10 Best Stocks to Invest in for Passive Income

2. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 74

Dividend Yield as of February 24: 6.26%

Verizon Communications Inc. (NYSE:VZ) ranks second on our list of the best stocks to buy for passive income. The American multinational telecommunications company delivered solid fourth-quarter results in 2024, reporting $35.7 billion in revenue—an increase of 1.6% compared to the same period last year. This growth was fueled by higher customer additions in both mobile wireless and internet services. In the mobile wireless segment, the company gained 568,000 net postpaid phone subscribers, up from 449,000 in the prior year quarter. Revenue from this segment rose 3.1% year-over-year to $20 billion, marking its 18th consecutive quarter of growth.

Verizon Communications Inc. (NYSE:VZ) has attracted investor interest with its strong cash flow and focus on innovation. In fiscal year 2024, the company reported $37 billion in operating cash flow, while free cash flow grew to $19.8 billion, up from $18.7 billion the previous year. Analysts remain positive about its outlook, particularly following its partnership with NVIDIA to develop an AI-powered enterprise solution that enhances AI applications on its secure 5G private networks through private Mobile Edge Computing. In addition, the company is advancing other AI-driven initiatives, such as network slicing and satellite connectivity, to diversify revenue streams and strengthen its market position.

Verizon Communications Inc. (NYSE:VZ) currently offers a quarterly dividend of $0.6775 per share and has a dividend yield of 6.26%, as of February 24. The company has been rewarding shareholders with growing dividends for the past 18 years.