12 Best Safe Dividend Stocks for 2025

4. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 98

5-Year Average Payout Ratio: 7.26%

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American multinational biotech and life sciences company. It is regarded as one of the most high-quality and impressive compounders in the healthcare and pharmaceutical sectors. It provides investors a unique opportunity to benefit from industry growth without the risks tied to patent expirations or the necessity for groundbreaking new drugs. The company’s business is highly diversified, with more than 80% of its revenue coming from recurring sources, making it a stable and lower-risk investment.

Thermo Fisher Scientific Inc. (NYSE:TMO)’s strong market position is supported by long-term customer relationships, leadership in life sciences, and high switching costs, especially in drug development, where its equipment and consumables are crucial. This solid footing allows the company to achieve consistent growth, with management forecasting high-single-digit revenue growth and mid-teens EPS growth in the coming years. In the third quarter of 2024, the company reported revenue of $10.6 billion, up 0.3% from the same period last year.

Thermo Fisher Scientific Inc. (NYSE:TMO)’s cash position also came in strong. The company generated over $2.1 billion in operating cash flow and its free cash flow came in at $1.9 billion. It is one of the best dividend stocks with seven consecutive years of dividend growth under its belt. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 0.28%, as of January 13.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 98 funds held stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), compared with 108 in the previous quarter. These stakes have a total value of over $8.33 billion.