The best dividend stocks of 2025: where reliable income meets high demand

Dividend stocks Dividend stocks

What to invest in in 2025: top 5 US dividend companies

Amid interest rate uncertainty, slowing growth and an increasingly cautious inflation outlook, more investors are returning to the basics: steady cash flow and dividend yields. And no wonder – dividend stocks in 2025 have once again become an attractive haven for both conservative portfolios and individual investors looking for a balance between income and moderate risk.

Interestingly, there is now a steady trend in the market: not only are the “old” dividend giants holding their ground, but new sectors – such as infrastructure, telecom and energy – are becoming more prominent. At the same time, dividend stocks are starting to attract even those investors who previously focused solely on capital growth. A return to fundamental metrics and cachet is once again a priority, especially after the volatile 2023-2024 period. The market is showing: stability is back in vogue. All of this makes the “best dividend stocks” theme particularly relevant for those looking to buy stocks with steady yields.

ExxonMobil (NYSE: XOM)

The energy company that pays

ExxonMobil has long been considered a dividend stronghold in investors’ portfolios. The company continues to be generous with its earnings in 2025, with a current dividend yield of about 3.7%, which is above the market average. At the same time, payouts are covered by strong cash flow: the company reported more than $11 billion in free cash flow in the first quarter.

Most importantly, Exxon is actively investing in decarbonization and CO2 capture technologies while expanding its traditional oil and gas business. This dual strategy appeals to both conservative and ESG-oriented investors. In addition, the company maintains one of the most stable balance sheets in the energy sector, allowing it to grow its dividend even during a period of declining oil prices. Its strong operating efficiency and low debt load make it attractive even amid growing competition. For many investors, ExxonMobil remains the answer to the question: what are the best dividend stocks to buy in a commodity cycle?

Who it’s good for

For those looking for stable returns in the commodities sector and not afraid of cyclical fluctuations. ExxonMobil will be of interest to those who want to balance their portfolio with inflation-sensitive securities. Its shares are also suitable for long-term holders seeking capital protection through real assets. What’s especially valuable is that its dividend payout remains sustainable even in stressful macroeconomic scenarios.

AT&T (NYSE: T)

Back on the list of reliable dividend payers

After a period of instability and restructuring, AT&T has stabilized the business and continues to pay a dividend yielding about 6.5% in 2025. That’s one of the highest rates among large U.S. companies.

The company has focused on mobile, divesting from the media business, which has had a positive impact on margins and debt management. AT&T has reduced its debt load by nearly $20 billion over the past two years – and that has dramatically improved investor sentiment toward the stock. Management is focusing on improving service quality, investing in 5G and optimizing the network. As a result, the company has reached a sustainable cash flow that covers not only dividends but also reinvestment. Among the best dividend stocks, AT&T holds a special place due to the stability of its payout and attractive valuation – investors who choose to buy the company’s stock gain a competitive yield advantage.

Why investor interest is growing

AT&T’s low P/E, high div yield and stable cash flow make it a magnet for dividend strategies. Especially during periods of volatility. The company’s stock has already started to recover from its 2022-2023 decline, and the current price makes entry particularly attractive. Investors also appreciate the company’s efforts to hold its ground in a highly competitive environment without losing profitability. All of this makes AT&T a strong candidate for an income-focused portfolio.

AbbVie (NYSE: ABBV)

High-cash-flow pharmaceuticals

AbbVie has been on the list of reliable dividend payers for years, and 2025 is no exception. The yield is around 3.9%, which is particularly attractive against a backdrop of biotech companies focused on growth without income.

The company has confidently navigated the so-called “post-Humira period,” offsetting declining sales of its flagship drug by growing its new brands, Rinvoq and Skyrizi. This has allowed the dividend to not only remain intact, but to increase for the past 52 consecutive quarters. In addition, AbbVie is aggressively investing in R&D and expanding its portfolio through M&A. This forms a solid base for future earnings and dividend policy. Those considering the best dividend stocks in healthcare should take a closer look at opportunities to buy AbbVie stock at the current price.

Investor Example

What would a dividend-focused investor in pharmaceuticals do? He would look for companies with long-term protection from competitors and high returns on capital. AbbVie is among the leaders. Its stability makes the stock attractive to both pension funds and private investors. And the company’s fundamentals remain strong even in the face of patent risk and regulation.

