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Written by Itsariya Doungnet
Fact checked by Antonio Di Giacomo
Updated 31 July 2025
Table of Contents
The best dividend stocks are a top choice for investors who seek a mix of long-term growth, steady income, and financial stability. These stocks not only provide high dividend yields but also offer consistent payouts and the potential for capital appreciation. Whether you're building a retirement portfolio or looking for long-term investments with lower volatility, the best dividend stocks can serve as a reliable foundation.
As we head into 2025, choosing the right dividend stocks becomes increasingly important amid changing economic conditions and interest rate fluctuations. Dividend growth stocks and reliable dividend-paying companies can help you preserve wealth while earning regular income, even during market uncertainty.
To make your investment journey easier, we’ve curated a list of 15 top dividend stocks to buy in 2025. Each company featured is backed by strong fundamentals, attractive dividend yields, and a proven history of stable returns, making them solid picks for income-focused investors.
Key Takeaways
The best dividend stocks provide investors with both steady income and the potential for long-term growth, making them well-suited for 2025 portfolios.
To make informed investment decisions, investors should assess dividend yield alongside payout ratio, free cash flow, and the strength of the company’s sector.
Stocks like Johnson & Johnson, Procter & Gamble, and Verizon exemplify top dividend picks, offering both stability and attractive dividend payments.
Additionally, dividend reinvestment plans (DRIPs) and dividend-focused ETFs help investors grow their portfolios while managing risk through diversification.
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This table highlights 15 of the best dividend-paying stocks to watch in 2025, featuring key metrics like dividend yield, P/E ratio, price-to-book value, and current price.
No.
Company
Tricker
Yield
P/E
P/BV
Price
Industry
Highlight
1
Johnson & Johnson
JNJ
3.12%
17.80
5.20
$166.50
Healthcare
Stable earnings, consistent dividend growth
2
Procter & Gamble Co.
PG
2.80%
23.97
7.1
$150.91
Consumer Staples
Resilient sales, strong dividend history
3
The Coca-Cola Company
KO
2.98%
24.24
10.35
$68.46
Diversified portfolio, reliable dividend
4
PepsiCo, Inc.
PEP
4.08%
25.45
10
$139.70
5
Verizon Communications Inc.
VZ
6.30%
9.99
1.76
$43.02
Telecommunications
High yield, steady cash flow
6
AbbVie Inc.
ABBV
3.39%
82.55
236.67
$195.04
Pharmaceuticals
Strong pipeline, attractive yield
7
Realty Income Corporation
O
4.0%
~20
~3.5
$56.61
Real Estate (REIT)
Monthly dividends, stable property income
8
AT&T Inc.
T
4.02%
15.74
1.90
$27.62
High yield, restructuring for growth
9
McDonald's Corporation
MCD
2.35%
26.56
49.61
$301.06
Consumer Discretionary
Global presence, consistent dividend growth
Broadcom Inc.
AVGO
0.79%
112.26
19.61
$299.10
Technology (Semiconductors)
Strong cash flow, rising dividends
11
3M Company
MMM
1.97%
20.64
18.45
$148.38
Industrials
Long dividend history, diversified products
12
Chevron Corporation
CVX
4.49%
17.45
1.81
$152.14
Energy
Large cap stability, reliable dividends
13
Exxon Mobil Corporation
XOM
3.54%
14.79
1.83
$111.82
14
Pfizer Inc.
PFE
7.25%
17.16
1.53
$23.71
Consistent payout, solid pharma pipeline
15
Target Corporation
TGT
4.51%
11.11
3.14
$101.21
Retail
Omnichannel growth, increasing dividends
Current Price (31st July): $166.50
Johnson & Johnson is a worldwide healthcare leader through its pharmaceuticals and medical technology and health products divisions. The company JNJ maintains stability through its well-known brand and its track record of reliable operations.
Key Reasons to Consider JNJ
JNJ operates as a reliable company which maintains consistent earnings performance. The company operates across multiple healthcare segments which reduces its dependence on any single product line.
The stock provides a stable dividend payment of 2.8% which generates passive income for shareholders. JNJ has maintained its dividend payments and has consistently raised them throughout numerous years.
Key Financial Metrics (2025)
Dividend Yield: 3.12%
P/E Ratio: 17.80
P/BV: 5.20
Investment Outlook
Johnson & Johnson will maintain its steady growth trajectory in the future. The stock price of this quality company remains affordable because its P/E ratio stands at 18 and price-to-book value is 4.5. The company maintains its product development efforts while making strategic acquisitions of other businesses.
