Investing in dividend stocks can be a great way to generate passive income. High-yield dividend stocks, in particular, offer attractive yields that can provide a significant boost to an investor’s income. However, with so many dividend stocks to choose from, it can be challenging to select the right ones.
In this article, we will highlight three high-yield dividend stocks that have a strong track record of paying consistent dividends. By investing $11,400 in these stocks, investors can potentially earn an additional $1,000 in dividend income in 2025.
**Stock 1: Realty Income (O)**
Realty Income is a real estate investment trust (REIT) that specializes in owning and managing commercial properties. The company has a strong track record of paying consistent dividends, with a dividend yield of 3.7%. Realty Income has increased its dividend payout for 114 consecutive quarters, making it a reliable choice for income investors.
Realty Income’s business model is focused on owning and managing a diversified portfolio of commercial properties, including retail, industrial, and office properties. The company’s properties are located in 49 states and Puerto Rico, providing a diversified source of rental income.
**Stock 2: National Retail Properties (NNN)**
National Retail Properties is another REIT that specializes in owning and managing retail properties. The company has a dividend yield of 4.1% and has increased its dividend payout for 32 consecutive years. National Retail Properties’ portfolio consists of over 3,000 properties, including retail stores, restaurants, and service stations.
The company’s business model is focused on providing long-term leases to high-quality tenants, which provides a stable source of rental income. National Retail Properties’ properties are located in 48 states, providing a diversified source of income.
**Stock 3: AT&T (T)**
AT&T is a telecommunications company that offers a range of services, including wireless communications, broadband, and television. The company has a dividend yield of 3.5% and has increased its dividend payout for 37 consecutive years. AT&T’s business model is focused on providing a range of services to consumers and businesses, which provides a stable source of revenue.
AT&T’s dividend payout is supported by its strong cash flow generation, which is driven by its large customer base and diversified service offerings. The company’s dividend payout has increased by an average of 2% per year over the past five years, making it a reliable choice for income investors.
**Investment Strategy**
To potentially earn an additional $1,000 in dividend income in 2025, investors can invest $11,400 in the three stocks mentioned above. Here is a sample investment portfolio:
* Realty Income (O): $3,800 (32 shares)
* National Retail Properties (NNN): $3,800 (64 shares)
* AT&T (T): $3,800 (100 shares)
This investment portfolio has a total dividend yield of 3.8% and provides a diversified source of income. By investing in these three stocks, investors can potentially earn an additional $1,000 in dividend income in 2025.
**Conclusion**
Investing in high-yield dividend stocks can provide a steady stream of income. By investing $11,400 in Realty Income, National Retail Properties, and AT&T, investors can potentially earn an additional $1,000 in dividend income in 2025. These three stocks have a strong track record of paying consistent dividends and offer a diversified source of income. As with any investment, it’s essential to do your research and consider your individual financial goals and risk tolerance before investing.
