3 Dependable Dividend Stocks for a $250,000 Passive Income Strategy
Three household names have raised their payouts for more than 60 straight years, yet each one yields less than REITs or BDCs. So why do they anchor a $250,000 income plan, and which one pays the most?
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Some stocks are worth holding for decades, and they usually have one thing in common: a dividend that went up every year through recessions, rate shocks and bear markets. All three companies here have raised their payouts for more than 60 straight years, the kind of run we screened for in our free Dividend Kings guide. Over a long enough holding period, that record matters more than any one year’s yield.
An investment of $250,000, split equally at $83,333.33 per stock across these three Dividend Kings, would generate more than $5,500 of annual passive income at current prices. These yields are lower than what REITs or BDCs pay. In exchange, the payout records have held up through every downturn of the past six decades.
An $83,333.33 stake in each name would generate the following. Every figure uses the forward yield at current share prices.
Johnson & Johnson
- Stock #3: Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction)
- Yield (forward): 1.92%
- Shares for $83,333.33: 299.2
- Annual Passive Income: ~$1,603.83
Johnson & Johnson has two segments. Innovative Medicine covers oncology, immunology and neuroscience drugs, and MedTech covers cardiovascular, orthopaedics, surgery and vision. Second-quarter revenue came in at $25.31 billion, up 6.6%. Its yield is the lowest among the three stocks since, as an operating company, it sets its payout from earnings and has no distribution requirement. The stock has also gained 36.74% year to date, and that rally has drove the yield down.
The dividend is well covered. In April the quarterly dividend rose 3.1% to $1.34, the 64th consecutive annual increase. The $5.36 annualized dividend works out to about 46% of the midpoint of raised 2026 adjusted EPS guidance of $11.60 to $11.75. Free cash flow for 2025 reached $19.7 billion. The bull case rests on TREMFYA, whose sales grew 72.5%, and DARZALEX, which grew 18.9%. The main risk is biosimilar competition for STELARA, whose sales fell 55.2% in the quarter.
Coca-Cola
- Stock #2: Coca-Cola (NYSE:KO)
- Yield (forward): 2.19%
- Shares for $83,333.33: 860.2
- Annual Passive Income: ~$1,823.56
Coca-Cola sells concentrate to bottling partners around the world and also owns some bottling operations. Its brands include Sprite, Fanta, smartwater, BODYARMOR and fairlife. Because the concentrate model needs little capital, it earns a 27.3% net margin. The yield remains moderate because shares have rose 41.28% year to date.
Cash flow covers the payout. Coca-Cola paid $8.8 billion in dividends in 2025, and management now expects 2026 free cash flow of at least $13.0 billion. The quarterly dividend went up to $0.53 from $0.51, the 63rd consecutive annual increase. Cash stood at $13.45 billion. For the bull case, third-quarter unit case volume rose 5%, Coca-Cola Zero Sugar grew 16%, and comparable operating margin expanded to 32.9%. The clearest risk is ongoing IRS tax litigation, which could have a significant impact if the company loses.
Procter & Gamble
- Stock #1: Procter & Gamble (NYSE:PG)
- Yield (forward): 2.58%
- Shares for $83,333.33: 494.6
- Annual Passive Income: ~$2,153.57
P&G sells Tide, Pampers, Gillette, Charmin and Crest through five segments. It yields the most among the three stocks since its stock rose a smaller 20.95% year to date while the payout kept growing.
Its record is one of the longest in the market: 70 consecutive years of increases and 136 consecutive years of payments. The $4.354 annualized dividend is about 62% of the fiscal 2027 core EPS guidance midpoint of $7.00. Fiscal 2026 free cash flow of $15.835 billion covers the plan to pay over $10 billion in dividends. On the bull side, first-quarter core EPS was $2.00, ahead of the $1.89 consensus, and organic sales rose 4%. Input costs pose the risk: management expects a commodity headwind of about $1.4 billion after tax.
Income Breakdown at a Glance
| Name | Yield | Annual Dividend Income |
|---|---|---|
| Johnson & Johnson | 1.92% | $1,603.83 |
| Coca-Cola | 2.19% | $1,823.56 |
| Procter & Gamble | 2.58% | $2,153.57 |
| Total | 2.23% | $5,580.96 |
What $250,000 Delivers Each Year
Together, these three positions generate $5,580.96 in annual passive income from a $250,000 investment, giving a blended yield of 2.23%. Procter & Gamble contributes $2,153.57, Coca-Cola adds $1,823.56, and Johnson & Johnson supplies $1,603.83.
Shares like these can be sold in seconds during any trading session, and part of a position can be trimmed when cash is needed. A rental property offers neither option. An investor gets quarterly income without tenants, repairs or months of closing paperwork, and keeps the freedom to rebalance whenever circumstances change.
Contact [email protected] for any questions or corrections.
Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
