Why You Shouldn't Hesitate to Buy These Top Stocks in 2025

Dividend Stocks Performance - Dividend-paying stocks have outperformed non-payers by more than 2-to-1 over the last 50 years, with an average annual total return of 9.2% compared to 4.3% [2] - Companies that grow their dividends have significantly higher returns (10.2%) compared to those that maintain (6.7%) or cut/eliminate dividends (-0.6%) [3] Realty Income (O) - Realty Income has increased its dividend 128 times since going public 30 years ago, with a 4.2% compound annual growth rate and a 14.1% compound annual total return [4] - The REIT owns 15,500 properties across retail, industrial, and gaming sectors, with net leases providing stable and rising rental income [6] - Realty Income pays out 75% of its adjusted FFO in dividends, retaining cash for new investments, and estimates internal growth drivers will add 2% to FFO per share annually [7] - The company has a strong balance sheet and a new private fund management platform, supporting mid-single-digit FFO growth and a steadily rising dividend [8] - With a 6% dividend yield and mid-single-digit earnings growth, Realty Income could deliver double-digit total annual returns [9] Brookfield Infrastructure (BIPC/BIP) - Brookfield Infrastructure has grown its dividend at a 9% compound annual rate since 2009, contributing to 13.3% total annual returns [10] - The company generates stable cash flow, with 85% of FFO from long-term contracts or regulated rate structures, and inflation escalators adding 3%-4% to FFO per share annually [11] - Brookfield Infrastructure has a conservative dividend payout ratio (60%-70% of FFO) and a strong balance sheet, enabling investments in $8 billion of capital projects over the next 2-3 years [12][13] - The company has over$4 billion in additional expansion projects and a pipeline of acquisition opportunities, targeting over 10% annual FFO growth [14] - With a 4% dividend yield and over 10% annual earnings growth, Brookfield Infrastructure could achieve mid-teens total annualized returns [15] Long-Term Dividend Growth Stocks - Dividend growth stocks like Realty Income and Brookfield Infrastructure have historically delivered strong returns due to steadily rising dividends and are well-positioned for future growth [16]