3 Top Dividend Stocks to Buy ASAP
In today’s market, dividend stocks remain a powerful tool for investors seeking a steady income stream in retirement and balance out some of the risks longer-duration assets provide portfolios. Growth stocks are excellent sources of capital appreciation, and have outperformed…
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In today’s market, dividend stocks remain a powerful tool for investors seeking a steady income stream in retirement and balance out some of the risks longer-duration assets provide portfolios. Growth stocks are excellent sources of capital appreciation, and have outperformed most other equity groups over the past 15 years. However, in times of distress, companies that produce solid cash flows (which dividend-paying companies typically rely on) are those that tend to catch a bid when investors look to rotate their portfolios.
Since we’re now turning the page on Q1, and investors may be looking to rotate some of the capital within their portfolios, let’s take a look at some top dividend stocks worth considering right now. These companies are a mix of higher-yielding and more defensive dividend stocks, each with their own unique catalysts and from very diverse sectors.
Without further ado, let’s dive in!
Enbridge (ENB)
Enbridge (NYSE:ENB | ENB Price Prediction) stands out as a top dividend stock in 2025, backed by its consistent dividend growth, reliable cash flow, and diversified operations. The company has marked its 30th consecutive year of annual dividend increases, raising its payout by 3% to $3.77 per share starting March 1, 2025. Enbridge’s predictable cash flow, with 98% derived from long-term contracts, ensures stability even in volatile markets.
ENB maintains a strong 6.3% dividend yield, rarely dipping below 6% in the past five years. Since 2005, its annual total shareholder return, including reinvested dividends, has averaged 12.3%, surpassing the S&P 500 and midstream energy stocks. With 30 consecutive years of dividend increases, the latest being a 3% hike in December 2024, Enbridge continues to reward investors.
Additionally, its diversified energy infrastructure and expansion into renewables bolster its resilience. With a strong financial outlook and projected EBITDA of up to $20 billion, Enbridge remains a compelling dividend investment this year.
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM) operates across banking, investment banking, and wealth management, covering nearly all major finance sectors except insurance. With a $700 billion market cap, it saw strong performance in late 2024, reporting 11% revenue growth, a 58% earnings increase, and a return on equity rising to 17%. Despite a slight pullback, the stock remains up 28% over the past year, more than doubling the S&P 500’s gain.
JPMorgan Chase remains an attractive dividend stock due to its consistent quarterly payments, sustainable payout ratio, and strong shareholder yield. The company pays dividends quarterly, offering investors a steady income stream. With a low payout ratio of 25-26%, JPMorgan retains ample earnings for growth while ensuring dividend sustainability. Although its dividend yield of 2.1-2.22% is modest, it provides stability in a volatile market.
Additionally, its shareholder yield of 4.40%, which includes dividends, buybacks, and debt reduction, enhances long-term returns, making JPMorgan Chase a compelling choice for income-focused and growth-oriented investors alike.
Coca-Cola (KO)
Coca-Cola’s (NYSE:KO) stock rose 33% over five years, proving its resilience despite market challenges. While soda consumption declined, the company expanded into juices, teas, bottled water, and energy drinks, refreshing its lineup with new flavors and healthier options. The pandemic temporarily slowed sales, but strong retail performance helped offset losses from restaurant closures.
The beverage giant’s sales and earnings rebounded post-pandemic, despite a dip in free cash flow in 2022 due to higher taxes and inventory costs. By 2023 and 2024, cost reductions and price hikes helped drive cash flow growth, offsetting inflation pressures.
Moreover, Coca-Cola projects 5%-6% organic sales growth and a 2%-3% EPS increase in 2025, though a strong U.S. dollar may limit gains. On a currency-neutral basis, EPS could rise 8%-10%. A 12% dip in free cash flow to $9.5 billion is expected due to tax payments and working capital adjustments. If interest rates decline and EPS grows at a 5% CAGR, the stock could climb 27% to around $90 by 2030.
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Chris MacDonald is a 24/7 Wall St. contributor and long-time contributor to other notable finance publications, including The Motley Fool and InvestorPlace. With an MBA in Finance, and more than a decade of experience in venture capital and the corporate finance world, Chris brings a long-term perspective to his analysis of equities and alternative assets.
His love of investing and focus on finding quality undervalued stocks is complemented by recent research into alternative assets as well. He takes a long-term approach to analyzing companies and cryptos, with a focus on directing the reader to the most sustainable and important catalysts for each respective potential investment.