Current Price (31st July): $150.91
Procter & Gamble operates as a worldwide consumer goods corporation which owns well-known household brands including Tide, Pampers, Gillette and Crest. Its products are essential, giving the company steady demand and a strong global presence.
Key Reasons to Consider PG
PG operates as a dependable business organization. The company generates revenue from multiple product lines which reduces its financial dependence on any single product category.
The stock provides investors with a dividend payment of 2.4% which generates additional income from stock ownership. The company has maintained dividend payments and increased them throughout numerous years.
Dividend Yield: 2.80%
P/E Ratio: 23.97
Price-to-Book (P/BV): 7.1
The company Procter & Gamble will continue to experience gradual and sustained growth. The stock appears costly because investors are willing to pay extra for a reliable and secure business.
PG stands as a reliable investment option for long-term investors who seek stable returns and regular income because of its well-known brands and product improvement efforts.
Current Price (31st July): $68.46
Coca-Cola is one of the most famous drink companies in the world. KO makes popular drinks like Coca-Cola, Sprite, Fanta, and many others. The company sells its products in more than 200 countries and has been around for over 100 years.
Key Reasons to Consider KO
KO is a strong and steady company that makes money year after year. It has many different drinks, so it’s not just relying on one product.
The stock pays a reliable dividend of 3.1%, which gives investors regular income. Coca-Cola has increased its dividend for over 60 years in a row.
Dividend Yield: 2.98%
P/E Ratio: 24.24
Price-to-Book (P/BV): 10.35
The company will experience gradual growth throughout the years. The stock price is not low but customers are willing to spend more for a well-known brand that generates consistent profits.
The company continues to develop healthier beverage options while entering new markets. Investors who seek a dependable stock with consistent dividend payments should consider KO as their investment choice.
Current Price (31st July): $139.70
PepsiCo operates as a prominent food and drink corporation which produces well-known brands including Pepsi, Mountain Dew, Gatorade, Lay’s, Doritos, Quaker Oats and additional products.
The company distributes its products across the globe while maintaining its position as a leading force in both snack and beverage markets.
Key Reasons to Consider PEP
PEP operates as a solid and consistent business organization that produces multiple products to generate revenue through various channels. The company generates revenue through both beverages and snacks which represent a major portion of its business operations.
The stock provides investors with a dependable dividend payment of 2.9% which generates consistent income. The company has maintained dividend growth for more than 50 years which demonstrates its commitment to shareholder value.
Dividend Yield: 4.08%
P/E Ratio: 25.45
Price-to-Book (P/BV): ~10.0
The company shows signs of continued expansion throughout the upcoming years. The company maintains its market position through its diverse snack and beverage offerings which helps it adapt to economic fluctuations.
The stock price appears high but investors seeking stability with consistent dividend payments should consider this investment for the long term.
Current Price (31st July): $43.02
Verizon Communications is one of the biggest telecom companies in the United States. It offers wireless phone services, internet, and TV to millions of customers, including both regular people and businesses. Verizon is well-known for having a strong and reliable network, which helps it keep many loyal customers.
Key Reasons to Consider VZ
The company operates at a slow pace but maintains stable financial performance with dependable revenue streams. The low price-to-earnings ratio indicates that the stock might be selling at a lower price than its actual value. The company can enhance its services through 5G investments to draw additional customers.
Dividend Yield: 6.30%
P/E Ratio: 9.99
Price-to-Book (P/BV): 1.76
The company operates at a slow pace yet maintains stable financial performance with dependable revenue streams. The stock appears undervalued because of its low price-to-earnings ratio. The company can enhance its services through 5G investments which will lead to increased customer acquisition.
Current Price (31st July): $195.04
The global biopharmaceutical company AbbVie creates and distributes pharmaceutical products for treating cancer alongside autoimmune diseases and various other medical conditions. The company ABBV maintains a robust drug portfolio while continuing its research activities.
Key Reasons to Consider ABBV
The company AbbVie maintains consistent sales through its established drugs Humira and its pipeline of upcoming treatments. The company produces significant cash flow while distributing a dividend of approximately 4.5% to investors who receive periodic income. ABBV has maintained a consistent pattern of dividend growth throughout its history.
Dividend Yield: 3.39%
P/E Ratio: 82.55
Price-to-Book (P/BV): 236.67
AbbVie is expected to keep growing by launching new medicines and expanding in different health areas. Its strong dividend and reasonable valuation make it a good choice for investors seeking both income and growth potential.
Current Price (31st July): $56.61
Realty Income operates as a real estate investment trust (REIT) under the name “The Monthly Dividend Company.” The company operates a substantial collection of commercial properties which primarily serve retail businesses to generate consistent rental income.
