A dividend stock refers to a company that is known to regularly reward their shareholders with a fraction of their profits on a monthly, quarterly, semi-annually or sometimes even a yearly basis.
Dividend paying companies provide a steady stream of income to shareholders, and many still offer the potential for stock price appreciation. Stability and income generation has always remained a top priority for many investors.
Given ongoing economic uncertainty, investors hunt for dividend-paying stocks that are undervalued, as only companies that have quality fundamentals and a robust foundation have the financial stability to maintain their dividends during questionable economic periods.
Another great aspect of adding dividend stocks to one’s portfolio is the ability to reinvest any dividends paid out by a company, using them to buy more shares (sometimes called ‘DRIP’), and taking advantage of compounding returns.
Best Dividend Stocks February 2025
| Company Name | Stock Symbol | Dividend Yield | P/E Ratio | Dividend CAGR |
|---|---|---|---|---|
| Verizon Communications Inc. | VZ | 6.8% | 9.6x | 2.0% |
| Pfizer Inc. | PFE | 6.5% | 18.7x | 2.5% |
| Altria Group, Inc. | MO | 7.8% | 7.9x | 4.0% |
| PNC Financial Services Group Inc | PNC | 3.2% | 14.2x | 6.8% |
| MPLX LP | MPLX | 7.1% | 12.8x | 7.1% |
| Valero Energy Corporation | VLO | 3.2% | 16.1x | 3.5% |
| HP Inc. | HPQ | 3.6% | 11.0x | 11.5% |
| Fifth Third Bancorp | FITB | 3.4% | 13.7x | 9.0% |
| Archer-Daniels-Midland Company | ADM | 4.3% | 12.3x | 7.4% |
| Citizens Financial Group, Inc. | CFG | 3.5% | 15.3x | 3.1% |
Why We Picked These Dividend Stocks
The dividend stocks that have been screened and included in the list below show solid, consistent dividend prospects, strong fundamentals, long profit histories and strong credit ratings. We want to show investors that the best dividend stocks available for trading often still have room to run, while also hedging against too much volatility and generating additional compoundable (when reinvested) income.
The numbered list of such top dividend companies are displayed below:
- Market Cap: 168.9 billion
- Fair Value: $41.87
- Fair Value Upside: 4.3%
Verizon Communications Inc. is an American telecommunications company, founded in October 1983, with headquarters located in New York City. It is the second-largest telecommunications company by revenue in the world, and the largest mobile network wireless carrier in the United States. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000.
- Market Cap: 149.8 billion
- Fair Value: $34.32
- Fair Value Upside: 29.8%
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women’s health. It was founded in 1849 and is headquartered in New York, New York.
- Market Cap: 89.113 billion
- Fair Value: $60.06
- Fair Value Upside: 14.2%
Altria Group, Inc. is an American corporation and among the largest producers and marketers of tobacco, cigarettes, and medical products in the world. The company offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand. The company was founded in 1822 and is headquartered in Richmond, Virginia.
PNC Financial Services Group Inc
- Market Cap: 78.748 billion
- Fair Value: $248.11
- Fair Value Upside: 24.2%
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It is among the largest banks in the country by assets, and operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group segments. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.
- Market Cap: 54.832 billion
- Fair Value: $67.54
- Fair Value Upside: 25.5%
MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States. It operates in two segments, Logistics and Storage, and Gathering and Processing. The company was incorporated in 2012 and is headquartered in Findlay, Ohio. MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.
- Market Cap: 44.493 billion
- Fair Value: $167.05
- Fair Value Upside: 17.7%
Valero Energy Corporation is an American producer and marketer of fuels. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. It was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
- Market Cap: 30.544 billion
- Fair Value: $36.48
- Fair Value Upside: 12%
HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. It was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.
- Market Cap: 29.46 billion
- Fair Value: $54.59
- Fair Value Upside: 24.1%
Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.
Archer-Daniels-Midland Company
- Market Cap: 22.228 billion
- Fair Value: $62.35
- Fair Value Upside: 34.2%
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. The company was founded in 1902 and is headquartered in Chicago, Illinois.
- Market Cap: 20.992 billion
- Fair Value: $82.14
- Fair Value Upside: 72.4%
Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. It was founded in 1828 and is headquartered in Providence, Rhode Island.
How to Find The Best Dividend Stocks
To start, we focused only on those U.S. stocks that have a market capitalization exceeding $1 billion as well as a significant market share, while presenting stable financial conditions for continuing the growth of their dividend payouts regardless of ongoing macro conditions.
In order to guarantee that we are not buying stocks that are already extremely expensive, a fair value assessment filter was added in the InvestingPro screener, which shows only those stocks that have growth potential going forward, thereby avoiding risks of a sudden, big drop in share price.
Further, a filter for dividend compound annual growth rate (CAGR) of 5 years has also been incorporated in our stock screening criteria, which curates a list of only those companies that are consistently growing their payout ratios at 10% or more.
Here are the steps to finding top U.S.-based dividend stocks easily using Investing Pro:
- Click on the Screener tool.
- Select ‘Dividend Yield’ as a filter parameter on the Screener page, and set the threshold value to greater than 3%.
- Add a P/E Ratio filter and set the range between 0 and 30x.
- Add a further four metrics: Market Cap, Shareholder Yield, Fair Value Upside and Dividend CAGR (5y), setting their range to desired values. You can also follow our stock selection metrics as shown in the screenshot below.
- For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
- You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.
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