In this article, we will take a look at the 15 best passive income stocks to buy right now.
The idea of generating passive income has been gaining a lot of attention recently. Taking on extra jobs and exploring side hustles has become common in the U.S as more people look for ways to boost their earnings. Still, investing remains the top choice for those seeking passive income, with dividend investing being especially popular
Morgan Stanley noted that many companies have the financial capacity to start paying dividends to shareholders. According to strategist Todd Castagno, companies that initiate regular dividends have the potential to deliver significant returns for investors. The firm found that businesses announcing a new quarterly dividend outperformed the market by an average of 650 basis points in the six months following the announcement and by around 920 basis points after 12 months. Dividend payments can also provide stability for portfolios during periods of uncertainty and when valuations are high. Castagno made the following comment:
“During times of higher risk and valuations, dividends play a greater role in investors’ total returns, helping reduce volatility and offering some support for stock prices. When growth slows and interest rates fall, stable, higher-yielding dividends become more appealing as cash and fixed income options lose their allure.”
Given this, we will take a look at some of the best dividend stocks for passive income.
Photo by Dan Dennis on Unsplash
Our Methodology
For this article, we screened companies with a market capitalization of at least $10 billion that have increased their dividends for at least 10 consecutive years. This consistent dividend growth shows that these companies can navigate challenging periods while continuing to provide passive income. From that group, we selected stocks with an upside potential of at least 10% according to analysts’ forecasts and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Johnson & Johnson (NYSE:JNJ)
Upside Potential as of November 12: 10.02%
Johnson & Johnson (NYSE:JNJ) is one of the best dividend stocks for passive income.
On November 12, Scotiabank’s Louise Chen began coverage of ten large-cap biopharma companies and took a positive stance on the sector, noting that years of lagging performance compared with other industries and major indices may offer investors an appealing entry point, according to a report by The Fly. She suggested that the next phase of innovation could be driven by companies working toward actual cures for serious illnesses.
In her view, firms that are positioned to be first in treating diseases with the aim to cure them stand out. She pointed to Johnson & Johnson (NYSE:JNJ) as the firm’s top pick, saying the company’s work toward curative treatments and its consistent execution are making its underlying growth clearer. Scotiabank kept an Outperform rating on the stock.
Johnson & Johnson (NYSE:JNJ) carries a dividend record that is rarely matched. It has raised its payout for 63 straight years. Even with challenges such as patent expirations, the company’s broad pharmaceutical portfolio continues to produce steady growth. This year it faced the loss of US exclusivity for Stelara, a major immunology drug, yet both revenue and earnings continued to trend higher. Third-quarter sales reached $24 billion, up 6.8% from the same period last year.
Johnson & Johnson (NYSE:JNJ) operates globally and focuses on two main areas: Innovative Medicine and MedTech.
14. Cisco Systems, Inc. (NASDAQ:CSCO)
Upside Potential as of November 12: 10.11%
Cisco Systems, Inc. (NASDAQ:CSCO) is among the best dividend stocks for passive income.
On November 10, Erste Group’s Hans Engel moved Cisco Systems, Inc. (NASDAQ:CSCO) to a Buy rating from Hold, as reported by The Fly. He told investors that the company is likely to maintain an operating margin that stays above the industry average, along with a strong return on equity. He also noted that Cisco’s management has provided “an optimistic outlook for the new fiscal year 2026,” and the firm views the company’s forecast as conservative, expecting the company to perform better than its stated target.
For fiscal Q1 2026, Cisco Systems, Inc. (NASDAQ:CSCO) posted record revenue of 14.88 billion dollars, reflecting a 7.53% increase from the same quarter last year. This level of growth keeps the company on course for what it believes could be its strongest full year yet. Product revenue rose 10%, helped by steady demand for AI infrastructure and campus networking solutions. AI infrastructure orders from hyperscalers reached $1.3 billion in the quarter, and the company expects to recognize around $3 billion from hyperscaler AI infrastructure revenue in FY26.
Cisco Systems, Inc. (NASDAQ:CSCO) continues to reward shareholders with dividends and has raised its payouts for 18 straight years. The company remains a well-established name in IT infrastructure, with a portfolio that includes switches, routers, and firewalls. It also provides a range of artificial intelligence solutions that help businesses manage both the opportunities and the risks that come with adopting AI.
13. Bank of America Corporation (NYSE:BAC)
Upside Potential as of November 12: 10.28%
Bank of America Corporation (NYSE:BAC) is one of the best dividend stocks for passive income.
