Investing in dividend-paying stocks can be a great way to generate passive income. Many companies offer high yields and stable or growing dividend payments. Here are five high-yielding stocks that could help you earn over $1,000 in passive income next year:
1. Ares Capital (NASDAQ: ARCC)
Ares Capital is a business development company (BDC) that provides capital to private middle market companies. With a portfolio of senior secured loans, Ares Capital has a strong track record of delivering stable dividends over the past 16 years. Its defensive portfolio and financial strength position it well to sustain and grow its dividend in the future.
2. Energy Transfer (NYSE: ET)
Energy Transfer is a master limited partnership (MLP) operating a diversified energy midstream platform. With stable fee-based earnings and a strong financial position, Energy Transfer aims to increase its dividend by 3% to 5% annually. The company has a backlog of expansion projects that should support its distribution growth.
3. Starwood Capital (NYSE: STWD)
Starwood Capital is a real estate investment trust (REIT) with diverse investments in commercial mortgages, infrastructure-backed loans, and direct property investments. Despite fluctuations in the real estate market, Starwood has maintained its dividend for over a decade by diversifying its portfolio to enhance income stability.
4. UPS (NYSE: UPS)
UPS, a global logistics company, has faced challenges in recent years, leading to a decline in its share price. However, the company remains committed to maintaining its dividend, supported by cost-saving initiatives and a strong financial position. Despite struggles, UPS has maintained its dividend every year since going public in 1999.
5. Verizon (NYSE: VZ)
Verizon, a mobile and broadband company, generates significant recurring revenue and cash flow from its services. The company has invested in expanding its 5G and fiber networks to drive revenue growth and free cash flow. Verizon has raised its dividend for 19 consecutive years, reflecting its stable financial performance.
These five stocks offer attractive dividend yields and a history of stable or growing dividend payments. By investing in these companies, you could potentially earn over $1,000 in passive income next year. Consider the unique strengths and growth prospects of each company before making investment decisions.
