Best 20 Dividend Growth Stocks to Boost Your Portfolio in 2025
As we move into 2025, dividend investing remains a popular strategy among investors seeking to generate income while building long-term wealth. Stocks that consistently pay dividends not only provide a source of regular income but also demonstrate financial stability and growth potential. This article will highlight 20 of the best dividend-paying stocks for this year, along with descriptions, historical performance, and potential calculations for future income.
1. Johnson & Johnson (JNJ)
- Dividend Yield: 2.7%
- Description: A diversified healthcare giant known for its pharmaceuticals, medical devices, and consumer health products. JNJ has a strong history of dividend payments, with 60 consecutive years of increases.
- Calculation: $165 share price × 2.7% = $4.46 annual dividend per share.
2. Coca-Cola Co. (KO)
- Dividend Yield: 3.1%
- Description: A leading beverage company with a global presence. Coca-Cola has maintained a solid dividend track record with over 59 years of consecutive increases.
- Calculation: $60 share price × 3.1% = $1.86 annual dividend per share.
3. Procter & Gamble Co. (PG)
- Dividend Yield: 2.4%
- Description: A consumer goods powerhouse with brands in household and personal care products. PG has increased its dividend for 65 years.
- Calculation: $150 share price × 2.4% = $3.60 annual dividend per share.
4. PepsiCo, Inc. (PEP)
- Dividend Yield: 2.8%
- Description: A global leader in food and beverages with a strong portfolio, including snacks and drinks. PepsiCo has consistently raised its dividend for over 49 years.
- Calculation: $180 share price × 2.8% = $5.04 annual dividend per share.
5. AbbVie Inc. (ABBV)
- Dividend Yield: 4.1%
- Description: A biopharmaceutical company known for its strong drug portfolio and robust cash flow. AbbVie has a track record of dividend increases since its spinoff from Abbott Labs.
- Calculation: $150 share price × 4.1% = $6.15 annual dividend per share.
6. 3M Company (MMM)
- Dividend Yield: 4.5%
- Description: A diversified technology company with a long history of innovation. 3M has paid dividends for over 100 years and boasts 65 years of increases.
- Calculation: $110 share price × 4.5% = $4.95 annual dividend per share.
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7. Verizon Communications Inc. (VZ)
- Dividend Yield: 6.6%
- Description: A major telecommunications provider with a stable cash flow and significant market presence. Verizon has a reliable dividend policy.
- Calculation: $36 share price × 6.6% = $2.37 annual dividend per share.
8. ExxonMobil (XOM)
- Dividend Yield: 3.9%
- Description: One of the largest publicly traded oil and gas companies, ExxonMobil has maintained a consistent dividend history even during volatile energy markets.
- Calculation: $110 share price × 3.9% = $4.29 annual dividend per share.
9. Chevron Corporation (CVX)
- Dividend Yield: 3.6%
- Description: Another energy giant, Chevron has a strong dividend policy supported by robust cash flow from its oil and gas operations.
- Calculation: $175 share price × 3.6% = $6.30 annual dividend per share.
10. McDonald’s Corp. (MCD)
- Dividend Yield: 2.3%
- Description: The fast-food leader has a solid track record of dividend growth, benefiting from its global presence and consistent earnings.
- Calculation: $280 share price × 2.3% = $6.44 annual dividend per share.
11. Microsoft Corporation (MSFT)
- Dividend Yield: 0.9%
- Description: While not a high-yield dividend stock, Microsoft’s strong growth and solid dividend increases make it a valuable component of a dividend portfolio.
- Calculation: $350 share price × 0.9% = $3.15 annual dividend per share.
12. Apple Inc. (AAPL)
- Dividend Yield: 0.5%
- Description: Similar to Microsoft, Apple offers lower yields but has a strong potential for capital appreciation along with regular dividend increases.
- Calculation: $175 share price × 0.5% = $0.88 annual dividend per share.
13. AT&T Inc. (T)
- Dividend Yield: 6.8%
- Description: A major player in telecommunications, AT&T has faced challenges but remains a popular choice for dividend investors.
- Calculation: $14 share price × 6.8% = $0.95 annual dividend per share.
14. Walgreens Boots Alliance, Inc. (WBA)
- Dividend Yield: 5.0%
- Description: A leading pharmacy-led health and wellbeing company with a commitment to maintaining its dividend.
- Calculation: $13 share price × 5.0% = $0.65 annual dividend per share.
15. Realty Income Corporation (O)
- Dividend Yield: 4.7%
- Description: Known as “The Monthly Dividend Company,” Realty Income specializes in commercial real estate and has a strong history of monthly dividend payments.
- Calculation: $60 share price × 4.7% = $2.82 annual dividend per share.
16. Kinder Morgan, Inc. (KMI)
- Dividend Yield: 6.0%
- Description: A leading energy infrastructure company, Kinder Morgan provides high dividends supported by stable cash flows.
- Calculation: $18 share price × 6.0% = $1.08 annual dividend per share.
17. IBM Corporation (IBM)
- Dividend Yield: 5.3%
- Description: A long-standing technology company with a commitment to dividend payments, despite recent business transitions.
- Calculation: $130 share price × 5.3% = $6.89 annual dividend per share.
18. Intel Corporation (INTC)
- Dividend Yield: 5.6%
- Description: A key player in the semiconductor industry, Intel has maintained its dividends amid industry challenges.
- Calculation: $35 share price × 5.6% = $1.96 annual dividend per share.
19. Caterpillar Inc. (CAT)
- Dividend Yield: 2.5%
- Description: A leading manufacturer of construction and mining equipment with a strong dividend policy.
- Calculation: $250 share price × 2.5% = $6.25 annual dividend per share.
20. Target Corporation (TGT)
- Dividend Yield: 2.6%
- Description: A major retail player with a commitment to returning value to shareholders through consistent dividends.
- Calculation: $130 share price × 2.6% = $3.38 annual dividend per share.
CONCLUSION
Selecting the right dividend stocks for 2025 involves understanding each company's financial health, dividend history, and growth potential. The stocks listed above represent a diverse array of industries, offering a blend of growth and income. As always, it’s essential for investors to conduct their own research or consult with a financial advisor before making investment decisions, ensuring that each stock aligns with their overall financial goals and risk tolerance.
