We aren't even halfway through 2025, and already, it has been a roller-coaster year in the stock market. The major indexes incurred steep sell-offs, only to snap back like nothing happened.

Some investors may be looking for ways to take their feet off the gas by investing in stocks that distribute a portion of their profits to shareholders through dividends. Dividends are a great way to generate passive income, no matter what the stock market is doing. This can be a good approach for risk-averse investors, folks looking to preserve capital, or even investors who feel they have plenty of exposure to growth stocks and are looking to balance their portfolios.

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Here's why Devon Energy (NYSE: DVN), Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC), and Clorox (NYSE: CLX) stand out as three dividend stocks to buy in June.

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Devon Energy offers a sustainable dividend to energy investors

Lee Samaha (Devon Energy): Now, I know what you are thinking, and you have a point. How can an oil and gas exploration and production company be an ultra-reliable dividend stock? The answer lies in your degree of comfort with the price of oil.

To put matters into context, Devon Energy's management calculates that its "breakeven funding level" is $45 per barrel. In other words, that's the minimum price of oil the company needs to fund all its costs, operations, debt, and its fixed dividend.

Suppose you are comfortable with the implied assumption regarding the price of oil. In that case, you will be comfortable with the notion that Devon can sustain its current $0.96-per-share dividend, which translates to a dividend yield of more than 3%.

Moreover, based on the current price of oil of $63 per barrel, Devon could pay even more in dividends and/or continue buying back shares. Assuming a price of oil of $60 per barrel, management believes it will generate $2.6 billion in free cash flow (FCF) in 2025, a figure equivalent to 12.9% of its current market capitalization. In theory, that's what Devon's dividend yield could be if it used all its FCF to pay the dividend. All in all, Devon's dividend appears sustainable, barring a significant decline in oil prices.

Brookfield Infrastructure is a high-yield dividend stock that's on sale to start summer

Scott Levine (Brookfield Infrastructure): Building positions in trustworthy dividend stocks is a tried-and-true way for investors to fortify their portfolios. When reliable stocks like Brookfield Infrastructure -- along with its 5.2% forward-yielding dividend -- are available at a discount, therefore, investors would be wise to sit up and take notice. And that's exactly the opportunity that's now presented with shares of Brookfield Infrastructure trading at a discount to their historical valuation.

While investing in Brookfield Infrastructure doesn't offer a sizable growth opportunity like those artificial intelligence stocks or space stocks may offer, it does provide a conservative approach to procuring plentiful passive income. The company operates a massive portfolio of global infrastructure assets including (but not limited to) rail, data centers, and oil pipelines.

The allure of Brookfield Infrastructure for income investors is that the company generates ample funds from operations to cover its dividend payments.

BIP FFO Per Share (Annual) data by YCharts.

Over the past 15 years, the company has excelled at growing its funds from operations. From 2009 to 2024, Brookfield Infrastructure has increased its funds from operations at a 14% compound annual growth rate. While this doesn't guarantee the same results for the next 15 years, it's certainly an auspicious sign that should inspire confidence in management's ability to grow the business -- which is encouraging for those looking for passive income.

Currently, Brookfield Infrastructure stock is changing hands at 3.1 times operating cash flow, a discount to its five-year average cash-flow multiple of 4. Today's clearly a great time to load up on the stock while it's sitting in the bargain bin.

A safe dividend stock for passive-income investors

Daniel Foelber (Clorox): Clorox stock has been hit hard by a slower-than-expected turnaround, tariff risks, and cost pressures. But the maker of Clorox cleaning products, Kingsford charcoal, Burt's Bees, Hidden Valley Ranch dressing, Glad trash bags, and more could be a great high-yield dividend stock to buy for patient investors.

The great news for investors considering Clorox now is that the bulk of challenges related to its turnaround are likely over. The company's multiyear efforts to improve its internal operations -- known as its enterprise resource planning (ERP) system -- is set to begin adding cost benefits to Clorox in calendar year 2026.

Clorox's results have been improving. The company has achieved 10 consecutive quarters of gross margin expansion, showcasing better cost management even amid slower sales. Clorox expects to finish the fiscal year (ending June 30) with a 150-basis-point improvement in gross margin compared to fiscal 2024 -- even when factoring in tariff and cost pressures.

Clorox is heading in the right direction, but the stock may be selling off simply because investors have grown impatient with the company's multiyear turnaround. Another factor could be opportunity cost.

Clorox yields a hefty 3.8% and has 48 consecutive years of dividend increases -- but with three-month Treasury bills at 4.4%, some investors may prefer to go with the risk-free option.

Clorox is far from the only struggling high-yield consumer-focused brand to see its stock price around multiyear lows. Another example is Target, which has an even higher dividend yield than Clorox and has over 50 consecutive years of increasing its payout. Yet investors have grown impatient due to sluggish sales growth and weakening margins.

All told, Clorox is an excellent high-yield dividend stock for folks who want to participate in the stock market to collect passive income rather than go with non-equity products like T-bills.

Should you invest $1,000 in Devon Energy right now?

Before you buy stock in Devon Energy, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $875,479!*

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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

Investors often gravitate to value stocks for their reliability and reasonable valuations.

