8 Best Dividend Stocks to Buy for Q1 2025

Companies can return some of their profits to shareholders by paying an annual dividend. This page picks out the top seven dividend stocks on the market this year.
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Updated on Jul 4, 2024
Reading time 11 minutes

This page covers the basics of a dividend stock and why you might want to invest in one. Then it goes through the best stocks that pay investors available in 2025 to help you get started.

What are the top dividend stocks to buy?

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Our experts have been through the best dividend paying stocks to choose their favourites and you can find them ranked in the table below. We’ve looked at data including annual dividend yield, dividend growth, payout ratio, forward yield and more, to help income investors find the best options.

Click the links to find up to date price information or read on for a summary of each company in turn.

#Stock symbolCompany nameDividend yieldLearn more
1HSBCHSBC Holdings7.10%Learn more >
2BTIBritish American Tobacco9.58%Learn more >
3ETEnergy Transfer8.26%Learn more >
4VZVerizon Communications6.40%Learn more >
5PGProcter & Gamble2.40%Learn more >
6JNJJohnson & Johnson3.36%Learn more >
7KOThe Coca-Cola Company3.03%Learn more >
8GILDGilead Sciences4.70%Learn more >
List chosen by our team of analysts, updated February 2025.

1. HSBC Holdings (NYSE: HSBC)

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  • Dividend Yield: 7.10%
  • Payout Ratio: 35%
  • Ex-Dividend Date: End of June
  • 5 Year Average Dividend Yield: 3.65%

HSBC is one of the best dividend stocks to buy. The company runs a large banking franchise with operations in Europe, Asia, and North America. It is the biggest European bank in terms of assets.

In the past few years, the company has gone through a major restructuring as it works to simplify its operations. It has done that by exiting some markets like in the United States, Canada, and France.

The resulting company is a major player in Europe and Asia. It is also a highly-profitable company that has no exposure in the highly volatile investment banking division.

HSBC has a dividend yield of 7.10%, making it higher than most European banks. In addition to its strong dividends, the company has also seen its stock appreciate by over 20% in the past 12 months,

HSBC is publicly traded in London and Hong Kong. Its ADR are also listed in the United States. This makes it one of the best UK dividend stocks to invest in 2024.

2. British American Tobacco (NYSE: BTI)

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  • Dividend Yield: 9.58%
  • Payout Ratio: 44%
  • Ex-Dividend Date: June 27th
  • 5 Year Average Dividend Yield: 7.8%

British American Tobacco is another good dividend company to invest in. It is one of the biggest companies in the tobacco industry globally. Its stock is traded in South Africa, London, and New York. At the time of writing, BAT has a market cap of over $54 billion. It is also a generous payer of dividends with a dividend yield of almost 10%.

BAT is a good dividend company for several reasons. First, it has a strong market share in the tobacco industry. Second, it is one of the most undervalued companies in the industry. It has a forward price-to-earnings ratio of 6.7, which is lower than the S&P 500 and FTSE 100 indices.

Third, BAT is also growing its non-combustible business as the number of tobacco smokers drop. Further, the company has already written down some of its toxic assets. It wrote down assets worth over £31.5 billion in 2023. While this was a bad thing, it positions the company for future growth. Most analysts have a buy rating on BAT.

3. Energy Transfer (NYSE: ET)

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  • Dividend Yield: 8.26%
  • Payout Ratio: 115%
  • Ex-Dividend Date: October 10th 2024
  • 5 Year Average Dividend Yield: 9.5%

Energy Transfer is one of the best dividend stocks to buy for several reasons. First, its 8.26% dividend yield is higher than most companies and Exchange Traded Funds (ETFs). Second, it uses a partnership model that has its tax advantages since its payouts are tax deferred.

Further, Energy Transfer is in the energy business, where it owns some of the biggest pipelines in the United States. Also, it has a good track record of growing its revenue and profits in all energy cycles. The company is also cheaper than other MLPs like Williams and Enterprise Product Partners.

4. Verizon Communications (NYSE: VZ)

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  • Dividend Yield: 6.40%
  • Payout Ratio: 56.4%
  • Ex-Dividend Date: Sep 4th, 2024
  • 5 Year Average Dividend Yield: 5.6%

Broadband and cable company Verizon Communications operates the largest wireless network in the United States. The company has increased its dividends for 19 straight years.

Beyond its wireless business, Verizon provides fibre optic broadband services to homes and businesses after it acquired fibre company Fios. It has also been heavily investing in deploying 5G, with its Wideband service available to over 230 Americans.

With revenue topping $133 billion in 2023 and wireless and home internet services backed by billions invested in network infrastructure, Verizon has more than enough free cash to support its dividend. For investors seeking income from a communication services stock, VZ is one of the best high dividend stocks in its industry, with a current yield of over 6.4%.

The biggest risk for Verizon is that it is one of the most indebted companies in the world, with over $180 billion in debt. This debt makes it difficult to invest in growth and fund acquisitions.

5. Procter & Gamble (NYSE: PG)

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  • Dividend Yield: 2.4%
  • Payout Ratio: 60%
  • Ex-Dividend Date: Apr 18th, 2024
  • 5 Year Average Dividend Yield: 2.41%

Procter & Gamble is another major American conglomerate that produces consumer goods. It’s one of the oldest companies in the country, having been formed all the way back in 1837, and owns about 60 brand names in total, including 20 with net sales of over $1bn per year each. Some of its most popular brands are Olay, Pantene, Always, and Febreeze.

In 2018, Procter & Gamble decided to restructure to focus on its most valuable brands and business areas. That decision has paid off spectacularly for its investors, as the stock has doubled in value in the years since then. In danger of being spread too thin at one stage, PG is now a streamlined company with 60 brands that produce just as much revenue as it was earning before.