On November 7, Morgan Stanley kept its Overweight rating and a $70 price target on Bank of America Corporation (NYSE:BAC), according to a report by The Fly. The firm also placed the bank among its top picks in the large-cap banking group following the company’s investor day. In its research note, the analyst mentioned that management laid out a path towards a 16% to 18% return on tangible common equity, supported by steady revenue growth and plans to bring the expense ratio down to a range of 55% to 59%. The firm also pointed out that it sees the bank entering a stretch of consistent operating leverage, which it believes should help Bank of America outperform its peers.
During the investor day on November 5, Chairman and CEO Brian Moynihan highlighted that he expected earnings to grow at a strong pace, with returns rising accordingly. In the Global Corporate & Investment Banking segment, the bank aims to lift corporate banking revenue at a mid-single-digit compound rate. Part of that growth is expected to come from its overseas expansion, where the company is targeting roughly 20% growth in Latin America and around 40% in Europe, the Middle East, and Africa. The Global Investment Banking unit is working with similar mid-single-digit growth expectations.
Bank of America Corporation (NYSE:BAC) has spent the past decade expanding its presence across the US. From 2014 through 2024, it put more than $5 billion into building out financial centers and moving into new markets nationwide.
Bank of America Corporation (NYSE:BAC) ranks among the largest financial institutions in the country, offering a broad range of banking, investment, and financial management services to individuals, small firms, and corporations around the world.
12. Gilead Sciences, Inc. (NASDAQ:GILD)
Upside Potential as of November 12: 10.31%
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best dividend stocks for passive income.
On November 12, Scotiabank analyst Louise Chen began coverage on ten large-cap biopharma companies and shared an “out-of-consensus” positive view on the sector, according to a report by The Fly. She pointed out that years of underperformance in large cap biopharma stocks, compared with other sectors and the major indices, could offer an attractive entry point before the next wave of innovation, where companies “will be treating to cure.” The firm kept its Outperform rating on GILD.
Gilead Sciences, Inc. (NASDAQ:GILD) remains a dependable dividend payer. Its shares have climbed more than 36% since the beginning of 2025, beating the broader market. The biotech continues to lead the HIV drug market, which still drives most of its growth. In the third quarter, total revenue rose 3% from a year earlier to reach $7.8 billion.
Gilead Sciences, Inc. (NASDAQ:GILD) has pushed forward in oncology in recent years, although progress has not been without challenges. Oncology revenue fell 3% year over year to $788 million in the third quarter. Even so, the company has a large and active oncology pipeline, one that is now bigger than its HIV portfolio. Over the coming years, the company is expected to benefit from label expansions and new approvals in the cancer market, which should help move overall sales higher.
11. Enbridge Inc. (NYSE:ENB)
Upside Potential as of November 12: 11.5%
Enbridge Inc. (NYSE:ENB) is among the best dividend stocks for passive income.
On November 10, BMO Capital raised its price target for Enbridge Inc. (NYSE:ENB) to C$67 from C$66 while maintaining a Market Perform rating on the stock, as reported by The Fly.
During the third quarter of 2025, the company reported that it had added C$7 billion in new expansion projects this year, bringing the total to C$35 billion. These projects are expected to come online through 2033, providing greater visibility into Enbridge Inc. (NYSE:ENB)’s goal of delivering 5% compound annual cash flow per share growth after next year. This growth in cash flow is expected to support continued dividend increases.
Enbridge Inc. (NYSE:ENB) is also exploring over $4 billion in potential opportunities to expand its gas utility business to meet rising demand from data centers. It is working on roughly 60 projects across its service areas to supply gas for power generation and data centers, addressing growing energy needs over the coming years.
Enbridge Inc. (NYSE:ENB) operates as an energy infrastructure company, transporting and distributing oil, natural gas, and natural gas liquids through its extensive pipeline network.
10. Chevron Corporation (NYSE:CVX)
Upside Potential as of November 12: 12.01%
Chevron Corporation (NYSE:CVX) is one of the best dividend stocks for passive income.
On November 10, Piper Sandler lowered its price target for Chevron Corporation (NYSE:CVX) to $168 from $169 while maintaining an Overweight rating on the stock, as reported by The Fly. The firm noted that company analyst days rarely shift expectations, and although its update was largely within the “fairway,” Piper sees the incremental disclosure as both positive at the margin and relatively conservative.
