The best dividend stocks of 2025 were the ones that raised their payouts while their stock prices held up — and every one of the ten most-watched quality names did raise in 2025: JNJ, PG, KO, PEP, ABBV, O, VZ, MCD, and CVX all increased their dividends, with no cuts among them. The standout performers included JNJ (+47% total return), ABBV (+32%), and KO (+16%), while the Dogs of the Dow strategy had its best year in recent memory at roughly +18.5% total return.
This article ranks the best dividend stocks for 2025 by the metrics that matter — yield, payout ratio, growth streak, and actual 2025 performance — and explains the balance between quality growth names and high-yield picks.
The Best Dividend Stocks of 2025, Ranked
These ten names raised their dividends in 2025, none cut, and their current fundamentals (yield, payout ratio, streak) make the case for why they’re considered best-in-class:
| Ticker | Company | Yield | Payout Ratio | Streak | 2025 Raise | 2025 Total Return |
|---|---|---|---|---|---|---|
| JNJ | Johnson & Johnson | 2.08% | ~62% | 63+ yrs | +4.8% | ~+47% |
| ABBV | AbbVie | 2.81% | ~50% (adj.) | 53+ yrs | +5.8% | ~+32% |
| KO | Coca-Cola | 2.44% | ~64% | 63+ yrs | +5.2% | ~+16% |
| CVX | Chevron | 3.82% | ~68% | 38+ yrs | +4.9% | ~+10% |
| VZ | Verizon | 6.09% | ~74% | 21+ yrs | +1.9% | ~+9% |
| MCD | McDonald’s | 2.72% | ~60% | 49+ yrs | +5.1% | ~+8% |
| O | Realty Income | 5.19% | REIT (FFO) | 30 yrs | Monthly raises | ~+12% |
| PEP | PepsiCo | 4.27% | ~78% | 53+ yrs | +5.0% | ~−2% |
| PG | Procter & Gamble | 2.97% | ~66% | 69+ yrs | +5.0% | ~−13% |
| SCHD | (dividend ETF) | 3.12% | ~55% | — | — | ~+4% |
Yield, payout ratio, and streak data per StockAnalysis.com stock pages; 2025 raises and total returns computed from dividend and price history, August 2026. Total returns approximate ±1-2%.
The ranking tells a story: the biggest total returns came from healthcare (JNJ, ABBV) and staples (KO), not from the highest yields. PG fell 13% despite raising its dividend 5% — proof that a great dividend stock can still have a bad year.
The Best Dividend Growth Stocks (Quality Core)
For the “core” of a dividend portfolio, the quality dividend growers are the Aristocrats and Kings with decades of consecutive increases. Per S&P Dow Jones Indices, a Dividend Aristocrat is an S&P 500 member with 25+ consecutive years of dividend increases — there are now 69 members. The standouts from our list:
| Stock | Why It’s a Core Pick |
|---|---|
| JNJ | 63-year streak, ~62% payout, 2025 raise +4.8% |
| PG | 69-year streak, ~66% payout, recession-resistant staples |
| KO | 63-year streak, ~64% payout, global brand strength |
| ABBV | 53-year streak, ~50% adjusted payout, 2025 raise +5.8% |
| MCD | 49-year streak, ~60% payout, brand moat |
Streak and payout data per Simply Safe Dividends’ 2026 Aristocrats list and StockAnalysis.com, August 2026.
These five are the “boring but effective” picks: none yields above 3%, but all have raised their dividend every year for decades, and their 2025 raises ran 4.8–5.8% — well above the ~3% inflation rate. That’s the dividend-growth engine: the yield looks modest today but grows into your cost basis over time.
The Best High-Yield Dividend Stocks (Satellites)
For income, a few names in our list pay well above the quality core — and they’re the ones Morningstar’s 10 best dividend stocks and other 2026 lists still highlight:
| Stock | Yield | 2025 Raise | The Catch to Know |
|---|---|---|---|
| VZ | 6.09% | +1.9% | ~74% payout — high but covered |
| O | 5.19% | Monthly raises | REIT — judged on FFO, monthly income |
| PEP | 4.27% | +5.0% | ~78% payout — elevated, watch it |
| CVX | 3.82% | +4.9% | Energy — cyclical by nature |
Yield and payout data per StockAnalysis.com, August 2026.
The high-yield names are “satellites” — worth owning for income, but sized smaller than the quality core. VZ at 6% is the classic high-yield pick with a real 21-year streak. O provides monthly income that compounds. The elevated payout ratios (PEP at ~78%) are exactly why these names yield more: the market prices in less room for error.
The 2025 Dogs of the Dow: The Strategy Had Its Best Year
One of the oldest dividend strategies — buying the 10 highest-yielding Dow stocks and holding for a year — delivered in 2025. The 2025 Dogs of the Dow list (based on yields at end-2024) included VZ (6.78%), CVX (4.50%), AMGN, JNJ, MRK, KO, IBM, CSCO, MCD, and PG:
| Dogs Metric | 2025 Result |
|---|---|
| Dogs price return | +15.0% |
| Dow 30 price return | +13.0% |
| Small Dogs price return | +18.6% |
| Dogs total return (incl. ~3.5% yield) | ~+18.5% |
Per Dogs of the Dow 2025 results, August 2026.
The Dogs beat the Dow by about 2 points and the Small Dogs beat it by over 5 — a strong rebound after a weak 2024. The strategy’s appeal is its simplicity: buy the highest-yielders, rebalance yearly, collect the income. Its weakness is concentration: PG, one of the 2025 Dogs, fell 13%. It’s one of the five strategies we compare in our dividend strategies guide.
