Making market predictions for the year ahead is always a bit of a guessing game. But one thing seems certain for 2025: Continued uncertainty is likely to persist. That’s true whether investors are looking at trade policies, geopolitical hotspots, inflationary pressures or interest rates.
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In such an environment, investors may want to consider a few defensive bets just to be safe. And there’s perhaps no safer long-term strategy than to seek out the best dividend stocks.
The stock market always trends up in the long run, so in a sense there’s no need to sweat any short-term struggles. But of course, that requires you to find stocks that are going to be around in a few decades. The following 15 picks represent the best dividend stocks to buy now because they fit the bill on that mark, with all boasting market capitalizations of at least $40 billion and dividends north of 3%.
Stock | Sector | Market Cap* | Dividend Yield* |
Altria Group Inc. (ticker: MO) | Consumer staples | $98 billion | 7.1% |
AbbVie Inc. (ABBV) | Health care | $325 billion | 3.6% |
BHP Group Ltd. (BHP) | Materials | $132 billion | 5.7% |
Dominion Energy Inc. (D) | Utilities | $50 billion | 4.5% |
Enterprise Products Partners LP (EPD) | Energy | $72 billion | 6.4% |
Huntington Bancshares Inc. (HBAN) | Financials | $26 billion | 3.4% |
Johnson & Johnson (JNJ) | Health care | $376 billion | 3.2% |
Kimberly-Clark Corp. (KMB) | Consumer staples | $47 billion | 3.5% |
Oneok Inc. (OKE) | Energy | $66 billion | 3.5% |
Prologis Inc. (PLD) | Real estate | $110 billion | 3.3% |
Prudential Financial Inc. (PRU) | Financials | $46 billion | 4.0% |
Simon Property Group Inc. (SPG) | Real estate | $70 billion | 4.6% |
Southern Co. (SO) | Utilities | $99 billion | 3.2% |
United Parcel Service Inc. (UPS) | Industrials | $116 billion | 4.8% |
Verizon Communications Inc. (VZ) | Communications services | $188 billion | 6.0% |
*As of Nov. 26 close.
Altria Group Inc. (MO)
Sector: Consumer staples Market capitalization: $98 billion Dividend yield: 7.1%
It’s hard to find a more reliable and generous dividend stock than tobacco giant Altria. Though it doesn’t sell products that are particularly good for you, MO is an incredibly healthy income investment with reliable revenue and an amazing history of 55 consecutive annual dividend increases. That’s because Altria’s iconic Marlboro cigarettes, Black & Mild pipe and cigar products, and smokeless tobacco like Copenhagen and Skoal all remain in high demand from its loyal customer base. In fact, MO stock has outperformed the S&P 500 index in 2024 to prove that this stock has more to offer than just its current dividend yield.
AbbVie Inc. (ABBV)
Sector: Health care Market capitalization: $325 billion Dividend yield: 3.6%
AbbVie is currently among the top pharmaceutical companies in the world based on sales, with more than $56 billion in revenue expected this year and projections of more than $59 billion forecasted in fiscal 2025. It continues to grow thanks to an impressive product pipeline that includes blockbuster anti-inflammatory drugs like Skyrizi and Rinvoq, which treat conditions such as Crohn’s disease and arthritis. Shares have consistently outperformed the S&P 500 over the last several years, but what makes this stock really worth a look is the generous dividend yield. Payouts currently tally $6.20 per share annually, up from just $2.02 paid back in 2015, proving AbbVie’s long-term commitment to sharing the wealth with stockholders.
BHP Group Ltd. (BHP)
Sector: Materials Market capitalization: $132 billion Dividend yield: 5.7%
The materials sector admittedly hasn’t been in favor for the last year or so amid the go-go environment for growth-oriented plays. But BHP has significant staying power as one of the biggest mining and natural resources companies on the planet. The firm operates in Australia, Asia, Europe, North America and South America and produces materials including copper, iron ore, coal, silver, gold, uranium and nickel. Commodity price inflation is no concern for BHP, considering it is the primary source for raw materials that will be used downstream by others, and that makes it unique in the current economic environment. But what should interest income investors is its yield, which is more than four times that of the broader S&P 500 based on the past year of distributions.
