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.
12. The Bank of New York Mellon Corporation (NYSE:BK)
YTD Return as of the Close of June 25: 16.26%
The Bank of New York Mellon Corporation (NYSE:BK) is one of the best dividend stocks of 2025. As a global financial services firm, the company is responsible for overseeing more than $53.1 trillion in client assets. BK is up by more than 16% in 2025 so far.
With a legacy spanning over 240 years, The Bank of New York Mellon Corporation (NYSE:BK) has consistently introduced innovative solutions that support businesses, communities, and individuals around the world.
In the first quarter of 2025, The Bank of New York Mellon Corporation (NYSE:BK) reported tangible progress in delivering more integrated client solutions, supported by a new commercial coverage strategy and a phased shift to a strategic platforms operating model. The ongoing transformation at BNY continued to gain momentum, with consistent execution contributing to strong performance. The company achieved notable positive operating leverage, resulting in a pre-tax margin of 32% and a return on tangible common equity (ROTCE) of 24%.
During the quarter, The Bank of New York Mellon Corporation (NYSE:BK) also returned $343 million to shareholders through dividends. It has been growing its dividends for 14 consecutive years, and its quarterly payout stands at $0.47 per share. As of June 26, the stock has a dividend yield of 2.09%.
11. The Goldman Sachs Group, Inc. (NYSE:GS)
YTD Return as of the Close of June 25: 16.5%
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the best dividend stocks to invest in for 2025. The stock has surged by 16.5% since the start of 2025. In its Q1 2025 earnings report, the company reported leading the industry in several key areas. It secured the top spot globally for both announced and completed mergers and acquisitions, equity and equity-related offerings, as well as common stock offerings. It also ranked second in high-yield debt and leveraged loan offerings for the year to date.
The Global Banking & Markets division generated $10.71 billion in net revenues, driven by record performance in Equities— particularly in financing— along with strong results in Fixed Income, Currency and Commodities, which also included record financing revenues. Debt underwriting also contributed to the division’s strong showing.
Overall, The Goldman Sachs Group, Inc. (NYSE:GS) reported its third-highest quarterly net revenues at $15.06 billion, alongside robust net earnings of $4.74 billion and diluted earnings per share of $14.12. Shareholder returns remained healthy, with $976 million distributed through common stock dividends. Additionally, the Board approved a new share repurchase program authorizing buybacks of up to $40 billion in common stock.
The Goldman Sachs Group, Inc. (NYSE:GS) is a strong dividend company that has paid regular dividends to shareholders since 1999. Its current quarterly dividend is $3.00 per share for a dividend yield of 1.75%, as of June 26.
10. The Kroger Co. (NYSE:KR)
YTD Return as of the Close of June 25: 16.6%
The Kroger Co. (NYSE:KR) is one of the best dividend stocks in 2025. The company operates over 2,700 stores across the US under various well-known banners, including Fred Meyer, Ralphs, King Soopers, Harris Teeter, and its namesake brand. In addition to its grocery operations, the company runs more than 2,000 in-store pharmacies and 1,500 fuel centers, creating multiple revenue channels.
The Kroger Co. (NYSE:KR) currently offers a dividend yield of about 1.8%, and the company has consistently raised its dividend for 18 consecutive years. On top of that, the company is enhancing shareholder value through a $7.5 billion share repurchase program, which includes a $5 billion accelerated buyback announced after its proposed merger with Albertsons fell through.
For investors focused on long-term, sustainable growth, these traits can be key components of a strong portfolio. The Kroger Co. (NYSE:KR) has surged by over 16% since the start of 2025.
9. Abbott Laboratories (NYSE:ABT)
YTD Return as of the Close of June 25: 21.12%
Abbott Laboratories (NYSE:ABT) is one of the best dividend stocks to buy in 2025. In the first quarter of 2025, the company delivered strong earnings and outperformed a group of medical device peers, despite challenging conditions driven by tariffs. The company exceeded Wall Street expectations across its three key profitability metrics: earnings per share, adjusted gross margin, and adjusted pretax income margin. It also posted stronger-than-expected organic sales growth, excluding contributions from Covid testing.
During the earnings call, CEO Robert Ford noted that the diagnostics business showed solid growth in all regions except China. He mentioned that growth outside China reached about 7% this quarter and that the company is exploring opportunities in other markets to balance out the impact from China. While acknowledging current headwinds, Ford reaffirmed that China remains a valuable and profitable market for the company.
Abbott Laboratories (NYSE:ABT)’s dividend policy is also very strong, making it a reliable investment option for income investors. The company is a Dividend King, having raised its payouts for 53 consecutive years. It offers a quarterly dividend of $0.59 per share and has a dividend yield of 1.77%, as of June 26.
