All It Takes Is $2,500 Invested in Each of These 3 High-Yield Dow Dividend Stocks to Help Generate Over $350 in Passive Income per Year

Source Motley_fool

Key Points

  • Chevron has increased its dividend for 38 straight years.

  • Coca-Cola is a Dividend King with over 50 years of annual payout increases.

  • Verizon recently extended its dividend growth streak to a peer-leading 19 years in a row.

  • 10 stocks we like better than Chevron ›

The Dow Jones Industrial Average tracks 30 of the country's largest and strongest companies. Many of these iconic companies pay dividends, making them attractive for those seeking to generate durable passive income.

For example, investing $2,500 apiece into three higher-yielding Dow dividend stocks could produce over $350 of passive dividend income each year:

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Dividend Stock

Investment

Current Yield

Annual Dividend Income

Chevron (NYSE: CVX)

$2,500

4.51%

$112.75

Coca-Cola (NYSE: KO)

$2,500

3.07%

$76.75

Verizon (NYSE: VZ)

$2,500

6.76%

$169

Total

$7,500

4.78%

$358.50

Data source: Google Finance. Note: Dividend yield as of Oct. 9, 2025.

Here's a closer look at what makes this trio an excellent option for those seeking to generate durable passive income.

Chevron

Chevron is an exceptional dividend stock. The oil giant has increased its dividend for 38 straight years while delivering peer-leading growth over the past decade. That's impressive durability considering all the volatility in the oil market during that period.

The company has built one of the most resilient portfolios in the oil patch. Its oil and gas production business has the industry's lowest breakeven level this year at around $30 a barrel. That enables Chevron to produce strong cash flows even at lower oil prices. It also has a fortress-like balance sheet. It ended the second quarter with a sub-15% leverage ratio, comfortably below its 20% to 25% target range.

Chevron should have ample fuel to continue growing its high-yielding dividend in the future. A combination of recently completed expansion projects, cost-savings initiatives, and its Hess merger will add as much as $12.5 billion to its annual free cash flow next year. Meanwhile, the Hess deal has extended its production and free cash flow growth outlook into the 2030s. Chevron is also investing in building out several lower-carbon energy businesses to power future growth, including its recent entry into the lithium sector.

Coca-Cola

Coca-Cola extended its growth streak to 63 straight years in early 2025 when it gave investors a 5.2% raise. That further solidified its status as a Dividend King, a company with 50 or more years of annual dividend increases.

The iconic company's vast portfolio of beverage products delivers steadily rising revenue and durable cash flows. That gives Coca-Cola the cash to invest in growing its business while paying a rising dividend. The company spends billions each year to support high-growth areas. This helps drive the company's long-term target of organically growing its revenue by 4% to 6% annually, while delivering high-single-digit earnings-per-share growth.

Coca-Cola also maintains an elite balance sheet. That gives it the flexibility to make strategic acquisitions to further enhance its growth. Purchases such as Costa Coffee, Fairlife, and Bodyarmor have helped deliver a quarter of the company's earnings growth since 2016. The company's growth investments should enable it to continue increasing its attractive dividend.

Verizon

Verizon recently extended its dividend growth streak to 19 years in a row. That's the longest current streak in the U.S. telecom sector.

The company produces prodigious cash flows as consumers and businesses pay their mobile and broadband bills. That gives Verizon the funds to invest heavily in capital expenditures to maintain and expand its 5G and fiber networks. The company typically produces enough cash to fund its capital spending and monster dividend payment with billions to spare, allowing it to maintain a strong balance sheet.

Verizon's financial flexibility allows it to make strategic acquisitions as opportunities arise. Last year, it agreed to buy Frontier Communications in a $20 billion deal to bolster its fiber network. Meanwhile, the company has recently agreed to acquire Starry, which will accelerate its ability to bring high-speed internet to more multi-dwelling units and urban communities. Verizon's substantial investment in growth positions it to increase its revenue and dividend in the future.

High-quality, high-yielding dividend stocks

Chevron, Coca-Cola, and Verizon are some of the top companies in the country. They produce durable and growing cash flows, allowing them to pay attractive and steadily increasing dividends. That makes them excellent Dow stocks to buy for passive income.

Should you invest $1,000 in Chevron right now?

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Matt DiLallo has positions in Chevron, Coca-Cola, and Verizon Communications. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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