The bull market has sent the S&P 500 up 26% over the last year. But this run has brought the average yield of the index down to just 1.24% -- the lowest yield since 2000.

Investors looking to boost their yield in the new year can find compelling choices in retail and telecommunications. Here are two solid dividend payers that can help you increase your passive income.

1. Target

Rising inflation and interest rates have taken a toll on many retail companies. Leaders like Walmart and Costco have handled the headwinds well and have seen their share prices soar, but they also don't pay a high dividend yield and currently trade at expensive valuations. Target's (TGT -0.74%) 3.24% forward dividend yield and modest price-to-earnings (P/E) ratio offer much better value that could lead to excellent returns.

Target enjoys similar levels of scale as other big-box stores. It generates $107 billion of trailing revenue from nearly 2,000 stores and e-commerce. The company has paid a dividend since 1967, illustrating its resiliency through economic cycles.

Despite a weak consumer spending backdrop, Target still reported a 2.4% year-over-year increase in traffic last quarter. But customers just aren't spending as much, as noted by a meager 0.3% increase in comparable sales.

However, the stock's forward P/E of 16 looks more reasonable than that of its competitors that trade at much higher earnings multiples. Combined with the high yield, investors are getting solid value in the shares right now.

Moreover, investors might see a small expansion in the valuation multiple once consumer spending improves. Target is seeing strong growth from its same-day delivery program, which could lead to more sales opportunities over the long term.

The quarterly dividend payment is $1.12, up from $1.10 a year ago. On an annual basis, that comes to 52% of Target's earnings, providing plenty of wiggle room to grow the dividend in 2025 and beyond.

2. Verizon Communications

Investing in top wireless service providers can be a great way to boost passive income. Telecoms are slow-growing businesses, but the regular fees customers pay for services like internet and wireless connectivity allow Verizon Communications (VZ 0.05%) to generate consistent cash flow and pay generous dividends.

Verizon, including its subsidiaries, has paid a dividend since 1984. It raised the quarterly dividend in 2024 by 1.8% to $0.6775, bringing the forward dividend yield to 6.99%.

The stock is down 28% over the last three years, as investors need a higher yield to compensate for the higher interest rates offered by long-term bonds. Wall Street is also worried about the impact of a possible recession on Verizon's revenue growth.

Still, Verizon turned in a solid Q3 earnings report in October. Wireless service revenue grew 2.7% over the year-ago quarter, with a net addition of 239,000 postpaid phone subscribers. It also reported the ninth consecutive quarter of 375,000 or more broadband additions. Management reported that new products like myPlan and myHome are resonating well with customers.

A potential slowdown in new subscribers seems already priced into the stock's valuation. Even if revenue growth slows, investors will still see more dividends. Verizon is only paying out 58% of its adjusted earnings in dividends. It should be able to sustain and grow its dividend over the long term.

While you won't earn monster returns with Target or Verizon, these are solid dividend stocks that might pay you for the rest of your life.