies, Brookfield Renewable Partners, and Enterprise Products Partners are three dividend stocks with yields between 4.5% and 7% that can help power your passive income stream in 2025. Their strong fundamentals, competitive advantages, and market positions contribute to the long-term growth of their dividends. By considering their payout ratios and historical growth rates, investors can make informed decisions about incorporating these dividend stocks into their portfolios.
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.
