1 Top Dividend Stock to Buy in 2025, and 1 to Avoid

Group 1: Medtronic - Medtronic is a leading medical device company with a diverse range of products across four main therapeutic areas and a presence in 150 countries [3] - The company has a strong revenue and earnings generation track record, although top-line growth has been modest in recent years [4] - The diabetes care unit is experiencing significant sales growth and has substantial room for expansion, given the global prevalence of diabetes [5] - Medtronic is developing a robotic-assisted surgery device, the Hugo system, which is currently being tested in the U.S. and has growth potential in the minimally invasive surgery market [6] - The company benefits from long-term trends such as an aging population, making it a reliable blue-chip dividend stock despite slow revenue growth [7] - Medtronic has a history of 47 consecutive years of dividend increases and is expected to become a Dividend King soon, with a forward yield of 3.20% and a cash payout ratio of 70.5% [8] Group 2: Medical Properties Trust - Medical Properties Trust is a healthcare-focused real estate investment trust (REIT) that is required to distribute at least 90% of its taxable income as dividends [9] - The company faced financial challenges after one of its largest tenants, Steward Healthcare, stopped paying rent, leading to dividend cuts [10] - Medical Properties Trust has made progress by securing new tenants for facilities previously occupied by Steward Healthcare, with new leases expected to start generating rent payments in the first quarter of the year [11] - The new tenants have an average lease term of 18 years, which provides some stability for the company [12] - Despite the attractive forward yield of 7.82%, the recent issues suggest that it may be prudent to avoid this stock for now due to associated risks [13]