8. Oracle Corporation (NYSE:ORCL)
YTD Return as of the Close of June 25: 26.9%
Oracle Corporation (NYSE:ORCL) shares had their strongest week in over two decades, ending June 13, as investors responded positively to a strong earnings report and optimistic outlook for the company’s cloud computing business. The last time the company experienced a better weekly performance was back in April 2001, during the dot-com bust, when brief market rebounds were frequent. At that time, Oracle shares had dropped nearly 50% in the preceding quarter.
Today, Oracle Corporation (NYSE:ORCL) is in a very different position. Although it was once seen as a latecomer to the cloud infrastructure space, the company has successfully carved out a niche— especially in supporting clients with artificial intelligence workloads— and is now experiencing rapid growth in that area.
Larry Ellison, Oracle Corporation (NYSE:ORCL)’s chairman, made the following comment:
“The demand is astronomical. But we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers, so fast.”
Oracle Corporation (NYSE:ORCL)’s dividend policy is also garnering attention. The company has paid regular dividends to shareholders since 2009 and currently pays a quarterly dividend of $0.50 per share. The stock supports a dividend yield of 0.94%, as of June 26.
Oracle Corporation (NYSE:ORCL) has surged by nearly 27% since the start of 2025.
7. Johnson Controls International plc (NYSE:JCI)
YTD Return as of the Close of June 25: 30.9%
Johnson Controls International plc (NYSE:JCI) is one of the best dividend stocks to invest in 2025. The company raised its profit outlook for 2025 after surpassing expectations in the second quarter, thanks to continued strong demand from data centers for its building and industrial solutions.
With the global surge in artificial intelligence investment, data centers have seen a sharp rise in activity. Johnson Controls International plc (NYSE:JCI), which supplies liquid cooling systems for IT equipment as well as advanced security and fire protection systems, has been one of the beneficiaries of this trend.
Headquartered in Cork, Ireland, Johnson Controls International plc (NYSE:JCI) now anticipates adjusted earnings of $3.60 per share for 2025, marking the upper end of its earlier guidance range of $3.50 to $3.60. For the second quarter, the company posted an adjusted profit of 82 cents per share, ahead of the 79 cents per share forecasted by analysts, according to data from LSEG.
Johnson Controls International plc (NYSE:JCI) has been making regular dividend payments to shareholders for the past 137 years and currently offers a quarterly dividend of $0.37 per share. The stock offers a dividend yield of 1.42%, as of June 26. JCI is up by 31% in 2025 so far.
6. International Business Machines Corporation (NYSE:IBM)
YTD Return as of the Close of June 25: 32.3%
International Business Machines Corporation (NYSE:IBM) is among the best dividend stocks in 2025 as it has surged by over 32% since the start of the year. The company has positioned itself as a major force in enterprise-focused artificial intelligence. The company has been strategically preparing for this pivotal moment in the evolution of computing, and the continued rise of AI is expected to be a major growth driver for IBM’s stock in the coming years.
When OpenAI introduced ChatGPT in November 2022, International Business Machines Corporation (NYSE:IBM) quickly followed with its own offering. Just six months later, it launched Watsonx, a suite of generative AI tools tailored specifically for business clients, setting itself apart from consumer-oriented large language models.
Although initial adoption was modest, momentum picked up quickly. In the first quarter of 2024, International Business Machines Corporation (NYSE:IBM) reported over $1 billion in contracts tied to Watsonx. That figure doubled to $2 billion in the following quarter, rose to $3 billion in the third quarter, and surpassed $5 billion by year-end, reflecting rapidly growing demand for its enterprise AI solutions.
International Business Machines Corporation (NYSE:IBM)’s dividend history also makes it a solid investment. The company has been rewarding shareholders with growing dividends for the past 30 years. Currently, it offers a quarterly dividend of $1.68 per share and has a dividend yield of 2.30%, as of June 26.
5. Cardinal Health, Inc. (NYSE:CAH)
YTD Return as of the Close of June 25: 38.7%
Cardinal Health, Inc. (NYSE:CAH) has surged by nearly 39% since the start of 2025. The company remains focused on strengthening the growth and stability of its Pharmaceutical and Specialty Solutions segment by expanding its presence in specialty care, advancing high-growth areas, and continuing the execution of its GMPD Improvement Plan.
Cardinal Health, Inc. (NYSE:CAH) has also reaffirmed its commitment to investing in Biopharma Solutions. Its Specialty Networks are broadening the reach of their PPS Analytics and SoNaR data platforms, which were initially developed for urology. These platforms are now being extended into oncology, gastroenterology, and rheumatology to better support manufacturing partners and healthcare providers, including physicians connected through Cardinal Health’s MSO platforms.
On May 6, Cardinal Health, Inc. (NYSE:CAH) declared a 1% hike in its quarterly dividend to $0.5107 per share. Through this increase, the company stretched its dividend growth streak to 39 years. The stock offers a dividend yield of 1.23%, as of June 26.
