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5 Of Bairds Top 2025 Red-Hot Stock Ideas Pay Dependable Recurring Dividends

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With all of the major indices making solid moves higher in 2024, we were very interested to see what the top prognosticators across Wall Street think is in store for 2025 as we start the second quarter of the new century. Not surprisingly, many of the firms that we cover are very positive going forward, despite some trepidation after the big moves higher.

24/7 Wall St. Key Points:

  • The S&P 500 posted the first back-to-back 20%+ gains since the late 1990’s in 2024
  • While Wall Street is bullish on 2025, another 20% year is unlikely
  • Look for the Federal Reserve to not lower rates again until May
  • Is your portfolio set right for 2025? It makes sense to meet with a financial advisor in your area to find out. Click here to get started. (Sponsored)

As the calendar turns to 2025, the leading Wall Street firms are releasing their top stock picks for the new year. Typically, these are companies that analysts have incredible conviction in. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.

One of the top firms on Wall Street that we have covered for years is regional giant Baird. Like most years, their top picks are in line with Wall Street, but often, they have some exciting new ideas that don’t get sponsorship from the big money center banks, and 2025 is no exception. We screened the list, looking for companies that offer solid upside potential and pay dependable dividends to shareholders. Five look like great ideas for growth and income investors in 2025.

Cardinal Health

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Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally.

This is a solid way for more conservative growth and income investors to play the healthcare sector and pays a dependable 1.70 % dividend.  Cardinal Health, Inc. (NYSE: CAH) is a global healthcare services and products company.

The Company provides customized solutions for:

  • Hospitals
  • Healthcare systems
  • Pharmacies
  • Ambulatory surgery centers
  • Clinical laboratories
  • Physician offices
  • Patients in the home

Cardinal Health also provides pharmaceuticals and medical products.

The Company’s segments include:

  • Pharmaceutical and Specialty Solutions
  • Global Medical Products and Distribution (GMPD).

The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals and over-the-counter healthcare and consumer products in the United States.

Its GMPD segment manufactures, sources, and distributes Cardinal Health-branded medical, surgical, and laboratory products, which are sold in the United States, Canada, Europe, Asia, and other markets.

The Company connects patients, providers, payers, pharmacists, and manufacturers for integrated care coordination.

The Baird price target is posted at $149.

Cousins Properties

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Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust.

While well off the radar, this REIT pays a dependable 4.13% dividend and has solid upside potential. Cousins Properties, Inc. (NYSE: CUZ) is a self-administered and self-managed real estate investment trust (REIT). The Company operates through its subsidiary Cousins Properties LP (CPLP), which primarily invests in Class A office buildings.

Its segments are classified by property type and geographical area. The segments by property type are Office and Non-Office. The segments by geographical region are:

  • Atlanta
  • Austin
  • Charlotte
  • Dallas
  • Phoenix
  • Tampa, and other markets.

Properties in Houston and Nashville are included in different markets. Retail and apartments in Atlanta and the College Street Garage in Charlotte are included in Non-Office.

The company develops, acquires, leases, manages, and owns primarily Class A office properties and mixed-use developments in the Sun Belt markets of the United States. Cousins Properties portfolio of real estate assets consists of interests in approximately 18.8 million square feet of office space and 310,000 square feet of other space.

Baird has set a $34 target price.

FedEx

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FedEx is an American multinational conglomerate holding company focused on transportation, e-commerce, and business services.

Given the massive increase in internet shopping and sales, FedEx Corporation (NYSE: FDX) has a strong path for continued growth and also delivers a 2% dividend. The delivery giant provides transportation, e-commerce, and business services internationally.

It operates through four segments:

  • FedEx Express
    FedEx Ground
    FedEx Freight
    FedEx Services

The FedEx Express segment offers express transportation, small-package ground delivery, freight transportation, and time-critical transportation services.

The FedEx Ground segment provides small-package ground delivery services.

The FedEx Freight segment offers less-than-truckload freight transportation services.

The FedEx Services segment provides:

  • Sales
  • Marketing
  • Information technology
  • Communications
  • Customer service
  • Technical support
  • Billing and collection
  • Back-office support services

In addition, the company offers supply chain management solutions, air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data.

In December, the company announced plans to spin off FedEx Freight and create a new publicly-traded company within the next 18 months. The move will allow each company to continue to pursue its growth strategies, with “more customized operational execution along with more tailored investment and capital allocation strategies to serve the unique and evolving needs of both the global parcel and LTL markets,” according to a FedEx news release.

The Baird target price objective is set at $320.

Healthpeak Properties

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Healthpeak Properties invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices.

Healthpeak Properties, Inc. (NYSE: DOC) presents a compelling investment opportunity. With an aging population and the increasing demand for new facilities, this fully integrated real estate investment trust (REIT) and S&P 500 company offers a substantial 5.93% dividend.

Moreover, it holds the potential for significant growth. Healthpeak’s strategic focus on owning, operating, and developing high-quality real estate for healthcare discovery and delivery ensures a stable and lucrative investment.

The company earned the 2024 ENERGY STAR® Partner of the Year Award for Sustained Excellence from the U.S. Environmental Protection Agency and the U.S. Department of Energy. This marks Healthpeak’s fourth time being named Partner of the Year and its first time being recognized for Sustained Excellence.

In March of 2024, the company completed its previously announced all-stock merger with Physicians Realty Trust, a merger of equals deal. The combined company will operate under “Healthpeak Properties, Inc.” Healthpeak now owns a combined portfolio of top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States.

Nike

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Nike, Inc. is an American athletic footwear and apparel corporation headquartered near Beaverton, Oregon.

The shoe and apparel giant has had a rough go of it the last couple of years, but yielding 2.11% with a ton of upside potential, this could be a big 2025 winner. Nike Inc. (NYSE: NKE) designs, markets, and distributes athletic footwear, apparel, equipment, accessories, and services for sports and fitness activities.

The Company’s operating segments include:

  • North American
  • Europe
  • Middle East & Africa
  • Greater China; and Asia Pacific
  • Latin America

It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities.

It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark.

The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.

The Baird target price for the shares is set at $110.

 

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