2 Dividend-Paying Stocks and 1 ETF With Yields Over 3.5% to Buy in 2025

With the S&P 500 (SNPINDEX: ^GSPC) yield at just 1.2%, it has become more challenging to find companies or exchange-traded funds (ETFs) that can provide a steady and sizable stream of passive income. But that doesn’t mean there aren’t viable options if you know where to look.

Kimberly-Clark (NYSE: KMB), J.M. Smucker (NYSE: SJM), and the Vanguard Total Corporate Bond ETF (NASDAQ: VTC) all yield over 3%. Here’s why these two dividend stocks and this ETF are worth buying now.

Image source: Getty Images.

Scott Levine (Kimberly-Clark): It’s hard to argue with the allure of picking up a leading consumer staples stock like Kimberly-Clark and watching the ample dividend income consistently roll in — as it has done at increasingly higher amounts for over five decades, resulting in the stock earning the title of Dividend King.

Skeptics will often balk at high-yield dividend stocks for fear that the company is not standing on firm financial footing. However, this is hardly the case with Kimberly-Clark. Income investors would be well-served to strongly consider clicking the buy button on the stock — along with its 3.9% forward-yielding dividend — while it’s hanging on the discount rack.

With a history dating back to 1872, Kimberly-Clark has grown into a dominant player in the consumer staples industry. Whether you’re a new parent who relies on Huggies to protect your little one or a teacher with a box of Kleenex on your desk, the odds are extremely strong that you’re using a Kimberly-Clark brand — or several — on a daily basis.

With such an impressive portfolio of brands, ranging from baby care to adult care, Kimberly-Clark generates strong and consistent cash flow. This cash flow should assuage skeptics’ concerns that the dividend is on shaky ground.

KMB Free Cash Flow Per Share (Annual) data by YCharts.

Over the past decade, it’s clear that Kimberly-Clark has generated free cash flow from which it can source its payout to shareholders. And it’s not only the cash flow that speaks to the security of the payout. Over the past five years, Kimberly-Clark…

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