President Trump recently signed the “Big, Beautiful” bill, which introduces a temporary “senior bonus” deduction of up to $6,000 for individuals aged 65 and older ($12,000 for married couples filing jointly) for tax years 2025 through 2028. This deduction applies to those earning up to $75,000 (single) or $150,000 (married), phasing out at $175,000 for singles and $250,000 for couples. This can reduce taxable income, potentially shielding more Social Security benefits from taxation. While Trump campaigned on eliminating taxes on Social Security benefits, this deduction serves as an alternative due to Senate reconciliation rules prohibiting direct changes to Social Security taxation. It also indirectly lowers the tax burden on Social Security income for middle- and lower-income seniors. More tax savings means more passive income investment dollars for Baby Boomers.
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. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income can help 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, especially those paid monthly, are a recipe for success.
We constantly screen our 24/7 Wall St. passive income stock research database for the best ideas. Four stocks that most investors are very familiar with are ideal choices for growth and income investors seeking reliable dividend passive income, as well as some growth potential to keep pace with inflation. All are rated Buy at the top Wall Street firms we cover, and all yield 5% or more.
Bristol-Myers Squibb
Bristol Myers Squibb Co. (NYSE: BMY | BMY Price Prediction) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. It is a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend. The company remains committed to delivering transformative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas.
Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.
Small-molecule drugs are typically administered orally in the form of tablets or capsules, although other drug delivery mechanisms are also employed. Biologics are usually administered through injections or by intravenous infusion.
CAR-T cell therapies are administered by intravenous infusion.
Its growth portfolio includes:
- Opdivo
- Opdivo Qvantig
- Orencia
- Yervoy
- Reblozyl
- Opdualag
Bristol-Myers Squibb’s legacy portfolio includes:
- Eliquis
- Revlimid
- Pomalyst/Imnovid
- Sprycel
- Abraxane
Jefferies has a Buy rating with a $68 target price.
Brookfield Renewable Partners
This off-the-radar utility stock is an ideal choice now for growth and income investors, as well as those concerned with environmental issues. Brookfield Renewable Partners L.P. (NYSE: BEP) operates publicly traded platforms for renewable power and decarbonization solutions.
The company’s renewable power portfolio includes:
- Hydroelectric
- Wind,
- Utility-scale solar
- Distributed generation
- Storage facilities across North America, South America, Europe, and Asia-Pacific
Its operations are divided into six segments:
- Hydroelectric, which is further categorized by geography (North America, Colombia, and Brazil)
- Wind
- Utility-scale solar
- Distributed energy and storage, including distributed generation
- Pumped storage
- Battery energy storage systems; sustainable solutions, encompassing agricultural renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, nuclear services, electrofuels, and power transformation
- Corporate
The company’s total power portfolio comprises approximately 46,200 megawatts of installed capacity and a development pipeline of approximately 200,000 megawatts.
CIBC has assigned an Outperform rating with a target price of $30.
Prudential Financial
Prudential Financial Inc. (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services in the United States and internationally. With a rich dividend, this insurance and investment giant is a safe investment option for conservative investors.
It operates through five segments:
- PGIM
- Retirement Strategies
- Group Insurance
- Individual Life
- International Business
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients, as well as its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
- Various group life plans
- Long-term and short-term group disability
- Group corporate, bank, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans
- Accidental death and dismemberment, and other supplemental health solutions
- Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $134 target price.
Realty Income
Realty Income Corp. (NYSE: O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors seeking a safer, contrarian investment for the remainder of 2025. Realty Income is an S&P 500 company that provides stockholders with dependable monthly income.
The company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.
It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.
The company owns or holds interests in approximately 15,621 properties in:
- All 50 United States
- United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients doing business in 89 industries, its property types include: retail, industrial, gaming, and others, such as agriculture and office.
Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
UBS has a Buy rating on the shares with a $62 price objective.
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