This article will look into the dividend stocks that are gaining in 2025.
Stable income, offered by the dividend stocks, has historically attracted investors looking for consistent passive income, resulting in these stocks forming a significant portion of investment portfolios. We are at the beginning of 2025, and these divided stocks are recording notable changes, potentially affecting investment decisions in 2025. While these changes are negatively reflected in some stocks, we see an upward trend that offers an investment opportunity for dividend-seeking investors in others. We have compiled a list of dividend-payers gaining in 2025, which may also be part of your investment portfolio. Stick with us as we count these top gainers from 10 to 1.
Remember that it is not always about the stock’s trajectory but also the reasons behind it. Hence, as we count down the dividend stocks gained in 2025, we will also examine the factors contributing to their upward trend. The two most common contributors to changes in the dividend stock market are the convergence of global events and market trends.
Also read: 10 Low PE High Dividend Stocks to Buy Now
Trump’s presidency, for instance, is shaking up economic policies, leading to specific industries and companies performing better while others face mounting pressures. The new tariff rates—25% on all products coming into the US from Mexico and Canada and 60% on Chinese imports—proposed by the current President, Donald Trump, send ripples across the commercial world, reaching beyond the US borders.
The Artificial Intelligence (AI) conflict between the US and China also affects the environment for dividend stocks. The newly launched AI model from China is competing with the existing model in the US in terms of performance and costs. These developments are altering stock prices. They reshape the expectations for dividend yields across sectors like technology, energy, and consumer goods. Investors are keeping a close eye on how companies are adapting to these changes. Some respond through innovative strategies and product offerings, while others struggle to transition to changing market conditions. It may inevitably be affecting the sustainability or growth of their dividend payouts.
For an investor, making an informed decision is better than unthinkingly following the market trend. Understanding the catalysts behind these trends, whether a geopolitical shift or changes in macroeconomic factors like interest rates or sector-specific challenges, will help make such informed decisions. The stocks we will be seeing in this article have managed to position themselves so that they would gain the most out of the changing market environment.
Each stock will share its unique story in our countdown, providing investors with insights that could later be used to optimize their portfolios. So, grab your coffee and get comfortable as we count down from 10 to 1 of the dividend-paying stocks that are gaining in 2025. Let’s dive in!
Photo by Vitaly Taranov on Unsplash
Our Methodology:
We took into account while forming the below list, the year-to-date (YTD) returns generated by the companies till February 16, 2025. Our list includes only those stocks that have met the criteria of a minimum dividend yield of 3%. Investors focused on income would find these companies particularly attractive. We also eliminated from our list, companies with a market capitalization of less than $50 million. It helped in putting together the list of large dividend-paying stocks, that could be significant gainers in 2025. The stocks are ranked according to their dividend yields, as of February 16.
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10. Exelon Corporation (NASDAQ:EXC)
Dividend yield: 3.73%
Dividend payout ratio: 62.04%
Ex-Dividend Date: February 24, 2025
Number of Hedge Funds: 35
As of February 16, 2025, Exelon Corporation (NASDAQ:EXC) saw a positive growth of 13.84% YTD, overperforming the benchmark indexes.
The four-year capital investment plan of the Chicago-based electric utility company saw an increase of $38 billion to cover the new transmission lines that would boost its overall growth in the industry. The industry is presented with a growth opportunity caused by the lack and aging of the existing power lines, pushing the electricity demand up in the market. After considering the required funding, several rate cases proposed by the company were approved by regulators and implemented earlier this year. As a result, Exelon Corporation (NASDAQ:EXC) is expecting adjusted operating earnings between $2.64 and $2.74 per share. This varies, but only slightly, from analysts’ average estimate of 2.63 per share, according to data compiled by LSEG.
Exelon Corporation (NASDAQ:EXC) offers a dividend yield of 3.73%. The 62.04% payout ratio indicates a balance between earnings used for dividend payment and earnings retained for reinvesting. As of the third quarter of 2025, 35 hedge funds tracked by Inside Monkey held on to the company’s stocks, indicating investors’ solid interest in the stocks.
Investors seeking stable income may purchase the stock on or before the ex-dividend date of February 24, 2025.
