Put $5,000 In These Dividend Giants and Earn Passive Income Every Quarter

By Vandita Jadeja Published Apr 20, 12:35PM EDT

Quick Read

Johnson & Johnson (JNJ), Coca-Cola, Procter & Gamble, AT&T, and Realty Income combined generate over $1,100 in annual passive income.
A $5,000 investment in each of these five dividend stocks yields blended returns exceeding current 4.32% Treasury rates.

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Earned income has a ceiling. Passive income from dividend stocks operates differently: cash flows in whether markets are up or down, whether you’re working or sleeping. With core inflation still grinding higher, the Core PCE index at 128.86 as of February 2026, and the 10-year Treasury yielding 4.32%, income investors need yield that keeps pace with rising costs without illiquid assets.

High-yield dividend stocks solve that problem. Unlike rental real estate, they require no property management or maintenance. You can add to a position Tuesday morning and sell by Thursday afternoon. That liquidity, combined with quarterly or monthly cash distributions, makes dividend equities one of the most practical income vehicles for individual investors.

We screened our 24/7 Wall St. dividend equity research database and found five companies that combined can generate over $1,100 annually in passive income on a $5,000 investment in each stock.

Johnson & Johnson

Yield: 2.22%
Shares for $5,000: 21.35 shares at $234.18
Annual Passive Income: $111

Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) operates Innovative Medicine, covering oncology and immunology drugs, and MedTech, spanning cardiovascular devices, orthopaedics, surgery, and vision. The company holds one of only two AAA credit ratings among U.S.-based corporations, a financial bedrock supporting its uninterrupted dividend growth.

JNJ has raised its dividend for 64 consecutive years, making it a Dividend King. The most recent increase, from $1.30 to $1.34 per quarter declared in April 2026, reflects commitment to income shareholders. Institutional investors hold 75.8% of shares outstanding, underscoring its role as a core holding across large portfolios.

Coca-Cola

Yield: 2.71%
Shares for $5,000: 66.02 shares at $75.74
Annual Passive Income: $136

Coca-Cola (NYSE:KO) is a global beverage franchise earning revenue from selling concentrates and syrups to bottling partners worldwide, a capital-light model generating durable free cash flow. The company has raised its dividend for 63 consecutive years, and the most recent quarterly payment stands at $0.53 per share as of Q1 2026, up from $0.51 in each quarter of 2025.

The brand portfolio includes Coca-Cola Zero Sugar, Sprite, Fanta, Powerade, Dasani, smartwater, fairlife, and Minute Maid. Institutional investors control 66.7% of shares, and the analyst community skews constructive, with 12 Buy ratings and 7 Strong Buy ratings against zero Sell calls.

Procter & Gamble

Yield: 2.92%
Shares for $5,000: 34.03 shares at $146.93
Annual Passive Income: $146

Procter & Gamble (NYSE:PG) sells everyday products consumers buy regardless of economic conditions: Tide, Pampers, Gillette, Oral-B, Crest, Head & Shoulders, Febreze, Bounty, and Charmin. That defensive revenue profile anchors one of the most reliable dividend records in the market.

PG raised its quarterly dividend to $1.088 for Q2 2026, up from $1.056 the prior quarter, extending a multi-decade streak of consecutive annual increases. The company plans approximately $10 billion in dividends and $5 billion in share repurchases in fiscal 2026. Institutions own 70.4% of shares, and the stock carries a beta of 0.403, making it one of the lower-volatility names in any dividend portfolio.

AT&T

Yield: 4.20%
Shares for $5,000: 188.61 shares at $26.51
Annual Passive Income: $210

AT&T (NYSE:T) generates revenue from wireless mobility, AT&T Fiber broadband, and business wireline services. The fiber buildout is the growth engine, with 10.4 million fiber connections representing 11.5% year-over-year growth.

The dividend has held at $0.2775 per quarter since 2022, and management committed to maintaining the $1.11 annualized rate through 2028. That stability, combined with a new $10 billion share buyback authorization, signals focus on returning capital to shareholders.

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Realty Income

Yield: 4.98%
Shares for $5,000: 76.82 shares at $65.09
Annual Passive Income: $249

Realty Income (NYSE:O) is a net lease REIT owning more than 15,000 commercial properties leased to tenants who pay property taxes, insurance, and maintenance costs directly. As a REIT, it must distribute at least 90% of taxable income to shareholders, structurally driving elevated yield.

The company earns its nickname “The Monthly Dividend Company” by paying shareholders monthly rather than quarterly. The most recent monthly dividend is $0.2705 per share, and the company has recorded 113 consecutive quarterly dividend increases and 133 total increases since its NYSE listing in 1994. Institutional investors own 80% of shares, the highest concentration among all five names in this portfolio.

The bottom line

Combined, these five positions generate passive income on a $25,000 investment. Realty Income adds $249, AT&T provides $210, Procter & Gamble delivers $146, Coca-Cola generates $136, and Johnson & Johnson rounds out the portfolio with $111.

The Dividend Kings (JNJ, KO, PG) anchor the portfolio with decades of uninterrupted growth, while AT&T and Realty Income push the blended yield well above current Treasury rates. Reinvesting those distributions compounds the income base over time, growing the annual income base with each reinvestment cycle.

About the Author Vandita Jadeja →

Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.