Dividend stocks are a great one-two punch, offering a steady stream of income as well as the potential for share appreciation. Finding the best dividend stocks is much easier said than done, however.
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Some high-yield companies have unsustainable payouts that may be cut or eliminated if they fall short of forecasts, causing the stock to spiral downward even as the dividends dry up. On the other hand, some of the most impressive growth leaders out there don’t pay dividends at all — or if they do, choose to pay only nominal dividends that don’t make much of an impact.
The following stocks get things right on both fronts, however, with share price momentum along with a dividend yield of 2% or more. Many are also among the most well-established names on Wall Street, with massive scale and big market values that provide stability.
If you’re looking for income in 2025, here are the 15 best dividends stocks to buy now:
Stock | Dividend yield* |
Altria Group Inc. (ticker: MO) | 7.8% |
AT&T Inc. (T) | 4.9% |
Bristol-Myers Squibb Co. (BMY) | 4.2% |
Corning Inc. (GLW) | 2.1% |
Digital Realty Trust Inc. (DLR) | 2.7% |
HSBC Holdings PLC (HSBC) | 3.9% |
International Business Machines Corp. (IBM) | 3.0% |
Johnson & Johnson (JNJ) | 3.4% |
JPMorgan Chase & Co. (JPM) | 2.0% |
Lincoln National Corp. (LNC) | 5.4% |
NextEra Energy Inc. (NEE) | 3.0% |
Southern Co. (SO) | 3.5% |
Southern Copper Corp. (SCCO) | 2.9% |
Union Pacific Corp. (UNP) | 2.3% |
Welltower Inc. (WELL) | 2.0% |
*As of Jan. 24 close.
Altria Group Inc. (MO)
Market value: $90 billion Sector: Consumer staples Dividend: 7.8%
All dividend investors should know and love tobacco giant Altria. This company is the brand behind products including Marlboro cigarettes, Black & Mild pipe and cigar products, and Copenhagen smokeless tobacco. Altria may not be a growth darling, but it is regularly near the top of the list of the highest-yielding S&P 500 dividend stocks because of generous and reliable payouts. Specifically, MO has a history of more than 55 consecutive years of dividend increases that proves its power for income investors. With big brands — and, bluntly, an addictive line of products — Altria sees steady sales even during times of market stress. That makes this high-yield dividend stock a low-risk option for dividend investors looking for big yield and low volatility.
AT&T Inc. (T)
Market value: $171 billion Sector: Communications services Dividend: 4.9%
Despite having a rich history as one of the earliest telecom companies in the U.S., AT&T has been working hard to reinvent itself over the last few years. That includes a restructuring in 2022 to streamline its operations as well as reduce its long-term debt load, which involved spinning out its stake in Warner Bros. Discovery Inc. (WBD). That reduced its size, profits and dividend — but ultimately, investors have liked what they have seen lately and shares are up more than 44% in the last 12 months on a total return basis (which includes dividends) thanks to improvements in operations. What’s more, AT&Ts 27.75 cent-per-share quarterly dividend remains only about half of its earnings and results in a yield about four times higher than what the S&P 500 can offer at present.
Bristol-Myers Squibb Co. (BMY)
Market value: $123 billion Sector: Health care Dividend: 4.2%
Bristol-Myers Squibb’s shares have been volatile over the last few years, and in fact have lost ground over the last five years before dividends while the S&P 500 has gained more than 80% in the same period. But BMY shares are up more than 50% from their 52-week low this summer, thanks to continued success with its cancer treatment products as well as strategic acquisitions such as neuroscience specialists Karuna Therapeutics and RayzeBio. A strong market position in these categories supports net cash flows of almost $14 billion annually to support generous and reliable dividends. What’s more, BMY has raised its dividend for 16 consecutive years, with almost a century of uninterrupted payments of some kind to shareholders. That consistency makes this health care leader an income stock worth watching.
