The benefits of investing in dividend stocks can feel modest when the major market indexes are notching all-time highs. But the passive income they provide can be an excellent supplement to your finances no matter what equity prices are doing.

Passive income is money earned with little to no ongoing effort, unlike traditional income that requires active work.

Warren Buffett's safest passive income stocks are perfect for baby boomers looking to supplement Social Security or pension payments.

Oil stocks can be excellent sources of passive income for investors who can stomach the volatility of the cyclical energy sector. ConocoPhillips (NYSE: COP) is the largest U.S. exploration and production (E&P) company by market capitalization and has an elite portfolio of assets that can perform well even at weaker oil prices.

Investing in dividend growth stocks is a great way to achieve financial independence. Read more to see my 2 high-yield dividend stock picks.