All It Takes Is $4,000 Invested in This High-Yield Dividend Stock to Generate $275 in Passive Income in 2026

High-yield dividend stocks are an excellent means of participating in the stock market while generating passive income. But even the highest-yielding stock in the S&P 500 — LyondellBasell Industries (yielding 12.6%) — couldn’t keep up with recent S&P 500 gains on dividends alone. At the time of this writing, the index is up 16.6% year to date after gaining more than 20% in both 2023 and 2024.The best reason to buy high-yield dividend stocks isn’t to try to beat the indexes with dividends. Rather, it’s to invest in solid companies at good values that also reward investors with dividends. A dividend is reliable only if the company paying it can support the expense.By investing $4,000 in United Parcel Service (NYSE: UPS), investors can expect to earn $275 in annual dividends, based on its current yield. Here’s why the value stock is a buy in 2026.Continue readinghttps://www.fool.com/investing/2025/12/08/buy-high-yield-dividend-stock-passive-income-2026/