The firm acknowledged that some investor concerns may persist regarding post-2030 growth, but emphasized that the investment case for large energy companies mainly hinges on sustainability and growth of shareholder returns. With a projected free cash flow/share CAGR of 15% per year from 2025 to 2030, Chevron remains a leader among its peers.
Chevron Corporation (NYSE:CVX) is a reliable dividend company, having increased its payouts for 38 consecutive years. It recently unveiled a five-year plan targeting steady cash flow and profit growth through 2030 while lowering its capex guidance to a range of $18 billion to $21 billion annually. The company expects over 10% annual growth in adjusted free cash flow through 2030.
Having led its peers in dividend per share growth over the past 25 years with an average annual increase of 7%, Chevron Corporation (NYSE:CVX) plans to repurchase $10 to $20 billion of shares per year through 2030 at average Brent prices of $60 to $80.
Chevron Corporation (NYSE:CVX) is a multinational energy company that explores, produces, refines, and sells oil and natural gas products, including transportation fuels and lubricants.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Upside Potential as of November 12: 12.09%
Bristol-Myers Squibb Company (NYSE:BMY) is among the best dividend stocks for passive income.
On November 13, Scotiabank began coverage of Bristol-Myers Squibb Company (NYSE:BMY) with a Sector Perform rating and set a price target of $45, as reported by The Fly.
In the third quarter of 2025, Bristol-Myers Squibb Company (NYSE:BMY) reported revenue of $12.22 billion, a 2.77% increase from the same period last year. The growth reflected strong demand across the business and exceeded analysts’ estimates by $422.1 million. Revenue from the company’s Growth Portfolio rose 18% to $6.9 billion.
CEO and Chairman Christopher Boerner noted that the company is raising its top-line guidance while keeping the midpoint of its bottom-line guidance unchanged. Full-year revenue guidance was increased by $750 million at the midpoint to a range of $47.5 billion to $48 billion, largely driven by the ongoing strength of the Growth Portfolio. The company expects gross margins to remain around 72%, with operating expenses projected at $16.5 billion. Legacy portfolio sales are still anticipated to decline 15%–17% for the year.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and manufactures innovative medicines to treat serious diseases.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Upside Potential as of November 12: 13.6%
QUALCOMM Incorporated (NASDAQ:QCOM) is among the best dividend stocks for passive income.
On November 10, Susquehanna analyst Christopher Rolland raised the price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $210 from $200 while maintaining a Positive rating, according to a report by The Fly. The firm noted that the company delivered stronger results and guidance, mainly supported by growth in Handset. QCT Handset performance exceeded expectations, helped by solid demand for premium-tier Android devices.
In fiscal Q4 2026, the Handset segment produced $6.9 billion in revenue, a 14% increase from the same quarter last year. v is preparing for a significant step forward in the coming year. It will continue serving the smartphone market, but building on its experience with AI-enabled Snapdragon processors, the company plans to introduce an AI data center chip next year and follow it with an improved version in 2027.
For FY26, QUALCOMM Incorporated (NASDAQ:QCOM) expects record QCT handset revenue with low-teens sequential growth, driven largely by new flagship Android releases powered by Snapdragon. Automotive revenue is projected to remain flat to slightly higher on a sequential basis. The company also reaffirmed its fiscal 2029 revenue target of $22 billion across automotive and IoT, pointing to strong growth trends and ongoing customer wins.
QUALCOMM Incorporated (NASDAQ:QCOM) develops core wireless technologies, producing semiconductors, software, and services for the telecommunications industry.
7. Canadian National Railway Company (NYSE:CNI)
Upside Potential as of November 12: 18.29%
Canadian National Railway Company (NYSE:CNI) is one of the best dividend stocks for passive income.
On November 11, Bernstein raised its price target on Canadian National Railway Company (NYSE:CNI) to $109.44 from $106.47 while maintaining a Market Perform rating, as reported by The Fly. The firm noted that the company faced top-line pressure in Q3, but operating expenses and adjusted operating ratio performance remained solid. Bernstein added that a major takeaway in recent weeks has been the growing evidence that intermodal volume realignment is starting to take hold.
In the third quarter of 2024, CEO Tracy Robinson acknowledged that the railroad had fallen short of volume forecasts over the last two years. Even so, she emphasized that Canadian National Railway Company (NYSE:CNI) has consistently delivered strong operational results and maintained top-tier margins.
Management announced plans to lower capital spending from $3.35 billion in 2025 to $2.8 billion in 2026, bringing capex to the mid-teens as a percentage of sales, aligning the company more closely with US peers. The reduction reflects the completion of large capacity expansion projects in Western Canada and locomotive upgrades rather than a pullback in growth initiatives.
