A great way to generate passive income is to invest in dividend stocks. Pick a company that can reliably pay you dividends for years, and your funds can grow substantially. In fact, dividend stocks have outperformed the S 500.

This year, T-Mobile (NASDAQ: TMUS) joins the ranks of businesses paying a dividend. It finally accompanies telecom rivals Verizon Communications and AT, which have provided dividends for years.

T-Mobile possessed many strengths even before it offered a dividend, such as its nascent 5G wireless network's coverage already available to 98% of Americans. So offering investors a passive income stream seems to only improve the case for owning T-Mobile stock.

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Source Fool.com