High-yield dividend stocks offer an excellent opportunity for investors looking to generate passive income in 2025. By investing $50,000 in these five stocks—Ares Capital, Energy Transfer LP, Enterprise Products Partners, Pfizer, and Verizon Communications—you could earn nearly $17,500 in dividend income this year. Here’s a breakdown of these stocks and their current yields, based on insights from The Motley Fool.

1. Ares Capital ($ARCC)

  • Current Price: $22.07
  • Dividend Yield: 8.67%
  • Income in 2025: Investing $50,000 would generate $4,335 in passive income.
  • Key Insights: Ares Capital has consistently outperformed the S&P 500 by 60% since its IPO in 2004, making it a reliable choice for income investors.

2. Energy Transfer LP ($ET)

  • Current Price: $13.80
  • Dividend Yield: 6.54%
  • Income in 2025: A $50,000 investment would translate to $3,270 in passive income.
  • Key Insights: With over 130,000 miles of pipelines, Energy Transfer plans to increase its distributions by 3% to 5% annually.

3. Enterprise Products Partners LP ($EPD)

  • Current Price: $31.93
  • Dividend Yield: 6.51%
  • Income in 2025: A $50,000 investment would generate $3,255 in income.
  • Key Insights: Enterprise has raised its distribution for 26 consecutive years and continues to be a leader in the midstream energy sector.

4. Pfizer ($PFE)

  • Current Price: $39.40
  • Dividend Yield: 6.44%
  • Income in 2025: A $50,000 investment would yield $3,220 in dividend income.
  • Key Insights: As one of the largest pharmaceutical companies, Pfizer’s consistent dividend increases make it a dependable option for income.

5. Verizon Communications ($VZ)

  • Current Price: $38.92
  • Dividend Yield: 6.8%
  • Income in 2025: A $50,000 investment would generate $3,400 in income.
  • Key Insights: Verizon has increased its dividend for 18 consecutive years, highlighting its commitment to shareholder returns.

Total Income in 2025: Adding the passive income from all five stocks results in a total of $17,480. With even small dividend increases expected from some companies, the total income could surpass $17,500 by year-end.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.