"If you have $25,000 in cash, you can start building a smart dividend portfolio right now. It will require some planning, however, to construct a sensible portfolio of dividend-producing stocks and exchange traded funds (ETFs). High yields are exciting, but you don't want to blow up your account by taking excessive risks. With that in mind, let's break down what a smart $25,000 dividend portfolio could look like in 2025."
"It's fine to mix individual stocks and ETFs in a portfolio. To stay safe, it's wise to hold a larger position in ETFs than stocks because diversified ETFs tend to be less risky. Thus, an investor could allocate 25% of a $25,000 account, or $6,250, toward individual dividend stocks. This can be achieved by spending $1,250 apiece on four stocks."
"Verizon Communications : A telecommunications giant with an international presence. Profitable yet reasonably valued with a trailing 12-month price-to-earnings (P/E) ratio of 9.42x. Impressively, VZ stock pays a forward annual dividend yield of 6.84%. Exxon Mobil : The oil price went down this year, but don't worry too much about Exxon Mobil. This oil and gas behemoth earned $7 billion worth of net income in 2025's second quarter. Clearly, the company can afford to"
A $25,000 dividend portfolio can combine diversified ETFs with selected individual dividend stocks to generate passive income while limiting risk. Hold a larger allocation to ETFs because diversified ETFs tend to be less risky. Allocate about 25% of the account—$6,250—toward four individual dividend stocks, roughly $1,250 each. Conduct thorough research and favor S&P 500 large-cap companies rather than ultra-high-yield names. Start research promptly to capture dividend payments in 2025. Examples include Verizon, yielding about 6.84% with a low P/E, and Exxon Mobil, which reported $7 billion in net income in 2025's second quarter.
Read at 24/7 Wall St.
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