3 Incredible Dividend Stocks to Buy in 2025

Medtronic - Medtronic develops a diverse range of healthcare products, including cardiovascular pacemaker devices and glucose monitoring systems, catering to various medical conditions [1] - The company has maintained consistent sales since the 1980s, with no trailing-12-month sales dip exceeding 10% [1] - Medtronic has paid and raised its dividend for 47 consecutive years, with a payout ratio of 65% of cash flow, indicating a secure and likely increasing dividend [2] - The company's organic revenue has grown at a mid-single-digit rate for the past eight quarters, with analysts estimating long-term earnings growth of about 6% annually [7] - Medtronic's stock is priced at a forward P/E ratio under 15, with a 3.5% dividend yield potentially pushing annualized total investment returns to 9% to 10% [7] UnitedHealth Group - UnitedHealth Group is a major player in the US healthcare system, generating over $389 billion in annual revenue and operating two primary segments: UnitedHealthcare (insurance) and Optum (care services and technologies) [3] - The company has achieved 15 consecutive annual dividend increases, averaging 15% per increase over the past five years, with a dividend yield of 1.6% and a payout ratio of 56% of cash flow [4] - Analysts estimate UnitedHealth will grow earnings by 15% annually over the long term, suggesting potential for further dividend increases and share price gains [4] - The stock's valuation has declined to a forward P/E of 17 due to recent controversies and potential legislative risks, making it a bargain valuation [8] AbbVie - AbbVie is a pharmaceutical company with a strong portfolio in immunology, oncology, cosmetics, neuroscience, and eye care treatments, successfully pivoting after losing patent protection for Humira in 2023 [5][10] - The company's stock has declined after a promising schizophrenia drug failed in phase 2 trials, but analysts still expect nearly 9% annualized earnings growth over the long term [11] - AbbVie is a Dividend King, with a current dividend yield of 3.4% and an average annual dividend increase of 8% over the past five years, supported by a manageable payout ratio of 70% of cash flow [13] Healthcare Industry Overview - The healthcare industry is an evergreen, multitrillion-dollar market that promotes growth and innovation, with companies like Medtronic, UnitedHealth Group, and AbbVie leading the way [6][9] - Companies that consistently raise dividends are considered strong investment candidates, as this indicates continuous innovation, growth, and effective management [12]