So far, 2025 hasn't been the best year for stocks. Investors are understandably jittery and on the sidelines with on-again, off-again policy changes, trade wars, broken alliances, and interest rate uncertainty. These days, I almost always expect news headlines saying the Dow and the S&P 500 are down again.
But here’s the thing: some stocks are doing quite well despite market turbulence and corrections. Some dividend stocks, in particular, are bright spots in a sea of red, offering investors income and the potential for capital gains. Companies with strong fundamentals, reliable cash flow, and a history of providing shareholder value through dividends can be excellent additions to your portfolio. Of course, their price growth makes it easier to weather the current market.
“Owning quality companies that earn healthy profits and share such profits with investors by paying out healthy dividends is a solid approach to investing,” says Joseph J. Janiczek, Partner and Practice Leader with Cerity Partners. However, he cautions that dividend investing shouldn’t happen in a vacuum. Janiczek suggests asking ourselves, “Are such companies continuing to invest in their future capability to continue and grow such income? " Indeed, this is good advice before making any decisions.
So, today, let’s look at the top-performing dividend stocks in the market and see if they deserve a spot in your portfolio.
How I Came Up With The Following Stocks
Through Barchart Screener, I used the following filters:
- YTD Percentage Change: 1% and above. I’m limiting the results to high-yielding dividend stocks with positive price movement.
- Annual Dividend Yield: 2.75% and above. Next, I’ll only look for companies with higher dividend yields.
- Current Analyst Rating: 3.5 (Moderate Buy) to 5 (Strong Buy).
- Number of Analysts: 12 or more.
- Market Cap: $10 billion and above. Though not a 100% criterion, companies with higher market capitalizations tend to be more stable regarding financials and dividends. That’s why I’m limiting the results to large-cap stocks and above.
With these filters, I screened the market and got 79 results:
As you can see, I arranged them from highest to lowest YTD change. So, let’s start with the top one:
CVS Corporation (CVS)
CVS Health is a leading healthcare and retail pharmacy company integrating pharmacy services, health insurance, and primary care. It operates over 9,000 CVS Pharmacy locations, offering prescription medications, health products, and wellness services.
Beyond retail, CVS owns Aetna, a primary health insurance provider, and CVS Caremark, a pharmacy benefit management service.
After a grueling 2H'24, when CVS stock fell to as low as $43.56, it's finally seeing substantial growth, with the stock price increasing by 52.91% YTD. Even better, analysts think that the stock still has some gas left in the tank. CVS stock has a consensus strong buy rating based on 23 analysts, with a high target price of $81. That’s a decent 18% potential upside.
Meanwhile, the company pays $2.66 annually in dividends, translating to a 3.87% yield based on its current trading price. Given Walgreens’s sudden (yet unsurprising) suspension of dividend payments in 2025, many investors wonder if CVS is headed in the same direction. Well, fret not, as CVS is performing better than its closest competitor and has assured investors its dividends will continue coming.
Philip Morris International (PM)
Philip Morris International is a global tobacco and nicotine company best known for producing and marketing Marlboro cigarettes outside the U.S. The company is shifting its focus toward smoke-free alternatives, including heated tobacco products like IQOS and nicotine pouches, as part of its vision for a “smoke-free future.”
Now, I’m not the biggest fan of sin stocks. However, this is an objective review of the best-performing dividend stocks in 2025 - and Philip Morris International has objectively been doing quite well. With a moderate buy rating, PM stock is up 26.69% YTD. Further, analysts suggest there's another 15% in the tank (upside potential) based on a $175 high target price.
Philip Morris International pays $5.40 annually in dividends, translating to a 3.54% yield.
BASF SE ADR (BASFY)
BASF SE is one of the world’s largest chemical companies. It specializes in producing chemicals, plastics, performance products, and agricultural solutions. The company serves various industries, including automotive, construction, consumer goods, and agriculture, and has 235 production sites worldwide.
BASFY stock is up 25.57% YTD and has a moderate buy rating based on 13 analysts. However, it’s somewhat of an anomaly in this list, as it has a high target price of $13.60, which it has already exceeded. In line with the price movement, its average analyst score decreased from 4.08 to 3.92 over the last month.
BASF SE paid 64.7 cents last year, reflecting a 4.72% yield. But heads up: the dividend payment happens only once a year, around April or May.
Final Thoughts
In uncertain times, I can't stress enough how important it is to pick the right dividend stocks. Despite uncertainty and volatility, these companies show that there’s still money to be had in the market. Many of these companies have weathered multiple economic downturns while maintaining or even increasing their dividend payouts.
However, like with anything, change is inevitable. So always do your due diligence, stay up to date with market news, and never settle into complacency.
