Dividend stocks are increasingly appealing for investors in 2025 due to their potential for steady income and resilience in volatile markets. As the economic landscape evolves, characterized by rising interest rates and uncertain market conditions, dividend-paying stocks offer a strategic advantage.
That said, I think the long-term value many of these top dividend stocks provide (companies that are able to provide regular income to investors indicate storing ability to generate future cash flows) could outweigh near-term concerns around the impacts rising yields could have on valuations for top income-generating stocks.
With that said, here are three of my top picks in terms of the best dividend stocks for long-term investors to own in February 2025.
Key Points About This Article:
- Owning top-tier dividend stocks can provide investors with the sort of income and portfolio diversification investors are seeking in these turbulent times.
- Here are three of the top dividend stocks that are worth owning during this part of the investing cycle.
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Fortis (FTS)
Fortis (FTS:FTS) is among the North American utility giants I continue to pound the table on, for a few reasons. For one, this company is a Canada-based utility company focused on the Canadian, U.S., and the Caribbean markets. Providing regulated electric and gas services to over 3.4 million customers, the company’s essential services model ensures steady cash flow. It’s this steady cash flow that has turned Fortis into a dividend growth behemoth, with an incredible track record of more than 50 years of consecutive annual dividend hikes.
Currently offering investors a dividend yield of around 4.1%, the company’s predictable earnings has allowed Forits to put forward plans to increase its dividends by 4-6% annually through 2028.
Fortis is also undertaking a significant capital expenditure plan of $26 billion from 2025 to 2029, focusing on enhancing its infrastructure and meeting the rising demand from sectors like data centers. This growth strategy is underpinned by low-risk investments primarily funded through internal cash flow, minimizing reliance on debt.
Furthermore, Fortis’s current price-to-earnings ratio remains attractive within its historical range, making it a solid choice for long-term investors seeking both income and stability in their portfolios as economic uncertainties loom.
Enbridge (ENB)
Another top Canadian energy-related company I’ve thought is a solid long-term buy from a dividend perspective is Enbridge (NYSE:ENB). This company is a top North American midstream energy player, transporting 30% of the continent’s crude oil and 20% of U.S. natural gas. Offering a dividend yield of more than 6%, Enbridge has also raised its dividends for 30 consecutive years, making it a strong choice for investors seeking reliable passive income over the long-term.
Notably, Enbrdige’s stock price has surbed 20% over the past year, and potential Trump-era deregulation could further boost its profits.
Now, we’ll have to see how these tariffs ultimately play into the investing thesis for this stock. If crude and gas transportation activity ramps down due to tariffs, this is a stock investors may actually see Trump-related headings from.
But the reality is that Enbridge provides investors with exposure to a company with very reliable cash flows driven by a very stable business model and long-term contracted revenues.
Backed by a robust project pipeline, Enbridge projects 3% annual cash flow growth through 2026, increasing to 5% afterward, supporting continued dividend growth. This is a long-term higher-yielding dividend stock I think is worth owning here.
Pfizer (PFE)
Pfizer (NYSE:PFE) is among the blue chip long-term holdings that investors have benefited from buying and holding over very long periods of time. Established in the mid-1800s, Pfizer has shot to recent prominence thanks to its Covid vaccines and related products, which drove revenues that peaked at $56.7 billion in 2022. Since then, sales of Pfizer’s covid-related products have dwindled, though the company has begun to refocus on growth through its oncology pipeline.
Pfizer’s pipeline of oncology products have been further bolstered by its $43 billion Seagen acquisition in 2023. Earnings and revenue rebounded in 2024, and analysts forecast 14% annual earnings growth over the next three to five years.
Pfizer’s 6.3% dividend yield is notably above its decade-long 4% average, signaling investor concerns about the business. While pandemic-related sales from Comirnaty and Paxlovid have significantly declined, Pfizer’s non-COVID-19 revenue grew 14% year-over-year in Q3 2024. This is the more important underlying trend I think investors want to focus on, and whether the company can continue to innovate with its future drug pipeline.
Pfizer’s dividend yield, at its highest since 2008-2009, remains well-supported by solid financials. This is a stock that could see material upside, should Pfizer show outsized revenue or earnings growth moving forward, outsize of its impressive current yield.
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