Top 10 Dividend Stocks to Buy in 2025 

Both beginning and seasoned investors can be overwhelmed by the options when looking for which stocks to buy. To narrow it down, you may want to consider dividend stocks. These stocks generate passive income by paying out a portion of the company’s profits to investors on a regular schedule. If the idea of expanding your portfolio while building a new income source sounds right for you, dividend stocks can be an exciting area to explore.

Let’s take a look at the top 10 dividend stocks to buy in 2025 and how each of them stacks up against some common factors investors might consider. Whether you're looking for stable returns or exploring new ways to grow your wealth, we’ll go over the details you need to decide whether dividend stocks are right for you and which one(s) to explore further.

Name	Ticker	Last price   The last publicly stated price for one share of an investment, updated every approximately 20 minutes during market hours (usually business days between 9:30 a.m. and 4:00 p.m. ET).	Today   This is how much an investment's price has changed over the last day of active trading. For example, if an investment's price was $10 yesterday, and today it rose to $11, you'd see a 1 day change of 10%.	YTD   This is the performance of the investments since the start of the year, updated approximately every 20 minutes during market hours (usually business days between 9:30 a.m. and 4:00 p.m. ET).
Apple	AAPL	$277.55	0.0%	14.32% (1Y)
Johnson & Johnson	JNJ	$207.56	0.0%	47.5% (1Y)
Procter & Gamble	PG	$148.25	0.0%	-8.24% (1Y)
Microsoft	MSFT	$485.50	0.0%	16.64% (1Y)
The Coca-Cola Company	KO	$72.88	0.0%	20.48% (1Y)
Chevron	CVX	$149.51	0.0%	5.47% (1Y)
Realty Income Corp	O	$57.14	0.0%	14.99% (1Y)
Visa	V	$333.79	0.0%	6.69% (1Y)
Abbvie	ABBV	$227.66	0.0%	32.25% (1Y)
McDonald's	MCD	$312.40	0.0%	8.71% (1Y)

Apple

YTD:

14.32% (1Y)

Last price: $277.55

Johnson & Johnson

YTD:

47.5% (1Y)

Last price: $207.56

Procter & Gamble

YTD:

-8.24% (1Y)

Last price: $148.25

Microsoft

YTD:

16.64% (1Y)

Last price: $485.50

The Coca-Cola Company

YTD:

20.48% (1Y)

Last price: $72.88

Chevron

YTD:

5.47% (1Y)

Last price: $149.51

Realty Income Corp

YTD:

14.99% (1Y)

Last price: $57.14

Visa

YTD:

6.69% (1Y)

Last price: $333.79

Abbvie

YTD:

32.25% (1Y)

Last price: $227.66

McDonald's

YTD:

8.71% (1Y)

Last price: $312.40

What are dividend stocks? 

Dividend stocks are shares of companies that regularly distribute a portion of their earnings to shareholders in the form of dividends. This strategy allows companies to maintain shareholder morale, demonstrate the health of the business, and attract new investors. In turn, investors enjoy a steady stream of income, complementing potential gains made through increases in the stock's value. Just by remaining an investor, you are eligible to receive and pocket these distributions.

These stocks might be particularly appealing if you are an income-focused investor—one who is focused on earning liquid cash from their portfolio. Dividend stocks can also play an important part in a long-term investing strategy, because reinvesting the dividends you earn can help you take advantage of the power of compounding returns.  

Top benefits of investing in dividend stocks:

• Steadier cash flow: While the value of a stock is subject to fluctuation due to market volatility, dividends are paid to you directly by the company. And because companies have a vested interest in keeping shareholders happy, they typically choose to continue paying dividends on a regular schedule whenever possible.

• Confidence: Companies that pay dividends are often more stable and established. While past performance isn’t a guarantee of future viability, it can be seen as an indicator of security as your investment matures. Because of this, some may consider dividend stocks to be a less risky bet than other investments.

• Wealth compounding: When you receive dividend payouts, it’s worth considering reinvesting these dollars, putting additional investment dollars into your portfolio and speeding its growth.

How to select a dividend stock

Not all dividend stocks are created equal. While some high-dividend-yield stocks may look attractive on the surface, doing your due diligence may reveal risk factors that weren’t initially apparent. In fact, you may find that the best dividend stocks for your strategy have lower yields but demonstrate better stability. It all depends on your investing goals and risk tolerance. 

It’s a good idea to look at all the elements at play when choosing a dividend stock to assess its risk, stability, and potential profitability before investing. This list takes into account several critical factors to give you a better picture of a stock’s reliability and growth potential. These include:

• Dividend yield: Dividend yield is the percentage of a company’s stock price that it pays to stockholders in dividends each year. One of the biggest benefits of investing in dividend stocks is the payouts you receive. A higher payout yield means more income for you as an investor—income which you can choose to pocket or reinvest, compounding your investment.

• Payout ratio: A company’s payout ratio—or the price of its dividends relative to its profits—is a useful metric for determining the sustainability of the payout rate, or even that of the company itself. If a company pays out a major percentage of its profits, it’s possible that it may be risking its viability to please investors, or that it will need to decrease payouts in the future to help ensure the stability of the business.

• Consistency: A company’s past decisions can provide useful clues about its overall strategy. As an investor, it’s a good idea to take note of whether a company has a history of maintaining, or even increasing, its dividends and factor that into your expectations for earning.

