5 High-Yielding Dividend Stocks That Provided Me With the Most Passive Income in 2024

As we approach the end of 2024, investors are looking for ways to maximize their passive income. Dividend stocks have been a popular choice for many, offering a steady stream of income and the potential for capital appreciation. In this article, we will highlight five high-yielding dividend stocks that provided significant passive income in 2024 and are expected to continue doing so in 2025.

1. Packaging Corporation of America (PKG)
* Dividend Yield: 2.0%
* Dividend Growth Streak: 15 years
* Payout Ratio: 55% of earnings
* PKG has experienced business normalization following the pandemic and supply chain log-jams, but its stock price barely reflected this improvement. The company's low valuation contributed to its high dividend yield in 2024. With a 15-year dividend growth streak and a reasonable payout ratio, PKG is well-positioned to continue growing its dividend in the coming years.
2. Cintas (CTAS)
* Dividend Yield: 1.8%
* Dividend Growth Streak: 42 years
* Payout Ratio: 42% of earnings
* Cintas is among the best-operated companies on the market, self-funding growth while maintaining a fortress balance sheet, paying dividends, and buying back shares. With a 42-year dividend growth streak and a low payout ratio, Cintas is expected to continue increasing its dividend in 2025.
3. Casey's General Stores (CASY)
* Dividend Yield: 1.5%
* Dividend Growth Streak: 25 years
* Payout Ratio: 15% of earnings
* Casey's General Stores faces some headwinds in 2024 but can sustain its margin, drive robust cash flow, self-fund its growth, and return capital to shareholders. With a 25-year dividend growth streak and a low payout ratio, Casey's is well-positioned to continue growing its dividend in the coming years.
4. Johnson & Johnson (JNJ)
* Dividend Yield: 3.5%
* Dividend Growth Streak: 62 years
* Payout Ratio: 55% of earnings
* Johnson & Johnson has one of the strongest financial profiles in the world, with a AAA bond rating and a very manageable net debt-to-equity ratio. The company has increased its dividend for 62 consecutive years, qualifying it as a Dividend King. With a low payout ratio and a strong balance sheet, JNJ is expected to continue growing its dividend in 2025.
5. ExxonMobil (XOM)
* Dividend Yield: 3.5%
* Dividend Growth Streak: 42 years
* Payout Ratio: 50% of earnings
* ExxonMobil is the undisputed leader of the oil patch, led all international oil companies in earnings during the third quarter of 2024, and produced a massive $11.3 billion in free cash flow. With a 42-year dividend growth streak and a low payout ratio, ExxonMobil is expected to continue increasing its dividend in 2025.

In conclusion, these five high-yielding dividend stocks provided significant passive income in 2024 and are expected to continue doing so in 2025. By focusing on companies with strong financial profiles, consistent dividend growth streaks, and reasonable payout ratios, investors can build a portfolio that generates steady income and grows over time. As always, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.