Passive income isn't hard to find in the stock market. Many companies, including nearly all the members of the Dow Jones Industrial Average, pay out a big portion of their earnings to shareholders through dividends. These checks tend to rise with each passing year as well and can either be collected as cash or automatically reinvested into the stock.

But which dividend stocks are worth placing in your passive income portfolio? Consider Coca-Cola (KO), Procter & Gamble (PG -0.78%), and Home Depot (HD 0.94%) as excellent options today. With dividend yields of over 2%, you could employ roughly $25,000 between these stocks and secure yourself $700 of annual income.

1. Coca-Cola

It has been a tough year for Coca-Cola stock, which underperformed the Dow significantly in 2023. The silver lining here is that investors now have an opportunity to buy the beverage giant at a discount while taking advantage of its elevated dividend yield.

You don't have to compromise on growth, either. Coke's organic revenue was up 11% in the most recent quarter, and management in late October raised its 2023 sales and earnings targets. "Our leading portfolio of brands ... positions us well to win in the marketplace," CEO James Quincey said in a press release.

Coke's expanding profit margin (currently sitting at 30% of sales) plus its high cash flow point to many more years of dividend increases ahead for this stock. At today's yields, putting $10,000 into the stock would deliver $320 of annual passive income.

2. Home Depot

Wall Street started to warm up to Home Depot stock toward the end of 2023, but the retailer still looks like a great investment right now. Sure, sales will likely fall this year following big gains over the past several years. Management is forecasting a comparable-store sales drop of between 3% and 4% in 2023 due to demand pressures from rising interest rates, inflation, and slowing consumer discretionary spending.

The housing market has a bright long-term outlook, even if the next few quarters might be volatile. And there's no better way to get exposure to that niche than by owning the industry leader. Investors will want to watch metrics like customer traffic, which last quarter fell 2%, and operating margin, which is holding steady at 14% of sales. In the meantime, an $8,000 investment in the stock would yield about $200 in yearly income starting right now.

3. Procter & Gamble

Procter & Gamble typically announces its yearly dividend increase in April, but investors don't have to wait until then to buy this consumer staples giant. The owner of massive global brands like Tide detergent and Pampers diapers delivered what management described as "very strong results" in the most recent quarter.

Organic sales were up 7% and earnings jumped by a healthy 17%. Investors can expect further strong profit growth ahead thanks to the combination of higher prices, steady demand, and slowing cost inflation.

P&G shares declined about 5% in 2023 as Wall Street gravitated toward faster-growing stocks. Yet its huge global sales footprint, industry-leading profitability, and dominant market share all point to good returns over the long term for owners of this Dividend King. A $7,000 investment in the stock would deliver $180 in passive income, putting you at a total of $700 across these three dividend stock investments.