Investing $18,000 Across Three High-Yield Stocks Could Generate About $1,000 in Annual Dividends

Investors searching for consistent cash returns often look to companies with above-average dividend yields and resilient business models. Three such companies—United Parcel Service (UPS), Enbridge, and General Mills—offer income streams that stand out from the broader market. Allocating roughly $6,000 to each stock, for a total investment of $18,000, could deliver close to $1,000 in yearly dividend payments, according to current payout levels. The combined approach provides exposure to transportation, energy infrastructure, and packaged foods, adding a layer of diversification to an income-oriented portfolio.

UPS focuses on efficiency after a challenging year

United Parcel Service, the global logistics provider, has faced a difficult 12-month stretch. The stock has fallen more than 17 percent as tariffs and muted economic activity weighed on international trade volumes. In response, management announced approximately 48,000 job reductions last year, part of a cost-saving effort aimed at protecting profitability in a slower growth environment.

Despite the headwinds, UPS continues to generate robust free cash flow. Over the past three reported quarters, the company produced at least $1.4 billion in free cash each period, easily covering its quarterly dividend commitments. The current dividend yield stands at 6.1 percent—more than five times the S&P 500’s recent average of roughly 1.1 percent. An investor allocating $6,000 to UPS shares would receive about $370 in dividends over a full year at the present payout rate.

The company’s strategy centers on margin improvement and disciplined capital spending. By tightening its cost structure and leveraging its global network, UPS aims to sustain cash generation even while shipment volumes fluctuate. Because dividends rely on available cash rather than reported earnings, management’s ability to preserve free cash remains a critical indicator for income investors.

Enbridge extends a three-decade streak of dividend growth

Enbridge, headquartered in Calgary, operates extensive crude oil and natural gas pipelines across North America. The business model relies on long-term, fee-based contracts that reduce exposure to commodity price swings. That structure has allowed the company to provide dependable cash flows and steadily rising dividends over the years.

Last month Enbridge raised its quarterly dividend by 3 percent, marking the 31^st consecutive annual increase. The current yield sits at approximately 5.8 percent. Through the first nine months of 2025, distributable cash flow reached CA $9.2 billion, compared with CA $8.9 billion in the same period a year earlier. Management indicated that the business remains on pace to meet guidance for a 20^th straight year, underscoring the stability of its earnings profile.

A $6,000 position in Enbridge stock would generate close to $348 in yearly dividends at the existing payout level. Continued growth in distributable cash flow, combined with an established record of annual increases, suggests the dividend is well supported for the foreseeable future.

General Mills rounds out the income trio

Packaged food producer General Mills provides a consumer-staples component within the three-stock strategy. Its brands include cereals, snacks, baking products, and pet foods that tend to benefit from steady demand across economic cycles. Although the original premise cites General Mills as one of the three high-yield selections, the article does not include specific payout data. However, the company’s track record of regular distributions and cash-generating operations positions it as a complementary, lower-volatility holding alongside UPS and Enbridge.

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By combining the higher yields from UPS and Enbridge with the steadier, brand-based revenue of General Mills, investors can capture income from distinct segments of the economy. The total projected dividend income—approximately $1,000 annually on an $18,000 allocation—reflects the collective yields of the three securities, though the exact figure will vary with future dividend declarations and share price movements.

Diversification benefits and cash reinvestment potential

Investing across transportation, energy infrastructure, and consumer staples helps mitigate company-specific risk. While UPS is sensitive to global trade volumes, Enbridge’s contract-driven cash flow and General Mills’ consumer staples exposure can offset logistics-related volatility. The diversified mix also offers flexibility: investors may choose to reinvest the dividends into additional shares, deploy the cash elsewhere, or use it to supplement regular income.

Because dividend payments are not guaranteed, it remains essential to monitor each company’s underlying fundamentals. For UPS, free cash flow levels and progress on cost reductions are key indicators. At Enbridge, pipeline expansions, regulatory developments, and currency fluctuations can influence distributable cash flow. General Mills’ performance hinges on brand strength, input costs, and consumer trends. Ongoing evaluation of these factors will help determine whether the dividend streams remain sustainable.

Still, the current yields—6.1 percent for UPS and 5.8 percent for Enbridge—substantially exceed the broader market average, providing a buffer even if the companies face short-term earnings pressure. When coupled with General Mills’ historically reliable payout, the trio represents an opportunity to generate meaningful income without concentrating solely on a single sector.

For investors seeking to reach the $1,000 annual dividend threshold, the $6,000-per-stock allocation outlined above offers a straightforward blueprint. As with any equity investment, share prices will fluctuate, and reinvested dividends can compound total returns over time. A disciplined approach that regularly reviews corporate performance and maintains a long-term perspective can help preserve the income stream while positioning the portfolio for potential capital appreciation.

Crédito da imagem: Getty Images