3 Dividend Stocks to Buy With $10,000 for $652 in Passive Income

Dividend stocks paying great yields have historically traded at premium valuations, but the current environment has been quite punishing. Higher interest rates over the past three and a half years have caused treasury yields to spike, thereby pushing up the risk-free rate.

This has caused many stocks to fall, and dividend stocks have seen less demand. Many on Wall Street feel uncomfortable buying these stocks when they can get 4.96% yields or more with certain long-term treasuries. However, it’s not a trend that will last forever.

Investors who have piled into these Treasuries will eventually rotate back into equities. Stocks outperform Treasuries over the long run, and even a 4% dividend yield will look extremely attractive once the Federal Reserve starts to cut interest rates. If they want to maintain their yields, there’s no alternative to high-yield dividend stocks.

The following dividend stocks have a blended dividend yield of 6.52%, meaning you’ll receive $652 in annual passive income if you make equal investments of $3,333 in each of the stocks mentioned below. You’re also likely to get a good upside if the economy remains resilient.

Altria Group (MO)

Altria (NYSE:MO) is the world’s third-largest tobacco company. It yields the highest dividends among the top three and has delivered outstanding gains recently. The stock is up almost 29% over the past year and almost 13% year-to-date. The dividend yield looks very attractive even with that appreciation.

If you think the dividends being paid here are impressive, you should look into the buybacks. Outstanding shares have been reduced from 1.823 billion in 2021 to 1.685 billion as of Q1 2025 through routine buybacks. The 3-year average share buyback ratio is at 2.5%, better than 82.8% of companies in the tobacco industry.

There are valid concerns about whether or not tobacco companies will be able to hold on to their cash flow due to demographic trends showing a sharp decline in smoking rates. Altria has defied these trends by leaning into smoke-free alternatives.

Altria’s on! nicotine pouches posted 18% year-over-year growth in Q1 2025 and now capture 8.8% of the U.S. oral tobacco market. NJOY e-vapor has expanded distribution to over 20,000 retail locations. Plus, smoke-free products constitute 12% of total revenue, up from 5% in 2020.

Total sales volumes have still declined, but this hasn’t translated negatively. Altria’s products come with a premium perception, and this has allowed the company to offset volume declines with price increases.

MO stock comes with a 6.86% forward dividend yield. It is a Dividend King with 56 consecutive years of dividend increases.

Brookfield Infrastructure Partners (BIP)

Brookfield Infrastructure Partners (NYSE:BIP) owns and operates infrastructure networks of various types. This includes utilities, transportation (both passenger and industrial), energy, and communications. It has maintained very stable cash flows with high margins. The business is well-diversified and operates across multiple countries.

Brookfield Infrastructure Partners is a part of a broader group of companies under the umbrella of Brookfield Corporation. The corporation is well-known for its stable cash flows and smart, sustainable long-term expansion.

The distribution growth target is 5% to 9% annually. You currently get a 5.19% dividend yield, raised for 18 consecutive years. Per-unit distribution has grown at a 9% CAGR from 2009 to 2025, whereas funds from operations have grown at a 14% CAGR from 2009 to 2024. The dividends are well-covered by its FFO.

The 3-year revenue growth here is at 25.1%, better than 90.7% of companies in its industry. The 3-year EBITDA growth is also at 12%, and analysts see 7.2% FFO growth this year and 10.3% FFO growth next year. Sales growth is also expected to accelerate from 3.3% this year to 5.6% next year.

MPLX LP (MPLX)

MPLX LP (NYSE:MPLX) is a diversified master limited partnership company that operates midstream energy infrastructure. It has business segments in crude oil, natural gas, products logistics, and NGL services. The company is on solid footing, and MPLX has delivered very stable and consistent gains in recent years.

The midstream focus gives you a significant cushion from price volatility in oil and natural gas. Most of the cash flow comes from long-term contracts based on fees, with minimum volume commitments. Regardless of the price of oil, MPLX will continue to generate cash flow year after year through its energy transportation pipelines.

The stock is up a stellar 97% from January 2020 prices and yields 7.52%. The payout ratio of 78.66% also leaves room for more dividend growth.

The 3-year revenue growth has been at 4.8% annually. Analysts expect the growth to accelerate to around 8.3% annually for the next three to five years. MPLX posted $921 million in net interest losses last year, so interest rate cuts starting later this year should also help boost the bottom line.

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