US Large Cap Dividend Stocks Should Roll in 2025: Our 4 Favorite Picks

Investing

Concept of dividends. Dividend growth or increase dividend. A dividend is a payment made by a corporation to its shareholders as a distribution of profits. Saving money. Dividend tax.

Published: December 30, 2024 11:14 am

Large-capitalization dividend stocks are a favorite among investors for a good reason. They provide a steady stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

24/7 Wall St. Key Points:

Top Wall Street strategists think near-record margins for large caps will make earnings growth easier.
Large-cap U.S. dividend stocks are among the safest plays for growth and income investors.
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In simpler terms, it is the sum of income and stock appreciation. Dividend stocks can boost investment success by delivering regular income and capital appreciation.

Despite the massive run the stock market has made over the past two years, many on Wall Street are optimistic about the prospects for 2025. While another 20% gain is unlikely, as 2023/2024 were the first back-to-back years of 20% gains since the late 1990s, after a correction which is likely coming, large-cap dividend stocks could post some excellent results next year.

We screened our 24/7 Wall Street large-cap dividend stock database, looking for companies paying generous and dependable dividends and that have a substantial following on Wall Street with multiple Buy ratings. Four companies that offer value, upside, and strong dividend coverage are our top large-cap dividend picks for the coming year, and all pay at least a 3% dividend.

Why do we cover large-cap dividend stocks?

Investing in large-cap dividend stocks provides regular income through dividends from established and financially stable companies. These stocks offer lower volatility and the potential for capital appreciation. Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

Chevron

This integrated giant is a safer option for investors looking to position themselves in the energy sector. It has a sweet 4.10% dividend. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries. The company operates in two segments.

The Upstream segment is involved in the following:

Exploration, development, production, and transportation of crude oil and natural gas
Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
Transportation of crude oil through pipelines and transportation, storage
Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

Refining crude oil into petroleum products
Marketing crude oil, refined products, and lubricants
Manufacturing and marketing renewable fuels
Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Downstream also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Kimberly-Clark

a top dividend stock — This American multinational personal care company produces primarily paper-based consumer products.

This consumer staples leader is a safe bet for nervous investors, paying a hefty 3.50% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide. The company operates through three segments.

The Personal Care segment offers a diverse range of products, including:

Disposable diapers
Swim pants, training and youth pants, baby wipes
Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names

The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names.

Kleenex
Scott
Cottonelle
Viva
Andrex
Scottex
Neve

The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.

Merck

This company develops and produces medicines, vaccines, biological therapies, and animal health products.

Merck & Co. Inc. (NYSE: MRK) is not just a healthcare company but a global force in the industry while paying a solid 3.20% dividend. The company operates through two segments:

Pharmaceutical
Animal Health

The Pharmaceutical segment offers human health pharmaceutical products in:

Oncology
Hospital acute care
Immunology
Neuroscience
Virology
Cardiovascular
Diabetes
Vaccine products, such as preventive pediatric, adolescent, and adult vaccines

The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.

Merck serves:

Drug wholesalers
Retailers
Hospitals
Government agencies
Managed healthcare providers, such as health maintenance organizations
Pharmacy benefit managers and other institutions
Physicians
Physician distributors
Veterinarians
Animal producers

Its growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca PLC (NYSE: AZN), Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences Inc. (NASDAQ: GILD) to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.

PepsiCo

This top beverage and consumer stock posted earnings for the third quarter that aligned with expectations. It will continue to supply all the goods for the 2024 NFL football season tailgates and parties, paying a solid 3.32% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.

Its Frito-Lay North America segment offers:

Lays and Ruffles potato chips
Doritos, Tostitos, and Santitas tortilla chips
Cheetos cheese-flavored snacks, branded dips
Fritos corn chips

The company’s Quaker Foods North America segment provides:

Quaker Oatmeal
Grits
Rice cakes
Natural granola and oat squares
Pearl Milling mixes and syrups
Quaker Chewy granola bars
Cap’n Crunch cereal
Life cereal
Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

Pepsi
Gatorade
Mountain Dew
Diet Pepsi
Aquafina
Diet Mountain Dew
Tropicana Pure Premium
Sierra Mist
Mug

Four of the Highest Yielding Dividend Aristocrats Are Top Buys for 2025

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