How to Generate Passive Income from Dividends: 8 Top Options and Investment Strategies for 2025

Market volatility has led many investors to focus on regular income through dividends. In 2025, there are promising opportunities for those seeking to reduce risk and generate steady cash flow. This article includes in-depth analysis of each topic, along with additional recommendations for investing in foreign dividend stocks.

Selecting High-Potential Dividend Stocks: Evaluation Criteria

Choosing stocks with high dividends is not easy, especially when relying solely on high Dividend Yield. The right criteria should include:

• Consistent Dividend Payments: Good companies pay dividends steadily even during crises, looking back at least 3-5 years.
• Clear Dividend Policy: Companies should set a defined Payout Ratio to allow investors to accurately forecast dividends.
• Strong Business Fundamentals: Factors include financial health, appropriate debt levels, and industries with positive outlooks.
• Operating Cash Flow: A key indicator showing the company can generate cash from core operations.

8 Dividend Stocks Promising Good Returns in 2025

Basic Data Table

DIF: Infrastructure Fund with “Fixed Returns”

This fund holds communication infrastructure assets, from 16,059 telecom towers to fiber optic networks. Its business model involves leasing to mobile operators long-term, resulting in stable and predictable income.

Key Data:

• Current Price: 7.90 THB
• Dividend Yield: 11.25%
• Latest Dividend: 0.22 THB/share
• P/BV: 0.52 times

Analysts are divided into two camps: one recommends “Buy” (target price 10.50-11.50 THB) due to lower interest costs and lease expansion opportunities, while the other warns about refinancing risks of 11.6 billion THB maturing debt and lease negotiations with TRUE.

TISCO: “Publicly Maintained” Dividend Stock with Continuous Payouts

TISCO acts as the parent company of the TISCO financial group, focusing on auto leasing and pawn loans. With a history of steady and high dividends, it is widely recognized.

Key Data:

• Current Price: 97.50 THB
• Dividend Yield: 7.95%
• Latest Dividend: 5.75 THB/share (for 2024 paid in 2025)
• P/E: 11.46 times
• P/BV: 1.75 times

TISCO exemplifies a quality dividend stock, paying twice a year, totaling 7.75 THB per share in 2025. The main challenge is slowing loan growth due to weak vehicle markets, so most analysts recommend “Hold,” emphasizing dividend yield over capital gains.

AP: Real Estate Stock with “Consistent” Valuation

AP is a leading integrated property developer, offering detached houses, townhomes, and high-rise condos, with a diverse brand portfolio catering to various segments.

Key Data:

• Current Price: 5.80 THB
• Estimated Dividend Yield 2025: 7.35%
• Latest Dividend: 0.60 THB/share
• P/E: 3.77 times
• P/BV: 0.41 times

AP stands out for its investment value, with very low P/E and P/BV compared to the market. 13 out of 16 analysts recommend “Buy” with a target price of 9.54 THB, implying potential profit from price appreciation and expected dividend yield over 7% annually.

SIRI: Real Estate Stock with “Highest Dividend Rate and Cheapest Price”

SIRI is a major property developer with nearly 40 years of history, developing all types of residential projects and investing in related businesses like malls and concrete factories.

Key Data:

• Current Price: 1.17 THB
• Estimated Dividend Yield 2025: 8.72%
• Latest Dividend: 0.08 THB/share
• P/E: 4.47 times
• P/BV: 0.43 times

SIRI offers the industry’s highest dividend yield and very low valuation, with 8 out of 14 analysts recommending “Buy” at a target price of 1.72 THB. Despite ongoing uncertainties in the real estate market, valuation and dividend yield remain key supporting factors.

DMT: “Cash Cow” Business with Predictable Income

DMT operates and collects tolls on the Uttaraphimuk Elevated Road, a 21 km stretch. This business generates steady and reliable cash flow.

