These companies can turn $1,000 into a high-octane income stream this October.
Investing money in high-yielding dividend stocks can provide passive income through regular dividend payments. For example, allocating $1,000 into shares of the following two high-quality, high-yielding companies can generate an annual income stream of nearly $68:
|
Dividend Stock |
Investment |
Current Yield |
Annual Dividend Income |
|---|---|---|---|
|
MPLX (MPLX -0.91%) |
$500.00 |
7.70% |
$38.50 |
|
$500.00 |
5.84% |
$29.20 |
|
|
Total |
$1,000.00 |
6.77% |
$67.70 |
Data source: Google Finance and author’s calculations. NOTE: Dividend yield as of October 3, 2025.
Here’s why these high-yielding dividend stocks stand out as great ways to generate durable passive income.
Image source: Getty Images.
A high-octane dividend stock
MPLX is a master limited partnership (MLP) that owns and operates energy midstream assets like pipelines, processing plants, and export terminals. Most midstream assets deliver highly stable cash flow, supported by long-term, fixed-rate contracts and government-regulated rate structures.
The company generated over $2.9 billion in distributable cash flow during the first half of this year. That’s enough to cover its high-yielding distribution by a very comfortable 1.5 times, allowing it to retain lots of cash to fund new investments.
MPLX currently has numerous expansion projects underway. The company is building several large-scale gas pipelines, new gas processing plants, natural gas liquids fractionation facilities, and an LPG export terminal. These projects are on track to come online through 2029, providing MPLX with strong visibility into future cash flow growth.
The company also maintains strong financial flexibility to pursue acquisitions. MPLX ended the second quarter with a 3.1 times leverage ratio, well below the 4.0x range its stable cash flows can support. This enabled it to increase its stakes in two joint ventures and acquire two gathering and processing companies. Its largest transaction was the $2.4 billion purchase of Northwind Midstream. These acquisitions contribute additional cash flow and support future growth, thanks to ongoing or recently approved expansion projects.
MPLX’s growth drivers allow the MLP to steadily increase its distribution, which it has raised every year since its formation in 2012. The company has grown its payout at a more than 10% compound annual rate since 2021. With lots of earnings growth coming down the pipeline, MPLX has ample fuel to continue increasing its distribution. MPLX is an excellent option for those seeking a rising passive income stream and the tax advantages of investing in an MLP, which sends investors a Schedule K-1 Federal Tax Form each year.
A high-powered dividend growth stock
Clearway Energy owns a large and diverse portfolio of clean power assets, including wind farms, solar energy facilities, and gas-fired power plants. The company sells the power it produces to utilities and large corporations under long-term, fixed-rate power purchase agreements. Those contracts provided Clearway with predictable cash flow.
The company expects to produce $2.08 per share of cash available for dividends (CAFD) this year. That’s more than enough to cover its current annual dividend rate of $1.78 per share. It uses the retained cash flow and its balance sheet flexibility to invest in additional income-producing clean power assets.
Clearway has secured several new investments. It is upgrading existing wind farms with larger turbines to boost output and has agreed to purchase additional wind and solar projects currently in development. These investments provide a clear path to increase its CAFD to more than $2.50 per share by 2027 (representing over 20% growth). This supports Clearway’s plan to raise its dividend to $1.98 per share by 2027 (more than 11% above the current rate).
The company has more growth ahead beyond 2027. It can continue repowering existing wind farms, acquire development projects upon completion, purchase operating assets, and integrate battery storage with existing assets. Clearway believes it can grow its CAFD per share at a 5% to 8% annual rate beyond 2027, which should support dividend growth within that target range.
Powerful passive income producers
MPLX and Clearway Energy generate lots of stable cash flow. That enables them to pay high-yielding dividends while continuing to expand their operations and increase cash flow. Those features make them excellent dividend stocks to buy this October to generate durable and steadily rising passive income.
Matt DiLallo has positions in Clearway Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.