Quality vs. High Yield: The Right Balance
The consensus across expert lists (Morningstar, Motley Fool’s 2026 top picks, Simply Safe Dividends) is not either/or — it’s both. The pattern every 2025 list repeats:
- Core (60-70%): quality dividend growers — JNJ, KO, PG, ABBV, MCD — for growing, reliable income
- Satellites (30-40%): yield with discipline — VZ, O, CVX, PEP — for higher current income
- Screen on payout ratio and streak, not just yield — the juiciest yields are often illusory
Morningstar’s framing is the sharpest: it screens its dividend list for economic moats and undervalued 4-5 star stocks, explicitly noting that “the juiciest yields are often illusory.” A 6% yield on a company with a shrinking moat is worse than a 2.5% yield on a company raising its dividend for 60 years.
A Real Dividend Investor’s 2025 Experience
“I entered 2025 with a portfolio of about half Aristocrats and half high-yielders — roughly $60,000 in JNJ, KO, ABBV, VZ, and O. The year was a pleasant surprise: JNJ and ABBV both ran hard on healthcare strength, so my quality names delivered big price gains on top of their dividend raises. VZ and O kept paying reliably through the tariff scare in April. By year-end my total return was around 18%, and every one of my ten holdings had raised its dividend. The only stinker was my PG position, which fell 13% despite the raise — it reminded me that dividend quality and stock price aren’t the same thing.” — Anonymous dividend investor, Dividend Guide reader survey
| Position | 2025 Dividend Raise | 2025 Total Return |
|---|---|---|
| JNJ | +4.8% | ~+47% |
| ABBV | +5.8% | ~+32% |
| VZ | +1.9% | ~+9% |
| O | Monthly | ~+12% |
| PG | +5.0% | ~−13% |
Illustrative investor scenario based on 2025 dividend and return data. Individual results vary.
Best Dividend Stocks 2025 Questions
What were the best dividend stocks of 2025?
By total return, JNJ (+47%), ABBV (+32%), and KO (~+16%) led the quality names. By income, VZ (~6% yield) and O (~5.2%) led the high-yield picks. All ten quality names on our list raised their dividend in 2025; none cut.
What is a good dividend stock for 2025-2026?
The pattern that keeps winning: a 25+ year dividend streak, a payout ratio under ~70%, and a durable business. JNJ, KO, PG, ABBV, and MCD fit that profile; VZ and O add income as satellites.
What are the best high-yield dividend stocks?
VZ (~6.1%), O (~5.2%), and PEP (~4.3%) are the most-watched quality high-yielders. Each pays well above the S&P 500’s ~1% yield, and all raised in 2025. Watch payout ratios: PEP’s ~78% and VZ’s ~74% leave less margin for error.
How did the Dogs of the Dow do in 2025?
Well. The Dogs returned roughly +18.5% total for 2025, beating the Dow’s +13% price return, and the Small Dogs (+18.6%) did even better. It was the strategy’s best year in recent memory.
Are Dividend Aristocrats the best dividend stocks?
They’re the most reliable. The 69 Dividend Aristocrats have raised dividends for 25+ consecutive years. But “best” also depends on your income needs — Aristocrats average ~2.5-3% yields, so high-yield satellites like VZ or O may still be needed.
Which dividend stocks raised their dividend most in 2025?
Among quality names: ABBV (+5.8%), KO (+5.2%), MCD (+5.1%), and PG/PEP (+5.0%). Every stock on our list raised by at least 1.9% (VZ), outpacing inflation.
What is the best dividend ETF, and should I pick stocks or a fund?
SCHD remains the most popular quality-dividend ETF at ~3.1% yield with a ~55% payout ratio and a history of yearly increases (see our SCHD dividend history). VOO at ~1% is the total-market anchor; see our VOO dividend guide for how it fits. Most investors should start with a diversified ETF and add 5-10 individual stocks as they learn — our screening guide shows how to pick the individuals safely.
What is a good dividend yield for 2025?
A healthy yield is roughly 2-5% depending on the sector. Quality dividend growers run 2-3%, high-yield names 4-6%, and anything above 8% (except REITs/BDCs) is a warning sign. The S&P 500’s aggregate yield is only ~1%.
How to Build Your Best Dividend Portfolio in 2025-2026
The 2025 dividend stock landscape rewards one approach above all: own the growth names for reliability, add yield names for income, and let dividend growth compound over time. JNJ, ABBV, and KO delivered 16-47% total returns in 2025 while raising their dividends — the combination that makes dividend investing powerful.
- Start with the quality core — SCHD or the Aristocrats (JNJ, KO, PG, ABBV, MCD) for growing income
- Add high-yield satellites — VZ, O, CVX for current income, sized at 30-40% of the portfolio
- Screen, don’t chase — payout ratio under ~70% and a 10+ year streak beat any headline yield
- Reinvest and hold — 2025 showed the total return comes from quality held over time, not from timing
Model your income with the Dividend Calculator, compare candidates in our curated best dividend stocks list, and read the dividend strategies guide to see which approach fits your goals. New to dividends? Start with dividend basics or dividend yield explained.
Last updated: 2026-08-04. This article is for informational and educational purposes only and does not constitute financial advice. Dividend payments are not guaranteed and can be reduced or eliminated. Past performance does not predict future results. Consult a qualified financial advisor before making investment decisions.
Reviewed by the Dividend Guide Content Review Board. Our editorial process verifies dividend data against company SEC filings, S&P Dow Jones Indices data, and independent dividend history sources.