Best dividends stocks for 2025

look at these new names

Dividend Download

Top dividend stocks & news

Dividend Stocks: Enhancing Total Returns in a Lower Interest Rate Environment

In today’s investment landscape, dividend-paying stocks stand out as an attractive strategy for boosting total returns. With interest rates trending down, the appeal of these stocks increases, offering both income and diversification.

We recommend stocks that not only pay dividends but also have the potential for growth, backed by solid financials.

In this issue, we’ll talk about some top dividend stocks that often get neglected but are likely to offer great returns in 2025.

Chevron (CVX): A Reliable Dividend Stock with Solid Growth Potential

Chevron, a major player in the oil and gas sector, continues to be a standout option for dividend investors. The company recently reported stronger-than-expected results, returning $7.7 billion to shareholders, with $2.9 billion allocated to dividends. Chevron offers a dividend yield of 4.1%, paying $1.63 per share quarterly.

Goldman Sachs analyst Neil Mehta has a buy rating on Chevron, citing the company’s strong execution in Kazakhstan’s Tengiz field, its capital returns strategy, and its robust growth plans in the Gulf of Mexico.

With expectations for a 10% yield in both 2025 and 2026, Chevron’s dividend growth potential is significant.

Energy Transfer (ET): A High-Yield Dividend Stock

Energy Transfer, a midstream energy company structured as a limited partnership, also presents an attractive opportunity for dividend-seeking investors.

The company raised its quarterly cash distribution by 3.2% year-over-year, offering a yield of 6.8%.

JPMorgan analyst Jeremy Tonet has reaffirmed his buy rating for Energy Transfer, citing strong earnings growth and optimistic future projections, particularly in natural gas logistics.

The company’s expansion efforts, including the integration of its WTG Midstream acquisition and new projects aimed at improving efficiency, add to its growth potential. Energy Transfer’s current stock price offers an appealing entry point for investors looking for consistent cash flow and upside potential.

Enterprise Products Partners (EPD): Solid Fundamentals and Attractive Yield

Enterprise Products Partners, another midstream energy company, is also an excellent dividend stock to consider. The company increased its third-quarter distribution by 5%, yielding 6.4% annually.

JPMorgan analyst Jeremy Tonet is bullish on EPD, emphasizing its strong cash flow, particularly from natural gas processing plants and propane dehydrogenation (PDH) enhancements.

EPD’s robust capital allocation, which includes stock buybacks, further bolsters its attractiveness. Tonet’s price target for EPD has been raised to $37, underscoring the company’s strong performance and future prospects.

Walmart (WMT): Consistent Growth and Dividend Increases

Walmart, a retail giant, has raised its dividend for 51 consecutive years, making it a staple in dividend investing. The company’s recent performance exceeded expectations, and it raised its full-year outlook. With a dividend yield of 0.9%, Walmart’s consistency in dividend growth is a key appeal.

Analyst Ivan Feinseth of Tigress Financial sees further upside in Walmart’s stock, particularly due to the company’s increasing market share and technological advancements, such as AI-powered shopping assistants. Walmart’s continued growth in e-commerce and efficiency improvements are expected to drive profitability and shareholder returns.

Gaming and Leisure Properties (GLPI): A High-Yield REIT

For investors seeking a high-yield real estate investment trust (REIT), Gaming and Leisure Properties offers an attractive opportunity. The company’s dividend for the fourth quarter increased by 4.1%, yielding 6.5%. RBC Capital analyst Brad Heffern has a buy rating on GLPI, citing its strong investment pipeline and entry into the tribal gaming sector as potential growth drivers.

GLPI’s stable cash flow from its triple-net lease arrangements and its strong balance sheet provide investors with consistent returns and potential for growth in the gaming space.

Ares Management (ARES): A Leading Player in Asset Management

Ares Management, an alternative investment manager, is also a top pick for dividend investors. The company recently announced a quarterly dividend of 93 cents per share, yielding 2.1%. RBC Capital analyst Kenneth Lee has raised his price target for ARES to $205, highlighting its dominance in private credit and favorable market conditions.

ARES’s asset-light model and high return-on-equity make it a resilient player in the investment management sector, with strong potential for growth.

Conclusion: Building a Diversified Dividend Portfolio

These stocks represent a mix of sectors, from energy to retail and asset management, providing a well-rounded strategy for dividend-seeking investors. As interest rates decline, dividend stocks become even more attractive, offering both steady income and potential capital appreciation.

By following the recommendations of top analysts, investors can select reliable dividend stocks with strong fundamentals to build a diversified portfolio that enhances total returns.

Resources

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.