Want $2,500 in Passive Income? Invest $43,210 in These 3 High-Yielding Dividend Payers

The market is a mixed bag in 2025 as stocks face volatility and the macro background is uncertain. Recent comments from Chicago Fed’s Goolsbee hint that even the Federal Reserve is unsure where the economy is heading and is waiting for more data.

In the meantime, bond yields have been dropping. They are traditionally the go-to for stable income but are less enticing right now. The 10-year treasury yields 4.25% and is down from a high of 4.79% this year. That’s still competitive, but the catch is that it doesn’t grow. On the other hand, the best dividend stocks come from companies that increase payouts over time and are better for a buy-and-hold strategy. Dividend growers have historically delivered higher total returns than bonds and they lock you into a static yield.

Corporate cash levels are still relatively high. As such, firms have the firepower to sustain and raise dividends and can offset any near-term inflation or interest rate shocks.

The following dividend stocks have a blended dividend yield of 5.8% and should comfortably generate around $2,500 in passive income.

Verizon Communications (VZ)

Verizon (NYSE:VZ) hasn’t had the best performance in the past few years if you look at its price, but dividends have been solid. VZ is a cornerstone for any dividend portfolio and is recovering from a significant decline in the post-COVID era.

Revenue is growing again as of Q4, and profits have bounced back significantly. If interest rates decrease, earnings could surge even more as the company spent approximately $6.65 billion on interest expenses in 2024. It has $168.4 billion of debt on its balance sheet. Even with that debt, Verizon has managed to deliver solid cash flow and increase its dividends. It has 20 consecutive years of dividend increases now.

Analysts no longer expect earnings or revenue to turn negative. Growth of around 3% annually is expected on average for EPS, and 1-2% annual growth is expected for revenue.

The average price target of $46.29 also implies some upside on top of its 6.16% dividend yield. 

Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE:EPD) is a midstream natural gas and crude oil pipeline company. These companies are remarkably stable and are known for paying some of the highest dividends since they aren’t impacted by any swings in the energy market. Enterprise Products Partners is simply involved in operating pipeline and transmission. Most of its revenue comes from fee-based contracts. Even when oil prices crashed in 2020 or soared in 2022, EPD’s cash flow stayed steady because its income doesn’t hinge on commodity prices.

This has allowed the company to increase its dividends consecutively for the past 27 years. It also has a dividend yield of 6.32% which has been steadily increasing with the stock. The payout ratio at 0.77 also covers dividends pretty well. Historically, the median payout ratio here was at 0.88.

The stock could easily cross $40 again if bond yields continue coming down. Investors won’t have many other alternatives but to invest in midstream companies like EPD for high and consistent yields. Back in 2014, when the stock topped $40, the 10-year Treasury yield was around 2.5%, and energy demand was strong. The U.S. oil production is projected at 13.4 million barrels per day for Q1 (per EIA, February 2025), and exports are booming. EPD could see price momentum similar to that of 2014 if yields drop.

Ennis (EBF)

Ennis (NYSE:EBF) is in the printing business. It has over a century of experience in the printing industry and has a diversified customer base. If one region or market softens, others can easily pick up the slack due to the company’s decentralization. During a recession, companies still need basic forms and labels to function. This recession-resistant demand keeps Ennis afloat when other firms struggle.

EBF is trading at a 20% discount from its 6-month peak. If you look at the stock chart, you’ll notice that the stock has had many short-term ups and downs, which are great entry points for the long run. The long-term trajectory has been quite consistent since the Great Recession.

“Boring reliability” is the company’s strength.  For example, its latest quarterly report from December 2024 showed a slight revenue decline of 4.6% to $99.8 million, yet its EBITDA margin improved. Ennis also has no debt, so interest rates wouldn’t have to decline for it to benefit. Many expect interest rates to go up due to tariff-related inflation. However, the high-rate environment benefits Ennis’ cash-heavy balance sheet. $69 million in cash earning interest at 4-5% gives Ennis roughly $3-$3.45 million annually in passive income.

And most importantly, EBF has a dividend yield of 4.94%. It’s on the caboose of this article since that’s lower than 5%, but it’s hard to ask for more as you get a solid footing with that near-5% yield.

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