3 world-class dividend stocks to consider for passive income

Dividend stocks offer a straightforward way to create passive income. With these stocks, investors receive regular cash payments in their brokerage accounts without lifting a finger.

Here, I’m going to highlight three top-class dividend stocks that I believe are worth considering right now. In my view, all offer significant value at current prices.

A defensive stock with a 4% yield

First up, we have Reckitt (LSE: RKT). It’s a consumer health and hygiene company that owns a ton of well-known brands (Dettol, Durex, Vanish).

Now, this isn’t the most exciting stock. But it’s defensive in nature as many of its brands are relatively recession-proof and that’s a valuable attribute today given the elevated level of economic uncertainty globally.

Zooming in on the dividend, it’s quite attractive. For the 2025 financial year, analysts expect a payout of 209p putting the yield at roughly 4.3%.

The valuation also looks attractive. Currently the price-to-earnings (P/E) ratio here is only 14. In recent years the ratio has been much higher.

It’s worth pointing out that there’s still some uncertainty here regarding baby formula litigation, which has hit its share price. Several years ago, Reckitt was hit with lawsuits alleging that its infant formula caused a severe intestinal disease.

All things considered, however, I like the passive income potential.

Strong dividend growth expected

Those looking for something a little more exciting may want to check out US-listed pharmaceutical stock Novo Nordisk (NYSE: NVO). It specialises in diabetes products and GLP-1 weight-loss drugs (it’s the maker of Wegovy and Ozempic).

This stock has taken a huge hit recently and I think there’s an opportunity — I’ve been buying it for my own portfolio in recent weeks. At present, the company is priced as if rival Eli Lilly is going to capture the entire GLP-1 market!

I don’t think that’s likely. That said, competition from Eli Lilly and other companies is a risk.

After the share price fall, the dividend yield looks attractive. Currently, it’s 3.1% for 2025 and 3.8% for 2026 (note the strong dividend growth expected).

Add in the fact that stock trades on a P/E ratio of just 16.5, and there’s a lot to like. It’s worth pointing out that this year, revenue is expected to rise about 18% so this is looking like a classic ‘growth at a reasonable price’ stock.

Out of favour with the crowd

Finally, we have Diageo (LSE: DGE). It’s the owner of Guinness, Johnnie Walker, Tanqueray, and many other well-known alcohol brands.

This stock is really out of favour at the moment. And it’s not hard to see why.

Right now, the outlook for alcoholic beverage companies seems a little murky. Not only are younger generations drinking less, but the GLP-1 weight-loss drugs mentioned above are resulting in lower demand for booze.

I don’t think people are going to stop drinking entirely any time soon, however. And I still see long-term growth potential here given the company’s top-shelf brands.

Turning to the dividend yield, it’s currently about 3.7%. That’s relatively attractive (and miles higher than the 10-year average yield for this stock).

Given that yield, I believe this stock is worth considering at current levels. The P/E ratio is 16, which isn’t high for a company of Diageo’s ilk.