In this article, we will take a look at some of the best dividend stocks for 2025.
After underperforming the market in seven of the past eight years, the Morningstar Dividend Leaders Index has made a strong comeback in 2025. As of June 20, it had gained 6.5%, more than double the 3.0% increase posted by the Morningstar US Market Index. This performance highlights the potential of dividend-focused strategies to enhance returns.
The Dividend Leaders Index, which includes 100 of the highest-yielding stocks with a reliable track record of dividend payments and the ability to maintain them, saw a strong start to the year. It rose 9.0% in the first quarter, even as the broader market declined by 4.6%. However, in the current quarter, the index has given back some of those gains, falling 2.3% while the overall market has increased by 8.0%.
Dan Lefkovitz, a strategist at Morningstar Indexes, attributes the recent outperformance to two key factors.
The first is a shift in sector performance trends that has benefited dividend strategies in general. According to Lefkovitz, unlike recent years where technology stocks led the market, that leadership has faded, and some of the well-known “Magnificent Seven” stocks have struggled. At the same time, more defensive sectors known for strong dividends have performed well.
The second factor, which sets the Dividend Leaders Index apart from other dividend-focused indexes, is its design. Lefkovitz noted that it is a concentrated index made up of high-yield stocks, with significant weight given to its top holdings. Several of these heavily weighted stocks have posted strong gains this year, contributing to the index’s outperformance. Given this, we will take a look at some of the best dividend stocks for 2025.
Our Methodology:
For this list, we scanned the list of year-to-date highest-returning stocks and selected dividend stocks with the highest stock price returns in 2025, as of June 25. The stocks are ranked according to their YTD returns.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Altria Group, Inc. (NYSE:MO)
YTD Return as of the Close of June 25: 12.25%
Altria Group, Inc. (NYSE:MO) is one of the best dividend stocks of 2025. The company maintains a reliable dividend track record, backed by its strong cash flow. Its overall business performance remains healthy. In the first quarter of 2025, the smokeable products segment showed solid growth in adjusted operating income, largely driven by the Marlboro brand. Meanwhile, in the oral tobacco category, the on! brand continued to gain traction despite a competitive environment, with Helix making well-placed investments to support its growth.
Altria Group, Inc. (NYSE:MO)’s shareholders benefited from robust returns, thanks to both dividends and stock buybacks, all while the company continued investing toward its long-term strategy. During the first quarter of 2025 alone, $1.7 billion was returned to shareholders through dividends. Over the past twelve months, the company generated $8.6 billion in operating cash flow, with free cash flow reaching $4.38 billion. This strong financial position suggests the company has room to further increase its dividend payments going forward.
Altria Group, Inc. (NYSE:MO) has raised its payouts 59 times in the past 55 years. Currently, it offers a quarterly dividend of $1.02 per share and has a dividend yield of 6.94%, as of June 26. The stock has surged by over 12% in 2025 so far.
14. 3M Company (NYSE:MMM)
YTD Return as of the Close of June 25: 13.92%
3M Company (NYSE:MMM) is one of the best dividend stocks of 2025. The stock has delivered a nearly 14% return since the start of 2025. The company posted strong earnings in the first quarter of 2025 and continues to make headway on key operational goals tied to CEO Bill Brown’s turnaround strategy.
Following the spin-off of its healthcare division as Solventum last year, and the resolution of legal issues related to PFAS and combat earplugs, both management and investors now have more clarity on the company’s future financial obligations.
With these major distractions behind it, 3M Company (NYSE:MMM)’s leadership is now better positioned to focus on enhancing the business. To that end, Brown has outlined several areas for improvement, including a renewed emphasis on research and development to drive new product innovation, optimizing asset efficiency, and lowering working capital needs. He has also openly acknowledged the importance of improving on-time, full deliveries, particularly in the safety and industrial segments.
3M Company (NYSE:MMM)’s dividend is also gaining traction among investors. It currently offers a quarterly dividend of $0.73 per share, having raised it by 4.3% in February. The stock supports a dividend yield of 1.94%, as of June 26.
13. Ecolab Inc. (NYSE:ECL)
YTD Return as of the Close of June 25: 15.39%
Ecolab Inc. (NYSE:ECL) is among the best dividend stocks of 2025. The company’s 2024 Growth & Impact Report, released in May, highlighted the company’s strong performance and continued progress toward its 2030 Positive Impact goals. This year’s report also includes a new measure: the cumulative value created through Ecolab’s services and solutions. The company achieved record results in both financial performance and sustainability, made possible through close collaboration with customers and the efforts of a dedicated, high-performing team. The stock has surged by over 15% in 2025 so far.
Ecolab Inc. (NYSE:ECL)’s Chairman and CEO, Christophe Beck, emphasized that the company’s success lies in expanding its impact alongside business growth and team development. He noted that as businesses worldwide aim for improved profitability and resource efficiency, Ecolab continues to demonstrate how strong performance and meaningful impact can go hand in hand. Beck expressed appreciation for the team’s efforts in 2024 and their ongoing contribution toward achieving the 2030 vision.
Ecolab Inc. (NYSE:ECL) has also remained committed to its shareholder value, growing its dividends for 33 years in a row. The company currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 0.99%, as of June 26.
