Boomers Can Generate Huge Passive Income With the 5 Highest-Yielding Nasdaq 100 Stocks

By Lee Jackson Published May 28, 6:47AM EDT

Quick Read

Interest rates are likely to stay where they are throughout the summer.
High-yielding dividend stocks are perfect for generating passive income.
The highest-yielding Nasdaq 100 stocks may come as a surprise.

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Boomers Can Generate Huge Passive Income With the 5 Highest-Yielding Nasdaq 100 Stocks — © Kena Betancur / Getty Images

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

The more passive income can help cover rising costs like mortgages, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they prepare for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success. The five highest-yielding Nasdaq 100 stocks offer incredible, dependable yields from quality companies you can buy and hold forever.

Why do we cover the highest-yielding Nasdaq 100 dividend stocks?

Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs, the better, making it easier for investors to set aside money for future needs as they prepare to enjoy retirement. Dependable recurring dividends from quality, high-yield Nasdaq 100 stocks are a recipe for success.

Kraft Heinz

Kraft Heinz Co. (NYSE: KHC | KHC Price Prediction) is North America’s third-largest food and beverage company and fifth-largest globally. Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous dividend. Kraft Heinz was formed via the merger of H.J. Heinz and Kraft Foods. It manufactures and markets food and beverage products worldwide through its eight consumer-driven product platforms:

Taste Elevation
Easy Ready Meals
Hydration
Meats
Cheeses
Substantial Snacking
Desserts
Coffee and other grocery products

The company has two reportable segments defined by geographic region: North America and International Developed Markets.

Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials.

Kraft Heinz brands include:

Kraft,
Oscar Mayer
Heinz
Philadelphia
Lunchables
Velveeta
Ore-Ida
Capri Sun
Maxwell House
Kool-Aid
Jell-O
Golden Circle
Wattie’s
Plasmon
ABC
Master
Quero
Pudliszki

The company’s products are sold through its sales organizations and independent brokers, agents, and distributors.

PepsiCo

PepsiCo Inc. (NYSE: PEP) is a top consumer staples stock. The worldwide food and beverage company reported mixed first-quarter earnings and will continue to supply all the goods for summer tailgates and parties.

Its Frito-Lay North America segment offers:

Lay’s 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

Comcast

This American multinational telecommunications and media conglomerate recently announced a merger with Cox Communications. Comcast Corp. (NASDAQ: CMCSA) is a global media and technology company.

It operates through five segments:

Residential Connectivity & Platforms
Business Services Connectivity
Media
Studios
Theme Parks segments

The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, Sky-branded entertainment television networks, and advertising.

The Business Services Connectivity segment offers connectivity services for small business locations, including broadband, wireline voice, and wireless. It also provides solutions for medium-sized customers, larger enterprises, and small business connectivity services in the United Kingdom.

The Media segment operates NBCUniversal’s television and streaming business, including:

National and regional cable networks
The NBC and Telemundo broadcast networks
Owned local broadcast television stations
Peacock, a direct-to-consumer streaming service

It also operates international television networks comprising the Sky Sports and other digital properties.

The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.

The Theme Parks segment operates Universal theme parks in:

Orlando, Florida
Hollywood, California
Osaka, Japan
Beijing, China

American Electric Power

American Electric Power Co. (NYSE: AEP) is one of the largest electric utility companies in the country, with more than 5 million customers in 11 states. This industry-leading utility pays investors a hefty, reliable dividend. AEP is an electric public utility holding company that generates, transmits, and distributes electricity for sale to retail and wholesale customers in the United States.

It operates through:

Vertically Integrated Utilities
Transmission and Distribution Utilities
AEP Transmission Holdco
Generation & Marketing

The company generates electricity using:

Coal
Lignite
Natural gas
Renewable energy
Nuclear energy
Hydro
Solar energy
Wind and other energy sources

It also supplies and markets electric power wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants.

Exelon

Exelon Corp. (NYSE: EXC) is the largest electric parent company in the United States in terms of revenue and the largest regulated electric utility. This is another top utility stock that makes good sense now for conservative investors seeking passive income. Exelon is engaged in the energy distribution and transmission businesses in the United States and Canada.

The company purchases and regulates retail sales of electricity and natural gas, as well as the transmission and distribution of these products to retail customers.

It also offers support services, including:

Legal
Human resources
Information technology
Supply management
Financial
Engineering
Customer operations
Distribution and transmission planning
Asset management
System operations
Power procurement services

The company serves:

Distribution utilities
Municipalities
Cooperatives
Financial institutions
Commercial, industrial, governmental, and residential customers

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.