There generally are two opposing strategies on Wall Street: a “risk-on” approach where investors load up on riskier but more growth-oriented investments like crypto and small-cap stocks, or a “risk-off” approach where stable investments like bonds and dividend stocks rotate into favor.
In 2025, uncertainty around geopolitical dynamics and trade wars have moved sentiment decidedly towards the “risk-off” category. As a result, dividend stocks are in high demand thanks to the stability they offer and their potential for consistent income regardless of share price volatility.
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There’s no telling when the pendulum may swing back the other way. But for investors looking for the best dividend stocks to buy now, the following list of large-cap stocks — all with yields between 2% and 7% as of March 26 — is a good place to start.
Here are 15 of today’s top income stocks:
Stock | Sector | Market Value | Dividend yield |
Altria Group Inc. (ticker: MO) | Consumer staples | $97 billion | 7.2% |
Corning Inc. (GLW) | Technology | $42 billion | 2.2% |
Crown Castle Inc. (CCI) | Real estate | $44 billion | 6.2% |
Digital Realty Trust Inc. (DLR) | Real estate | $51 billion | 3.3% |
Gilead Sciences Inc. (GILD) | Health care | $136 billion | 2.9% |
Healthpeak Properties Inc. (DOC) | Real estate | $14 billion | 6.0% |
International Business Machines Corp. (IBM) | Technology | $232 billion | 2.7% |
JPMorgan Chase & Co. (JPM) | Financials | $705 billion | 2.3% |
Kinder Morgan Inc. (KMI) | Energy | $63 billion | 4.0% |
Lloyds Banking Group PLC (LYG) | Financials | $58 billion | 4.1% |
Lockheed Martin Corp. (LMT) | Industrials | $105 billion | 3.0% |
NextEra Energy Inc. (NEE) | Utilities | $142 billion | 3.3% |
Southern Co. (SO) | Utilities | $98 billion | 3.3% |
United Parcel Service Inc. (UPS) | Industrials | $94 billion | 6.0% |
Verizon Communications Inc. (VZ) | Communication services | $180 billion | 6.2% |
Altria Group Inc. (MO)
Market value: $97 billion Sector: Consumer staples Dividend: 7.2%
Altria seems to always make its way onto a list of attractive dividend stocks, and for good reason. Its tremendous yield is roughly five times that of the S&P 500, its shares have surged more than 30% in the last 12 months to trounce the broader market, and it commands some of the most powerful brands on the planet including Marlboro cigarettes and Skoal smokeless tobacco. What’s more, it has an amazing long-term track record of dividend growth, with more than 56 years of consecutive increases. If you’re looking for a consumer staples stock with staying power and income potential, MO stock is one of the first places to look.
Corning Inc. (GLW)
Market value: $42 billion Sector: Technology Dividend: 2.2%
There aren’t a lot of dividend stocks in the tech sector, but Corning is an exception with a yield of more than 2%. In truth, Corning is a tech stock that doesn’t fit the mold in several other areas, too. The company traces its roots back to 1851 as a specialty glass and ceramics company. Nowadays, the company’s display segment produces everything from flat panel monitors to screens for tablets, smartphones and other mobile devices. The expertise and manufacturing scale of Corning gives it a wide moat in a pretty specialized field, making it a company that investors may want to rely on in the long term. The company is growing revenue at consistent 5% to 10% annual rates lately, and longer term has seen its dividend more than double from just 12 cents in 2015 to 28 cents per quarter presently. And with dividends expected to amount to less than half of earnings per share in fiscal 2025, there’s ample room for future growth in payouts, too.
Crown Castle Inc. (CCI)
Market value: $44 billion Sector: Real estate Dividend: 6.2%
Crown Castle is not your typical real estate firm, operating more than 40,000 cell towers and another 90,000 miles of fiber-optic cables. It happens to be structured as a real estate investment trust, or REIT, which means it must deliver 90% of taxable income back to shareholders via dividends. Its nationwide telecom portfolio is rented to customers including major wireless carriers, which provides consistent revenue thanks to its in-demand digital infrastructure. Shares are up by double digits since Jan. 1 in the hopes of lower interest rates in 2025 that will take some of the pressure off its debt and allow continued borrowing to purchase more real estate telecom assets and tighten its grip on this profitable niche.
