Earn $5,000 Each Year by Putting $70,700 In These 3 High Dividend Yield Stocks

Many investors seeking passive income have been pouring money into treasuries as interest rates have been solid for these assets. However, recent rate cuts are finally causing treasury yields to come down. They have ticked up slightly due to recession fears, but as rates inevitably come down over the coming years, investing in dividend stocks […] The post Earn $5,000 Each Year by Putting $70,700 In These 3 High Dividend Yield Stocks appeared first on 24/7 Wall St..

Mar 26, 2025 - 21:16
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Earn $5,000 Each Year by Putting $70,700 In These 3 High Dividend Yield Stocks

Many investors seeking passive income have been pouring money into treasuries as interest rates have been solid for these assets. However, recent rate cuts are finally causing treasury yields to come down. They have ticked up slightly due to recession fears, but as rates inevitably come down over the coming years, investing in dividend stocks is going to be much more popular.

It’s a good idea to accumulate high dividend yield stocks before such yield hunger kicks in. These stocks yield much higher than treasury yields and have solid upside potential. Of course, there’s still risk, but these companies are well-established and it’s very unlikely that you’re going to lose any money if you use a buy-and-hold strategy.

These stocks have a blended forward dividend yield of 7.08%. If you put $70,700 in these stocks, it works out to $5,000 in extra income each year that you can reinvest or use.

Key Points

  • These dividend stocks can help you get $5,000 a year in passive income with just $70,700.

  • These stocks have solid underlying businesses and consistent cash flow to maintain these dividends.

  • Two of these companies are also doing very aggressive buybacks.

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Eni S.p.A. (E)

Eni S.p.A. (NYSE:E) is an Italian energy company and one of the world’s biggest oil companies. It hasn’t fared well during previous recessions or oil downturns, but it has been very consistent in recent years.

The company has diversified its portfolio beyond oil and gas since and has invested heavily in low-carbon businesses. Its 2025-2028 strategy included a dedicated CCUS satellite company to help it consolidate projects and build a new revenue stream. It now separates high-growth units into independent entities and has shielded them from recent volatility.

Eni S.p.A seems to have learned from its earlier failures, and I’m bullish that it can continue to be a safe pick. The company’s forward dividend yield is at 6.68% now, which is better than 73.69% of the oil and gas industry, and the 3-year dividend growth rate has also been solid at 13.1%. It also does aggressive buybacks, with the 30-year average share buyback ratio at 4.5. Outstanding shares have declined from 1.77 billion in 2021 to 1.4 billion at the end of 2024.

There’s plenty of cash flow going around here that the company can return to investors, so this is a solid dividend stock.

Broadstone Net Lease (BNL)

Broadstone Net Lease (NYSE:BNL) is a real estate investment trust (REIT). These stocks have often been scrutinized more since the Great Recession, but the industry has learned a lot since then. REITs and bank stocks are generally quite safe, and big banks have actually benefited in the 2023 banking crisis due to their safety record.

The housing market is currently in a cooling period, but there hasn’t been a 2008-esque pullback that many bears had expected. Broadstone owns a stable and predictable income stream due to its having a diversified portfolio across various property types. The company’s leases are also long-term, with built-in rent escalations that deliver consistent cash flow and returns through multiple real estate cycles.

BNL stock sold off in late 2021 and 2022 after the post-COVID boom. However, stock prices have returned back to normal pre-COVID prices at around $15-20, and I expect it to stay stable at this range while slowly appreciating as the company’s Q4 2024 report still shows stable growth.

In fact, analysts expect the company’s top-line growth to accelerate significantly in the coming years. Revenue is expected to be at $447.6 million for all of 2025 and grow at 3.7%. It is then expected to grow 5.31% to $471.4 million in 2026 and grow 7.15% to $505.1 million in 2027.

The stock also comes with a 6.9% forward dividend yield, and you’re only paying 11 times forward FFO.

Imperial Tobacco Group (IMBBY)

Imperial Tobacco Group (OTCMKTS:IMBBY) is one of the biggest tobacco companies. Many fear that declining youth smoking trends are going to knock the stock down and make it a back long-term investment. There is a perception that tobacco is a dying industry.

The perception isn’t all wrong since it’s true that smoking rates have been steadily decreasing among young people due to social attitudes. However, it’s also worth taking a look at the broader picture as cigarette companies are adapting fast.

Imperial is diversifying into vapes, heated tobacco, and nicotine pouches. Cigarettes may be declining, but vapes are still popular. Imperial Tobacco Group saw its revenue decline in earlier years, but its revenue has been picking up again, and the decline seems to have stabilized. At the same time, the company has paid off almost $10 billion in debt over the past decade.

Imperial Tobacco has started aggressive share buybacks over the past two years, with outstanding shares being cut back from 946.7 million to 846 million. It has announced another five-year share buyback program through 2030 while growing annual operating profits by 5%.

The cash flow is very dependable here, and IMBBY currently offers a forward dividend yield of 7.68%.

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