Dominion Energy Inc. (D)
Sector: Utilities Market capitalization: $50 billion Dividend yield: 4.5%
Dominion is a dominant utility in the mid-Atlantic region of the U.S., operating in Virginia, South Carolina and North Carolina to serve about 2.8 million customers across about 80,000 miles of electric distribution lines and 100,000 miles of gas distribution lines. Utilities are among the most reliable stocks out there, as electricity is a must-have commodity in our digital age. With a wide moat thanks to the high costs of entry and highly regulated nature of the business, Dominion is nearly a legalized monopoly — making it one of the best dividend stocks to buy if you want a reliable income stream.
Enterprise Products Partners LP (EPD)
Sector: Energy Market capitalization: $72 billion Dividend yield: 6.4%
EPD may not be as big of a name as other energy stocks, but it ranks as one of the best dividend stocks to buy because of its massive scale and a lower-risk operation than firms in the sector. Specifically, Energy Products Partners is a “midstream” energy company that operates pipelines to transport crude oil, petrochemicals and natural gas. Fossil fuel exploration firms can be incredibly volatile because they are both dependent on reserves and hostage to market pricing for oil and gas. On the other hand, the infrastructure of Enterprise Products Partners will always be put to good use as it moves energy around the U.S. As a result, the stock has logged more than 20 years of consecutive dividend increases and can provide peace of mind for long-term dividend investors.
Huntington Bancshares Inc. (HBAN)
Sector: Financials Market capitalization: $26 billion Dividend yield: 3.4%
Ohio-based regional bank Huntington Bancshares is a “Goldilocks” stock that is neither so big that it becomes stagnant, like megabank Citigroup, nor so small that it could be erased after a few bad loans. While the regional-banking sector was gutted last year in the wake of the failures of First Republic and Silicon Valley Bank, the contagion in the financial sector that was talked about on Wall Street last year never materialized. What’s more, an “America first” agenda led by President-elect Donald Trump and Republicans in Washington will put hurdles on multinational players that make local lenders perhaps more attractive. With a generous dividend and a big operation that belies its regional label, HBAN is a dividend stock to watch.
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Johnson & Johnson (JNJ)
Sector: Health care Market capitalization: $376 billion Dividend yield: 3.2%
Johnson & Johnson is a health care giant that ranks as one the 25 largest U.S. stocks by market capitalization, regardless of sector. Even more impressive, that valuation accounts for a recent spinoff of its lucrative consumer health division, where the firm packaged up Tylenol and other well-known products like Band-Aid, Listerine and Neutrogena to become a more focused drug and device company. Looking forward, the JNJ research pipeline keeps paying off via top vaccines, cancer drugs and other treatments. J&J is one of just two companies with the tip-top AAA rating for their credit – tech giant Microsoft Corp. (MSFT) is the other, if you’re curious – and boasts an amazing 62 consecutive years of dividend growth to make it one of the most bulletproof dividend stocks out there.
Kimberly-Clark Corp. (KMB)
Sector: Consumer staples Market capitalization: $47 billion Dividend yield: 3.5%
Kimberly-Clark is the paper company behind consumer brands such as Huggies, Pull-Ups, Kotex and Depends sanitary products, and Kleenex, Scott and Cottonelle tissue products. These are mainstays of any household budget, and see incredibly reliable sales even in a rough economic environment. That makes KMB a dividend stock that can deliver in any economic environment. As proof of its stability, KMB stock has raised dividends once per year for 52 years running. That’s one of the best track records of dividend growth on Wall Street.
Oneok Inc. (OKE)
Sector: Energy Market capitalization: $66 billion Dividend yield: 3.5%
Oneok is a natural gas leader that stores, processes and transports this key fossil fuel through a massive system of energy infrastructure that ranges from Oklahoma to New Mexico to Illinois. While oil may make a lot of headlines, markets for future delivery of natural gas are indicating price increases of more than 40% could be in store for the fossil fuel in 2025 over 2024. Inflationary pressures are never good for end users, but OKE is uniquely positioned to provide a hedge against these energy increases. What’s more, with a dividend that’s more than three times the S&P 500’s, it remains one of the most generous dividend stocks in the sector.