Key Reasons to Consider O
The company generates stable and predictable income through its long-term leases with numerous different tenants.
The company distributes a monthly dividend payment which stands at approximately 4.5% to provide investors with dependable periodic income. The company maintains a solid history of annual dividend growth.
Dividend Yield: 4.0%
P/E Ratio: ~20
Price-to-Book (P/BV): ~3.5
The company will maintain its slow and steady growth through property acquisitions and strong tenant relationships. The company provides monthly dividends and a stable business model which makes it suitable for investors who want steady income and lower risk.
Current Price (31st July): $27.62
AT&T operates as a major telecommunications provider in the United States which delivers wireless phone service and internet and TV solutions to numerous customers. The company operates to enhance its network infrastructure and expand its media operations.
Key Reasons to Consider T
The company generates consistent revenue through regular phone and internet bill payments which creates a stable business model.
The stock provides investors with a substantial dividend payment of approximately 6% which generates attractive income streams. AT&T has maintained its dividend payment practice throughout many years.
Dividend Yield: 4.02%
P/E Ratio: 15.74
Price-to-Book (P/BV): 1.90
The company faces competition and business improvement challenges which may slow down its growth. The company's high dividend yield makes it an attractive option for investors who focus on income. The company continues to invest in 5G technology and media to drive future growth.
Current Price (31st July): $301.06
McDonald’s operates as a worldwide fast food market leader through its extensive network of restaurants across the globe. The company maintains a powerful brand identity together with dependable food quality and its signature Big Mac sandwiches and fries.
Key Reasons to Consider MCD
McDonald’s operates a stable business model that generates consistent cash flow from its restaurant operations. The company generates revenue through its company-operated restaurants and franchised locations which minimizes potential risks.
The stock provides investors with a dividend yield of approximately 2.3% which generates consistent income. McDonald’s has maintained a consistent pattern of dividend growth throughout its entire history.
Dividend Yield: 2.35%
P/E Ratio: 26.56
Price-to-Book (P/BV): 49.61
McDonald’s will continue to grow at a slow pace through market expansion and menu and technology enhancements. The company's powerful brand and reliable profits make it an attractive investment opportunity for those seeking stable growth and income.
Current Price (31st July): $299.10
Broadcom is a leading technology company that designs and makes semiconductor chips used in smartphones, computers, and other electronic devices. The company also provides software solutions for businesses.
Key Reasons to Consider AVGO
The company generates substantial revenue from its chip and software product sales to major technology companies.
The company produces solid cash flow while distributing a dividend payment of approximately 3.0% to investors. The company has consistently increased its dividend payments throughout its operational history.
Dividend Yield: 0.79%
P/E Ratio: 112.26
Price-to-Book (P/BV): 19.61
The company will continue to grow through product expansion and strategic acquisitions of other businesses. The company's dominant position in the tech industry combined with its consistent dividend payments make it an attractive investment opportunity for those seeking both growth and income.
Current Price (31st July): $148.38
The global industrial company 3M produces thousands of products which serve homes as well as hospitals and factories and offices. The company produces three main products which include Post-it Notes and N95 masks and adhesives.
Key Reasons to Consider MMM
3M has a long history of steady earnings and innovation. The company maintains stability through its diverse product range. The stock provides investors with a substantial dividend yield of 5.6% which generates regular income. 3M has increased its dividend for over 60 years.
Dividend Yield: 1.97%
P/E Ratio: 20.64
Price-to-Book (P/BV): 18.45
The company 3M is undergoing changes by spinning off its healthcare business. The company's slow growth rate is offset by its strong brand and high dividend yield which makes it an attractive option for income-focused investors seeking a reliable long-term investment.
Current Price (31st July): $152.14
Chevron operates as one of the world's biggest oil and gas corporations. The company conducts exploration activities and produces and distributes oil and natural gas together with their associated products. CVX operates globally and has a long history in the energy industry.
Key Reasons to Consider CVX
Chevron generates high profits during periods of high oil prices and controls expenses effectively during times of reduced activity.
The company provides investors with a reliable dividend payment of approximately 4.2% each year. The company has maintained a consistent pattern of dividend growth throughout its history.
Dividend Yield: 4.49%
P/E Ratio: 17.45
Price-to-Book (P/BV): 1.81
The company will maintain its strength because worldwide energy consumption remains steady. The company plans to invest in cleaner energy solutions during the upcoming years.
CVX stands as a solid income investment for energy sector exposure because it maintains a strong financial position and offers a healthy dividend.
