4 Best Dividend Stocks to Watch in 2025

Core Viewpoint - The article emphasizes the importance of investing in stocks with a strong history of dividend growth, particularly in the context of market volatility and economic uncertainty. These stocks are seen as a hedge against risks and provide consistent returns to investors. Group 1: Dividend Growth Stocks - Stocks highlighted in the article have a strong history of dividend growth, indicating they are mature companies less susceptible to market swings [2] - These stocks provide downside protection and act as a hedge against economic and political uncertainty [2][10] - The article identifies four specific stocks from diverse sectors that exemplify these characteristics [3] Group 2: Company-Specific Insights - Nike: The company focuses on sports and storytelling to enhance brand distinction, with a long-term earnings growth expectation of 15% and an earnings surprise of 29.8% over the past four quarters. Nike recently announced an 8% year-over-year increase in its quarterly dividend to 37 cents per share, marking its 23rd consecutive year of dividend increases [5][6][18] - Broadcom: The company generates significant cash flow, allowing for consistent dividends. It increased its quarterly dividend by 11% year-over-year to 59 cents per share and spent $12.4 billion on share repurchases and$9.8 billion on dividends in fiscal 2024 [7][15] - Motorola: The company is positioned for growth in the communications equipment sector, with a recent 11% year-over-year increase in its quarterly dividend to $1.09 per share. Motorola has a long-term earnings growth expectation of 10.1% and has gained 51.6% over the past year [8][9][17] - Realty Income: This retail REIT has a compound annual dividend growth of 4.2% since 1994 and a long-term earnings growth expectation of 6.4%. The company focuses on acquiring and managing commercial properties with reliable rental revenues [12][16] Group 3: Market Context - The U.S. equity markets have experienced significant growth, driven by solid economic conditions, a healthy labor market, and an accommodative Federal Reserve stance. This environment has been conducive to stock market momentum [13] - Amid ongoing market volatility, focusing on stocks with a history of dividend hikes and healthy yields is recommended for risk-averse investors [14]