9. Spire Inc. (NYSE:SR)
Dividend yield: 4.25%
Dividend payout ratio: 76.06%
Ex-Dividend Date: March 11, 2025
Number of Hedge Funds: 20
Spire Inc. (NYSE:SR) is a regional public utility holding company based in Missouri, U.S. The company experienced an upward trend of 8.96% year-to-date, as of February 15, 2025, signaling a high performance.
The Q1 2025 earnings call transcript of the company indicated high growth in its utility and midstream segments. Strategic investments broadly and positively influenced this in natural gas infrastructure. The company’s effective cost-management strategies also contributed to its growth. With these efforts, the company continues to expand and has positioned itself against other top competitors in the energy sector. Spire Inc. (NYSE:SR) has also distributed $260 million in Q1 capital expenditures to transform its distribution infrastructure. It has also expanded its customer base by connecting to new homes and businesses.
With a payout ratio of 76.06%, Spire Inc. (NYSE:SR) retains close to a quarter of its earnings and offers a dividend yield of 4.25%, as of February 16. The stock attracts moderate investors’ interest since 20 hedge funds, tracked by Insider Monkey, have owned stakes in the company in Q3 2024. The ex-dividend date is March 11, 2025. Investors interested in the stock can purchase on or before this date.
Spire Inc. (NYSE:SR) has high growth potential, which may attract value investors seeking reliable growth.
8. Simon Property Group, Inc. (NYSE:SPG)
Dividend yield: 4.54%
Dividend payout ratio: 111.57%
Ex-Dividend Date: March 10, 2025
Number of Hedge Funds: 49
Simon Property Group, Inc. (NYSE:SPG) saw a positive year-to-date return of 7.46% as of February 16, 2025, overperforming the broader market.
This real estate investment trust company in the U.S. saw its value increase after Asset Management One Co. Ltd. raised its position in its shares by 0.7% in the fourth quarter of 2024. More insider purchases followed the investment. The company’s director, Reuben S. Leibowitz, purchased 465 shares at an average cost of $168.59 on December 30, 2024. Later, in January 2025, Jefferies Financial Group carried out research, after which the Simon Property Group, Inc. (NYSE:SPG) was upgraded from a “Hold” rating to a “Buy” rating. Consecutively, the price target for the company was raised from $179.00 to $198.00.
Simon Property Group, Inc. (NYSE:SPG) offers a dividend yield of 4.54%. The dividend payout ratio, however, stands at 111.57%, suggesting the possibility of dividend payments through debt financing. However, 49 hedge portfolios in the Insider Monkey database hold on to the stock, demonstrating high institutional interest in Simon Property’s stocks. Investors can purchase the stock on or before the ex-dividend date of March 10, 2025.
Simon Property Group, Inc. (NYSE:SPG) shows significant growth potential for 2025 despite the possibility of debt risks.
7. UGI Corporation (NYSE:UGI)
Dividend yield: 4.65%
Dividend payout ratio: 58.82%
Ex-Dividend Date: March 17, 2025
Number of Hedge Funds: 28
The natural gas and electric power distribution company, UGI Corporation (NYSE:UGI), saw an upward trend in its year-to-date return by 14.35% as of February 16, 2025.
In the last quarter of 2024, UGI Corporation (NYSE:UGI) recorded $1.24 billion instead of the analysts’ estimated revenue of $1.64 billion. Successfully reducing the operating and administrative costs across all segments by $75 million compared to the preceding year has garnered market attention. Additionally, on January 27, 2025, the company and Stonehenge completed a transaction of $120 million to acquire Superior Midstream Appalachian, LLC. The acquisition is expected to earn positive results for both companies as well, catching the attention of the investors.
UGI Corporation (NYSE:UGI) has made regular dividend payments for 140 consecutive years and increased its dividends for 38 straight years. With the current dividend yield set at 4.65% and the dividend payout ratio at 58.82%, the company will likely attract investors looking for consistent income at low debt risk. UGI is part of a total of 28 hedge fund portfolios present in the Insider Monkey database, as of Q3 2024. It indicates a moderate-to-high institutional interest in the company’s stocks.
