3 Top U.S. Stocks to Buy for Fast-Growing Passive Income

It’s difficult to argue that stocks volatility will decrease soon. In the near future of the economy, there is still a lot of uncertainty, which is precisely what investors detest the most. There are numerous reasons to think that investors may experience additional pain in the short term, including rising interest rates and geopolitical worries.

The market’s erratic performance over the previous year has brought to memory important investing lessons. One of them is the fact that not all equities should be held exclusively for growth objectives. It’s possible that you’re investing in a company to diversify your portfolio. To create a source of passive income is another possible motive.

Considering that market volatility appears to be a permanent trend, it wouldn’t be a terrible idea to consider developing a second source of income. That is precisely the reason I intend to increase the number of dividend stocks in my portfolio this month.

Here are three top U.S. stocks at the top of my watch list.

Lowe’s

The home remodelling market doesn’t offer many reasons for excitement. In reality, none of the three dividend stocks on my list are what you’d call fascinating businesses. However, dependability goes a long way in the world of passive income.

A dividend yield of 2.25% is not particularly impressive. But what really stands out is Lowe’s (NYSE:LOW) commitment to boosting its dividend. The home improvement firm has earned the title of Dividend King by consistently increasing its dividend for more than 50 years.

In addition to passive income, Lowe’s has a record of success of generating returns that outperform the market. Over the last five years, shares have increased by more than 125%. Additionally, dividends are not even included in it.

Coca-Cola Company

The Coca-Cola Firm (NYSE:KO), a company worth close to $250 billion, is the most reliable dividend investment you can discover. For many years, the multinational food and beverage giant dominated the market. Additionally, well-run businesses like Coca-Cola can grow during challenging economic times like these.

Coca-Cola has increased its dividend payout for more than 50 years in a row, just like Lowe’s. The Dividend King is yielding more than 3% at the stock price of today.

Good luck finding another U.S. dividend stock yielding 3% that can match that type of payout streak.

Verizon Stocks

The last pick on this list sacrifices dependability and growth for a high yield.

Verizon’s (NYSE:VZ) dividend yield is around 7% at the current stock price. A 7% yield is difficult to resist for a corporation that has increased its dividend for 15 years running.

The stock’s previous performance is another important factor that is difficult to overlook. Over the previous five years, shares have lost 20% of their value while the S&P 500 has gained more than 40%.

Verizon is a good option if you’re searching for short-term passive income. However, if you’re looking for dividend stock to hold for many years, you might do better investing in one of the first two choices I looked at.