Got $1,000 to Invest? These 3 High-Quality, High-Yield Dividend Stocks Could Turn Idle Cash Into More Than $50 of Annual Passive Income.
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In the stock market is a great way to turn idle cash into passive income. Using that money to buy dividend stocks enables you to collect recurring dividend income. You...
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real estate
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July 8, 2025
03:12 AM
The Motley Fool
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In the stock market is a great way to turn idle cash into passive income
Using that money to buy dividend stocks enables you to collect recurring dividend income
You can use that money to help cover your bills or reinvest it into generating more income
For example, $1,000 across three high-quality dividend stocks with higher dividend yields could turn it into more than $50 of passive income each year: Dividend Stock Investment Current Yield Annual Dividend Income Oneok (OKE -2. 73 Verizon (VZ -1. 73 Vici perties (VICI -1. 23 Total $1,000. 70 Data source: Google Finance
Image source: Getty Images
Oneok Oneok operates a large and integrated energy infrastructure platform
Its pipelines, cessing plants, and storage terminals generate stable cash flow, with apximately 90% of its revenue coming from fee-based contracts
The pipeline company's steady earnings have enabled it to der more than a quarter-century of dividend stability and growth
While Oneok hasn't increased its dividend every year, it has raised it by more than 1,200% since 2000
Fueling that growth has been a combination of organic expansion jects and accretive acquisitions
Oneok has been on an acquisition spree in recent years
It bought Magellan Mid Partners in a transformational $18. 8 billion deal in 2023, expanding its operations into refined petroleum ducts and crude oil
Last year, it acquired Medallion Mid and a controlling interest in EnLink Mid for $5. 9 billion, ed by the purchase of the remaining stake in EnLink for $4
Oneok also recently bought the remaining interest in a joint venture for $940 million
Those deals should continue fueling earnings growth through 2027 as the company captures additional merger synergies
In addition, it has several organic expansion jects under way that should come online through early 2028
These growth drivers should give Oneok the fuel to grow its dividend by 3% to 4% annually in the coming years
Verizon Verizon's mobile and broadband es generate lots of recurring revenue as customers pay their bills
That vides the telecom giant with the funds to invest in expanding its 5G and fiber networks, as well as its high-yielding dividend
The company expects to generate $17. 5 billion to $18. 5 billion in free cash flow this year after funding a similar range of capital expenditures
That's plenty of money to cover the company's lucrative dividend, which costs it more than $11 billion per year
The company uses the cash it retains to strengthen its already rock-solid balance sheet
That gives it the financial flexibility to make acquisitions as the right opportunities arise
Last year, the company agreed to acquire Frontier Communications in a $20 billion deal that should close in 2026
The transaction will significantly enhance the company's fiber operations while generating over $500 million in annual cost savings
Verizon's growing and strong free cash flow put it in an excellent position to continue increasing its high-yielding dividend
Last year, the company dered its 18th consecutive annual dividend increase
That's the longest current streak in the U
Vici perties Vici perties is a real estate investment trust (REIT) focused on owning gaming, hospitality, wellness, entertainment, and leisure destinations
The REIT leases these perties back to operating companies under long-term, triple net (NNN) agreements
Those leases vide it with stable cash flow that increasingly rises with inflation -- 42% of its leases this year, rising to 90% by 2035
The REIT pays out 75% of its stable cash flow in dividends
It retains the rest to invest in growing its portfolio
Vici perties will acquire perties in sale-leaseback transactions
It will also fund the development of experiential perties through real estate-backed loans
Those financing arrangements vide it with interest income and often come with the opportunity to acquire the perties in the future
Vici perties' growing portfolio allows it to increase its dividend
It has raised its payout every single year since its formation seven years ago
It has grown its dividend at a 7. 4% compound annual rate
That leads its triple net peers, which have dered a 2. 3% average dividend growth rate during that period
Income-ducing machines in high-quality, high-yielding dividend stocks, such as Oneok, Verizon, and Vici perties, is a great way to turn idle cash into an income
They can generate a meaningful and growing of dividend income, viding you with a tangible return each year.
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