Investors who find the shares attractive may purchase them on or before the ex-dividend date of March 17, 2025.
6. Amcor plc (NYSE:AMCR)
Dividend yield: 5.06%
Dividend payout ratio: 91.20%
Ex-Dividend Date: February 26, 2025
Number of Hedge Funds: 18
Amcor plc (NYSE:AMCR), a global packaging company, found a 7.01% surge in its year-to-date return ending February 16, 2025, indicating a high performance from the company.
The recent developments in its planned merger with Berry Global significantly contribute to the high performance. Both companies have filed a definitive joint proxy statement with the U.S. Securities and Exchange Commission (SEC), and the merger is anticipated to result in a key competitor in the consumer and healthcare packaging solutions market. The value of the synergies expected to be created by the company post-merger stands at $650 million, making Amcor’s stocks an undervalued opportunity.
The dividend yield offered by Amcor plc (NYSE:AMCR) stands at 5.06%. The company intends to pay this dividend through a payout ratio of 91.20%. While this eliminates the risk of debt in dividend payments, it raises concerns regarding the company’s funding for future investment strategies. The number of hedge funds holding on to the stocks as of the third quarter 2024 amounts to 18. This represents moderate interest in the company among institutional investors.
The ex-dividend date is set as February 26, 2025. Investors may go for the stocks before then, but after weighing the dividend yield benefits against the future investment strategies of the company.
5. Karat Packaging Inc. (NASDAQ:KRT)
Dividend yield: 5.59%
Dividend payout ratio: 85.11%
Ex-Dividend Date: February 24, 2025
Number of Hedge Funds: 7
Karat Packaging Inc. (NASDAQ:KRT) experienced an upward trend in its year-to-date return by 6.35% as of February 16, 2025. The stock performs better than the market peers, as indicated by the broader market’s year-to-date return of 3.96%. With a market capitalization of $644.38 million, the company has a 52-week high of $33.14 and a 52-week low of $23.10. The current share price of $32.18 stands close to the 52-week high, signaling a strong performance and the possibility of overvaluation.
Karat Packaging Inc. (NASDAQ:KRT)’s gross margin remained steady despite the increase in ocean freight costs, which has affected many other competitors in the market. It allowed the company to increase its gross profit by 11.7% during the third quarter of 2024, and the gross margin increased 170 basis points to 38.6%, attracting investors through operating efficiency.
Karat Packaging Inc. (NASDAQ:KRT) offers a dividend yield of 5.59% with a dividend payout ratio of 85.11%. It suggests that most earnings are used to pay dividends rather than to retain them for reinvestment. The number of hedge funds owning stakes in the company remains constant at seven throughout the last three quarters of 2024, according to Insider Monkey’s database. This indicates a moderate consistency in investors’ interest in the stock.
Investors who find the stock appealing may purchase it on or before the ex-dividend date of February 24, 2025.
4. DHT Holdings, Inc. (NYSE:DHT)
Dividend yield: 6.08%
Dividend payout ratio: 89.29%
Ex-Dividend Date: February 18, 2025
Number of Hedge Funds: 22
DHT Holdings, Inc. (NYSE:DHT) is among the highest gainers in our list, with a year-to-date return of 20.45% as of February 16, 2025.
The business that owns and operates crude oil through its subsidiaries repurchased 1.48 million shares during the third quarter of 2024, reducing its outstanding shares by 1%, thereby increasing the stock value, currently priced at $11.19.
DHT Holdings, Inc. (NYSE:DHT) provides a dividend yield of 6.08%. This is supported by a manageable payout ratio of 89.29%. The ratio indicates that the company covers its dividend payments with its earnings. The stocks are held by 22 hedge funds listed in the Insider Monkey database of Q3 2024, pointing to a strong institutional interest in the market. Investors seeking to earn the next dividend payment can invest in the ex-dividend date of February 18, 2025.
The stock promises a high dividend yield and is backed by a manageable payout ratio, suggesting a low-risk investment for investors looking for stable income.
