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 helps cover rising costs—such as mortgages, insurance, taxes, and other expenses—the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success, and our four top passive income dividend stocks for the rest of 2025 have all the right attributes for growth and income investors.
There are over 12,000 publicly traded stocks in the United States. Not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. passive income database, seeking solid companies yielding at least 6% with solid dividend coverage that appear poised to have a strong second half of 2025. Four well-run companies hit our screens, and all look like timely buys now.
Why do we cover dividend stocks?
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. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Altria
Altria Group Inc. (NYSE: MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. The stock offers value investors a compelling entry point and a generous dividend yield. Altria manufactures and sells smokable and oral tobacco products in the United States.
The company provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
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. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Stifel has a Buy rating with a $63 target price.
Edison International
Trading near a 52-week low with one of the highest dividends in the utility sector, this stock is a strong idea for the rest of 2025. Edison International Inc. (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.
SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central, and Coastal California.
Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.
Trio provides integrated strategy and implementation solutions in:
- Sustainability
- Renewables
- Energy procurement
- Conventional supply
- Energy optimization
- Transportation electrification
Enterprise Products Partners
Enterprise Products Partners L.P. (NYSE: EPD) is an American midstream natural gas and crude oil pipeline company with its headquarters in Houston, Texas. It is one of the largest publicly traded energy partnerships, paying a very reliable dividend. Enterprise Products Partners provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGL), and fractionation
- Import and export terminalling
- Offshore production platform services
The company has four reportable business segments:
- Natural Gas Pipelines and Services
- NGL Pipelines and Services
- Petrochemical Services
- Crude Oil Pipelines and Services
One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
JPMorgan has an Overweight rating with a $38 price objective.
Verizon
Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and is up almost 10% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic (including the District of Columbia) and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Goldman Sachs has a Buy rating and a price target of $52.
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