• Financial health: When you put your money into a stock, it’s wise to take a look at the finances of the company behind it. Common stock metrics like free cash flow, debt-to-equity ratio, and revenue growth can be indicators of a business’ reliability.

• Market trends: Economic sectors perform differently, and markets fluctuate. Is the company in which you’re considering investing part of a sector that experiences frequent major shifts? Is the overall market performing well? Gauging a stock’s long-term performance potential can help you assess risk and make informed decisions for the future.

Now that you understand some of the criteria for evaluating these stocks, read on for the list of the top 10 dividend stocks to buy in 2025.

The top 10 dividend stocks for 2025 

1. Apple Inc. (AAPL) 

• Sector: Technology 

• Dividend yield: 0.43% 

• Why it stands out: While Apple doesn’t offer a particularly high dividend yield, the company is known for its robust financial health and consistent growth. With its diversified revenue streams, strong brand loyalty, and billions in free cash flow, it may be an attractive option for income-focused investors. 

2. Johnson & Johnson (JNJ) 

• Sector: Healthcare 

• Dividend yield: 3.07% 

• Why it stands out: J&J is considered a Dividend King—a stock that has been paying dividends for at least 50 consecutive years—and boasts over six decades of increasing payouts. This may appeal to risk-averse investors seeking stability in one of the economy’s most recession-resistant sectors. 

3. Procter & Gamble (PG) 

• Sector: Consumer goods 

• Dividend yield: 2.33% 

• Why it stands out: Dividend stock investors may consider P&G’s record of consistent dividend payouts and strong brand portfolio—which includes companies across the home and personal care space—as indicators of the company’s dependability.

4. Microsoft Corporation (MSFT) 

• Sector: Technology 

• Dividend yield: 0.79% 

• Why it stands out: Commanding a major share of the home and business computing market for nearly 40 years, Microsoft remains a key player among dividend stocks in the tech sector, exhibiting reliable dividend growth over the long term.

5. Coca-Cola (KO) 

• Sector: Beverages 

• Dividend yield: 2.76% 

• Why it stands out: With its global brand and loyal customer base, Coca-Cola continues to deliver dividends to investors backed by robust cash flows and geographic diversification. 

6. Chevron Corporation (CVX) 

• Sector: Energy 

• Dividend yield: 4.3% 

• Why it stands out: Chevron offers investors a higher dividend yield relative to many well-known global brands. Supported by an improved oil market outlook and a shrewd business strategy, investors may find the company to strike a balance between risk and potential reward.

7. Realty Income (O) 

• Sector: Real estate (REITs) 

• Dividend yield: 5.72% 

• Why it stands out: Known as “The Monthly Dividend Company,” Realty Income prides itself on the consistency and frequency of its payouts, presenting a degree of reliable passive earning that income-focused investors may find appealing.

8. Visa Inc. (V) 

• Sector: Financial services 

• Dividend yield: 0.74% 

• Why it stands out: While Visa's dividend yield is modest compared to other companies on this list, the digital payments space continues to grow, with the company at its forefront. Consistent dividend increases may be an indicator of this health and the future possibilities for investors.

9. AbbVie Inc. (ABBV) 

• Sector: Healthcare 

• Dividend yield: 3.17% 

• Why it stands out: AbbVie is a biopharmaceutical company that offers a high-yield dividend stock. It has demonstrated consistent growth, positioning it as a power player among stocks in the healthcare industry.

10. McDonald’s Corporation (MCD) 

• Sector: Consumer services 

• Dividend yield: 2.29% 

• Why it stands out: McDonald’s continues its long trend of expansion, with increasing global reach and reliable dividend growth for over four decades. 

Tips for investing in dividend stocks 

Ready to get started with dividend stocks? Before you jump in, consider a few best practices that can help you invest wisely, maintain a healthy portfolio, and get the most out of your investments:

• Diversify your portfolio: It can make a big dent in your financial picture if a sudden downturn affects an industry or company in which you’ve invested a large portion of your portfolio. Spreading your investments across various sectors and investment types can help minimize this risk.

• Consider long-term value: While a large payout ratio can be tempting, it can be wise to look at the big picture and think about long-term value. After all, dividend payments are only one way you earn a return; you also grow you money when the value of the stock’s share price grows. Consider whether a company has a track record of wise business practices, overall stability, and steady growth.

• Reinvest dividends: Cashing out dividends can give you a flow of cash, but you could get more benefit from your investment if you put that money back into your portfolio. Reinvesting dividends allows you to use your payouts to buy more shares of the company’s stock, which means you’ll earn more dividends in the future. A dividend reinvestment plan (DRIP) can help simplify this process by automatically reinvesting your payouts.

• Monitor frequently: A watchful eye can help you manage your investments with informed decisions. Keep track of changes in dividend payment schedules, payout ratios, shifts in market conditions, and other indicators that can help you assess the health and stability of your investment.

Getting started with dividend stocks 

Dividend stocks offer an opportunity to earn consistent income while growing your portfolio. And when you reinvest the dividends you earn, you can amplify the power of your investment through compound returns. If you’re ready to start investing, you might want to consider the top 10 dividend stocks to buy in 2025 listed above—they could be worthwhile options to support your diversified, long-term investing strategy.