3. TELUS Corporation (NYSE:TU)
Dividend yield: 7.32%
Dividend payout ratio: 232.33%
Ex-Dividend Date: March 11, 2025
Number of Hedge Funds: 16
As of February 16, 2025, the stock of TELUS Corporation (NYSE:TU) has seen an increase of 14.35% in its year-to-date. With a market capital of $23.28 billion, the company has a moderate P/E ratio of 32.72.
The Canadian Information Technology (IT) company focuses on its long-term expansion, which is apparent from enhancing its advanced connectivity solutions and launching new services like TELUS Smart Energy and TELUS Home View. Telus aims to cover the broader audience with these new services, thus benefitting its shareholders.
TELUS Corporation (NYSE:TU) recorded 347,000 new customers in the third quarter of 2024. This includes new mobile phone subscribers of 130,000. This growth has led to the company’s stocks being valued at $15.38 per share – an increase of 11.53% in the last month.
TELUS Corporation (NYSE:TU) offers an attractive 7.32% dividend yield alongside a strong commitment to generate consistent income for its shareholders, as demonstrated by the 27 consecutive years of dividend payouts. However, the high dividend payout ratio of 232.33% raises sustainability concerns, indicating the possibility of dividend payments using debts.
TELUS Corporation (NYSE:TU) remains part of 16 hedge fund portfolios in Insider Monkey’s Q3 2024 database, indicating moderate institutional interest in the stocks. With an ex-dividend date of March 11, 2025, investors may have to act quickly after weighing the high yield against the risk of a high payout ratio.
2. Saga Communications, Inc. (NASDAQ:SGA)
Dividend yield: 7.93%
Dividend payout ratio: 246.67%
Ex-Dividend Date: February 18, 2025
Number of Hedge Funds: 26
The year-to-date return of Saga Communications, Inc. (NASDAQ:SGA) saw an increase of 14.32% as of February 16, 2025, indicating strong performance.
During the third quarter of 2024, Saga Communications, Inc. (NASDAQ:SGA) faced sector-specific challenges that impacted their advertising budgets. However, according to Wall Street experts, the company’s strategy to focus on blended advertising that integrates the efforts from radio-based and digital-based advertisements might help achieve long-term growth. Blended advertising could increase the effectiveness of the ad, creating longer customer engagements. This may lead to growth during the further quarter into 2025.
Saga Communications, Inc. (NASDAQ:SGA) offers a dividend yield of 7.93%. While this looks attractive, the dividend payout ratio of 246.67% indicates the possible involvement of debt to finance the payouts. On the other hand, the company was a part of 26 hedge fund portfolios in our Q3 2024 database, indicating solid institutional investors’ interests. The investors, after considering the risk and finding the investment attractive, can purchase the company’s stocks on or before the ex-dividend date of February 18, 2025.
1. Capital Southwest Corporation (NASDAQ:CSWC)
Dividend yield: 10.83%
Dividend payout ratio: 180.71%
Ex-Dividend Date: March 14, 2025
Number of Hedge Funds: 5
The business development company Capital Southwest Corporation (NASDAQ:CSWC) experienced a 7.52% increase in year-to-date (YTD) as of February 16, 2025, overperforming the 3.96% YTD of the broader index. With a market capital of $1.19 billion, the company has a modest P/E ratio of 16.64.
Capital Southwest Corporation (NASDAQ:CSWC) was among the few companies that capitalized on the interest rate shifts by rapidly growing their portfolio with the help of new investments. The net investment income gradually increased, causing the recent upward trend in the stock price.
Capital Southwest Corporation (NASDAQ:CSWC) offers a dividend yield of 10.83% but with a high payout ratio of 180.71%, suggesting debt risk in the dividend payments. Hedge funds have recently modified their company holdings, resulting in the number of hedge fund portfolios going up from 5 in the third quarter of 2024 to 8 in the fourth quarter. The company has a 52-week low of $20.68 and a 52-week high of $27.23. The current price of $15.38 indicates that the stocks are undervalued. The ex-dividend date of March 14 presents an opportunity for investors looking for high dividend income. However, the risks posed by the high payout ratio must be considered before investing.
Overall Capital Southwest Corporation (NASDAQ:CSWC) ranks first on our list of the best dividend stocks from the banking sector. While we acknowledge the potential for CSWC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSWC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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