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2025 has been a remarkable year for global stock markets. Unfortunately, this makes things more challenging for investors looking for great passive income in dividend-paying stocks.
I MSCI All Country World Index – which tracks large and mid-cap stocks in developed and emerging markets – delivered its best year since before the Covid-19 pandemic. As a result, dividend yields have fallen worldwide.
Yields fall when prices rise, meaning stock pickers receive lower returns on their investments. But this does not make it impossible to find stocks with high quality yields. Indeed, stock markets are always full of good bargains, not just in terms of future profits.
Real Income, Aberdeen Asian Income Fund again Verizon Communications (NYSE:VZ.) are just three of the top stocks worth considering right now. Want to know what I think makes them so great?
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Realty Income is a US-listed real estate investment trust (REIT). As such, it offers dividend visibility that few other stocks can. Under industry rules, these trusts must pay at least 90% of their annual rental income to shareholders.
This is not to say that companies like these are watertight stocks. Dividends remain linked to profits, which may decline when occupancy levels decline and/or rental collection issues arise.
But Realty Income’s large portfolio of 15,000-plus properties helps spread this risk. Its diversified approach has delivered average annual dividend growth since the mid-1990s.
Today, the REIT’s dividend yield is 5.9%. And its forward price growth (PEG) ratio of 0.9, which indicates excellent value.
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Towards Asia
Aberdeen Asian Income Fund is a cheap and easy way to tap into the dividend potential of emerging market shares. Investing here gives one immediate exposure to 57 different dividend paying stocks.
That’s right, Asian stocks can be more volatile than those in the UK and US. But it can also lead to many long-term benefits as rapid economic growth drives the company’s profits.
Aberdeen Asian Income’s has shown an excellent dividend yield over the years. Annual payments have increased for 22 years on a spin. in 2026, an annual yield of 7.1 %. Currently, the trust also trades at a 7% discount to its net asset value (NAV) per share.
Top US stock
Verizon is in many ways one of the best US dividend stocks. It is not perfect, as high infrastructure use and competitive pressures can affect earnings and shareholder payouts. But there’s also a lot to like here.
Telecoms is still one of the most defensive industries out there, and especially in our increasingly digital age. This provides the company with recurring subscription revenue and a stable cash flow that it can use to fund large and reliable profits.
Verizon has also grown annual profits every year for nearly two decades. Forecasts for another increase in 2026 mean its shares are yielding 6.9%.
As the company is retooled under new CEO Dan Schulman, it could deliver incremental gains. again great benefits ahead. Today, its shares trade at a low forward price ratio (P/E) of 8.4 times.
