In this article, we will take a look at some of the best performing stocks in 2025.
Investors have been flocking to high-dividend stocks, attracted by the promise of generous payouts from a sector that often lags, especially with anticipated interest-rate cuts on the horizon later this year. Craig Basinger, chief strategist at Purpose, made the following comment about dividend investing:
“The dividend factor didn’t perform all that well for the previous few years. That softer performance has led to better yields being available.”
The hunt for dividends has become trickier, as fewer US companies are raising their payouts. In the second quarter, S&P firms announced just $9.8 billion in dividend increases, a sharp drop from $19.5 billion in the first quarter.
Independent strategist Jim Paulsen noted that the three-year annualized dividend growth rate is now similar to levels seen back in 2000, when many tech companies slowed dividend hikes to focus on future investments. He added that while the economy has held up well so far, businesses may be bracing for tougher conditions ahead and choosing to conserve cash.
Even so, Purpose Investments’ Basinger suggested that income-seeking investors won’t be discouraged. With relatively inexpensive stocks offering generous yields, he remarked that “the dividend winter appears to be over.”
Given this, we will take a look at some of the best performing stocks that pay dividends.
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 September 15. 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. Archer-Daniels-Midland Company (NYSE:ADM)
YTD Performance as of September 15: 21.4%
Archer-Daniels-Midland Company (NYSE:ADM), one of the world’s largest agribusinesses, has been operating since 1902 and provides agricultural products and services to over 180 countries. The stock has surged by over 21% since the start of 2025.
The company grows a wide range of crops such as soybeans, corn, and wheat, while also playing a role in innovation. ADM has helped develop products like textured vegetable protein, high-fructose corn syrup, ethanol, and Omega-3 fatty acids.
Archer-Daniels-Midland Company (NYSE:ADM) is a solid dividend company. On August 6, it declared a quarterly dividend of $0.51 per share, which fell in line with its previous dividend. Overall, the company has raised its payouts for 52 years in a row and has paid regular dividends to shareholders for 90 consecutive years. The stock has a dividend yield of 3.34%, as of September 15.
14. Nucor Corporation (NYSE:NUE)
YTD Performance as of September 15: 23.5%
Nucor Corporation (NYSE:NUE) is a North Carolina-based company that produces steel and related products. The company produces about a quarter of all raw steel made in the US. Its wide product lineup includes bars, beams, sheets, plates, grating, fasteners, joists, overhead doors, and full metal building systems. The company also serves a highly diversified customer base of more than 10,000 clients, with no single customer contributing more than 5% of its revenue. The stock is up by over 23.5% since the start of 2025.
A major advantage for Nucor Corporation (NYSE:NUE) is its use of electric arc furnaces, which are smaller and more efficient than traditional blast furnaces. These furnaces melt scrap metal rather than relying on coking coal and iron ore, which reduces both energy use and carbon emissions. Adding to this edge, the company owns The David J. Joseph Company, one of the largest scrap brokers and processors in the US, ensuring it has a reliable supply of low-cost recycled metal.
In addition to Nucor Corporation (NYSE:NUE)’s solid portfolio, the company is also popular among income investors because of its consistent dividend policy. NUE is a Dividend King with 52 consecutive years of dividend growth under its belt. The company pays a quarterly dividend of $0.55 per share and has a dividend yield of 1.56%, as recorded on September 15.
13. Altria Group, Inc. (NYSE:MO)
YTD Performance as of September 15: 24.2%
Altria Group, Inc. (NYSE:MO) is among the world’s biggest tobacco companies, owning popular brands such as Marlboro, Black & Mild, Parliament, Copenhagen, and Skoal. While some investors may hesitate to back a tobacco business, those who do are usually drawn by its exceptionally high and steadily growing dividend.
Altria Group, Inc. (NYSE:MO) owns the US rights to the iconic Marlboro cigarette brand and has long followed a steady strategy to maximize cash flow from the declining cigarette market. Despite falling sales volumes and reduced consumer demand, the company offsets these declines by regularly increasing cigarette prices.
On August 21, Altria Group, Inc. (NYSE:MO) declared a 3.9% hike in its quarterly dividend. This was the company’s 60th dividend increase in the past 56 years, which makes it one of the best performing stocks. It currently offers a quarterly dividend of $1.06 per share and has a dividend yield of 6.49%, as of September 15.
12. General Dynamics Corporation (NYSE:GD)
YTD Performance as of September 15: 25.4%
General Dynamics Corporation (NYSE:GD) has a strong lineup of defense products, acting as the US government’s main supplier of tanks and heavy land vehicles, while also operating shipyards that build destroyers and nuclear-powered submarines. The company has lagged in performance in recent years for reasons unrelated to its defense operations. However, the stock has surged by over 25% since the start of 2025, which makes it one of the best performing stocks that pay dividends.
General Dynamics Corporation (NYSE:GD) also owns Gulfstream, one of the leading makers of business jets worldwide. That segment struggled for nearly a decade to rebound after the 2008–09 recession, which weighed on overall results and left the company trailing behind peers that are more heavily focused on defense. The company is also a major IT provider for the government, overseeing networks and handling classified projects for the Pentagon, intelligence agencies, and various civil departments.
General Dynamics Corporation (NYSE:GD) has been grabbing investors’ attention because of its solid dividend policy. The company has been growing its payouts for 28 consecutive years. Currently, it offers a quarterly dividend of $1.50 per share and has a dividend yield of 1.84%, as of September 15.
11. JPMorgan Chase & Co. (NYSE:JPM)
YTD Performance as of September 15: 28.3%
JPMorgan Chase & Co. (NYSE:JPM) is one of the largest banks in the US by assets and has a strong history of performing well across different economic conditions. For investors seeking exposure to bank stocks, it’s hard to argue against JPMorgan. The bank consistently delivers some of the best profitability figures in the sector and operates on a massive scale in both consumer and investment banking.
Over the past five years, JPMorgan Chase & Co. (NYSE:JPM) has grown its dividend at an annual rate of 8%, showcasing CEO Jamie Dimon’s disciplined approach to capital allocation. Supported by rising net interest income from higher rates and a strong balance sheet that consistently excels in stress tests, the bank is well-positioned to keep increasing its dividend in any economic climate, making it a solid long-term investment.
In July, JPMorgan Chase & Co. (NYSE:JPM) announced plans to raise its quarterly dividend for Q3 2025 to $1.50 per share and has also approved stock repurchases of up to $50 billion. The company currently pays a quarterly dividend of $1.40 per share and has a dividend yield of 1.81%, as of September 15. JPM is among the best performing stocks as the company has paid regular dividends to shareholders since 2000.
10. AT&T Inc. (NYSE:T)
YTD Performance as of September 15: 29.9%
AT&T Inc. (NYSE:T) has spent years shedding the media and entertainment businesses it once acquired in a failed attempt to become a media conglomerate. With that chapter behind it, the company is now focused squarely on its core operations in wireless and fiber. Since the start of 2025, the stock has surged by nearly 30%.
In the second quarter, AT&T Inc. (NYSE:T) gained 401,000 net postpaid phone subscribers, extending its steady run of growth, while churn stayed at very low levels. Mobility service revenue grew 3.5% year over year. On the fiber side, the company added 243,000 new subscribers and surpassed 30 million customer locations, with fiber revenue climbing 18.9% in the quarter.
AT&T Inc. (NYSE:T) projects more than $16 billion in free cash flow for the year, enough to cover its dividend and fund about $4 billion in share repurchases. Although the quarterly dividend has remained flat at $0.2775 per share for several years, an increase could be on the horizon as cash flow continues to strengthen. The stock supports a dividend yield of 3.75%, as of September 15.
9. Johnson Controls International plc (NYSE:JCI)
YTD Performance as of September 15: 35.2%
Johnson Controls International plc (NYSE:JCI), an American multinational based in Cork, Ireland, specializes in producing fire, HVAC, and security systems for buildings. The stock is up by over 35% since the start of 2025.
In fiscal Q3 2025, Johnson Controls International plc (NYSE:JCI) delivered solid results. Sales rose 3% overall, with organic sales up 6%. Its Systems and Services backlog reached $14.6 billion, reflecting 11% organic growth from the prior year. GAAP income from continuing operations came in at $618 million, while adjusted income from continuing operations totaled $693 million.
Johnson Controls International plc (NYSE:JCI) also maintained a solid cash position, generating $787 million from operating activities. Free cash flow totaled $693 million, with adjusted free cash flow reaching $725 million. During the quarter, it also distributed $243 million in dividends. Due to this cash position, the company was able to pay dividends to shareholders for 137 consecutive years. Currently, it offers a quarterly dividend of $0.40 per share for a dividend yield of 1.49%, as of September 15.
8. Philip Morris International Inc. (NYSE:PM)
YTD Performance as of September 15: 35.6%
Philip Morris International Inc. (NYSE:PM) was created in 2007 when it split from Altria, taking over the same brands, including Marlboro, but operating them in markets outside the US. This has worked to the company’s advantage, as cigarette sales have generally been stronger abroad. In the second quarter, its cigarette sales volume fell 1.5%, but organic revenue from cigarettes still grew by 2%.
Philip Morris International Inc. (NYSE:PM) has surged by nearly 36% since the start of 2025, which makes it one of the best performing stocks in 2025. What has truly fueled the stock’s rise and makes it an appealing buy today is the company’s success in next-generation, smoke-free products such as its IQOS heat-not-burn tobacco sticks and ZYN oral nicotine pouches, the latter acquired through its purchase of Swedish Match.
In addition, Philip Morris International Inc. (NYSE:PM) is a solid dividend stock. The company has been rewarding shareholders with growing dividends for the past 15 years. Currently, it offers a quarterly dividend of $1.35 per share and has a dividend yield of 3.31%, as of September 15.
7. L3Harris Technologies, Inc. (NYSE:LHX)
YTD Performance as of September 15: 35.7%
L3Harris Technologies, Inc. (NYSE:LHX) is an American defense technology company with operations spanning multiple areas within the defense and aerospace sectors. The stock is up by nearly 36% since the start of 2025, which makes it one of the best performing stocks on our list.
In its earnings report, CFO Kenneth L. Bedingfield highlighted that the company achieved a record $8.3 billion in the quarter, resulting in a book-to-bill ratio of 1.5. Revenue came in at $5.4 billion, reflecting solid organic growth of 6%. He noted that the segment operating margin stood at 15.9%, while non-GAAP EPS reached $2.78. Free cash flow totaled $574 million, supported by higher operating income and stronger working capital performance. As a result, free cash flow guidance was lifted to around $2.65 billion, an increase of $200 million.
Looking ahead to 2026, Bedingfield reaffirmed revenue expectations of $23 billion and projected segment operating margin in the low-16% range. He also raised free cash flow guidance to $3 billion, representing a 13% increase compared to the prior year.
L3Harris Technologies, Inc. (NYSE:LHX) has been growing its dividends for 23 consecutive years and currently offers a quarterly dividend of $1.20 per share. As of September 15, the stock has a dividend yield of 1.71%.
6. The Goldman Sachs Group, Inc. (NYSE:GS)
YTD Performance as of September 15: 36.5%
The Goldman Sachs Group, Inc. (NYSE:GS) is a multinational financial institution that provides services in investment banking, securities, and investment management. Its primary clients include institutions, corporations, governments, and high-net-worth individuals. The firm offers services such as strategic advisory, securities trading, transaction execution, and asset management.
Recently, The Goldman Sachs Group, Inc. (NYSE:GS) has concentrated on expanding its Global Banking & Markets division, boosting recurring fee income within Asset & Wealth Management, and keeping expenses under control amid a shifting competitive landscape. Its success depends on factors such as innovation, investment in technology with a strong emphasis on artificial intelligence, adherence to regulations, solid capital reserves, and effective risk management. These measures are designed to improve client service, capture opportunities in trading and advisory, and create more reliable revenue streams.
In addition, The Goldman Sachs Group, Inc. (NYSE:GS) is a strong dividend stock. The company has been making regular dividend payments since 1999. Currently, it offers a quarterly dividend of $4.00 per share and has a dividend yield of 2.04%, as of September 15.
5. The Bank of New York Mellon Corporation (NYSE:BK)
YTD Performance as of September 15: 37.5%
The Bank of New York Mellon Corporation (NYSE:BK) is an American bank holding company. It has a history of more than 240 years and has built a reputation for delivering innovative financial solutions that serve businesses, communities, and individuals worldwide.
During its recent earnings call, management emphasized its disciplined and forward-thinking approach, marked by steady growth, strategic clarity, and a preference for organic expansion over large-scale mergers and acquisitions. This shift underscores The Bank of New York Mellon Corporation (NYSE:BK)’s focus on internal transformation and strengthening its own capabilities.
Examples of this strategy include moving roughly half of its workforce onto a platform-based model, the widespread integration of its Eliza AI tool, and active participation in stablecoin infrastructure, positioning The Bank of New York Mellon Corporation (NYSE:BK) as a credible player in digital assets. Alongside these initiatives, management has maintained tight expense discipline, achieving 500 basis points of positive operating leverage. The company also sustained a strong 92% payout ratio, balancing margin improvements with continued investment in growth.
On July 15, The Bank of New York Mellon Corporation (NYSE:BK) declared a 13% hike in its quarterly dividend to $0.53 per share. Through this increase, the company stretched its dividend growth streak to 15 years. The stock has a dividend yield of 1.99%, as of September 15.
4. Citigroup Inc. (NYSE:C)
YTD Performance as of September 15: 42.2%
Citigroup Inc. (NYSE:C) is an American multinational financial services and investment banking company. The company faced major challenges during the recession from 2007 to 2009, forcing management to implement significant changes. It was a difficult time for both the business and its shareholders.
The stock trades about 80% below the levels seen before the Great Recession. However, it has been performing well in 2025, surging by over 42% since the start of the year.
More recently, Citigroup Inc. (NYSE:C) has shown clear signs of recovery. In the second quarter of 2025, revenue increased by 8% year over year, while net income surged 25%. These improvements are encouraging for investors. Additionally, the bank reported a solid Tier 1 capital ratio of 13.5%, underscoring its financial strength and resilience.
Citigroup Inc. (NYSE:C), one of the best performing stocks, has been paying regular dividends to shareholders for the past 34 years. Currently, the company pays a quarterly dividend of $0.60 per share and has a dividend yield of 2.40%, as recorded on September 15.
3. Broadcom Inc. (NASDAQ:AVGO)
YTD Performance as of September 15: 54.8%
Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company. Macquarie expressed confidence in Broadcom’s long-term growth prospects, starting coverage of the semiconductor giant with an “Outperform” rating. Analyst Arthur Lai set a 12-month price target of $420 per share, implying about 17% upside from the prior Friday’s closing price. The stock has already surged 55% so far this year, which makes it one of the best perfoming stocks to invest in.
Lai noted that Broadcom Inc. (NASDAQ:AVGO) deserves to trade at a premium to its peers, pointing to its strong growth outlook, roughly 34% compound annual dividend growth in recent years, and a management incentive plan designed to support long-term strategy. He emphasized the rapid rise of application-specific integrated circuits (ASICs), which are growing faster than graphics processing units (GPUs). ASICs are more specialized chips, and Broadcom is seen holding a near-monopoly in AI ASIC and cloud networking solutions. According to Lai, global AI ASIC demand is projected to grow at a 72% compound annual rate from 2025 to 2028, with Broadcom expected to capture more than 70% of that market.
Broadcom Inc. (NASDAQ:AVGO)’s software business also adds strength. Following the VMware acquisition, the company’s operating margin improved to 66% from 62%, providing long-term margin stability, stronger free cash flow, and a potential re-rating for the stock.
Broadcom Inc. (NASDAQ:AVGO) has been growing its payouts for 14 consecutive years and currently offers a quarterly dividend of $0.59 per share. As of September 15, the stock has a dividend yield of 0.65%, as of September 15.
2. CVS Health Corporation (NYSE:CVS)
YTD Performance as of September 15: 65.1%
CVS Health Corporation (NYSE:CVS) is an American multinational healthcare company. It has grown far beyond being just a pharmacy chain. Alongside filling prescriptions, the company runs in-store clinics that provide services such as lab tests, health screenings, vaccinations, and basic treatments for minor injuries. The company also owns Aetna, the health insurer it acquired in 2018, which covers about 36 million members, making it the fifth-largest insurer in the U.S.
On the pharmacy side, CVS Health Corporation (NYSE:CVS) holds a dominant 27% share of the nationwide prescription market. The business is performing strongly across the board. In its second-quarter results released on July 31, both revenue and earnings surpassed Wall Street’s expectations. Management also raised its full-year earnings guidance, moving the forecast up from $6.00– $6.20 per share to $6.30– $6.40. The upbeat report fueled investor optimism, driving the stock up 18% in August.
CVS Health Corporation (NYSE:CVS) is also a solid dividend payer, offering regular dividends to shareholders since 1997. Currently, it pays a quarterly dividend of $0.665 per share and has a dividend yield of 3.64%, as of September 15.
1. Oracle Corporation (NYSE:ORCL)
YTD Performance as of September 15: 81.8%
Oracle Corporation (NYSE:ORCL) began as a leader in database management and continues to dominate that field, but in recent years, the company has shifted much of its attention toward expanding its cloud infrastructure business, a move that has significantly boosted revenue.
The surge in demand from AI customers, who rely on Oracle Corporation (NYSE:ORCL) for the capacity to handle training and inference workloads, drove a 55% jump in infrastructure revenue in the latest quarter. The company believes this is only the start, projecting $18 billion in revenue from this segment this year and aiming for $144 billion within the next four years.
By offering both cloud-based and on-premise solutions, Oracle Corporation (NYSE:ORCL) allows clients to move to the cloud at their own pace, ensuring the company maintains a wide and loyal customer base. The company has been rewarding shareholders with regular dividends since 2009. It currently offers a quarterly dividend of $0.50 per share and has a dividend yield of 0.67%, as of September 15.
While we acknowledge the potential of ORCL 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 ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.
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