Key Data:

• Current Price: 9.70 THB
• Dividend Yield: 8.56%
• Latest Dividend: 0.22 THB/share
• P/E: 12.69 times
• P/BV: 1.31 times

DMT is a “Defensive Stock” with predictable income and low volatility. Its dividend policy is to pay “not less than 90% of net profit,” making forecasts easier. Analysts rate it “Outperform” with a target of 12.17 THB, but long-term risk includes the end of concession in 2034.

MC: Retail Stock with “Strong Financial Position”

MC operates retail stores for apparel and lifestyle products under the well-known “Mc” brand, serving as a distributor for other brands.

Key Data:

• Current Price: 9.55 THB
• Dividend Yield 2025: 8.26%
• Latest Dividend: 0.55 THB/share
• P/E: 10.03 times
• P/BV: 2.12 times

MC maintains a very strong financial position with a D/E ratio of only 0.51 times, indicating very low financial risk. Four analysts covering this stock all recommend “Buy” with a target of 12.55 THB, expecting good profit growth from online channels.

TCAP: “Holding Company” with Attractive Valuation

TCAP functions as a holding company investing across various financial sectors, including leasing, insurance, securities, and major shareholding in TMB Bank.

Key Data:

• Current Price: 46.00 THB
• Dividend Yield: 6.98%
• Latest Dividend: 2.05 THB/share
• P/E: 7.51 times
• P/BV: 0.65 times

TCAP offers an attractive valuation, trading below its book value at P/BV of 0.65. Its diversified financial investments reduce risk. Analysts set a target of 53.86 THB, with an expected dividend yield of around 7%.

PTT: “National Energy Stock” to Protect Your Portfolio

PTT, a leader in energy, operates across the entire value chain—from exploration and production, refining, natural gas, to retail. It covers both oil and non-oil businesses.

Key Data:

• Current Price: 30.00 THB
• Dividend Yield: 7.05%
• Latest Dividend: 1.30 THB/share
• P/E: 10.08 times
• P/BV: 0.73 times

Although the energy sector faces challenges from the transition to clean energy, analysts believe PTT can still generate strong cash flow from core operations and invest in new growth businesses, making it a good defensive choice.

Investing Strategies in US Dividend Stocks: Expanding Investment Scope

While the Thai stock market offers good opportunities, Thai investors can also diversify risk and access global companies by investing in US stocks.

Advantages of US Dividend Stocks

Access to Global Companies: You can own leading firms like Apple, Microsoft, Coca-Cola, and Johnson & Johnson, with strong, diversified global businesses.

Proven Dividend History: Many US companies have decades of continuous dividend payments and annual increases, including “Dividend Aristocrats” that have increased dividends for over 25 years.

Receive Dividends in USD: Receiving dividends in foreign currency helps diversify currency risk.

Investment Methods

Through Mutual Funds: Investors can choose funds that invest in US stocks, carefully studying performance, fees, and investment policies.

Direct Investment: Open accounts with licensed brokerages, analyze stocks using reliable sources, and place buy/sell orders via trading platforms.

Steps to Invest in Thai Dividend Stocks

• Open a Trading Account: With a licensed securities company approved by the SEC, online or branch.
• Transfer Funds: Deposit Thai Baht into your investment portfolio (Cash Balance) for stock purchases.
• Analyze and Select: Study information from SET, Settrade, and broker analyses.
• Place Orders: Use the Streaming platform to specify stock name, quantity, and desired price.
• Receive Dividends: On the Payment Date, when the company pays dividends, funds are automatically transferred to your bank account (after 10% withholding tax).

Final Remarks

Investing in dividend stocks in 2025 remains an effective strategy for generating cash flow and reducing volatility. The 8 selected stocks offer a balance of high yields, stability, and growth potential. Additionally, investing in foreign dividend stocks can help diversify your portfolio across markets. Remember, evaluating consistency, business fundamentals, and long-term outlooks is key to building sustainable liquidity.