Corning Inc. (GLW)
Market value: $43 billion Sector: Technology Dividend: 2.1%
While there are plenty of well-known tech stocks out there, it’s hard to find a large tech name that offers at least a 2% yield. That’s in part because technology firms frequently reinvest their profits in future growth plans rather than set them aside for shareholders. Corning is unique for several reasons, not the least of which is its above-average dividend. The firm is ancient when compared with much of the sector, founded way back in 1851 and boasting a tremendous history in producing high-tech glass and ceramics. The company’s display segment produces everything from flat panel monitors to screens for tablets, smartphones and other mobile devices — making it a staple of the modern economy. The expertise and manufacturing scale of Corning gives it a pretty wide moat, as well as a reliable stream of cash that can fuel consistent dividend payouts to shareholders. It’s also one of the best-performing stocks on this list, with shares up about 83.9% in the last 12 months on a total return basis.
Digital Realty Trust Inc. (DLR)
Market value: $53 billion Sector: Real estate Dividend: 2.7%
A real estate company with an interesting specialty is Digital Realty, which hosts data centers and “colocation” services that involve companies renting some or all of their server space from a third party. With more than 300 data centers worldwide and operations that span 28 countries, this is a company with both the scale as well as the expertise to thrive for many years to come. Shares have put up a total return of 35% over the last year through Jan. 24 thanks to continued improvement in DLR’s business. Admittedly, if you want to play high-tech megatrends like artificial intelligence and Big Data, then there are more direct ways to do so. But if you want to sidestep some of the risk as competitors fight for market share, DLR provides a ground-floor investment with a yield that most Silicon Valley firms can’t match.
HSBC Holdings PLC (HSBC)
Market value: $185 billion Sector: Financials Dividend: 3.9%
HSBC is a London institution that is a bit smaller than domestic megabanks, but would rank as slightly larger than Citigroup Inc. (C) and slightly smaller than Goldman Sachs Group Inc. (GS) if it were headquartered here in the U.S. It operates a diversified business including personal and commercial banking, wealth management and capital markets segments. With about $3 trillion in total assets and operations in more than 60 countries, HSBC ranks as the largest financial institution in Europe. Aided by its generous dividend, HSBC stock is up 45.9% over the last 12 months on a total return basis. If you are looking for a financial institution with scale, but perhaps want to look beyond the U.S. for a leading financial stock, HSBC is worth a look.
International Business Machines Corp. (IBM)
Market value: $205 billion Sector: Technology Dividend: 3.0%
It’s hard to believe that a computer company is more than 100 years old, but IBM’s roots date all the way back to punch-card automation and the first mainframe computers. Nowadays, its Watson artificial intelligence software is one of the leading platforms of high-tech decision-making out there. From taking on human “Jeopardy!” game show contestants back in 2011 to a 2024 deal with cybersecurity specialist Palo Alto Networks Inc. (PANW) to deliver AI-powered security outcomes for customers, this innovative arm has been steadily growing and building a bright future for IBM. Shares have posted an impressive total return of 33.9% over the last 12 months; what’s more, a lower profile than trillion-dollar Big Tech giants may allow it to avoid some of the regulatory ire that seems to be bubbling up in both the U.S. and Europe.
[READ: 6 of the Best AI ETFs to Buy for 2025]
Johnson & Johnson (JNJ)
Market value: $365 billion Sector: Health care Dividend: 3.4%
Johnson & Johnson ranks as one the 25 largest U.S. stocks by market capitalization, regardless of sector, and is an icon in the health care space. The company has recently doubled down on higher-margin pharmaceuticals and medical devices after a recent spinoff of its lucrative consumer health division, where the firm packaged up and spun off 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.
JPMorgan Chase & Co. (JPM)
Market value: $738 billion Sector: Financial Dividend: 2.0%
Wall Street icon JPMorgan Chase is a force in the global financial industry. This megabank has roots dating back to 1799, and is currently the largest U.S. bank by assets. If you’re a long-term income investor interested in dividends, JPM is the kind of financial stock you can believe in for many years to come regardless of the ebb and flow of the news cycle. The 2008 financial crisis resulted in a short-lived dividend rollback for JPM as mandated by the Federal Reserve at the time. But it’s worth pointing out that JPM was the first major financial organization in the U.S. to eclipse its pre-crisis dividend levels. Specifically, in 2008 it was paying $1.52 per share annually before the downturn, but by the end of 2014 it had paid $1.56 per share and currently pays a whopping $5 per share annually. To top it off, shares are up 58.9% in the last 12 months on a total return basis. If you want scale and staying power, JPM is a dividend stock most investors should consider.