Canadian National Railway Company (NYSE:CNI) also intends to cut management labor costs by $75 million and speed up share repurchases, citing attractive valuation levels.
Canadian National Railway Company (NYSE:CNI) is a freight transportation company that operates the largest rail network in Canada and provides service across the United States and Mexico.
6. Costco Wholesale Corporation (NASDAQ:COST)
Upside Potential as of November 12: 19.4%
Costco Wholesale Corporation (NASDAQ:COST) is among the best dividend stocks for passive income.
On November 6, JPMorgan analyst Christopher Horvers lowered the price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,025 from $1,050 while maintaining an Overweight rating, according to a report by The Fly. He noted that October sales came in as expected, though the government shutdown had some impact toward the end of the quarter.
As shoppers look for more value, Costco Wholesale Corporation (NASDAQ:COST) has been tracking and responding to changing purchasing trends. Management has reported stronger demand for lower-priced items and private-label products, while sales of higher-priced discretionary goods have softened. In addition to groceries, the company drives traffic by offering services such as gas stations, pharmacies, and travel, making each visit more useful for members.
Costco Wholesale Corporation (NASDAQ:COST)’s fiscal 2025 results highlight its continued strength both operationally and financially. Total net sales for the year reached $269.9 billion, up 8.1% from the prior year. Net income rose to $8.1 billion, slightly higher than the $7.37 billion reported previously. Online sales also showed solid growth, rising 15.6% for the full fiscal year.
Costco Wholesale Corporation (NASDAQ:COST) operates as a membership-based warehouse club that sells a broad range of bulk products, including groceries, electronics, and apparel, at discounted prices.
5. The Clorox Company (NYSE:CLX)
Upside Potential as of November 12: 19.97%
The Clorox Company (NYSE:CLX) is among the best dividend stocks for passive income.
On November 4, Morgan Stanley analyst Dara Mohsenian cut the firm’s price target for The Clorox Company (NYSE:CLX) to $125 from $137 on November 4 and maintained an Equal Weight rating. The analyst pointed out that the company posted weak fiscal Q1 results and guided full-year EPS toward the low end of its range, but still argued that the numbers were “not as bad as feared.”
For fiscal Q1 2026, The Clorox Company (NYSE:CLX) reported $1.43 billion in revenue, a drop of 19% from the same period a year earlier. The company attributed the decline to reduced shipments tied to its ERP transition. Organic sales fell 17%, largely because of lower volume linked to the ERP shift. Gross margin slipped by 410 basis points to 41.7%, compared with 45.8% a year ago, as lower volume and higher manufacturing and logistics expenses weighed on profitability, partly offset by cost-saving efforts.
Even so, CEO Linda Rendle highlighted the rollout of The Clorox Company (NYSE:CLX)’s new ERP system in the US, calling it a major achievement that strengthened the company’s digital foundation and opened doors to new value opportunities. She recognized the challenges around the transition but noted that the company is already seeing benefits take hold across its operations. Management expects organic sales to decline at a low single-digit pace in the first half and rise at a low single-digit rate in the second half, excluding the effects of the ERP transition.
CFO Luc Bellet added that the US retail category will likely stay subdued, with growth projected between 0% and 1%, which remains below the long-term trend.
The Clorox Company (NYSE:CLX) is best known for its cleaning and disinfecting products, though it also offers a broad lineup of other consumer and professional items, including products for household cleaning, laundry, and health and wellness.
4. Mondelez International, Inc. (NASDAQ:MDLZ)
Upside Potential as of November 12: 20.29%
Mondelez International, Inc. (NASDAQ:MDLZ) is among the best dividend stocks for passive income.
On November 10, DA Davidson’s Brian Holland trimmed the firm’s price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $62 from $65 and maintained a Neutral stance on the stock, as reported by The Fly. He noted in a research update that the company’s third-quarter results and its forward outlook shaped this view. According to him, the way consumers and competitors evolve in developed markets will play a central role in helping the company regain earnings strength, provided cocoa prices continue to ease.
For the third quarter of 2025, Mondelez International, Inc. (NASDAQ:MDLZ) posted revenue of $9.74 billion, a 6% increase from the same period a year earlier. The figure also came in ahead of Wall Street expectations by $70.6 million. In its report, the company said it expects certain markets to remain challenging but pointed to a recent cooldown in cocoa prices and early signs of a strong fall cocoa crop as positive developments.
