Want $1,000 in Passive Income? 3 High-Dividend Stocks to Snap Up
Income investors may choose dividend stocks to generate cash. At an average return of 1.6% for the S&P 500, they often outperform bank accounts and bonds in a low-interest-rate environment. When combined with the potential for long-term growth over time, such stocks make an appealing option. And though most stocks are not obligated to continue payouts, a history of consistent dividend hikes increases the likelihood that a stock's dividend growth will continue.
Additionally, some high-dividend stocks have ties to the consumer sector, and some are so successful that they can generate $1,000 annually on an investment of less than $20,000. Diversified investments in Verizon (NYSE: VZ), Realty Income (NYSE: O), and Walgreens (NASDAQ: WBA) can accomplish this goal.
Admittedly, Verizon's dividend may appear as concerning as it is appealing. The $2.61 per share annual dividend yields a whopping 6.8%, more than four times the S&P 500 average. That means that to generate $333 annually, one must buy only 148 shares for around $5,600.
Source Fool.com
