Stocks that consistently increase dividends, offer high yields, and have resilient payouts are compelling investments to generate solid passive income over time. Moreover, with three rate cuts behind us and more expected in 2025, these stocks look even more attractive for earning high yields and enhancing a portfolio’s income potential.
Against this background, let’s look at two dividend stocks offering high yields. These companies also have solid histories of dividend payments and growth.
Dividend Stock #1: Enbridge
With its high yield and reliable payouts, Enbridge (ENB) is one of the top dividend stocks to consider for 2025. The energy company has a diversified portfolio spanning traditional and lower-carbon energies. Moreover, its vast pipeline system connects key supply basins to high-demand markets. This structure enables Enbridge to grow its distributable cash flow (DCF) and increase its dividends.
Enbridge has increased its dividend for 30 consecutive years, and is positioned to increase its dividend further in the future. Enbridge’s low-risk, long-term contracts and regulated tolling frameworks will drive its DCF per share and dividend payouts.
Beyond its traditional energy operations, Enbridge is investing in renewable energy assets. These investments position the company to benefit from the global shift toward cleaner energy, offering growth opportunities that complement its stable cash flow streams.
Further, Enbridge’s payouts are supported by its gas transmission and midstream operations, which generate predictable revenues. The company’s utility assets also deliver low-risk returns, supporting its earnings growth and dividend payments. The company will also benefit from strategic acquisitions that will drive low-risk earnings.
Enbridge anticipates mid-single-digit growth in earnings per share (EPS) and DCF over the long term. This will support dividend payments.
The stock has a “Moderate Buy” consensus rating and offers a high yield of 6%.
Dividend Stock #2: Verizon
Thanks to its high and reliable dividend yield, Verizon (VZ) is an attractive stock for income-oriented investors in 2025. In September 2024, the communications giant raised its dividend by 1.9% to $0.6775 per share, marking its 18th consecutive year of dividend growth. This increase brings Verizon’s forward yield to approximately 6.96%, making it a strong choice for generating passive income.
The company’s consistent dividend growth highlights its ability to generate robust free cash flow. In the first nine months of 2024, Verizon distributed nearly $8.4 billion in cash dividends, reflecting its ability to generate solid financials and focus on rewarding shareholders.
Verizon’s mobility and broadband businesses are well-positioned for sustained growth in 2025. The company continues to expand its 5G Ultra Wideband network and scale its private networks, unlocking new growth opportunities. Additionally, the rapid adoption of its fixed wireless offering and the continued success of its FIOS platform bode well for future growth.
The integration of artificial intelligence (AI) technology further enhances Verizon’s ability to improve customer experiences and opens up new revenue streams. Moreover, its investments in advanced network architectures will boost quality and connectivity, giving the company a competitive edge in monetizing its platforms and growing its customer base.
Verizon’s strategic acquisitions will play a significant role in accelerating its growth and driving its future payouts. The company’s acquisition of Frontier will expand its addressable market in mobility and broadband, while its partnership with Vertical Bridge, involving over 6,000 towers, strengthens its operational flexibility. Through this transaction, Verizon secures long-term cost stability by leasing back capacity on favorable terms.
Moreover, Verizon continues to enhance its spectrum portfolio by acquiring low- and mid-band spectrum, expanding its network capacity. The company’s efforts to bolster satellite capabilities further extend its network reach, opening up new market opportunities.
Verizon’s focus on cost-saving initiatives is expected to drive earnings and support higher dividend payments. These measures, combined with the company’s investments in growth areas, reinforce its ability to deliver strong financial performance.
Wall Street analysts currently rate Verizon stock as a “Moderate Buy.” However, Verizon is a compelling investment option for investors looking for stocks offering a reliable source of passive income and high yield in 2025.