Current Price (31st July): $111.82
ExxonMobil operates as one of the biggest oil and gas corporations across the globe. The company conducts oil and natural gas exploration and production and operates refineries while manufacturing chemical products that serve as components in various products. XOM operates in over 60 countries.
Key Reasons to Consider XOM
ExxonMobil generates robust earnings primarily during periods of high energy prices. The company stands out because of its large size and stable operations and consistent cash flow.
The company provides investors with a dividend payment of approximately 3.5% which generates regular income. XOM has increased its dividend for over 40 years
Dividend Yield: 3.54%
P/E Ratio: 14.79
Price-to-Book (P/BV): 1.83
ExxonMobil is expected to keep delivering strong results as energy demand grows. It is also investing in carbon capture and cleaner fuels. With solid dividends and global operations, XOM is a good pick for long-term investors looking for income and stability in the energy sector.
Current Price (31st July): $23.71
Pfizer operates as a major pharmaceutical organization which produces and distributes pharmaceutical products and vaccines worldwide.
The company gained widespread recognition through its COVID-19 vaccine development but it continues to manufacture treatments for cancer alongside medications for heart disease and multiple other severe medical conditions.
Key Reasons to Consider PFE
Pfizer maintains a robust pipeline of new drugs and a well-established position in healthcare. The company provides investors with a substantial dividend payment of approximately 5.5% which generates consistent income. The company has maintained dividend payments throughout its entire history even during periods of economic difficulty.
Dividend Yield: 7.25%
P/E Ratio: 17.16
Price-to-Book (P/BV): 1.53
Pfizer’s earnings have slowed after the COVID-19 boost, but it is investing in new medicines and partnerships to grow again. Its low valuation and high dividend make it a good option for income-focused investors looking for long-term potential.
Current Price (31st July): $101.21
Target operates as one of the biggest retail chains across the United States where customers can purchase clothing along with groceries and electronics and household products. TGT stands out for maintaining clean stores while offering extensive product choices and excellent online and physical shopping experiences.
Key Reasons to Consider TGT
The company maintains a powerful brand identity together with dedicated customer loyalty. The company generates consistent revenue through its physical stores and e-commerce platform.
The stock provides investors with a dividend payment of approximately 3.1% which generates regular income. Target has maintained dividend growth for more than 50 years.
Dividend Yield: 4.51%
P/E Ratio: 11.11
Price-to-Book (P/BV): 3.14
The company faces current difficulties because of rising prices and shifting consumer shopping behaviors. The company continues to enhance its operations through improved online shopping convenience and expanded private brand offerings.
The company maintains its reputation as a well-established business with a consistent dividend payment which makes it suitable for investors seeking long-term income.
Choosing the best dividend stocks is key to generating steady income while also aiming for long-term growth. Here’s what you need to keep in mind.
Dividend yield shows the annual dividend payout as a percentage of the stock’s current price.
It helps investors estimate the income they can expect from their investment. A higher yield means more income, but it usually comes with higher risk, as it could signal potential price drops.
This ratio reveals how much of a company’s earnings are paid out as dividends. Ideally, companies with payout ratios between 30% and 60% strike a healthy balance between rewarding shareholders and reinvesting in growth.
Ratios above 80% might indicate trouble ahead, especially during economic slowdowns.
Free cash flow is the money left after a company pays its operating costs and capital expenses.
Companies with steady earnings and strong free cash flow are better positioned to maintain dividend payments, even when the market gets tough. This makes their dividends more reliable for investors.
Certain industries, like utilities and consumer staples, tend to stay stable through economic ups and downs. Companies with a strong foothold in these sectors usually keep their dividends steady, providing investors with reduced risk and consistent income over time.
Understanding the difference between dividend growth and high-yield stocks is key to building a strong income portfolio in 2025.
With inflation, interest rate swings, and market uncertainty, income investors face a big question:
Should you prioritize steady, growing dividends or chase higher yields right now?
Companies like Johnson & Johnson and Procter & Gamble
Raise dividends consistently, even during downturns
Lower risk, more reliable income over time
Focused on long-term financial health
Companies like AT&T, Verizon, or REITs
Pay higher dividends today (often 6% or more)
Can be riskier if payouts are too high relative to earnings
Attractive for retirees or those needing more immediate cash flow
Dividend safety matters more than ever. If the economy stays shaky, stable, growing dividends are likely the better bet, while a few carefully chosen high-yield plays can still boost income.
