All It Takes Is $1,000 Invested in Each of These 3 High-Yield Dividend Stocks to Generate $112 in Passive Income in 2025

Market Overview - The S&P 500 is near a record high with expensive valuations, but energy stocks offer inexpensive valuations and high yields, making them attractive for value and passive-income investors [1] - ConocoPhillips, Kinder Morgan, and Phillips 66 have compelling valuations and yields over 3%, with a $1,000 investment in each expected to generate about$112 in passive income by 2025 [2] ConocoPhillips (COP) - ConocoPhillips has a highly efficient production portfolio, allowing it to break even at low oil and gas prices, with a free cash flow (FCF) breakeven in the low $40s per barrel of oil equivalent (boe) including dividends, and low$30s without dividends [3] - Despite mediocre oil prices in 2023, ConocoPhillips continued to generate strong earnings and FCF, with a P/E ratio of 12.1 and a price-to-FCF ratio of 12.9, making it a great value for investors [4] - ConocoPhillips is the largest U.S.-based independent exploration and production company by market cap, with production significantly increased due to organic investments and acquisitions of Concho Resources and Marathon Oil [12] - The company has a solid yield of 3.1% and expects its dividend growth rate to be in the top 25% of S&P 500 companies [13] Kinder Morgan (KMI) - Kinder Morgan's valuation is attractive despite concerns about the role of oil and gas in a cleaner energy future, with a P/E ratio of 24.4, a forward P/E of 22, and a price-to-FCF ratio of 15.7 [7] - The company is expected to benefit from rising industrial gas demand, onshore liquefied natural gas exports to Mexico, and demand from AI data centers, with several large projects coming online in the next few years [6] - Kinder Morgan operates in the midstream sector, connecting hydrocarbon production areas to processing, distribution, and consumption through pipelines, storage, and terminals [15] - The stock surged over 50% in 2024 due to years of underperformance, growing earnings, and a change in sentiment toward its long-term growth projects [14] Phillips 66 (PSX) - Phillips 66 operates in the downstream sector, refining crude oil into gasoline, petroleum products, and aviation fuel, with a focus on operational efficiency and cost management [16] - Despite a downturn in the refining industry, Phillips 66 remains profitable with a dividend of $4.60 per share and trailing-12-month earnings of$7.83 per share, with consensus estimates for $9.33 earnings per share in 2025 [10] - The company has a P/E ratio of 14.8, a forward P/E of 12.4, and a price-to-FCF of 16.9, with a 4$1,000 investment in Phillips 66 is expected to generate $40 in passive income in 2025 [11]