“Dividend Champions” refers to publicly traded companies that have consistently increased their dividend payouts to shareholders for at least 25 consecutive years. Investors use this designation to identify companies with a long history of financial stability and a commitment to returning value to shareholders through regular dividend increases.

The key for investors with this group is that the Dividend Champions stocks do not have to be in the S&P 500 and can be any market cap size. That opens the door for many new stocks that have paid reliable dividends for over 25 years. It also considerably widens the number of companies from which investors can select.

Key characteristics of Dividend Champions include:

• Long Track Record: These companies have had at least 25 consecutive dividend increases, showcasing their resilience and consistent performance over various economic cycles.
• Financial Health: Dividend Champions are typically financially strong, with robust cash flows and sustainable business models that support ongoing dividend growth.
• Investor Appeal: These stocks attract income-focused investors, particularly retirees looking for reliable and growing income streams.

We screened the 147 Dividend Champions, looking for the highest-yielding stocks in the group that also had the best upside potential in 2025. Five top companies fit the model perfectly. All five are Buy-rated from the top Wall Street firms we cover here at 24/7 Wall St.

Why do we cover the Dividend Champions?

Companies that have raised the dividends shareholders receive for 25 years or longer are the kind of investments that passive income investors need to own. Dependability is necessary for those seeking to bolster their yearly income with dividend stock investments.

Altria

This tobacco company offers value investors a great entry point and a 7.80% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores. Altria used to own over 10% of Anheuser-Busch InBev, the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering earlier this year. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Bank of America Securities has a Buy rating with a large $65 target price.

Canadian Utilities

This is a Canada-based diversified global energy infrastructure company.

With a strong 5.40% dividend and a highly safe sector, this company is a steal at current trading levels. Canadian Utilities Ltd. (CDUAF), together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally.

It operates through three segments:

• ATCO Energy Systems
• ATCO EnPower
  Corporate & Other segments

The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:

• Northern and Central East Alberta
• The Yukon
• The Northwest Territories
• The Lloydminster area of Saskatchewan

This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta in Canada.

The ATCO EnPower segment provides:

• Hydro
• Solar
• Wind
• Natural gas electricity generation
• Natural gas storage
• Industrial water solutions
• Clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon; the Northwest Territories, Australia, Ontario, Mexico, and Chile

The Corporate & Other segment retails electricity and natural gas and provides whole-home solutions.

Enterprise Products Partners

This company is one of the largest publicly traded energy partnerships and pays a 6.60% dividend. Enterprise Products Partners L.P. (NYSE: EPD)  provides various midstream energy services, including:

• Gathering
• Processing
• Transporting and storing natural gas, natural gas liquids (NGL) fractionation
• Import and export terminalling
• Offshore production platform services

The company has four reportable business segments:

• Natural Gas Pipelines and Services
• NGL Pipelines and Services
• Petrochemical Services
• Crude Oil Pipelines and Services

One reason many analysts may like the stock is its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

UBS has set a $23 target price objective and has a Buy rating for the company.

NNN REIT

This Dividend Champion is another fresh idea for investors that pays a hefty 5.70% dividend. NNN REIT Inc. (NYSE: NNN) invests primarily in high-quality retail properties subject generally to long-term net leases. These properties are single-tenant net lease retail properties, where tenants are responsible for covering all operating costs, such as maintenance, property taxes, and insurance. This setup ensures dependable rental income, which increases yearly through fixed adjustments or inflation-linked escalations.

As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years.

In the third quarter of 2024, the company posted $218.6 million in revenue, marking a solid 6.55% year-over-year increase. Funds from operations (FFO) rose to over $154 million, up from $147.2 million in the previous year. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

Barclays has an Overweight rating with a $48 target price.

UGI

This Dividend Champion offers a 5.30% dividend and stellar total return potential. UGI Corp. (NYSE: UGI) and its subsidiaries distribute, store, transport, and market energy products and related services in the United States and internationally.

The company operates through four segments:

• AmeriGas Propane
• UGI International
• Midstream & Marketing
• UGI Utilities

Its extensive network of 1,400 propane distribution locations distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers.

The company distributes liquefied petroleum gases (LPG) to:

• Residential
• Commercial
• Industrial
• Agricultural
• Wholesale
• Automobile fuel customers
• Provides logistics, storage, and other services to third-party LPG distributors

In addition, it retails natural gas, liquid fuels, and electricity to approximately 12,400 residential, commercial, and industrial customers at 42,000 locations.

Further, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania counties through its distribution system of roughly 12,500 miles of gas mains and supplies electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 miles of lines and 14 substations.

It also operates electric generation facilities, which include:

• Coal-fired
• Landfill gas-fueled
• Solar-powered
• Natural gas-fueled facilities
• Natural gas liquefaction, storage, and vaporization facility
• Propane storage and propane-air mixing stations
• Rail transshipment terminals

It also manages natural gas pipeline and storage contracts and develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities.

Jefferies has a Buy rating with a $28 target price objective.

Four High-Yield Stocks With 7% and Higher Dividends Are 2025 Home Runs

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