With the youngest baby boomers (Americans born between 1946 and 1964) approaching retirement age, it’s becoming increasingly important to focus on magnificent dividend stocks that will supply significant passive income either in or out of designated retirement accounts like IRAs.

The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to or enter retirement. According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.

With lower interest rates on the way, many on Wall Street predict the federal funds rate will fall to 3% by 2026. That means high-yield money markets, certificates of deposit, investment-grade corporate bonds, and other super-safe investments will pay less over the next two years. Many baby boomers will rely on quality dividend-paying stock to generate solid passive income to supplement social security and pension income.

We screened our 24/7 Wall St. high-yield quality dividend stock database, looking for companies that have paid reliable dividends for years. We found four stocks that baby boomers can count on to deliver big and dependable dividends every quarter. All are buy-rated at top Wall Street firms that we cover and are in the Dividend Kings group, which has raised the dividends shareholders receive for 50 years or longer.

Why do we cover the Dividend Kings?

Companies that have raised the dividends shareholders receive for 50 years or longer are the kind of investments that baby boomers who are passive income investors need to own. Dependability is necessary for those seeking to bolster their yearly income with dividend stock investments.

Altria

This tobacco company offers value investors a rich 8% dividend and is touted across Wall Street as one of the top passive income stocks for investors to own now. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Northwest Natural Holding

This off-the-radar utility stock suits worried conservative investors and pays a solid 4.82% dividend. Northwest Natural Holding Co. (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.

The company also operates:

• 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers
• Offers natural gas asset management services
• Operates an appliance retail center

In addition, it engages in gas storage, water, non-regulated renewable natural gas, and other investments and activities.

The company provides natural gas service through approximately:

• 786,000 meters in Oregon and southwest Washington
• Water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas

Kenvue

Spun off from Johnson & Johnson Inc. (NYSE: JNJ) last year, this potential total return home run pays a solid 3.55% dividend. Kenvue Inc. (NYSE: KVUE) is a global consumer health company.

The company operates through three segments:

• Self Care
• Skin Health and Beauty
• Essential Health

The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:

• Tylenol
• Nicorette
• Zyrtec

The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brands:

• Neutrogena
• Aveeno
• OGX

The Essential Health segment offers oral and baby, women’s health, and wound care products under:

• Listerine
• Johnson’s
• Band-Aid
• Stayfree brands

PepsiCo

This top consumer staples stock posted mixed earnings for the second quarter but will continue to supply all the goods for the 2024 NFL football season tailgates and parties and pay a solid 3.20% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.

Its Frito-Lay North America segment offers:

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker Oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug brands

Four High-Yield Stocks With 7% and Higher Dividends Are 2025 Home Runs

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