All It Takes Is $4,000 Invested in Each of These 3 Dividend Stocks to Help Generate Over $300 in Passive Income per Year

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Daniel Foelber, Scott Levine, and Lee Samaha, The Motley Fool

Tue, Apr 1, 2025, 3:45 AM 7 min read

There are plentifulness of ways to make passive income, specified arsenic bonds, Treasury notes, high-yield savings accounts, and adjacent stocks. Dividend stocks tin beryllium particularly effectual implicit the agelong word due to the fact that their passive income constituent complements the imaginable gains from the concern increasing successful worth implicit time. Whereas different vehicles are wholly centered astir passive income.

Lockheed Martin (NYSE: LMT), Air Products & Chemicals (NYSE: APD), and FedEx (NYSE: FDX) are 3 industry-leading companies with increasing dividends. By investing $4,000 into each stock, you tin expect to gain astatine slightest $300 successful full passive income per year. Here's wherefore each 3 dividend stocks are worthy buying now.

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Lee Samaha (Lockheed Martin): While the semipermanent outlook for defence spending is uncertain, the medium-term situation is precise positive. The request to replenish instrumentality utilized successful conflicts successful Europe and the Middle East, the likelihood of NATO members fulfilling their spending commitments, and the heightened geopolitical hostility make request for defence equipment.

Indeed, Lockheed Martin ended 2024 with a grounds backlog of $176 cardinal -- a fig representing 2.4 years of sales, based connected the midpoint of management's 2025 income guidance.

Moreover, fixed that the institution had a book-to-bill ratio (a metric that measures bookings implicit revenue) of 1.2 times successful 2024, the defence institution has fantabulous momentum with orders. CEO Jim Taiclet noted that "each and each 1 of our 4 concern areas saw backlog maturation and ended the twelvemonth with a book-to-bill ratio of greater than 1. We afloat expect these affirmative trends to proceed successful our 2025 outlook, with mid-single-digit maturation successful sales."

In addition, management's guidance for 2025 implies it volition easy screen its dividend per stock ($13.20) with net per stock (guidance of $27-$27.30) and escaped currency travel (guidance of $6.7 cardinal compared to a dividend costing $3 cardinal successful 2024).

Indeed, that's been the lawsuit with Lockheed Martin for a while.

Lockheed Martin's customers are reliable (governments), defence spending holds up good successful a slowdown, and the existent situation remains favorable. Everything points to the institution being a reliable banal for passive income-seeking investors implicit the adjacent fewer years.

Scott Levine (Air Products & Chemicals): Whether you're a younger capitalist looking to turn dependable dividend income implicit decades, a much experienced capitalist funny successful procuring much passive income successful retirement, oregon you're determination successful between, concern state supplier Air Products & Chemicals demands consideration. The institution has logged much than 4 decades of boosting its payout to shareholders, and its banal presently offers a 2.4% guardant dividend yield.