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. Telecom sector.
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.