Want More Passive Income in 2025? Consider This ETF and 2 Rock-Solid Dividend Stocks.
The S&P 500 notched a rip-roaring 53.2% gain in the two-year period from 2023 through 2024. Passive income collected from most dividend stocks during this period pales in comparison to the capital gains of the broader market.
The best way to approach investing in dividend stocks isn’t to try to keep pace with a red-hot rally, but rather to invest in balanced companies that have the potential to grow earnings over time and, in turn, their payouts to investors. The advantages of dividend stocks are put on display when the broader market is having a mediocre or down year. In those cases, income earned from dividend stocks or dividend-paying exchange-traded funds (ETFs) can effectively supplement income in retirement or provide some extra dry powder to reinvest in the market.
Here’s why Honeywell International (NASDAQ: HON), American Electric Power (NASDAQ: AEP), and the Energy Select Sector SPDR Fund (NYSEMKT: XLE) are three excellent buys for 2025.
[#item_full_content]