Digital Realty Trust Inc. (DLR)
Market value: $51 billion Sector: Real estate Dividend: 3.3%
Speaking of real estate investments that are related to high-tech applications, Digital Realty is a unique dividend opportunity, too. Its business is data centers and colocation services that power the digital economy. After all, the data stored in “the cloud” has to live on servers somewhere — and DLR owns the hardware for major clients including Amazon.com Inc. (AMZN) and Oracle Corp. (ORCL), among others. With more than 300 data centers worldwide and operations that span more than 25 countries, this is a company with both the scale as well as the digital expertise to thrive in the years ahead.
Gilead Sciences Inc. (GILD)
Market value: $136 billion Sector: Health care Dividend: 2.9%
Big pharma stocks have been hit or miss lately, with the leading iShares US Healthcare ETF (IYH) basically flat over the last 12 months. Gilead stands apart from the field, however, as one of the best-performing health care blue chips over the last year with more than 50% gains. That’s thanks to its strong product pipeline and high-margin treatments for otherwise unserved patient populations. These include treatment of HIV/AIDS and unique forms of cancer. Revenue isn’t growing at a particularly breakneck pace, but fiscal 2025 forecasts are looking for more than 70% earnings per share growth. That profitability makes it obvious why Wall Street is in love with GILD lately. What’s more, those big profits make its dividend sustainable and set the stage for bigger payouts down the road, too.
Healthpeak Properties Inc. (DOC)
Market value: $14 billion Sector: Real estate Dividend: 6%
DOC operates one of the largest networks of health care real estate in the nation after a massive “merger of equals” with Physicians Realty Trust that closed at the beginning of 2024. Thanks in part to this scale, it is one of the highest dividend-paying stocks in the S&P 500 with a model that passes on a large share of its rents to stockholders. Like other real estate stocks on this list, the prospect of lower borrowing costs thanks to the interest rate outlook in 2025 have helped lift shares lately, with the stock up about 15% in the last year. With changing demographics creating more older Americans and an increased need for care as a result, DOC’s tenants will have plenty of “customers” in the years ahead — providing a steady stream of cash to support this dividend stock.
International Business Machines Corp. (IBM)
Market value: $232 billion Sector: Technology Dividend: 2.7%
Though not the first tech stock on most investors’ watch list, IBM is a well-established firm with deep roots that trace all the way back to 1911 as one of the first automation and computing companies in the world. More recently, Watson artificial intelligence software was a first-mover in the space — perhaps most famously taking on human “Jeopardy!” game show contestants way back in 2011. IBM stock is a rare combination of market-leading innovation in technology that has growth potential along with value-oriented metrics like attractive valuation ratios and a strong dividend. Yes, it lags AI highfliers like Nvidia Corp. (NVDA), but IBM is a less volatile investment with a strong dividend history that makes it worth a look from income-oriented investors in 2025.
JPMorgan Chase & Co. (JPM)
Market value: $705 billion Sector: Financials Dividend: 2.3%
With roots tracing back to 1799, JPMorgan Chase has long been a leader in the banking industry and has a rich history of sharing its success with stockholders via dividends. For instance, after regulators demanded dividend cuts from all major financial organizations in 2009 to protect against a global crisis, JPM was the first to return back to pre-crisis levels in 2013. And since then, dividends have surged from 38 cents per quarter to $1.40 — a stunning 270% increase that is unmatched by other U.S. banks. And with a payout that is less than one-third of earnings, that dividend remains very safe and ripe for even more increases in the years ahead.
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Kinder Morgan Inc. (KMI)
Market value: $63 billion Sector: Energy Dividend: 4% Energy companies are volatile these days thanks to both inflationary pressures as well as potential regulatory changes in Washington. However, it can be risky to depend on energy dividend stocks that rely on high oil prices or less red tape in order to succeed. Kinder Morgan stands apart from integrated oil stocks or exploration firms, however, operating as a “midstream” oil and gas company with roughly 83,000 miles of pipelines and 140 terminal facilities across the U.S. This more stable business model fuels consistent earnings as well as consistent dividends. At the end of 2023, KMI closed a more than $1.8 billion acquisition of additional pipeline assets to expand its empire further — and with shares up more than 60% from their 2024 lows, this is an energy sector dividend leader with strong momentum right now.