Mondelez International, Inc. (NASDAQ:MDLZ) has spent the past decade tightening costs and improving profitability. It has also widened its footprint in the health-focused food category as global interest in healthier eating continues to grow. The company pays a dividend as well, and it has steadily increased it since becoming an independent company.
Mondelez International, Inc. (NASDAQ:MDLZ) operates globally and focuses on producing, marketing, and selling snack foods and beverages.
3. Brown & Brown, Inc. (NYSE:BRO)
Upside Potential as of November 12: 25.9%
Brown & Brown, Inc. (NYSE:BRO) is one of the best dividend stocks for passive income.
On November 6, Goldman Sachs analyst Robert Cox cut the firm’s price target on Brown & Brown, Inc. (NYSE:BRO) to $90 from $105, as reported by The Fly. He kept a Neutral rating on the stock, noting in a research update that the company’s organic growth trend continues to face pressure.
On October 22, Brown & Brown, Inc. (NYSE:BRO) announced a 10% increase in its quarterly dividend to $0.165 per share. This marked the 32nd straight year of dividend growth. The company also reported that its board approved an additional $1.25 billion stock repurchase authorization as part of its disciplined approach to capital allocation. With this new approval, the company now has the ability to buy back roughly $1.5 billion of its common stock in total.
Brown & Brown, Inc. (NYSE:BRO) has built a wide national network of brokers over many years through targeted acquisitions and steady organic expansion. Its fee-based model, which brings in recurring revenue through policy renewals, is a major factor behind its long dividend track record.
Brown & Brown, Inc. (NYSE:BRO) operates within the insurance brokerage space, a part of the broader insurance industry known for offering stable and consistent returns.
2. Stanley Black & Decker, Inc. (NYSE:SWK)
Upside Potential as of November 12: 27.99%
Stanley Black & Decker, Inc. (NYSE:SWK) is among the best dividend stocks for passive income.
On November 6, UBS Inc. raised its price target on Stanley Black & Decker, Inc. (NYSE:SWK) to $105 from $100 and maintained a Buy rating on the stock, according to a report by The Fly.
For the third quarter of 2025, the company posted revenue of $3.8 billion, which was roughly flat compared with the same period last year. Gains from pricing and currency were balanced out by the expected drop in volume. Revenue came in more than $12 million below analyst expectations. The company reported a gross margin of 31.4% and an adjusted gross margin of 31.6%. President and CEO Christopher Nelson pointed to a sharper strategic direction and stronger brand activity across its core product lines.
Nelson noted that Stanley Black & Decker, Inc. (NYSE:SWK) is progressing toward its $2 billion cost-reduction plan, which is on track to be completed by the end of 2025. He also reaffirmed the next goal: reaching a 35% adjusted gross margin while continuing to reinforce the balance sheet. He outlined additional investments in the DEWALT, STANLEY, and CRAFTSMAN brands and said the company is shifting to a brand-focused, market-supported model.
Stanley Black & Decker, Inc. (NYSE:SWK) is a global manufacturer of tools, storage products, and industrial solutions sold under several well-known brands.
1. Comcast Corporation (NASDAQ:CMCSA)
Upside Potential as of November 12: 32.9%
Comcast Corporation (NASDAQ:CMCSA) is one of the best dividend stocks for passive income.
On November 4, BNP Paribas Exane analyst Sam McHugh upgraded Comcast (CMCSA) to Neutral from Underperformrm and set a $28 price target, as reported by The Fly.
Comcast Corporation (NASDAQ:CMCSA) continues to deal with several structural issues. The pressures in the cable segment are already familiar to investors, and the company shifted its focus to broadband to offset that weakness. That business, however, has now matured, and the company is starting to lose broadband subscribers. It has been offsetting some of that decline with an increase in wireless customers. In the third quarter of 2025, Comcast added 414,000 domestic wireless lines, its highest quarterly result so far, and pushed wireless penetration above 14% among its domestic residential broadband base, reaching 8.9 million total lines.
Comcast Corporation (NASDAQ:CMCSA) reported consolidated adjusted EBITDA of $9.7 billion, adjusted earnings of $1.12 per share, and free cash flow of $4.9 billion. The company returned $2.8 billion to shareholders through $1.2 billion in dividends and $1.5 billion in share buybacks, which reduced the share count by 5% from the same period last year. Revenue fell by 2.7% due to difficult comparisons against the prior year, which benefited from additional revenue tied to the Paris Olympics.
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company that offers internet, cable TV, and phone services to both households and businesses.
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