The year 2025 has brought several new developments in the dividend stock space. Global dividend-focused funds attracted $23.7 billion in the first half of the year, the highest inflow in three years. This shows that investors are increasingly looking for, especially with uncertainty about economic growth and interest rates.
In terms of sectors, energy stocks are leading with average dividend yields of about 4.75%. Real estate follows at 3.7%, utilities at 3.3%, and financials at 3%. By region, Europe is offering an average dividend yield of about 3%, Asia-Pacific around 2.6%, while the United States average is lower at 1.4%.
Several well-known companies have joined the list of high-yielders in the S&P 500 index. UPS has recently offered a dividend yield above 7%, placing it in the same group as with nearly 7%, Conagra Brands with 7.3%, LyondellBasell with 8.8%, and Healthpeak Properties with around 7%. These high yields are partly the result of falling stock prices, which increases the yield percentage. However, some of these companies are paying out nearly all of their profits as dividends, raising concerns about whether such payouts are sustainable in the long term.
In the real estate sector, Broadstone Net Lease has gained attention with a yield of about 6.9%. The company operates 766 properties across industrial, retail, office, and healthcare sectors, with a high occupancy rate of 99.1%. Its financial position remains stable with a credit rating of BBB, and its funds from operations are expected to rise from $1.43 per share in 2024 to $1.53 in 2026.
Another example is Clearway, which has projected growth in cash available for dividends from $2.08 in 2025 to between $2.50 and $2.70 by 2027. This points to annual growth in the range of 5% to 8%, showing strong prospects for income growth.
Some companies have also continued their long tradition of dividend growth. Fastenal has increased its quarterly cash dividend from $0.33 to $0.44 per share, strengthening its reputation as a Dividend Aristocrat. Eversource Energy has also continued its streak, now standing at 27 years of consecutive dividend increases.
Market experts have also pointed to a strong group of dividend payers known as the “Dividend 15.” This list includes companies like Walmart, which raised its dividend by 13%, Johnson & Johnson with a 5% increase, Realty Income, McDonald’s, AbbVie, and Home Depot. Collectively, these companies have shown that strong dividend policies can outperform the broader market index over time.