3 High-Yield Dividend Stocks That Are Passive Income Machines

The stock market rebound continued on Wednesday after Wall Street acted favorably due to the Bureau of Labor Statistics' July Consumer Price Index reading. The Nasdaq Composite is now down less than 20% from its all-time high, while the S&P 500 is down just 12% from its all-time high.

While the rebound feels good, it's still important to focus on quality businesses that you understand. For income investors, the core objective is to find companies that can pay and raise their dividends over time.

Investing in equal parts of 3M (NYSE: MMM), Brookfield Renewable (NYSE: BEPC) (NYSE: BEP), and ABB (NYSE: ABB) gives an investor an average dividend yield of 3.4% and exposure to different industries within the industrial sector, as well as renewable energy. Here's what makes each dividend stock a great buy now.

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A Dividend King with a high yield

Daniel Foelber (3M): The Dow Jones Industrial Average is chock-full of impressive market-beating stocks like Apple and Microsoft, reliable dividend stocks like Procter & Gamble, and recognizable name brand companies like Nike. But it also hosts some big-time multi-year underperformers, with 3M topping the list as the worst of the worst. However, 3M stock has bounced 19% off its 52-week low in just one month. And there are signs its business could be turning the corner.