As an investor, you're always on the lookout for ways to grow your wealth and generate passive income. One strategy that has stood the test of time is investing in high-yield dividend stocks. These companies distribute a significant portion of their profits to shareholders, providing a steady stream of income. In this article, we'll explore three high-yield dividend stocks that could help you generate $10,000 in reliable passive income in 2025 by investing $134,800.
1. Realty Income Corporation (NYSE: O)
Realty Income Corporation is a real estate investment trust (REIT) that specializes in retail properties. With a current yield of around 6%, Realty Income has a long history of paying and increasing dividends, having done so for 128 consecutive quarters since going public in 1994. The company's diversified portfolio of over 15,000 properties in 49 states, the District of Columbia, and Puerto Rico provides a stable foundation for its dividend payments.
Investing $44,933 in Realty Income Corporation at its current price of $53.41 could generate approximately $2,695 in annual dividends, based on its current yield. This would account for around 27% of the targeted $10,000 in passive income.
2. Organon (NYSE: OGN)
Organon is a women's health company that spun off from Merck in 2021. With a high yield of 7.4%, Organon provides investors with a mouthwatering yield that is well-supported by solid financials. The company has consistently posted a profit in each of the past four quarters and has a payout ratio of just 22%. This indicates that the dividend is sustainable and has room for growth.
Investing $44,933 in Organon at its current price of $18.95 could generate approximately $3,336 in annual dividends, based on its current yield. This would account for around 33% of the targeted $10,000 in passive income.
3. United Parcel Service (NYSE: UPS)
United Parcel Service (UPS) is a logistics giant with a dividend yield of 5.2%. Investing $44,933 in UPS at its current price of $184.50 could generate approximately $2,317 in annual dividends, based on its current yield. This would account for around 23% of the targeted $10,000 in passive income.
To achieve the remaining 27% of the targeted $10,000 in passive income, you can reinvest the dividends received from these three stocks. By doing so, you'll be taking advantage of the power of compounding, which can significantly boost your income over time.
In conclusion, investing in high-yield dividend stocks like Realty Income Corporation, Organon, and United Parcel Service can provide you with a reliable source of passive income. By allocating $44,933 to each of these stocks, you can generate approximately $10,000 in annual dividends, assuming their current yields remain stable. Keep in mind that yields and stock prices can fluctuate, so it's essential to monitor your investments and make adjustments as needed.
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