A smart dividend strategy in 2025 mixes both growth and income to get the best results:
Focus on companies with 10+ years of dividend increases
Offers long-term growth and portfolio stability
Use smaller positions to increase cash flow
Stick to firms with solid balance sheets and payout ratios below 80%
Mix holdings across healthcare, consumer staples, utilities, energy, and REITs
Reduces overexposure to one type of risk
Check your portfolio at least twice a year
Adjust to avoid being too heavy in slow growers or too risky with high yielders
In 2025, dividend investing remains a smart way to generate income, hedge against volatility, and grow wealth steadily especially in an unpredictable market.
Whether you're reinvesting dividends, using ETFs for diversification, or managing taxes, the right strategy helps you get the most out of every dollar.
DRIPs automatically reinvest your dividends into more shares of the same stock often with no fees.
Compound your returns over time
Dollar-cost average into positions
Build wealth without manually reinvesting
Great for long-term investors who don’t need the income right away
If you own 100 shares of a stock paying a $1 annual dividend, and the stock price is $50, you’d earn $100 in dividends. A DRIP would reinvest that into 2 more shares without you doing anything.
These ETFs offer strong dividend strategies:
ETF
Focus
Why Consider It
VIG (Vanguard Dividend Appreciation)
Dividend growth
Tracks companies with a history of increasing dividends, good for long-term stability
SCHD (Schwab U.S. Dividend Equity)
Quality and yield
Mixes solid yield with quality screens, popular for income and growth
HDV (iShares Core High Dividend)
High yield
Focuses on U.S. companies with strong financials and above-average dividends
DVY (iShares Select Dividend ETF)
High yield and value
Focuses on established, high-yielding U.S. companies in sectors like utilities and industrials
SCHD and VIG are often favored by long-term investors for their balance of yield and dividend growth.
Not all dividends are taxed the same. Knowing how and where your dividends are taxed can help you keep more of your income in 2025.
Qualified dividends (from U.S. companies held long enough) are taxed at lower capital gains rates 0%, 15%, or 20%
Ordinary dividends are taxed as regular income
Taxable brokerage: Consider holding qualified dividend payers for favorable tax treatment
Roth IRA: Dividends grow tax-free ideal for high-yield or DRIP strategies
Traditional IRA: No taxes upfront, but withdrawals are taxed later
Dividend traps with unsustainable payouts
REITs and certain high-yield stocks that may generate ordinary income (fully taxable)
Foreign dividends may come with withholding taxes
Best Dividend Stocks are popular for generating passive income, but they’re not without downsides. In 2025’s uncertain market, understanding these risks is more important than ever.
One of the biggest risks is a company reducing or eliminating its dividend. This often happens when profits fall, debt rises, or economic conditions worsen. A dividend cut not only reduces your income but usually triggers a drop in the stock price as well.
A high dividend yield can look attractive, but it’s not always sustainable. If a company is paying out more than 80–90% of its earnings in dividends, there may be little room to reinvest in the business or maintain the payout during tough times.
Always check the payout ratio and cash flow strength..
Some dividend-heavy sectors like energy, telecom, and REITs are highly cyclical. If oil prices crash or telecom companies face declining subscribers, dividends may be reduced across the sector. Overexposure to one industry can magnify these risks.
The best dividend stocks in 2025 provide steady income and growth despite market ups and downs. Dividend investing remains a smart way to earn regular payouts and protect against inflation.
Reinvesting dividends helps your money grow faster over time. This makes dividend stocks a great choice for building long-term wealth.
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Invest in dividend stocks that pay steady dividends. For example, with a 4% dividend yield, you’d need about $300,000 invested to earn $1000 each month.
Yes, Coca-Cola pays regular dividends and has a strong history of increasing them, making it a popular choice for dividend investors.
Look for stocks with a good dividend yield, payout ratio between 30% and 60%, steady earnings, and strong cash flow. Also, focus on companies in stable industries.
Good dividend stocks pay reliable and growing dividends, have healthy finances, and are in industries that don’t change much with the economy.
They give you regular income, a chance for your money to grow, and help build wealth by reinvesting dividends.
When a company pays dividends, the stock price usually drops by that amount on the payout day. But strong dividends can attract investors and help the price stay stable or grow over time.
Itsariya Doungnet
SEO Content Writer
Itsariya Doungnet is an SEO content writer with expertise in both Thai and English, specializing in financial education. Itsariya blends clear communication with SEO techniques to make complex topics on investing and finance easy to understand and accessible to readers.
Antonio Di Giacomo
Market Analyst
Antonio Di Giacomo studied at the Bessières School of Accounting in Paris, France, as well as at the Instituto Tecnológico Autónomo de México (ITAM). He has experience in technical analysis of financial markets, focusing on price action and fundamental analysis. After many years in the financial markets, he now prefers to share his knowledge with future traders and explain this excellent business to them.
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