The Dow Jones Industrial Average is made up of 30 blue-chip, American companies, many of which pay dividends to their shareholders. Investing in dividend stocks is a time-tested strategy that allows investors to generate passive income from their stock holdings.

Top 10 dividend-paying buy-and-hold stocks for your portfolio, offering both stability and growth potential over the next decade. Click here to find out more.

Many dividend stocks lost their luster in 2022 and 2023 as rising interest rates drove jittery investors toward safer CDs, Treasury bills, and other fixed-income investments. However, many of those high-yielding dividend stocks stabilized in 2024 as the Federal Reserve finally implemented three interest rate cuts.

With the youngest baby boomers (Americans born between 1946 and 1964) approaching retirement age, it's becoming increasingly important to focus on magnificent dividend stocks that will supply significant passive income either in or out of designated retirement accounts like IRAs.

Looking to boost your dividend portfolio? Learn about 10 high dividend yield companies with strong potential for growth in January 2025.

I own a lot of dividend stocks. They're a big part of my investment strategy. I'm working toward eventually generating enough passive income to cover my basic living expenses. Last year, five stocks supplied me with more than $500 of dividend income apiece.