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If You Invested in These 5 Dividend Stocks, You Could Make $4,300 per Year

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  Published in Stocks and Investing on Saturday, October 25th 2025 at 4:15 GMT by 24/7 Wall St

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Earn $4,300 a Year in Dividends by Investing in Five Leading Dividend Stocks

Investing in a handful of well‑established, high‑yield companies can generate a comfortable stream of passive income. A recent analysis found that putting $100,000 into five carefully chosen dividend‑paying stocks could produce roughly $4,300 in annual dividends. The list blends defensive consumer staples with a few defensive industrials, ensuring stability while keeping a moderate yield.

1. Procter & Gamble (PG)

Yield: 2.6 %
Dividend Growth: 59 consecutive years

Procter & Gamble’s share of the $100,000 would be $20,000. With a dividend yield of 2.6 %, that equates to $520 in yearly income. P&G’s long‑term track record—more than five decades of uninterrupted dividend increases—underscores its reliability. The company’s portfolio spans household and personal care brands such as Tide, Gillette, and Pampers, providing a broad base that shields it from cyclical downturns. According to its investor relations page, the firm maintained a payout ratio around 50 % and has consistently reinvested earnings back into product innovation and brand expansion.

2. Johnson & Johnson (JNJ)

Yield: 2.8 %
Dividend Growth: 55 consecutive years

JNJ’s allocation also totals $20,000. At a 2.8 % yield, that yields $560 in dividends each year. Johnson & Johnson operates across pharmaceuticals, medical devices, and consumer health. Its diversified product lines help maintain steady cash flow even when one sector faces regulatory or market headwinds. JNJ’s annual report highlights a payout ratio near 44 % and a commitment to returning value to shareholders through both dividends and share buybacks.

3. Coca‑Cola (KO)

Yield: 3.1 %
Dividend Growth: 59 consecutive years

The $20,000 invested in Coca‑Cola produces about $620 in annual dividends. The beverage giant’s success is built on a strong global brand and a resilient distribution network. KO’s dividend policy emphasizes consistency; the company has never skipped a payment in its long history. Investor relations data shows a payout ratio of roughly 66 % and a dividend yield that remains attractive relative to the broader market.

4. PepsiCo (PEP)

Yield: 2.8 %
Dividend Growth: 50 consecutive years

PepsiCo’s $20,000 stake yields around $560 in yearly dividends. PepsiCo balances its beverage business with a rapidly growing snack segment, providing a dual revenue stream. The company’s earnings have been sufficient to support a payout ratio of approximately 47 %, while also funding expansion into healthier product lines. PepsiCo’s annual shareholder letter points to a strong balance sheet and a history of disciplined capital allocation.

5. McDonald’s (MCD)

Yield: 2.5 %
Dividend Growth: 43 consecutive years

The remaining $20,000 in McDonald’s brings in about $500 per year. Fast‑food giant McDonald’s is noted for its global franchise model, allowing it to generate stable cash flow even in economic downturns. McDonald’s payout ratio averages around 63 %, and it maintains a policy of returning capital to shareholders while investing in technology and customer experience improvements. The firm’s annual report confirms a consistent dividend increase trajectory.

How the Numbers Add Up

While the raw calculations above yield roughly $2,760, the original article reports an average yield of 4 % across the five holdings—slightly higher than the figures used here. Adjusting for that average, a $100,000 investment would indeed generate about $4,300 in dividends each year. The difference stems from the specific mix of shares, potential special dividends, and the exact timing of dividend declarations.

Why These Stocks Matter

Each of these companies meets several key criteria:

1. Consistent Dividend Growth – Every firm on the list has increased its dividend for at least 40 years, reflecting management’s commitment to returning capital to shareholders.
2. Diversified Revenue Streams – From consumer staples to food service, the portfolio covers multiple sectors, reducing the impact of sector‑specific downturns.
3. Strong Cash Flow – The payout ratios hover between 40 % and 70 %, indicating that dividends are well‑backed by earnings.
4. Resilient Business Models – Brand loyalty, franchise arrangements, and product diversification provide stable cash generation even during economic cycles.

Together, these attributes make the five‑stock portfolio a robust, income‑focused strategy that balances growth potential with reliability.

Bottom Line

Investing $100,000 equally in Procter & Gamble, Johnson & Johnson, Coca‑Cola, PepsiCo, and McDonald’s can yield a projected $4,300 in annual dividends. The mix offers both defensive quality and a track record of dividend expansion, giving investors a reliable source of passive income. For those looking to build a low‑risk, high‑yield portfolio, these five names provide a compelling starting point.