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All It Takes Is $1,000 Invested in Each of These 3 High-Yield Dividend Stocks to Generate $112 in Passive Income in 2025

AInvestSaturday, Jan 11, 2025 11:57 am ET
5min read


Are you looking for a way to generate passive income in 2025? Look no further than these three high-yield dividend stocks. By investing just $1,000 in each, you could be on your way to earning $112 in passive income annually. Let's dive into the details and see how these stocks can help you achieve your financial goals.



1. Ares Capital (ARCC)
Ares Capital is a leading specialty finance company that provides financing solutions to private middle-market companies. With a quarterly dividend of 48 cents per share, ARCC stock offers a yield of 8.7%. This high yield is backed by the company's core earnings per share and potential net realized gains.



Investing $1,000 in Ares Capital would result in an annual income of $87.20. With a strong track record of dividend growth and a solid financial foundation, ARCC is an attractive option for income-oriented investors.

2. Bank of America (BAC)
Bank of America is a global financial services company that offers a wide range of banking, investment, asset management, and other financial and risk management products and services. With a quarterly dividend of 18 cents per share, BAC stock offers a yield of 2.34%. Although the yield is lower than ARCC, Bank of America's dividend has a strong history of growth and is supported by a robust balance sheet.



Investing $1,000 in Bank of America would result in an annual income of $23.40. The company's diversified revenue streams and strong capital position make it a reliable choice for dividend investors.

3. Citigroup (C)
Citigroup is a multinational investment bank and financial services company that offers a broad range of financial products and services to consumers, corporations, governments, and institutions. With a quarterly dividend of 51 cents per share, C stock offers a yield of 3.18%. Citigroup's dividend is supported by its strong global presence and diversified revenue streams.



Investing $1,000 in Citigroup would result in an annual income of $31.80. The company's global reach and diversified business model make it a solid choice for income investors seeking a higher yield.

By investing $1,000 in each of these three high-yield dividend stocks, you could generate a total of $142.40 in annual passive income. Keep in mind that these yields and income estimates are based on current dividend payouts and may change over time. It's essential to do your own research and consider your risk tolerance and investment goals before making any investment decisions.



In conclusion, investing in high-yield dividend stocks like Ares Capital, Bank of America, and Citigroup can be an effective way to generate passive income in 2025. By reinvesting your dividends, you can compound your wealth over time and achieve your financial goals. Don't miss out on this opportunity to secure your financial future – start investing in these dividend stocks today!
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.