If You Want $4,096.90 in Passive Income, Invest $25,000 in Each of these Stocks

Some of the best stocks to set and forget are dividend stocks.

Not only can you benefit from their appreciation, but you can earn incredible yield by just holding a stock. Look at PepsiCo (NASDAQ: PEP).

With a yield of 4.3%, PepsiCo is a familiar name with a strong, dependable yield. It’s also severely oversold. So, not only can you invest in a down, but not out stock, but you get to collect its yield while you wait for the recovery.

Most recently, PEP paid out a quarterly dividend of $1.355 per share – a 7% increase year over year – on March 31. It’s expected to pay a dividend of $1.4225 per share on June 30 to shareholders of record as of June 6.

If you were to buy $25,000 worth of PEP, you can take ownership of about 189 shares. With a dividend payout of $1.4225 per share, you can collect $268.85 per quarter.

Annualized, you’re looking at an income of $1,075.40 by just holding the stock.

Here are three more you may want to consider today.

Realty Income 

Realty Income (NYSE: O), or The Monthly Dividend Company, pays a monthly dividend.

At the moment, with a yield of 5.57%, it’s paying $0.2690 per share on July 25 to shareholders of record as of July 1. Annualized, that’s $3.228 per share. This is now the company’s 131st monthly dividend increase.

Let’s say you invest $25,000 in the stock.  You’d take ownership of 431 shares. Using the current monthly dividend of $0.2690, you’d collect $115.93. Annualized, you’re looking at passive income of $1,391.26. And all you have to do is hold the stock.

Plus, analysts at Stifel just reiterated a buy rating on the stock with a $68 price target.

Enbridge 

With a dividend yield of 5.77%, Enbridge (NYSE: ENB) is a lower-risk, high-yield opportunity that should keep your portfolio safe from chaos. The company has a wide moat portfolio, including the second-longest natural gas pipeline in the U.S., North America’s longest crude oil pipeline, and a high-growth renewable power generation business.

Most recently, the company paid out a quarterly dividend of $0.9425 on June 1. Annualized, that’s a dividend of $3.77. If you were to buy $25,000 worth of ENB, you’d take ownership of about 532 shares. That multiplied by its annualized current dividend of $3.77 would hand you about $2,005.64.

Again, all by holding the stock.

Fueling upside, analysts at TD Securities resumed their buy rating on Enbridge with a $67 price target. According to the firm, as noted by Guru Focus, “This comes on the heels of Enbridge’s strategic move to acquire a 12.5% interest in the Westcoast natural gas pipeline system.”

Barclays also raised its price target on Enbridge to $65 with an equal weight rating. BMO Capital analysts also raised their ENB price target to $63 thanks to strong first-quarter numbers.

 In fact, in its first quarter, the company posted EPS of $1.03, which beat by eight cents. Revenue of $13.28 billion, up about 65% year over year, beat by $5.86 billion.

“Looking ahead, we will remain focused on our strategic priorities. We don’t expect tariffs to have a material impact on our current operations or deployment of capital. We have secured approximately $3 billion of capital so far this year and increased our secured backlog to $28 billion, all of which is focused on accretive, low-risk projects that extend our growth outlook through the end of the decade,” added Greg Ebel, President and CEO.

Coca-Cola 

With $25,000, you can take ownership of about 350 shares of Coca-Cola (NYSE: KO) – which currently pays a quarterly dividend of 51 cents (payable on July 1 to shareholders of record as of June 13). With 350 shares, you would receive $175 in quarterly income.

Annualized, you’d receive about $700 a year.

Better, you can make even more money from future KO stock appreciation – especially with recent stock upgrades. For example, Barclays just raised its price target on KO to $73 with an overweight rating. The firm cites brand popularity among investors and strong earnings.

BNP Paribas analysts also say that as compared to other consumer peers, Coca-Cola continues to hit on all cylinders and stands out fundamentally within the group. Plus, the company is still admired by Warren Buffett.

“At 94 years of age, I’ve been able to drink whatever I like to drink,” he stated as he picked up one of his Coke cans. Buffett reaffirmed his commitment to Coca-Cola as a core Berkshire holding, referencing how the firm has been confident in keeping Coca-Cola one of Berkshire’s largest positions, as noted by Seeking Alpha.