Amid volatility in 2025, value stocks like Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Allegion (NYSE: ALLE), and American Electric Power (NASDAQ: AEP) are all outperforming the benchmark S&P 500 (SNPINDEX: ^GSPC). But buying a stock just because it is doing well in the short term is a great way to lose your shirt.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here's why all three value stocks have what it takes to be excellent long-term investments and could be worth buying now.

Image source: Getty Images.

Berkshire's competitive advantages are built to last

Daniel Foelber (Berkshire Hathaway): Berkshire Hathaway is up 10.4% year to date (YTD) at the time of this writing -- handily outperforming the S&P 500's slight YTD decline.

Warren Buffett grew Berkshire into a company with a market cap of over $1 trillion. And I think Greg Abel, who is set to become the new CEO of Berkshire at the end of 2025, can take Berkshire far beyond a $2 trillion market cap and outperform the S&P 500 in the process.

Berkshire has numerous advantages that position it to thrive over the long term. The company has a portfolio of top dividend-paying stocks like Apple, American Express, Coca-Cola, Bank of America, and Chevron. It also has a massive cash position that it can use to pounce on investment opportunities. But the most valuable jewels in Berkshire's crown are its controlled assets.

Berkshire has been shifting its focus away from public equities toward its controlled businesses by growing its insurance businesses, Berkshire Hathaway Energy, BNSF railroad, and its various manufacturing, services, and retail segments. Combined, the value of Berkshire's controlled companies is worth much more than its public equity portfolio.

The controlled companies generate operating earnings, which Berkshire can park in cash or Treasury Bills, use to buy public stock, or reinvest back into its controlled businesses. And because Berkshire doesn't pay a dividend and only buys its stock when it deems it a bargain, the company is left with plenty of extra cash to put to work in its top ideas.

Berkshire earns insurance investment income on its float, which is the sum of premiums collected that haven't been paid in claims. Buffett often refers to this investment income as "free money," since Berkshire earns a return on the float. The float has gradually grown, ballooning to $173 billion as of March 31. Even if Berkshire simply invested the float in a risk-free asset yielding something like 4%, that would still be around $7 billion a year in "free" money. The float is just one of many ways Berkshire is well-positioned to compound its operating earnings for years to come.

Add it all up, and Berkshire has plenty of levers to pull to generate value and reward patient investors.

This company is helping keep America safe

Lee Samaha (Allegion): This doors-and-locks security company's stock is up 8.6% in 2025, compared to a slight decline for the S&P 500. This move highlights the business' underlying attractiveness and potential for long-term growth. Allegion's long-term development has several key drivers, including the opportunity to grow sales via the convergence of electronic and mechanical security products, the growing importance of safety and security (notably in the institutional sector), and the opportunity to continue consolidating a highly fragmented industry.

The increasing use of web-enabled electronics and services in locks and doors creates substantially more value for building owners because it allows them to monitor and control who has access to which areas, provides valuable data on workflows, and improves convenience.

The need for such features will only increase as urbanization trends create greater population density in cities, a statistic often linked to increased crime. As for industry consolidation, its key rival, Sweden's Assa Abloy, is a serial acquirer, and Allegion itself expects mergers and acquisitions to contribute 3% of its total long-term growth rate of above 7%.

Management expects the revenue growth rate to drop to double-digit growth in earnings. Wall Street analysts expect $8.42 in earnings per share in 2026 with $675 million in free cash flow (FCF), putting Allegion on 16.7 times earnings and 18 times FCF -- excellent valuations for a company with double-digit earnings growth prospects.

Plug American Electric Power into your portfolio and watch the passive income surge

Scott Levine (American Electric Power): While the S&P 500 has struggled to stay in positive territory, utility stock American Electric Power has charged considerably higher since the start of the year. As of this writing, shares have climbed more than 11% while the S&P 500 is down 1.3%. Despite its climb, the stock still sports an inexpensive valuation, appealing to those looking for a bargain. Besides value investors, those seeking passive income will also find their interests amped up with the prospect of owning the stock and its 3.7% forward-yielding dividend.

From its 4% year-to-date rise in February to the 17% year-to-date plunge in April, the S&P 500 has been on a roller coaster. During this turmoil, investors have sought the safety of rock-solid investments that represent minimal risk -- stocks like American Electric Power.

Because the company primarily operates as a regulated utility, it doesn't enjoy the freedom of raising rates when it wants. However, it guarantees certain rates of return. This low-risk business model may not spark joy in growth investors, but for those seeking conservative investments, it works just fine. Moreover, it lends credibility to management's target of providing an annual 10% to 12% total shareholder return, based on earnings-per-share growth of 6% to 8% and a dividend that yields about 4%.

With a lack of clarity regarding President Donald Trump's trade policy and geopolitical tensions continuing to run high, market volatility seems likely to continue to rattle the market's nerves for the foreseeable future, leading investors to the safety of utility stocks like American Electric Power.

With its stock trading at 8.8 times operating cash flow -- a discount to its five-year average cash flow multiple of 9.2 -- now looks like a good time to click the buy button on American Electric Power.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy.