In this article, we will take a look at some of the best-performing dividend stocks to invest in.
2025 has felt like another strong year for stocks. The S&P 500 is up close to 18% so far. If nothing unexpected hits before year-end, this would be the third year in a row with double-digit gains for the broader US market.
A lot of that optimism comes back to earnings. Wall Street expects profits to keep growing into 2026, and analysts see S&P 500 earnings rising about 15.5% next year, up from an estimated 13.2% in 2025 and 12.1% in 2024, according to LSEG. That kind of steady progression matters when investors think about staying invested.
The economy also looks to be holding up. Goldman Sachs is forecasting 2.6% US GDP growth in 2026, along with 2.8% growth globally. Those numbers are slightly ahead of consensus. Even so, steady growth is what tends to support stock prices. Any positive momentum next year is probably a good sign for equities, says Ryan Detrick, chief market strategist at The Carson Group.
Dividend stocks were a quieter part of the market this year. The Dividend Aristocrat index, which follows companies with at least 25 consecutive years of dividend growth, is up a little more than 6%.
That said, dividends have not fallen out of favor. Many investors still rely on them for income and consistency, especially when market leadership rotates. That long-term appeal continues to keep dividend stocks in focus.
Given this, we will take a look at some of the best-performing dividend stocks in 2025.
Our Methodology:
For this article, we started by reviewing the companies that have delivered the strongest returns so far in 2025. From that group, we narrowed the focus to dividend-paying names and selected 20 stocks with the highest year-to-date gains. Some of these companies offer relatively modest yields. The selection is driven purely by YTD performance, not dividend size or payout levels. The stocks are ranked according to their YTD returns as of the close of December 30.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
20. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
YTD Return as of December 30: 58.08%
Dividend Yield as of December 30: 1.56%
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is among the best-performing stocks that offer dividends.
On December 16, Stifel analyst J. Bruce Chan raised the firm’s price target on C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to $184 from $155 and kept a Buy rating on the shares. Looking ahead to 2026, the firm expects transport stocks to be shaped by supply rationalization and cost-focused self-help. Chan said he continues to position “more conservatively in high-quality names that preserve or even expand share in a mild pullback.”
That view aligns with the company’s performance. In the third quarter of 2025, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) reported a profit beat, standing out in a logistics sector that has largely struggled. A big reason has been its use of AI to streamline operations. The company has been deploying artificial intelligence to automate tasks like generating shipping quotes, scheduling pickups and deliveries, and tracking shipments. Those tools have helped speed up execution and reduce reliance on manual processes, at a time when efficiency matters more than ever.
Operational gains showed up in the numbers. C.H. Robinson grew shipment volumes across both its truckload and less-than-truckload businesses. That supported a 1.1% increase in revenue for its North American Surface Transportation segment. The broader backdrop remains challenging as US freight volumes have been soft, and excess capacity has continued to pressure rates. Many logistics firms have responded by cutting costs and running tighter operations.
Evercore ISI analyst Jonathan Chappell said the shift toward agentic AI, layered on top of earlier gains from generative AI, gives management confidence in visible cost reductions and further margin improvement, even without help from a stronger market.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a US-based transportation company operating in third-party logistics. It provides freight transportation services across multiple modes.
19. RTX Corporation (NYSE:RTX)
YTD Return as of December 30: 58.84%
Dividend Yield as of December 30: 1.48%
RTX Corporation (NYSE:RTX) is among the best-performing stocks that offer dividends.
On December 19, JPMorgan analyst Seth Seifman raised the firm’s price target on RTX Corporation (NYSE:RTX) to $200 from $195 and kept an Overweight rating on the shares as part of its aerospace and defense outlook for 2026. The outlook for the sector remains mostly positive into 2026, the analyst said in a research note. In aerospace, JPMorgan expects strong demand and a gradual increase in supply to support “visible growth.” The defense picture is “more nuanced,” the firm added.
Operational momentum continues to show up in contracts. On December 2, RTX said it secured a $1.6 billion sustainment contract tied to its F135 engines, which power multiple variants of Lockheed Martin’s F-35 fighter jets. The work includes depot-level maintenance and repair, engineering support, and the replenishment of spare parts for US and international customers. Pratt & Whitney, RTX’s engine business, has now delivered more than 1,300 F135 engines to the U.S. and 20 allied nations. In August, the company also landed a separate $2.8 billion contract for F135 engine production, reinforcing the long runway tied to the program.
Financial performance has followed the same direction. In the third quarter of 2025, RTX Corporation (NYSE:RTX) raised its full-year adjusted earnings outlook to a range of $6.10 to $6.20, up from its prior guidance of $5.80 to $5.95. Adjusted sales expectations moved higher as well. The company lifted its forecast to $86.5 billion to $87 billion, compared with an earlier range of $84.75 billion to $85.5 billion.
Management pointed to its ability to manage tariff impacts and broader macro uncertainty as a positive signal for the business. Earlier in July, RTX had estimated a $500 million hit from tariff-related costs and reduced its outlook at the time, making the later revisions stand out.
RTX Corporation (NYSE:RTX) operates across aerospace and defense, supplying advanced systems and services to commercial, military, and government customers around the world.
18. HCA Healthcare, Inc. (NYSE:HCA)
YTD Return as of December 30: 58.85%
Dividend Yield as of December 30: 0.61%
HCA Healthcare, Inc. (NYSE:HCA) is among the best-performing stocks in 2025.
Mizuho lifted its price target on HCA Healthcare, Inc. (NYSE:HCA) to $520 from $505 on December 18 and kept an Outperform rating as part of its 2026 outlook for managed care and health facilities. The firm sees 2026 as a “pivotal year” for managed care. After roughly three years of pressure from a negative underwriting cycle, margins are expected to start improving across commercial, Medicaid, and Medicare plans. That shift is why Mizuho is feeling more constructive about the sector heading into 2026.
The demand backdrop is already helping. In the third quarter, HCA Healthcare, Inc. (NYSE:HCA) reported a 2.1% year-over-year increase in same-facility admissions. At the same time, better reimbursement from insurers pushed same-facility revenue per equivalent admission up 6.6% to $18,390. Those gains reflect both higher utilization and improved pricing.
These trends are not short-lived. The US population is aging, and that reality continues to reshape healthcare demand. By 2035, people aged 65 and older are expected to outnumber those 18 and younger for the first time. That shift alone points to a sustained need for hospital services, acute care, and specialized treatment over many years.HCA has also been deliberate in positioning itself to benefit from this change. Its large and diversified network of facilities, combined with ongoing investments in technology, has helped improve patient care and operational efficiency. That strategy has translated into steady market share gains, moving from 24% in 2012 to 27% by 2022.
Management now aims to reach 29% market share by 2030, with room to keep expanding beyond that. HCA appears to have momentum on its side.
17. Applied Materials, Inc. (NASDAQ:AMAT)
YTD Return as of December 30: 59.4%
Dividend Yield as of December 30: 0.71%
Applied Materials, Inc. (NASDAQ:AMAT) is among the best-performing stocks that pay dividends.
On December 18, B. Riley raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) to $305 from $270 and kept a Buy rating on the stock. In a research note, the analyst pointed to the company’s broad exposure across deposition, etch, and chemical mechanical planarization. That range of capabilities places Applied Materials in a strong position to benefit from rising investment in HBM and advanced DRAM capacity.
Applied Materials, Inc. (NASDAQ:AMAT) is the world’s largest supplier of semiconductor manufacturing equipment. Its tools sit at the core of the chipmaking process, supporting advanced logic, memory, and display technologies. That central role has tied the company closely to the ongoing AI and data center build-out. When chipmakers expand, AMAT is usually part of the story.
Several factors helped explain the move in the stock. Demand linked to AI continues to rise, lifting spending on advanced memory and logic chips. That demand is showing up in results as the company posted record revenue and non-GAAP EPS for fiscal 2025, a milestone that stood out to investors. Applied Materials also rolled out new semiconductor manufacturing systems and advanced packaging tools during the year, reinforcing its technology pipeline. At the same time, it held onto its leadership position in the wafer fabrication equipment market, an area where scale and execution matter.
There were headwinds as well. US export restrictions limited access to the Chinese market, which remains an important region for semiconductor equipment demand. Even with that constraint, Applied Materials, Inc. (NASDAQ:AMAT)’s global footprint and exposure to leading-edge technologies continued to support the broader investment case.
16. Caterpillar Inc. (NYSE:CAT)
YTD Return as of December 30: 60.8%
Dividend Yield as of December 30: 1.05%
Caterpillar Inc. (NYSE:CAT) is among the best-performing stocks to buy.
Power-hungry AI projects have turned into a clear tailwind for Caterpillar Inc. (NYSE:CAT). The company sells engines and generators to a wide range of customers, and that side of the business is getting more attention. For decades, Caterpillar built much of its roughly $65 billion operation around massive yellow dump trucks, bulldozers, and other heavy equipment used in mining and construction. That mix is starting to change. The power and energy unit is now Caterpillar’s fastest-growing segment. Demand is rising as data center operators invest heavily to support AI workloads.
Management expects this business to help lift annual sales growth to a 5%–7% range through 2030. That compares with about 4% growth in recent years. Investors have responded positively, pushing the stock into the ranks of the top performers on the Dow this year. To meet demand, Caterpillar Inc. (NYSE:CAT) is stepping up spending in a way it hasn’t done in about 15 years. The company is investing $725 million at its Lafayette, Indiana, plant to increase production of piston-driven engines used in generators. It is also working toward more than doubling turbine engine capacity by 2030. This marks a noticeable shift. In recent years, CAT closed facilities and leaned hard into cost controls to lift margins. Now the focus is on expanding capacity where demand is strongest.
Caterpillar Inc. (NYSE:CAT) and other generator makers have also benefited from the broader enthusiasm around AI-related stocks. Caterpillar shares are up nearly 61% so far this year, more than three times the gain of the S&P 500.
15. Jabil Inc. (NYSE:JBL)
YTD Return as of December 30: 63.6%
Dividend Yield as of December 30: 0.14%
Jabil Inc. (NYSE:JBL) is one of the best-performing stocks to buy in 2025.
On December 18, BofA raised its price target on Jabil Inc. (NYSE:JBL) to $265 from $262 and kept a Buy rating on the stock. The move followed what the firm described as a “strong” fiscal Q1, along with higher FY26 revenue and EPS guidance that came in above both BofA’s and the Street’s estimates. The analyst noted that momentum in existing programs and a growing pipeline of potential AI-related projects leave room for upside, calling FY26 guidance “conservative.”
A day earlier, on December 17, Jabil forecast full-year revenue and profit above Wall Street expectations. The outlook reflected rising demand tied to AI-driven data center spending and pushed the shares up more than 5.8% in premarket trading. The company expects fiscal 2026 revenue of $32.4 billion. Analysts were looking for about $31.52 billion, based on LSEG data. That gap caught attention, especially in a market where guidance matters as much as results. Investment in data center infrastructure continues to build as companies expand computing capacity to support AI technologies. That trend has worked in Jabil’s favor. The company also beat expectations in the first quarter, reinforcing confidence in its execution.
Jabil Inc. (NYSE:JBL) operates as a global engineering, design, manufacturing, and supply chain partner. It works with major brands, including Apple, helping bring products from early concept through production across sectors such as healthcare, automotive, technology, and aerospace.
14. Citigroup Inc. (NYSE:C)
YTD Return as of December 30: 67.1%
Dividend Yield as of December 30: 2.05%
Citigroup Inc. (NYSE:C) is among the best-performing dividend stocks to invest in.
On December 30, JPMorgan kept an Overweight rating on Citigroup Inc. (NYSE:C) after the bank said it plans to sell its remaining operations in Russia. The company expects to take a pre-tax loss of $1.2 billion in the fourth quarter, tied to the exit. Even so, JPMorgan sees a modest lift to Citi’s capital ratio once the sale is complete, driven by a reduction in risk-weighted assets. For regulatory capital purposes, Russia carries the highest country risk classification of seven, the analyst noted in a research report.
Recent performance at Citi has been stronger than many investors expected. In the third quarter of 2025, revenue rose 9% from a year earlier. Earnings came in at $1.86 per share, up from $1.51 in the same quarter of 2024.
Adjusting for one-time items linked to an asset divestiture, earnings would have been $2.24 per share. That adjustment makes the year-over-year improvement stand out even more. Return on average tangible common equity also moved higher, climbing by a full percentage point from the prior year.
Citigroup Inc. (NYSE:C) operates as a global financial services firm, offering banking, credit, investment, and wealth management services to individuals, businesses, governments, and institutions around the world.
13. Albemarle Corporation (NYSE:ALB)
YTD Return as of December 30: 67.9%
Dividend Yield as of December 30: 1.14%
Albemarle Corporation (NYSE:ALB) is among the best-performing stocks in 2025.
On December 18, RBC Capital raised its price target on Albemarle Corporation (NYSE:ALB) to $159 from $120 and kept an Outperform rating. The change came as part of a broader 2026 outlook for Chemicals and Packaging. In a research note, the analyst said lithium markets are starting to stand out, with demand growth tied to energy storage systems, suggesting global supply and demand could balance sooner than many investors expected.
That view has been gaining traction. Earlier this month, Morgan Stanley upgraded Albemarle to an Equal-Weight rating. UBS also moved more aggressively, raising the stock to a Buy and pointing to rising energy storage demand and several years of slower capacity growth in Western markets, a mix it believes could push lithium into a deficit by 2026.
“We expect lithium prices to move up through the year which should be a positive driver for ALB stock,” UBS analyst Joshua Spector wrote. His $185 price target implies about 28% upside from Albemarle’s December 29 close. That stands in sharp contrast to his earlier $107 target, which had implied 26% downside.
Albemarle Corporation (NYSE:ALB) operates as a global specialty chemicals company. It is best known as the world’s largest lithium producer, supplying a critical material for electric vehicle batteries. Beyond lithium, the company also has meaningful exposure to bromine and catalyst markets, adding some diversification to its earnings profile.
12. NRG Energy, Inc. (NYSE:NRG)
YTD Return as of December 30: 72.8%
Dividend Yield as of December 30: 1.10%
NRG Energy, Inc. (NYSE:NRG) is among the best-performing stocks to invest in.
NRG Energy, Inc. (NYSE:NRG) is well-positioned to capture rising electricity demand in Texas. A growing share of that demand is coming from data centers, which need steady, large-scale power to run AI models and cloud computing systems. That shift is starting to show up clearly in the numbers.
Earlier in November, the company said it expects standalone core profit for full-year 2026 to come in above its updated 2025 range. NRG Energy, Inc. (NYSE:NRG) now sees 2026 core profit between $3.93 billion and $4.18 billion. That compares with revised 2025 guidance of $3.88 billion to $4.03 billion, driven by stronger power demand.
Late in the quarter, NRG secured a $562 million low-interest loan from the Texas Public Utility Commission. The funding will support construction of the 689 MW Cedar Bayou power plant, with financing that began in September 2025 and runs through 2028. The company also expanded its data center footprint. During the quarter, it signed two new long-term retail power agreements totaling 150 MW at PJM sites. With those deals, NRG’s total data center-related agreements now stand at 445 MW across the ERCOT and PJM markets. New facilities tied to these contracts are expected to come online between 2028 and 2032.
Capital returns remain part of the story as NRG Energy, Inc. (NYSE:NRG)’s board approved a new $3 billion share buyback program running through 2028 and authorized an 8% dividend increase to $1.90 per share. Both moves align with the company’s stated long-term growth target of 7%–9%. Management also reaffirmed its current-year profit outlook, maintaining guidance of $7.55 to $8.15 per share. In Texas, performance continues to improve. Adjusted core profit in the utility’s Texas business jumped 38% year over year to $807 million.
NRG Energy, Inc. (NYSE:NRG) operates as a major US energy provider, generating and selling electricity and natural gas to homes and businesses through a diversified portfolio of power sources.
11. Cardinal Health, Inc. (NYSE:CAH)
YTD Return as of December 30: 76.6%
Dividend Yield as of December 30: 0.99%
Cardinal Health, Inc. (NYSE:CAH) is among the best-performing dividend stocks in 2025.
Cardinal Health, Inc. (NYSE:CAH)’s market-beating performance reflects a business that has changed direction and executed well. By shifting more of its focus toward higher-margin areas such as specialty pharmaceuticals and managed services, earnings growth has picked up in a meaningful way. Sell-side forecasts suggest that momentum should continue, with estimated earnings growth of 19.3% in FY 2026 and 12.6% in FY 2027.
That earnings lift has also changed the dividend picture. The payout ratio now sits at a modest 30.6%, leaving room for flexibility. While nothing is guaranteed, the company has the option to return a larger share of profits to shareholders if it chooses. Drug distributors more broadly have benefited from rising sales of specialty medicines. These treatments target complex conditions like rheumatoid arthritis and cancer and tend to carry higher margins. At the same time, distributors have seen support from biosimilars, lower-cost versions of complex biotech drugs, even as traditional generic drug prices face pressure from intense competition.
Cardinal Health, Inc. (NYSE:CAH) recently raised its outlook for fiscal 2026. It now expects adjusted earnings per share between $9.65 and $9.85, up from a prior range of $9.30 to $9.50. Management said the 35-cent increase reflects a strong first-quarter performance. The forecast also assumes contributions from the pending acquisition of Solaris Health, which is expected to close in early November.
Cardinal Health, Inc. (NYSE:CAH) operates as a global healthcare company, distributing pharmaceuticals and medical products, manufacturing medical supplies, and providing a range of healthcare services.
10. CVS Health Corporation (NYSE:CVS)
YTD Return as of December 30: 80.5%
Dividend Yield as of December 30: 3.33%
CVS Health Corporation (NYSE:CVS) is among the best-performing stocks that offer dividends.
The stock dropped 43% in 2024, then swung the other way with an 80.5% gain this year. Even after that run, Wall Street still sees room to move. The average analyst price target points to another 19% upside.Earlier in December, JPMorgan named CVS Health Corporation (NYSE:CVS) as a top pick in health care services. “We remain positive on CVS post-Investor Day and heading into 2026, with the company providing raised/better than expected 2025/2026 guidance while laying out expectations for adj EPS growth at a mid-teens CAGR through 2028,” the bank wrote.
“We were also encouraged to hear CVS frame a return to normalized Caremark growth in 2027, highlighting the progress in moving clients to an acquisition-based model and see a healthy runway for growth with management providing opportunities to outperform.” Analyst Lisa Gill set a $101 price target, which sits about 26% above where CVS shares closed on December 29. That target reflects confidence that recent operational changes are starting to show through in results.
Last year, CVS Health Corporation (NYSE:CVS) outlined a plan to deliver at least $2 billion in cost savings over several years. The effort included store closures and workforce reductions. Those steps appear to be gaining traction. Financial performance has improved this year, and momentum carried into the third quarter. Revenue in the quarter reached a company record of $102.9 billion. That figure topped expectations and marked a 7.8% increase from the third quarter of 2024.
CVS Health Corporation (NYSE:CVS) operates as a healthcare innovation company with a broad footprint. Its assets span retail pharmacies and clinics, prescription benefits management, and infusion services, giving it multiple levers for growth as execution improves.
9. Dollar General Corporation (NYSE:DG)
YTD Return as of December 30: 81.2%
Dividend Yield as of December 30: 1.74%
Dollar General Corporation (NYSE:DG) is among the best-performing dividend stocks of 2025.
On December 19, Wells Fargo raised its price target on Dollar General Corporation (NYSE:DG) to $125 from $115 and kept an Equal Weight rating. The firm sees a mixed setup for 2026 across the group, but not without opportunity. Wells is constructive on broadlines and food service, notes that fiscal and tariff-related trade activity is already underway, and believes earnings momentum can carry through the first half of EPS revisions. At the same time, it flags a more challenging backdrop for food retail, where company-specific factors will matter more than broad trends.
A few days earlier, on December 15, JPMorgan upgraded Dollar General to Overweight from Neutral and lifted its price target to $166 from $128. After meeting with management, the firm said Dollar General is “back on offense.”
That shift in tone followed a solid earnings update. On December 4, Dollar General Corporation (NYSE:DG) raised its full-year profit outlook after beating third-quarter estimates. Management pointed to steady traffic from value-focused shoppers across income levels, as households look to manage spending in an uncertain economy. Cost controls also played a role. Similar patterns have been noted across the sector, including at larger peers like Walmart.
Pricing discipline remains central to the strategy. Dollar General continues to keep roughly 25% of its assortment priced at or below $1. That approach resonates with its core customer base, typically households earning under $35,000 a year, and has helped position the chain as a reliable destination for everyday needs.
Dollar General Corporation (NYSE:DG) operates as a discount retailer, offering a broad mix of consumables, seasonal merchandise, home products, and apparel.
8. Howmet Aerospace Inc. (NYSE:HWM)
YTD Return as of December 30: 87.6%
Dividend Yield as of December 30: 0.23%
Howmet Aerospace Inc. (NYSE:HWM) is among the best-performing stocks of 2025.
On December 22, Jefferies analyst Sheila Kahyaoglu said Howmet Aerospace Inc. (NYSE:HWM) is acquiring Consolidated Aerospace Manufacturing from Stanley Black & Decker in an all-cash deal valued at $1.8 billion. Jefferies assumes the transaction closes around mid-Q2, with roughly half of the purchase funded through new debt. Under those assumptions, the firm estimates the deal could add about 2% to 2026 EPS and more than 3% in the first full year after closing. Management expects Consolidated Aerospace Manufacturing to generate FY26 revenue between $485 million and $495 million. That compares with Stanley Black & Decker’s outlook of $405 million to $415 million in FY25 sales. Jefferies notes the gap implies close to 20% year-over-year growth. The firm maintains a Buy rating on Howmet and a $245 price target.
Howmet Aerospace Inc. (NYSE:HWM) confirmed the transaction the same day, saying it will buy aircraft fastener maker Consolidated Aerospace Manufacturing for about $1.8 billion in cash.
Earlier, the company also lifted its 2025 revenue forecast to a range of $8.18 billion to $8.2 billion, up from its prior outlook of $8.08 billion to $8.18 billion. Profit expectations also moved higher. Howmet now sees adjusted earnings of $3.66 to $3.68 per share, compared with $3.56 to $3.64 previously. For the third quarter, Howmet Aerospace Inc. (NYSE:HWM) reported adjusted earnings of $0.95 per share, ahead of Wall Street’s $0.91 estimate. Revenue reached $2.09 billion, topping the $2.04 billion analysts were expecting.
Howmet Aerospace Inc. (NYSE:HWM) produces advanced, engineered components used across the aerospace, defense, and commercial transportation markets.
7. Corning Incorporated (NYSE:GLW)
YTD Return as of December 30: 90.9%
Dividend Yield as of December 30: 1.26%
Corning Incorporated (NYSE:GLW) is among the best-performing stocks of 2025.
On December 16, Morgan Stanley analyst Meta Marshall raised the firm’s price target on Corning Incorporated (NYSE:GLW) to $98 from $82 and kept an Equal Weight rating.
Marshall said the AI trade broadened beyond semiconductor names in 2025, lifting infrastructure companies, especially those tied to optical technology. That momentum, in her view, can extend into the first half of 2026, with optical remaining a key beneficiary. Looking further out, she cautioned that investors will “need to get more selective for full year returns given multiples,” according to her year-ahead note.
Corning Incorporated (NYSE:GLW) sits at the center of that shift. The company supplies fiber optic cables that move data much faster and across longer distances than traditional copper. That capability matters right now. Data center operators are pushing to get more speed and efficiency out of AI-driven systems, and demand for advanced optical solutions reflects that pressure.
The numbers back it up. Corning reported $4.27 billion in total revenue for the third quarter of 2025, ending September 30, up 14% from a year earlier. The optical communications segment delivered $1.65 billion of that total, a 33% increase year over year.
Within that segment, enterprise demand stood out. Revenue tied to enterprise optical products jumped 58%, driven largely by AI-related investment. That kind of growth is difficult to ignore and explains why optical infrastructure has moved higher on investor priority lists.
Corning Incorporated (NYSE:GLW) is an American multinational technology company focused on glass, ceramics, and related materials used across industrial and technology markets.
6. KLA Corporation (NASDAQ:KLAC)
YTD Return as of December 30: 96.8%
Dividend Yield as of December 30: 0.61%
KLA Corporation (NASDAQ:KLAC) is among the best-performing dividend stocks of 2025.
The stock is up nearly 97% since the start of 2025. Analyst sentiment has followed that move. Jefferies upgraded the shares to Buy and lifted its price target to $1,500. Oppenheimer kept an Outperform rating and set a $1,400 target. Those calls helped reinforce momentum and pushed investor confidence higher.
The broader backdrop has also helped. SEMI expects semiconductor equipment sales to hit a record in 2025, driven largely by AI-related investment. Those macro tailwinds fueled a rally across the sector, lifting many equipment names at the same time.
Earlier in October, KLA Corporation (NASDAQ:KLAC) forecast second-quarter revenue above Wall Street estimates. Management pointed to strong AI-linked demand for its chipmaking tools, while also calling out growing risks tied to its China exposure amid ongoing US–China trade tensions.
Demand for advanced chips that support generative AI workloads has continued to climb. That trend benefits niche suppliers like KLA, whose equipment is used inside semiconductor manufacturing facilities, commonly known as fabs.
Trade policy remains a clear headwind. KLA expects US export restrictions to reduce sales by $300M to $350M over the next five quarters. The company said this reflects “additional market access loss related to certain customers in China resulting from extended export controls from the U.S. government,” according to a letter to shareholders.
KLA Corporation (NASDAQ:KLAC) is based in Milpitas, California. The company designs wafer fab equipment and supplies process control and yield management systems used across the semiconductor industry.
5. Tapestry, Inc. (NYSE:TPR)
YTD Return as of December 30: 96.9%
Dividend Yield as of December 30: 1.24%
Tapestry, Inc. (NYSE:TPR) is among the best-performing dividend stocks in 2025.
On December 17, Telsey Advisory raised its price target on Tapestry, Inc. (NYSE:TPR) to $150 from $125 and kept an Outperform rating. The call came as the firm shared its outlook and top picks for 2026. Telsey named Tapestry as a leading idea across Specialty, Luxury, and Beauty, pointing to how the company is navigating tariffs and continuing to operate from a position of strength.
That optimism sits alongside a more cautious message from management earlier in November. At the time, Tapestry, Inc. (NYSE:TPR) lifted its full-year targets but guided holiday-quarter earnings below expectations. Like many retailers, the company is moving carefully as tariffs and uneven consumer spending cloud the outlook during a critical shopping season.
On an earnings call, CFO Scott Roe said the company is deliberately keeping expectations in check. He noted that tariffs could create some profit volatility throughout the year. Tapestry, Inc. (NYSE:TPR) projected second-quarter earnings of about $2.15 per share, slightly below the $2.17 consensus estimate, according to LSEG data. Tariffs remain a pressure point. Tapestry sources products from India, Vietnam, and Cambodia, all affected by higher US tariffs. Even so, the company has avoided raising prices. CEO Joanne Crevoiserat told Reuters that strong demand for higher-margin Tabby bags, priced up to $750, has helped absorb those costs.
The company is also leaning more heavily into international growth. Sales in China rebounded to 19% during the quarter, while Europe recorded a 32% increase, showing renewed traction outside North America.
Tapestry, Inc. (NYSE:TPR) is a global luxury fashion holding company that owns brands including Coach, Kate Spade New York, and Stuart Weitzman. It sells handbags, footwear, apparel, and accessories through retail stores, e-commerce platforms, and wholesale channels.
4. Comfort Systems USA, Inc. (NYSE:FIX)
YTD Return as of December 30: 122.7%
Dividend Yield as of December 30: 0.25%
Comfort Systems USA, Inc. (NYSE:FIX) is among the best-performing dividend stocks of 2025.
Comfort Systems’ third quarter stood out in a way that is hard to miss. Same-store revenue rose 33%. Margins moved higher. Earnings per share more than doubled from a year ago. Free cash flow for the quarter came in above $500 million, a level that reshapes expectations for the business.
CFO William George said revenue reached $2.5 billion, an increase of $639 million from last year. The electric segment drove much of that growth, with revenue up 71%, while mechanical revenue climbed 26%. He also noted that the company crossed an important milestone, generating more than $400 million in quarterly EBITDA for the first time. That figure was up 74% from the same quarter a year earlier.
The results reflect where the company has been focusing its efforts. Comfort Systems USA, Inc. (NYSE:FIX) works across mechanical, electrical, and plumbing services for commercial, institutional, and industrial customers. Its scope runs from designing and installing HVAC systems to maintenance work, electrical projects, and modular or off-site construction. Many of its projects involve large data centers, hospitals, schools, and manufacturing plants.
Over the past few years, management has emphasized a small number of priorities and stayed consistent. Operational execution remains a core focus. Building and keeping a skilled workforce has become just as critical. The company continues to adopt new construction methods, including modular building, to improve efficiency on complex projects.
Growth has also come from diversification. Comfort Systems USA, Inc. (NYSE:FIX) has expanded its exposure to faster-growing end markets like advanced technology and healthcare. Acquisitions remain part of the playbook, but they are approached with discipline, aimed at adding capabilities and reach without sacrificing margins or control.
3. Newmont Corporation (NYSE:NEM)
YTD Return as of December 30: 166.8%
Dividend Yield as of December 30: 0.98%
Newmont Corporation (NYSE:NEM) is one of the best-performing dividend stocks of 2025.
On December 29, Raymond James raised its price target on Newmont Corporation (NYSE:NEM) to $111 from $99 and kept an Outperform rating. The move followed updated forecasts for fourth-quarter gold prices.
Newmont’s stock has climbed 167% year to date, driven largely by the sharp rise in gold. As uncertainty around the global economy and interest rates has grown, investors have leaned into safe-haven assets. Gold prices pushed to record highs, and Newmont has been one of the clearest beneficiaries of that shift.
Outlooks for next year point to continued momentum. According to S&P Global, Visible Alpha consensus estimates show Newmont Corporation (NYSE:NEM)’s revenue rising 17% in 2025 to $21.8 billion, extending the recovery that began last year. Gold remains the main driver. Sales from the metal are expected to increase 19% to $18.8 billion, supported by a 43% jump in the average realized gold price to $3,432 per ounce.
Newmont Corporation (NYSE:NEM) is the world’s largest gold producer, with operations that also generate copper, silver, zinc, and lead. Alongside scale, the company emphasizes responsible and sustainable exploration, mining, and processing across its portfolio.
2. Micron Technology, Inc. (NASDAQ:MU)
YTD Return as of December 30: 238.10%
Dividend Yield as of December 30: 0.16%
Micron Technology, Inc. (NASDAQ:MU) is among the best-performing dividend stocks of 2025.
Micron Technology operates in a corner of the tech market that rarely gets the spotlight. AI discussions usually center on software models or data center scale. The memory chips that make those systems work tend to get overlooked, even as shortages become harder to ignore. That disconnect helps explain the stock’s move.
Micron Technology, Inc. (NASDAQ:MU) shares are up about 238% in 2026, more than tripling in a short period of time. The rally looks dramatic, but it tracks what is happening underneath the surface. Demand for memory has tightened, pricing has improved, and the company’s revenue and earnings have followed.
The latest earnings report added fuel. On December 17, the company released fiscal 2026 first-quarter results for the period ending November 27. The numbers pointed to a strong start to the year and reinforced the idea that this cycle still has room to run. One detail stood out in particular. Micron and its peers are preparing for sustained demand, not a brief spike.
That shows up clearly in spending plans. Micron Technology, Inc. (NASDAQ:MU) lifted its fiscal 2026 capital expenditure forecast to $20 billion, up from $18 billion before. To put that in perspective, the company spent $13.8 billion in the prior fiscal year. Companies do not make that kind of jump unless they see demand sticking around. The current supply and demand setup appears durable into 2026. That backdrop continues to support the company’s business and, by extension, the stock.
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products, primarily DRAM and NAND flash. Its chips are used across computers, smartphones, data centers, automotive systems, and industrial applications.
1. Western Digital Corporation (NASDAQ:WDC)
YTD Return as of December 30: 280.4%
Dividend Yield as of December 30: 0.28%
Western Digital Corporation (NASDAQ:WDC) is among the best-performing dividend stocks.
According to a report by CNBC, Morgan Stanley analyst Erik Woodring sees several near-term catalysts lining up for Western Digital Corporation (NASDAQ:WDC). He pointed to upcoming events such as the company’s Innovation Bazaar, Investor Day, and its next earnings release early next year as potential drivers for the stock. From Woodring’s perspective, the hard disk drive market remains one of the strongest areas within the tech hardware space he covers. Customer demand has continued to improve, not weaken, which stands out in a sector that often moves in cycles. That backdrop led Morgan Stanley to raise its price target on Western Digital to $228 from $188, reflecting the company’s strong exposure to cloud capital spending. Woodring also reiterated that Western Digital remains the firm’s top pick, citing a rare mix of healthy end markets, solid pricing power, and multiple near-term catalysts. The stock’s performance backs up that view. Shares have surged more than 280% in 2025, effectively quadrupling over the year.
While Western Digital Corporation (NASDAQ:WDC) does produce solid-state drives that rely on chips to store data, the company is best known for its traditional hard disk drives. These products use spinning disks and are designed to store massive amounts of data, often measured in terabytes, making them well-suited for large-scale data center use.
That focus is showing up in the numbers. In the most recent quarter, revenue climbed 27% to $2.82 billion. Management has been clear about where margins can improve. Selling higher-capacity storage into data centers tends to be more profitable, especially as AI-focused customers demand larger and more expensive drives to handle growing workloads.
Looking ahead, revenue is expected to rise about 23% in fiscal 2026. Growth is projected to slow to around 13% in 2027, though that still reflects expansion rather than contraction. The company’s structure also changed earlier this year. In February, Western Digital spun off its flash memory business into Sandisk. The standalone company now carries a market value of roughly $35 billion, which is more than half of Western Digital’s own valuation.
Western Digital Corporation (NASDAQ:WDC) develops and supplies data storage devices and solutions. Its hard disk drive products serve a wide range of customers, from individual users and small offices to large enterprises and public cloud providers.
While we acknowledge the potential of WDC 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 WDC and that has 100x upside potential, check out our report about this cheapest AI stock.
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