Want Passive Income in 2023? Buy These High-Yield Dividend Stocks

Sweet, beautiful cash. We all need it to pay our bills. And we all want it, whether to buy the things that bring us joy or give to the people and charities that are most important to us.

These are some of the reasons why investors prize passive income. The investments that can help you earn money without having to sacrifice your time and effort are extremely valuable.

Dividend stocks are one of the best sources of passive income. Well-chosen, high-yield stocks can provide you with a growing stream of cash payments that you can use for whatever purpose you like.

Here are two great dividend stocks that are particularly worthy of your consideration today.

Kinder Morgan

A vast collection of hard-to-replicate energy infrastructure assets enables Kinder Morgan (KMI 0.87%) to generate bountiful and reliable free cash flow. The oil and gas giant passes much of this cash on to its investors via dividends. This passive-income-producing stock currently yields a hefty 6%.

Kinder Morgan’s assets include over 80,000 miles of pipelines that transport crude oil, natural gas, refined products, and other commodities. It also operates a huge storage network for gasoline, diesel fuel, and a variety of fuels and chemicals. 

These are vital energy services that are likely to remain in high demand for many years to come. Evidence of this can be seen in Kinder Morgan’s financial results. Its distributable cash flow (DCF) jumped 11% year over year to $1.2 billion in the fourth quarter, fueled by higher natural gas volumes. Factoring in the beneficial impact of stock buybacks, Kinder Morgan’s DCF per share increased 13%, to $0.54. That allowed the company to boost its quarterly cash payout by 3% to $0.2775 per share. 

Management sees intriguing opportunities in the liquefied natural gas (LNG), renewable fuels, and carbon capture markets. With a solid balance sheet and plenty of cash to invest in attractive growth projects, Kinder Morgan is well positioned to grow its dividend steadily in the coming years.

Ford Motor

If the renewable energy trend is more up your alley, take a look at Ford Motor Company (F 1.02%). The automotive leader is rapidly shifting its product lineup toward electric vehicles (EVs).

Ford’s all-electric F-150 Lightning pickup is racking up industry awards, including being named the North American Truck of the Year and the MotorTrend Truck of the Year for 2023. This critical acclaim has helped the F-150 Lightning generate the highest sales among electric trucks sold in the U.S. since its introduction in May. 

Ford’s Mustang Mach-E crossover has also been well received by EV enthusiasts. Ford has already produced more than 150,000 of the popular all-electric SUVs in the roughly two since it began manufacturing them. The Mustang Mach-E continues to sell briskly, with sales rising 14.6% year over year to 3,539 vehicles in November. 

Additionally, the Ford E-Transit is the best-selling electric van by a wide margin. The E-Transit commands a dominant 80% share of the commercial EV market. 

With three leading EV offerings, Ford has quickly become the No. 2 seller of electric vehicles in the U.S. behind only Tesla. Yet Ford’s stock is priced much more attractively than its rival’s. Ford’s shares are currently trading for 7.3 times its forecast profits for 2023. Tesla’s shares, meanwhile, are trading for over 30 times its expected earnings for this year. 

Moreover, Ford offers investors something that Tesla doesn’t: a passive-income-producing dividend. The venerable automaker’s stock yields a sizable 4.8%.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan and Tesla. The Motley Fool has a disclosure policy.