What would it take to make over $3,000 this year with only barely lifting a finger? My answer is having $50,000 and spending five minutes or so using an online brokerage.
Could it really be that easy? I think so. Investing $10,000 in each of these five ultra-high-yield dividend stocks could generate more than $3,000 in passive income in 2025.
1. Enbridge
Enbridge (ENB -0.68%) is a leading midstream energy company whose pipelines transport around 30% of crude oil produced in North America and nearly one-fifth of the natural gas used in the U.S. It's also the largest natural gas utility in North America based on volume.
If you're looking for a passive income machine, Enbridge is it. The stock pays a forward dividend yield of 6.09%. An initial investment of $10,000 would generate $609 in passive income this year. The amount is likely to rise in the future: Enbridge has increased its dividend for an impressive 30 consecutive years.
I think you have a good chance of enjoying solid share price appreciation, too. Enbridge stock jumped around 20% over the last 12 months excluding dividends. Potential deregulation by the Trump administration could boost domestic oil and gas production -- and Enbridge's profits.
2. Pfizer
You're probably already at least somewhat familiar with Pfizer (PFE 1.03%). It ranks among the largest pharmaceutical companies in the world. Pfizer markets a dozen blockbuster drugs and vaccines plus many other products that generate significant revenue.
Buying $10,000 worth of Pfizer stock should provide around $649 in passive income in 2025 from dividends. Those dividend payments should also be highly reliable. Pfizer will pay its 345th consecutive quarterly dividend later this month.
Be advised that Pfizer faces some headwinds, including the loss of patent exclusivity for some of its drugs and an estimated $1 billion negative impact this year from the Inflation Reduction Act. However, the company's long-term growth prospects look good with multiple products generating strong sales growth and plenty of late-stage pipeline candidates.
3. Realty Income
Realty Income (O 2.65%) is one of the world's largest real estate companies. It owns more than 15,450 commercial real estate properties with tenants including Dollar General, Walgreens, and FedEx.
As a real estate investment trust (REIT), Realty Income must return at least 90% of its earnings to shareholders as dividends to be exempt from federal income taxes. The company has done just that every month since 1994. Like Enbridge, Realty Income has also increased its dividend for 30 consecutive years. A $10,000 investment in this REIT would allow you to make $580 in dividends in 2025.
I think Realty Income should deliver solid long-term returns. The company has attractive growth opportunities in the U.S. and Europe. However, it's possible the stock could flounder over the near term with uncertainty about future interest rate cuts by the Federal Reserve.
4. United Parcel Service
Chances are you've received a package in recent days or weeks delivered by United Parcel Service (UPS 1.94%). The company delivers an average of 22.3 million packages each day in over 200 countries and territories.
UPS can also deliver a nice chunk of passive income to you in 2025. With its forward dividend yield of 5.02%, buying $10,000 of the company's shares would generate dividends totaling $502 this year.
Could UPS also bring more good news to your doorstep? Maybe so. Although the stock has fallen in recent years, it could be poised to rebound. In the third quarter of 2024, UPS returned to revenue and profit growth. The company is also focusing on increasing its volume of higher-margin types of packages.
5. Verizon Communications
The final ultra-high-yield dividend stock on the list is another household name -- Verizon Communications (VZ 0.42%). This company is one of the largest telecommunications providers serving individuals and businesses around the world.
Verizon's forward dividend yield of 7.07% is the highest of the stocks mentioned. A $10,000 investment would provide passive income from dividends of $707 this year. That brings our total to $3,047, by the way. I think the amount will actually be higher, though, thanks in part to Verizon. The company has increased its dividend for 18 consecutive years, a streak I'd bet will be extended in 2025.
I wouldn't wager on jaw-dropping growth from Verizon, though. However, the company's pending acquisition of Frontier Communications should boost revenue after the deal closes.