Lloyds Banking Group PLC (LYG)
Market value: $58 billion Sector: Financials Dividend: 4.1%
While not as well-known to investors as aforementioned domestic leader JPMorgan Chase, London-based banking and insurance giant Lloyds has been around since 1689 and is one of the oldest and most respected financial firms in the world. More recently, it has surged more than 40% this year thanks to investors expressing optimism over European markets as an alternative to U.S. stocks. This short-term momentum is noteworthy, but LYG is also worth considering for long-term geographic diversification that can provide consistency to any stock portfolio. LYG is not going anywhere, with a market value that’s on par with well-known financials like American International Group Inc. (AIG) in size. And with a stable yield that is higher than many of its domestic peers, it’s worth considering this U.K. leader is a top dividend stock to give your investments an overseas flavor.
Lockheed Martin Corp. (LMT)
Market value: $105 billion Sector: Industrials Dividend: 3%
Lockheed stands out as a unique opportunity to succeed in the years ahead amid the rise in geopolitical uncertainty. The stock is one of the world’s long-term leaders in the defense sector thanks to past innovations such as the F-35 Lightning, the F-117 stealth fighter, the F-16 Fighting Falcon and other impressive war machines. And from an income perspective, the blue-chip stock has a strong record of dividends with a generous $3.30 quarterly payout that is double what it was a decade ago. Lockheed has the relationships and expertise that may insulate it from any Department of Defense cutbacks, and a strong brand and corporate history that should keep it in good standing for many years to come.
NextEra Energy Inc. (NEE)
Market value: $142 billion Sector: Utilities Dividend: 3.3%
Utilities are always go-to stocks for dividend investors, as power is a necessity that sees reliable demand year after year. And particularly in the U.S., the regulated nature of the industry coupled with geographic monopolies make it hard to imagine any significant disruption to operations or profits. NextEra is the largest publicly traded utility on Wall Street, and therefore the logical choice for those seeking income in the sector. After a recent bump in its dividend, the stock’s dividend yield is more than double the S&P 500’s average. And with payouts only about 60% of total earnings, the dividend looks ripe for future increases and safe from any near-term performance issues.
Southern Co. (SO)
Market value: $98 billion Sector: Utilities Dividend: 3.3%
Southern Company current ranks as the No. 2 utility in the U.S. by market value behind only the aforementioned NextEra. Southern boasts electricity and natural gas operations that range from Illinois to Tennessee to Georgia. Incorporated back in 1945, it now serves 9 million total customers in regions with growing populations and consistent demand. From an income perspective, SO has a great track record after increasing its dividend in 2024 for the 23rd consecutive year, to an annualized rate of $2.88 per share. With a wide moat thanks to strong regulatory oversight and the very expensive nature of running a utility, SO is a a solid bet for dividend investors.
United Parcel Service Inc. (UPS)
Market value: $94 billion Sector: Industrials Dividend: 6%
Many industrial stocks have been struggling lately thanks to the widespread uncertainty around U.S. tariffs and trade policy. UPS is similar in that its package volume could be impacted by any crackdown, and shares have slumped roughly 25% from their 2024 highs as a result. However, it’s hard to imagine UPS staying down for long thanks to a long-term megatrend lifting this stock in the form of e-commerce and giants like Amazon. What’s more, while White House policies could impact UPS negatively in the area of global trade, a move towards privatization and cost-cutting at the Postal Service could naturally benefit UPS as a result. From a dividend perspective, UPS just provided shareholders its 15th year of consecutive dividend increases, with its $1.64 per share quarterly payout now more than 140% larger than the 67-cent payout 10 years ago. There’s definitely risk with UPS, but this could be a dividend stock to buy at bargain prices in the hopes of long-term gains.
Verizon Communications Inc. (VZ)
Market value: $180 billion Sector: Communication services Dividend: 6.2%
VZ claims almost 150 million total customers to make it the largest wireless provider in the nation. As a result, this telecommunications leader is consistently one of the most generous dividend-paying stocks out there thanks to massive scale and a reliable flow of cash from these subscribers. The downside, of course, is that it’s also very expensive to build out and maintain that network — so VZ boasts almost $120 billion in debt at the end of 2024. That said, the prospect of lower interest rates will make growth and maintenance of Verizon’s infrastructure more affordable in 2025. Falling rates would also free up more cash to cover the firm’s dividend, which is currently about 65% of total earnings, and perhaps help fuel future increases in payouts in the years ahead.
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15 Best Dividend Stocks to Buy Now originally appeared on usnews.com
Update 03/27/25: This story was previously published at an earlier date and has been updated with new information.