Why CareTrust, Merck, And Allete Are Winners For Passive Income

Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. CareTrust, Merck, and Allete have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of over 4%.

CareTrust REIT

CareTrust REIT Inc. CTRE is a real estate investment trust that owns, acquires, develops and leases seniors housing and healthcare-related properties.

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CareTrust REIT has increased its dividends every year for the last 10 years. In its most recent dividend hike announcement on March 18, the company raised its quarterly payout from $0.29 to $0.335 per share, equaling an annual figure of $1.34 per share. More recently, in its dividend announcement on June 16, the company maintained the payout at the same level. The current dividend yield on the stock is 4.77%.

The company's annual revenue as of March 31 stood at $246.41 million. In its Q1 2025 earnings report on May 1, it posted revenues of $96.62 million and EPS of $0.42, both coming in below the consensus estimates.

Check out this article by Benzinga from Benzinga that looks into CareTrust REIT’s recent short interest.

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Merck

Merck & Co. MRK is a healthcare company that manufactures pharmaceutical products to treat various conditions in many therapeutic areas, including cardiometabolic disease, cancer and infections. 

Merck has raised its dividends consecutively for the last 14 years. As per its most recent dividend hike announcement on Nov. 19, the company increased the quarterly payout from $0.77 to $0.81 per share, which is equal to an annual figure of $3.24 per share. More recently, in its dividend announcement on May 27, the company maintained the payout at the same level. Currently, the dividend yield on the stock is 4%. 

Merck's annual revenue as of March 31 stood at $63.92 billion. In its Q1 2025 earnings release on April 24, it posted revenues of $15.53 billion and EPS of $2.22, both coming in above the Street estimates.

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Allete

Allete Inc. ALE is an energy company primarily focused on clean energy solutions and regulated utility operations.

The company has increased its dividends every year for the last 14 years. In its most recent dividend hike announcement on Jan. 30, the company's board raised the quarterly payout by 3.5% to $0.73, equal to an annual figure of $2.92 per share. More recently, in its dividend announcement on April 25, the company maintained the payout at the same level. The current dividend yield is 4.52%.

Allete's annual revenue as of March 31 stood at $1.53 billion. According to its most recent earnings release on May 8, the company posted Q1 2025 revenues of $400.20 million and EPS of $1.01.

CareTrust, Merck, and Allete are good choices for investors seeking reliable passive income. Their dividend yields of over 4% and long history of consistent hikes make them attractive to income-focused investors.

Check out this article by Benzinga for three more stocks offering high dividend yields.

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