4. The Mosaic Company (NYSE:MOS)
YTD Return as of the Close of June 25: 45.4%
The Mosaic Company (NYSE:MOS) is among the best dividend stocks to invest in 2025. The company raised its potash production plans for 2025 to meet rising international demand. In the phosphate segment, maintenance work and efforts to restore the health of US assets are showing promising outcomes, with strong production recorded in March, even with scheduled downtime.
The Bartow phosphate facility is currently operating at its target capacity and is on track to produce over 500,000 tonnes in the second quarter, which aligns with an annual output exceeding 2 million tonnes. Production at the New Wales phosphate facility is also projected to rise by more than 20% in the second quarter compared to the first.
In its first-quarter earnings report, The Mosaic Company (NYSE:MOS) stated that the company is advancing well across various areas and is positioned to create substantial value for shareholders in 2025 and the years ahead. During the quarter, it returned $71 million to shareholders through dividends. Currently, it pays a quarterly dividend of $0.22 per share for a dividend yield of 2.50%, as of June 26. The stock is up by over 45% since the start of 2025.
3. Philip Morris International Inc. (NYSE:PM)
YTD Return as of the Close of June 25: 48.3%
Philip Morris International Inc. (NYSE:PM) was always closely linked to cigarettes. However, in 2016, the company shifted its focus toward creating a smoke-free future, initiating a transformation within both its business and the broader tobacco industry.
Since then, efforts have been centered on developing, scientifically validating, and responsibly marketing smoke-free products that pose less harm than traditional cigarettes, with the ultimate goal of replacing cigarettes entirely. These smoke-free alternatives do not burn tobacco or produce smoke, resulting in significantly lower levels of harmful substances.
In the first quarter of 2025, Philip Morris International Inc. (NYSE:PM) reported strong performance from its smoke-free segment, which contributed 42% of total net revenues and 44% of gross profit. Shipment volumes rose by 14.4%, net revenues increased by 15% (20.4% on an organic basis), and gross profit grew by 27.7% (33.1% organically). The company’s smoke-free products are now available in 95 markets, with a multicategory portfolio launched in 46 of them.
In addition to this, Philip Morris International Inc. (NYSE:PM)’s dividend history is also commendable. The company has raised its payouts for 15 years straight. Currently, it pays a quarterly dividend of $1.35 per share and has a dividend yield of 2.99%, as of June 26.
2. Dollar General Corporation (NYSE:DG)
YTD Return as of the Close of June 25: 49.11%
Dollar General Corporation (NYSE:DG) is one of the best dividend stocks in 2025, surging by more than 49% since the start of the year. After experiencing several years of declining market share to competitors like Walmart and weakening profits, DG faced challenges in its stock performance. However, the company’s “Back to Basics” turnaround plan, combined with economic disruptions from the trade war, played a key role in restoring both revenue and profit growth. This recovery was reflected in a 16% single-day surge in the stock following the release of its fiscal first-quarter earnings in early June.
In the first quarter of 2025, Dollar General Corporation (NYSE:DG) reversed its profit decline trend, reporting a gross margin increase of 78 basis points to 31.0%, driven by lower shrink and higher inventory markups. On the other hand, selling, general, and administrative expenses rose by 77 basis points to 25.4%, mainly due to increased labor costs, higher incentive payouts, and spending on repairs and maintenance.
Analysts believe that Dollar General Corporation (NYSE:DG) remains well-positioned for further growth, supported by ongoing store openings and updates to current locations through its Project Elevate and Renovate initiatives. The company offers a quarterly dividend of $0.59 per share and has a dividend yield of 2.10%, as of June 26.
1. CVS Health Corporation (NYSE:CVS)
YTD Return as of the Close of June 25: 50.09%
Following a challenging year in 2024, CVS Health Corporation (NYSE:CVS) appears to be making progress toward a recovery. The company remains committed to becoming the most trusted healthcare provider in the United States by delivering improved care, value, and service through its integrated and industry-leading operations. The stock has surged by over 50% since the start of 2025.
With a strong focus on customer needs, CVS Health Corporation (NYSE:CVS) reported positive results across its Health Care Benefits, Health Services, and Pharmacy and Consumer Wellness segments. The company continues working toward its goal of building a healthier future for the 185 million individuals it serves.
CVS Health Corporation (NYSE:CVS) also updated its full-year 2025 guidance for GAAP diluted earnings per share, adjusted earnings per share, and operating cash flow to reflect strong performance across all business areas. However, the company is maintaining a cautious outlook for the rest of the year due to ongoing elevated cost trends and potential broader economic challenges.
CVS Health Corporation (NYSE:CVS) has paid regular dividends to shareholders since 1997. The company’s quarterly dividend comes in at $0.665 per share for a dividend yield of 3.90%, as of June 26.
While we acknowledge the potential of CVS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVS and that has 100x upside potential, check out our report about this cheapest AI stock.
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