Realty Income (NYSE: O)

“The Monthly Dividend Company”

This is one of the few REITs (real estate investment trusts) that pays a monthly dividend. Realty Income is known for its dividend history: more than 640 consecutive payouts with no misses and more than 100 dividend increases.

The 2025 yield is about 5.3% and the portfolio includes more than 13,000 properties worldwide, ranging from supermarkets to logistics centers. With long-term leases and low delinquency rates, Realty Income remains a defensive asset even in a rising rate environment. The company has a high degree of cash flow predictability, which is especially important for investors focused on stable income. The monthly payouts are also an advantage for those looking for regular cachet. Investors looking to buy shares of a reliable REIT fund rightfully rank Realty Income as one of the best dividend stocks in the real estate sector.

Interesting nuance

Realty Income stock has traditionally done well in a weak stock market. In the volatile 2025 environment, that’s an added plus. Investors seeking capital protection against inflation see Realty Income as an asset with a low correlation to the broad market. The REIT is also actively diversifying its portfolio to include international properties, which reduces geographic risk. This makes the securities attractive not only to U.S. investors but also to global investors.

Verizon Communications (NYSE: VZ)

Telecom with a focus on 5G and stability

Verizon continues to hold its dividend yield at 6.4% while remaining one of the most stable telecom companies in the US. Through investments in 5G infrastructure and aggressive cost cutting, Verizon has shown net income growth and operating margin expansion in 2025.

The stock is favored by pension and dividend funds, as well as private investors looking for reliable payouts outside of the tech hype. The company also demonstrates strong capital management discipline, directing excess cachet to share repurchases and supporting payouts. Verizon competes with AT&T, but also features a more aggressive digital strategy, including IoT and cloud solutions. All of this allows investors to expect dividends not only today, but also 5-10 years down the road. So it’s no surprise that when discussing the best dividend stocks, it’s increasingly common to hear a recommendation to buy Verizon stock.

For whom

For those who want high dividend income but avoid the overheated IT sector. Verizon is a good fit for those looking for a solid telecom company with a sustainable business model and growth strategy. Its securities fit well in a balanced portfolio with a focus on yield and volatility protection. This is a choice for patient investors who are not chasing the hype, but building a foundation.

Top Dividend Stocks of 2025

CompanySectorDividend Yield (2025)Payout FrequencyKey Investor Takeaways
ExxonMobil (XOM)Energy~3.7%QuarterlyStrong cash flow, CO₂ tech investments, inflation hedge
AT&T (T)Telecommunications~6.5%QuarterlyHigh yield, post-restructuring momentum, 5G focus
AbbVie (ABBV)Pharmaceuticals~3.9%QuarterlyGrowth beyond Humira, steady pipeline, dividend growth history
Realty Income (O)Real Estate (REIT)~5.3%Monthly640+ payments, defensive asset, global diversification
Verizon (VZ)Telecommunications~6.4%Quarterly5G infrastructure, margin expansion, long-term payout potential

This table helps investors quickly compare key metrics and identify dividend stocks that match their goals — whether it’s monthly income, sector stability, or high yield potential.

Final Look

Dividend stocks in 2025 aren’t just a way to generate income, they’re an element of stability in a world where too much depends on monetary policy and short-term sentiment. Companies like ExxonMobil, AbbVie and Realty Income are demonstrating how reliability, growth and real cash flow can be combined.

It may well be dividend stocks that show the best relative performance over the next 2-3 years. Especially against the backdrop of a cooling market and tightening conditions for venture capital. This means that attention to these securities will only intensify.

It is worth noting that, in addition to dividend stocks, there are many interesting opportunities in sectors with high growth potential on the market today. Investors are particularly active in biotechnology companies and stocks related to artificial intelligence, from algorithm developers to manufacturers of specialized chips. These areas may not generate stable income like dividend stocks, but they offer long-term upside potential through innovation and scalability. For more information on investing in biotechnology and AI, please refer to our separate analytical materials.

For the income-oriented and sustainability-oriented investor, such stocks are not just an alternative to bonds, but a full-fledged strategic instrument. They help offset risks, create a basis for re-investment and form a cushion in case of market turbulence. In addition, dividend strategies are increasingly becoming the basis for pension and insurance capital. Even in an era of technological leaps and bounds, such securities remain relevant. Perhaps dividends will once again become a symbol of investor maturity. Therefore, when choosing the best dividend stocks of 2025, you should not only analyze the yield, but also understand in advance which securities you are ready to buy and hold in the long term.

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