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2025 turned out to be a spectacular year for global stock markets. Unfortunately, this has made things more hard for investors looking for a lot of passive income from dividend-paying stocks.
The MSCI All Country World Index – which tracks shares of large- and mid-cap companies in developed and emerging markets – recorded its best year since before the Covid-19 pandemic. As a result, dividend yields have fallen around the world.
Yields fall when stock prices rise, which means people who choose stocks receive less income from their investments. However, this does not prevent you from finding high-quality, high-yield stocks. Indeed, stock markets continue to be full of great opportunities, and not just in terms of future dividends.
Income from real estate, Aberdeen Asia Income Fund AND Verizon Communications (NYSE:VZ.) are just three of the top stocks that deserve your attention right now. Want to know what I think makes them so great?
Property inspection
Realty Income is a US-listed real estate investment trust (REIT). As such, it provides dividend visibility that few other stocks can provide. Under sector regulations, these trusts must pay out at least 90% of annual rental income to shareholders.
This does not necessarily mean that these types of companies are guaranteed income companies. Dividends remain tied to profits, which may decline if occupancy levels decline and/or rent collection problems occur.
However, Realty Income’s massive portfolio of over 15,000 properties helps spread this risk. Its diversified approach has delivered consistent annual dividend growth since the mid-1990s.
Today, the REIT’s forward dividend yield is a massive 5.9%. And its forward price-to-earnings growth ratio (PEG) is 0.9, illustrating excellent value.
Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice.
Looking at Asia
The Aberdeen Asian Income Fund is a economical and simple way to exploit the dividend potential of shares in emerging markets. Investing here gives you immediate exposure to 57 different dividend-paying stocks.
OK, Asian shares may be more volatile than UK and US shares. However, it can also lead to huge profits in the long run as rapid economic growth drives company profits.
Aberdeen Asian Income has delivered excellent dividend yield over the years. Annual payouts have increased for 22 years. In 2026, the dividend yield will be an impressive 7.1%. The trust is also currently trading at a 7% discount to net asset value (NAV) per share.
The best action in the USA
Verizon is, in many ways, one of America’s best dividend stocks. This is not an ideal solution, as high infrastructure spending and competitive pressures can impact profits and shareholder payouts. But there’s a lot to like here too.
Telecommunications remains one of the most defensive industries, especially in our increasingly digital era. This provides the company with recurring subscription revenue and stable cash flow that it can operate to fund huge and reliable dividends.
Verizon has also raised its annual dividend every year for nearly two decades. Forecasts for further growth in 2026 mean its shares are up a whopping 6.9%.
As the company undergoes a significant restructuring under up-to-date CEO Dan Schulman, it could deliver increasingly tempting dividends AND huge capital gains in the future. Its shares are currently trading at a low price-to-earnings (P/E) ratio of 8.4 times.