Prologis Inc. (PLD)
Sector: Real estate Market capitalization: $110 billion Dividend yield: 3.3%
Prologis is the largest stock in the U.S. real estate sector, but it isn’t a traditional housing or office space play. Instead, this firm specializes in logistics real estate with a focus on high-barrier, high-growth markets. PLD is a key part of the global supply chain with warehouses, with 1.2 billion square feet of space across 19 different countries and top clients including Amazon.com Inc. (AMZN) and FedEx Corp. (FDX). These top-tier clients make it highly likely PLD will thrive for years to come, and its structure as a real estate investment trust, or REIT, demands that Prologis deliver 90% of its taxable income back to shareholders. That creates a mandate for generous and consistent dividends.
Prudential Financial Inc. (PRU)
Sector: Financials Market capitalization: $46 billion Dividend yield: 4%
Vibrant life insurance and wealth management businesses make Prudential one of the most attractive non-bank financial stocks out there. Admittedly, there’s not going to be a huge growth push for Prudential anytime soon, as it is involved in the rather low-profile business of collecting premiums on insurance, annuities, and retirement plan services such as running 401(k)s for employers. But these businesses are very consistent endeavors, allowing for generous and consistent dividends as a result. Prudential’s low risk profile, coupled with a high dividend yield, makes this a stock worth exploring.
Simon Property Group Inc. (SPG)
Sector: Real estate Market capitalization: $70 billion Dividend yield: 4.6%
Simon Property Group owns and manages premier shopping, dining, entertainment and mixed-use destinations across the U.S. Its total portfolio tallies 230 properties at present with about 180 million square feet of space. It’s one of the top five publicly traded real estate companies on Wall Street and provides one of the best ways to gain exposure to trends in shopping and consumer spending. There’s a bit of risk here because of that, but Simon makes up for it with scale as well as diversification in its tenant base. And as SPG is structured as a REIT, like a few other names on this list, the mandate for big dividends makes it one of the more reliable income-producing stocks out there.
Southern Co. (SO)
Sector: Utilities Market capitalization: $99 billion Dividend yield: 3.2%
Southern Company is among the three largest publicly traded utility stocks on Wall Street. In addition to electricity, it distributes natural gas, and it has customers from Illinois to Virginia to Tennessee. That gives it nearly 9 million total customers across the U.S. As Southern serves areas with growing populations and generally easier regulatory environments than in other regions, it remains a go-to stock for low-risk investing strategies. Incorporated in 1945 and with 23 years of consecutive annual dividend increases, Southern is one of the best dividend stocks to buy now.
United Parcel Service Inc. (UPS)
Sector: Industrials Market capitalization: $116 billion Dividend yield: 4.8%
Valued at about 150% the size of rival logistics company FedEx Corp. (FDX), UPS is a logistics delivery powerhouse that has become a necessity in the age of e-commerce. Admittedly, shares have been a bit lackluster in the last year or so as management has been working on a turnaround plan, but in Q3 the firm reported a roughly 6% jump in sales as a well-timed sign of momentum as the firm entered the all-important holiday season in Q4. What’s more, current payouts of $1.62 per quarter represent just 60% or so of next year’s projected earnings, so the dividend is very stable — and longer term, those payouts are up 160% in the past 10 years, from just 62 cents in 2013, and UPS has increased its dividend annually for 15 consecutive years. If you’re looking for an industrial stock that delivers (pardon the pun!), then UPS ranks as one of the best dividend stocks to buy now.
Verizon Communications Inc. (VZ)
Sector: Communications services Market capitalization: $188 billion Dividend yield: 6%
Telecommunications leader Verizon is one of the most generous dividend-paying stocks out there, thanks in part to its massive scale and rock-solid customer base. As of the end of Q3, Verizon tallied more than 114 million total subscribers, making it the largest wireless carrier in the U.S. And going forward, Verizon is aggressively growing its fiber optic arm, including the recent purchase of Frontier Communications for $20 billion to add critical infrastructure assets. And unlike some other high-yield stocks out there, VZ has projected annual earnings of about $4.70 per share, but just $2.71 in annual dividends. That means its generous payouts are comfortably supported by healthy profits, giving investors peace of mind.
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15 Best Dividend Stocks to Buy Now originally appeared on usnews.com
Update 11/27/24: This story was previously published at an earlier date and has been updated with new information.