4 Passive Income Stocks Trading Under $20 Every Boomer Should Own

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67.

The ideal plan for retirees and those nearing retirement is to establish a passive income stream. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

24/7 Wall St. Key Points:

• Like last year, the Social Security cost-of-living adjustment will be low
• It’s likely the 2026 COLA will be 3% or less
• Passive income streams can be a considerable boost to total monthly income
• Is it time for you to add a passive income stream? Why not meet with a financial advisor near you for a complete portfolio review? Click here to get started today. (Sponsored)

Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments such as dividend stocks, bonds, and mutual funds, as well as real estate and additional income-producing side hustles. 

We screened our 24/7 passive income database looking for quality companies trading at $20 or less that every Boomer should have in their portfolios. All pay reliable, and in some cases, rising dividends, and all are rated Buy at the top Wall Street firms we cover.

Why do we cover passive income dividend stocks?

The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for or are already enjoying retirement. Dependable recurring dividends, especially those paid monthly, are a recipe for success.

Energy Transfer

Energy Transfer is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a substantial distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

• Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
• NGL fractionation
• Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, L.P., the company also owns Lake Charles LNG Company, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).

Morgan Stanley has assigned an Overweight rating, accompanied by a $26 target price.

Host Hotels & Resorts

Host Hotels & Resorts is the world’s largest publicly traded lodging REIT, with a geographically diverse portfolio of luxury and upper upscale hotels. This stock is expected to remain in demand as travel continues to recover in 2025, and investors can expect a generous dividend yield. Host Hotels & Resorts, Inc. (NASDAQ: HST) is an S&P 500 company and is one of the largest owners of luxury and upper-upscale hotels.

The Company owns 76 properties in the United States and five internationally, totaling approximately 43,400 rooms. It also holds non-controlling interests in seven domestic and one international joint venture. A disciplined approach to capital allocation and aggressive asset management guides the company.

Host Hotels & Resorts partners with premium brands such as:

• Marriott
• Ritz-Carlton
• Westin
• Sheraton
• W
• St. Regis
• The Luxury Collection
• Hyatt
• Fairmont
• 1 Hotels
• Hilton
• Four Seasons
• Swissôtel
• ibis

Wells Fargo has an Overweight rating on the stock with a $20 target.

Invesco

This asset management giant offers a dependable dividend and the potential for some outstanding total return gains. Invesco Ltd. (NYSE: IVZ) is an independent investment management firm.

It serves the retail and institutional markets within the investment management industry across the Americas, Europe, the Middle East, Africa, and Asia-Pacific in 120 countries.

It offers a range of investment strategies across asset classes, investment styles, and geographies.

Invesco Ltd. offers a range of asset classes, including equity, fixed income, balanced, alternatives, and money market.

The company’s retail assets under management include:

• Mutual funds
• Exchange-traded funds
• Separately managed accounts
• Individual savings accounts
• Investment companies with variable capital
• Investment trusts
• Open-end mutual funds
• Unit investment trusts
• Variable insurance funds

Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds.

The client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.

Argus has a Buy rating with a $17 target price.

KeyCorp

This regional bank offers a sizable dividend and outstanding growth prospects. KeyCorp (NYSE: KEY) is a bank-based financial services company that operates through its subsidiary, KeyBank National Association (KeyBank).

Through KeyBank and certain other subsidiaries, it provides a range of L

• Retail and commercial banking
• Commercial leasing
• Investment management
• Consumer finance
• Student loan refinancing
• Commercial mortgage servicing and special servicing
• Investment banking products and services to individual, corporate, and institutional clients

Its segment includes:

• Consumer Bank
• Commercial Bank

The Consumer Bank serves individuals and small businesses by offering a variety of deposit and investment products, as well as personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity services, credit card services, treasury services, and more.

The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is focused on serving the borrowing, cash management, and capital markets.

Keefe, Bruyette & Woods has an Outperform rating with a $18 target.

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