Investing in Dow stocks can be a lucrative way to generate passive income. With a strategic approach, allocating $2,500 in three specific high-yielding stocks could yield over $350 annually. Here we explore three noteworthy choices for investors aiming for steady passive income.
Key High-Yielding Stocks for Passive Income
Here’s a breakdown of the three Dow stocks ideal for creating a sustainable income stream:
| Stock | Current Yield | Annual Dividend Income |
|---|---|---|
| Coca-Cola (KO) | 3.07% | $76.75 |
| Chevron (CVX) | 4.51% | $112.75 |
| Verizon (VZ) | 6.76% | $169 |
Total Investment: $7,500
Total Annual Income: $358.50
Data Source: Google Finance (as of October 9, 2025).
Overview of Each Stock
Coca-Cola (KO)
Coca-Cola has a remarkable history of increasing dividends for 63 consecutive years, establishing its reputation as a Dividend King. The company boasts a solid portfolio of beverage products that generate consistent revenue and cash flow. With a strategic approach to expansions and investments, Coca-Cola aims for organic revenue growth of 4% to 6% annually.
Chevron (CVX)
Chemically, Chevron has an impressive record, having raised its dividend for 38 consecutive years. The company maintains a robust financial health, with one of the lowest breakeven points in the oil industry. Its recent expansions and cost-saving initiatives are expected to contribute significantly to its annual free cash flow, forecasting continued dividend growth into the next decade.
Verizon (VZ)
Verizon has established a strong record of dividend growth for 19 years, the longest in the U.S. telecom sector. The substantial cash flow generated from its services enables significant investment in capital projects, particularly in 5G and fiber networks. Verizon’s financial strength supports both its dividend payments and future growth strategies, including acquisitions to enhance its services.
Conclusion
Investing $2,500 each in Coca-Cola, Chevron, and Verizon could potentially create a passive income of over $350 per year. Their strong financial positions and history of increasing dividends make these stocks suitable for investors seeking long-term, stable income. Investing in these high-yielding Dow stocks can be a strategic way to enhance your portfolio while securing a reliable income stream.
