Key Points
If you want to build a steady stream of passive income, jump into high-yielding stocks. After all, you’re just not going to make the money you want in today’s low-yielding savings accounts.
So, if it’s dependable income you’re after, one of the best things you can do is invest in yielding stocks.
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If you want to build a steady stream of passive income, jump into high-yielding stocks.
After all, you’re just not going to make the money you want in today’s low-yielding savings accounts. You’re lucky if you earn 0.40% these days. So, if it’s dependable income you’re after, one of the best things you can do is invest in yielding stocks. Look at Coca-Cola (NYSE: KO), for example.
The company just approved its 63rd consecutive annual dividend increase, raising its quarterly dividend to 51 cents per share. It’s considered a Dividend King because it’s been paying out a dividend for more than 50 years. In KO’s case, it’s been distributing yield since 1971. Today, if you bought $25,000 worth of the KO stock, you would take ownership of 347 shares. With a $2.04 annual payout, you can sit back and collect about $717.88 in yearly income. And all you had to do was buy and hold a popular stock.
While Coca-Cola is a great stock to buy and hold long-term, it pays to diversify with more than one yielding stock. Here are a few more options, which could hand you $8,683.70 if you were to invest $25,000 in each.
Two Harbors Investment
With a yield of 16.42%, Two Harbors (NYSE: TWO) invests in mortgage servicing rights and agency residential mortgage-backed securities. It just paid out a quarterly dividend of 45 cents per share on April 29.
If you invested $25,000 in TWO, you’d take ownership of 2,272 shares, using today’s price of $11. That said, buy buying and holding the stock, you could collect $1,022.40 per quarter.
Annualized, you’d collect $4,089.60.
And again, all you have to do is hold the stock.
Helping, analysts at UBS just upgraded the stock to a buy rating with a price target of $13. Plus, earnings weren’t too shabby. In its first quarter, its EPS of 24 cents was higher than the 20 cents posted in the fourth quarter of 2024.
In addition, as noted by Seeking Alpha, “Book value per common share of $14.66 at March 31, 2025, climbed from $14.47 at Dec. 31, 2024. Economic return on book value improved to 4.4% from nil in the prior quarter.”
Brookfield Renewable
With a yield of 4.65%, Brookfield Renewable (NYSE: BEPC) is a hot renewable energy stock you may not want to overlook.
For one, the company sells about 90% of the renewable energy it produces under long-term, fixed power agreements – which means BEPC can collect predictable and steady cash flow. Two, power rates are still growing faster than inflation, especially with surging power demand from facilities such as artificial intelligence data centers.
The company is also about to pay out a dividend of $0.373 per share on June 30 to shareholders of record as of May 30. So, if you were to invest $25,000 in BEPC, you would take ownership of about 781 shares, using its current price of $32. With those 781 shares, you can collect income of $291.31 using the current dividend of $0.373.
Annualized, you’d collect $1,165.
Plus, as noted by CEO Connor Teskey: “The fundamentals for energy remain strong as investment in digitalization and reindustrialization is driving demand growth that far exceeds supply. This imbalance persists despite weaker market sentiment due to uncertainty of the impacts of tariffs globally. In the current environment, we feel our business is differentiated by its resiliency, strong balance sheet, and strategic positioning, allowing us to not only continue to execute, but also capitalize on the current environment to opportunistically grow our platform and extend our leadership position.”
Annaly Capital Management
With $25,000, you can take ownership of 1,294 shares of Annaly Capital Management (NYSE: NLY) – which currently yields $2.65 a share per year. That will hand you a yearly dividend of $3,429.10, which isn’t a bad payout at all.
Annaly Capital is involved in the mortgage finance business.
The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities.
Helping, earnings have been solid. Its first-quarter EPS for distribution was 72 cents, which exceeded analyst expectations of 70 cents.
Also, as noted by CEO and Co-Chief Investment Officer David Finkelstein, “We were pleased to deliver a 3% economic return in the first quarter, as well as an increase to our common stock dividend, with each of our three investment strategies contributing positively to our return.”
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