That stock growth alongside an annual dividend yield of 2.5% makes Procter & Gamble an appealing stock to own. It looks well set for the future and it has a record of increasing dividends for 67 years, making it a dividend king.

6. Johnson & Johnson (NYSE: JNJ)

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  • Dividend Yield: 3.36%
  • Payout Ratio: 45%
  • Ex-Dividend Date: May 20th, 2024
  • 5 Year Average Dividend Yield: 2.63%

Johnson & Johnson is a pharmaceuticals and consumer healthcare company. Founded in 1886, it’s been at the forefront of American healthcare for over a century. It’s one of the most valuable companies in the world and the largest healthcare stock by market capitalisation. It is also one of the few Triple A rated companies.

The company has been very successful for a long time. Its share price has been on the up and up, continually hitting new all-time highs at regular intervals. Even after a pandemic during which competitors like Pfizer and AstraZeneca won the race for a vaccine, JNJ is still at its highest ever point.

Like the companies above it in this list, Johnson & Johnson has a long tradition of raising its dividend. A relatively baby compared to the previous two, it has paid out for 61 years in a row and the yield sits at just over 3%.

7. The Coca-Cola Company (NYSE: KO)

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  • Dividend Yield: 3.03%
  • Payout Ratio: 73%
  • Ex-Dividend Date: Nov 29, 2023
  • 5 Year Average Dividend Yield: 3.05%

The beverage company, Coca-Cola, is perhaps the most instantly recognisable brand in the world. First set up in 1892, The Coca-Cola Company is now a lot more than just its eponymous soft drink. It owns many other beverage brands as well, including the likes of Costa Coffee, Fanta, and Monster.

Coca-Cola, which Warren Buffett invested in in the 1980s, has always gone upwards. Its stock jumped to $63 in June 2024, up from $10 in 2008, making it one of the top-performing Dow Jones companies. It is also often seen as an all-weather company that does well in all market conditions.

Coca-Cola has an extremely efficient operation thanks to the fact it has tight control over each part of its supply chain. It should also benefit as the world continues to open up again and its hospitality customers return. The dividend – raised for 61 years in a row if you’re counting – with a yield of almost 3% is a sweetener to go along with those good prospects.

8. Gilead Sciences (NASDAQ: GILD)

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  • Dividend Yield: 4.7%
  • Payout Ratio: 74
  • Ex-Dividend Date: March 14, 2024
  • 5 Year Average Dividend Yield: 3.93%

Gilead is an American pharmaceutical company. Formed in 1989, it predominantly develops new drugs and treatments that it can patent and sell to the public. Its most famous drugs have aided the fight against Hepatitis, HIV, and flu, among other diseases.

Like many pharma companies that rely on patent protection for the majority of their revenues, Gilead’s fortunes rise and fall depending on the success of their drugs. That means the stock can be quite up and down. The company did well post-pandemic on news of a potential merger but has fallen since as it spent money on acquiring new companies.

Gilead has a good record of success, however, and snapping up other business is one way for companies to add new drugs and research to their portfolio. Its dividend history is a little different to the others on this list, as it has made the top five based on its yield – a tidy 4.5% – rather than longevity. That means it could have more upside than the rest in future.

Where to buy the best dividend shares

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The best place to invest in all of these shares is a stock app. We have pulled together a list of the best stock trading platforms below so that you can get started quickly by simply following the links in the table.

We found 4 online brokers for users based in

eToro review
4.6
eToro
Min. Deposit $100
Fees 1%
No. assets 3600+
Demo account Yes

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Plus500 review
4.5
Plus500
Min. Deposit $100
Fees From 2%
No. assets 2800+
Demo account Yes

Plus500 review

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

Public.com review
4.4
Public
Min. Deposit $20
Fees 1-2%
No. assets 9000+
Demo account No

Public.com review

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What is a dividend stock?

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A dividend stock is a company that makes regular dividend payments to shareholders as a portion of its profits. These dividend payments provide investors with a steady income stream on top of any share price appreciation.

Companies that issue dividend stocks aim to share financial success and attract long-term investors. The dividend yield measures the annual dividend as a percentage of the stock price – yields of 2-6% are typical, although it is possible to obtain high dividend yields running into double digits for some stocks. Companies announce dividends quarterly or annually, with payments on set ex-dividend dates.

A stock’s total dividends during the financial year make up its annual dividend profile. Investors seeking dividend stocks for income can build a portfolio mixing high-quality companies across sectors or invest in a dividend fund for diversification.

Before investing in the best dividend companies, you should consider the dividend history, payout ratio, earnings outlook, and overall company performance.

Are dividend shares a good investment?

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Dividend shares can form a valuable part of an investment portfolio for some investors, but you require careful evaluation based on individual financial goals and risk tolerance. Companies that consistently pay dividends are often mature, stable, cash generative firms across sectors like consumer goods and utilities.

This allows them to return capital to shareholders while still investing in the business. Historically, around nearly half of total stock returns have come from reinvesting dividends paid. So, dividend shares provide a tangible income stream and can improve total returns. However, stock and dividend volatility must be considered, as higher yields do not guarantee returns.

Seeking companies with strong underlying fundamentals that align with economic conditions is vital. Mutual funds and ETFs offer diversified exposure to high dividend stocks across many companies and sectors. These may provide a more stable income than relying on a few individual stocks. Dividend shares should not dominate at the expense of growth opportunities in an uncertain and constantly changing market.

Methodology: How we choose the best dividend stocks

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At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

  • Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
  • Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
  • Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
  • Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
  • Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
  • Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.


Sources & references

Crispus Nyaga

Crispus Nyaga

Market Analyst

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Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. He’s an experienced analyst with more than 8 years of industry experience. His analysis is featured on industry leaders including macrostreet.com,  SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, to name a few....