Lincoln National Corp. (LNC)
Market value: $5.7 billion Sector: Financials Dividend: 5.4%
Lincoln National provides life insurance, annuities, wealth management and related products for individuals and employers across the U.S. Admittedly, LNC hit a snag over the last few years thanks to challenges including problems with both its life insurance and reinsurance businesses. LNC has stabilized lately, however, with gains of more than 30% from its 52-week lows thanks to improvements in capital reserves that have won over Wall Street. And going forward, it’s important to remember that businesses like this that are bolstered by premiums from long-term policies and fees from employer-sponsored retirement plans provide some of the most reliable revenue streams — and thus are some of the most reliable dividend stocks on Wall Street.
NextEra Energy Inc. (NEE)
Market value: $147 billion Sector: Utilities Dividend: 3%
The largest of all publicly traded utilities by a significant margin, NextEra is in a class by itself. The company generates electricity through wind, solar, nuclear, natural gas and other sources across 90,000 circuit miles of power lines to serve roughly 12 million people. 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 the highly regulated nature of the business, NextEra is nearly a legalized monopoly in the markets it serves. That adds up to reliable and consistent revenue, making it one of the best dividend stocks to buy in 2025.
Southern Co. (SO)
Market value: $93 billion Sector: Utilities Dividend: 3.5%
Incorporated in 1945 and riding 23 years of consecutive annual dividend increases, Southern Company 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. It also is aggressively investing in nuclear power, with its Southern Nuclear arm fighting to bring the the four-unit Vogtle generating plant — named after an iconic SO chairman — up to full capacity as part of a fossil fuel-free future.
Southern Copper Corp. (SCCO)
Market value: $74 billion Sector: Materials Dividend: 2.9%
As you could guess from the name, Southern Copper is a mining company that operates mainly in South America. Its business involves extracting copper but also gold, silver, lead and other minerals from a massive network of mines. A raw materials company like this is a double-edged sword, as strong pricing in commodity markets can lift shares but weak prices naturally create a headwind for profits. The “good” news from the inflationary pressures lately is that SCCO has been on a nice run as a result, with shares up more than 150% in the last five years. But regardless of pricing trends, copper is an integral part of the global economy, with uses ranging from electrical applications to plumbing to machine parts. That means SCCO is going to have strong baseline demand for many years to come to continue to fuel an above-average dividend yield.
Union Pacific Corp. (UNP)
Market value: $155 billion Sector: Industrials Dividend: 2.3%
An iconic railroad, Union Pacific offers transportation services that make it vital to supply chains across almost every industry — from food to energy to consumer goods to construction materials and everything in between. Founded way back in 1862, the firm has deep roots and is the largest publicly traded railroad company in the nation. If that’s not enough, it also operates a legalized monopoly in many regions of the Western U.S. Of course, the railroad industry has high operating, maintenance and running costs, so it’s not easy to imagine competitors springing up even if this firm wasn’t as dominant as it is. There may not be breakneck growth in store for UNP, but you’d be hard-pressed to find a more reliable income stock out there.
Welltower Inc. (WELL)
Market value: $86 billion Sector: Real estate Dividend: 2.0%
Welltower is a leading senior housing, acute care and health systems operator in the U.S., Canada and the U.K. In the years ahead, this business model will benefit from a long-term tailwind caused by an aging population that will require more care. There are estimates that the U.S. population older than 65 will top 80 million by 2040 — more than double the size of that cohort in 2000. Furthermore, as Welltower is structured as a real estate investment trust, or REIT, it is not tasked with providing the actual care but simply owning and investing in the properties that support medical service providers. On a total return basis, shares are up more than 60% in the last year thanks to the fact that occupancy is improving and cost pressures have abated, illustrating how a stock like Welltower can be a good investment for share appreciation and for dividend investors alike.
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15 Best Dividend Stocks to Buy Now originally appeared on usnews.com
Update 01/27/25: This story was previously published at an earlier date and has been updated with new information.