Best Dividend Stocks to Buy Now for December 2025
5 Best Dividend Stocks to Buy Today
| Company (Ticker) | 12 Week Price Change | Annual Dividend | Annualized Dividend Growth | Dividend Payout Ratio | Dividend Yield |
|---|---|---|---|---|---|
| Copa Holdings (CPA) | 4.91% | $6.44 | 59.43% | 40.00% | 5.34% |
| Prudential Financial (PRU) | 3.69% | $5.40 | 4.17% | 38.00% | 4.93% |
| Host Hotels & Resorts (HST) | 0.40% | $0.80 | 47.73% | 40.00% | 4.53% |
| Lincoln National (LNC) | 0.89% | $1.80 | 1.85% | 23.00% | 4.29% |
| TIM (TIMB) | 6.94% | $0.95 | 10.47% | 55.00% | 4.28% |
*Updated on December 4, 2025.
Copa Holdings (CPA)
$118.45 USD -2.12 (-1.76%)
3-Year Stock Price Performance
Premium Research for CPA
- Zacks Rank
- Hold 3
- Style Scores
A Value C Growth C Momentum B VGM
- Market Cap:$4.96 B (Mid Cap)
- Last Announced Dividend Amount: $1.61
- Dividend Payout Date:Dec. 15, 2025
- Projected EPS Growth:12.71%
- Next EPS Report Date: Feb. 11, 2026
Our Take:
Copa Holdings is Panama’s flag carrier and a leading Latin American network airline centered on the “Hub of the Americas” at Tocumen, operating a modern all-Boeing 737 fleet and expanding with additional 737 MAX deliveries through 2028. It also operates AeroRepública in Colombia.
Income investors get a 5.34% yield supported by a conservative 40% payout and an attractive 5.29x price-to-cash-flow, an appealing setup for steady distributions. Balance-sheet discipline and low adjusted net debt-to-EBITDA further underpin dividend coverage through cycles.
Operationally, Copa’s execution is a differentiator: it was recognized by Cirium as Latin America’s most punctual airline, reflecting cost-efficient, reliable operations that help sustain margins and cash generation.
With a Value Score of A signaling an attractive entry and double-digit EPS growth expected this year, CPA offers a balanced blend of efficiency, growth capacity, and disciplined capital returns. This is a credible foundation for sustainable dividend income.
Prudential Financial (PRU)
$110.19 USD +0.62 (0.57%)
3-Year Stock Price Performance
Premium Research for PRU
- Zacks Rank
- Hold 3
- Style Scores
A Value D Growth C Momentum B VGM
- Market Cap:$38.35 B (Large Cap)
- Last Announced Dividend Amount: $1.35
- Dividend Payout Date:Dec. 11, 2025
- Projected EPS Growth:14.66%
- Next EPS Report Date:Feb. 3, 2026
Our Take:
Prudential is a diversified insurer and retirement provider anchored by PGIM, its $1.47 trillion global asset-management arm spanning public and private markets. PGIM’s scale and strategic consolidation of credit capabilities position the franchise for more resilient fee earnings.
The 4.93% yield, modest 38% payout, and reasonable 7.85x price-to-cash-flow support a steady income case while capital generation benefits from strong annuity and asset-management platforms. Product breadth across protection, annuities and institutional investment management diversifies cash sources.
Balance-sheet depth, plus PGIM’s positive AUM momentum, adds durability to dividend coverage through rate and market cycles. Favorable underwriting results in the U.S. and International Businesses, along with lower expenses, continue to support PRU’s profit growth story.
A Value Score of A indicates an appealing valuation backdrop, paired with double-digit estimated EPS growth this year, PRU offers income credibility with cyclical upside from markets and spread businesses.
Host Hotels & Resorts (HST)
$17.14 USD -0.52 (-2.95%)
3-Year Stock Price Performance
Premium Research for HST
- Zacks Rank
Hold 3
- Style Scores
A Value D Growth A Momentum B VGM
- Market Cap: $12.14 B (Large Cap)
- Last Announced Dividend Amount: $0.20
- Last Dividend Payout Date:Oct. 15, 2025
- Projected EPS Growth: 3.55%
- Next EPS Report Date: Feb. 18, 2026
Our Take:
Host Hotels is the largest publicly traded lodging REIT, owning a geographically diverse portfolio of luxury and upper-upscale hotels largely flagged by Marriott and Hyatt. Scale and brand concentration support pricing power and asset-recycling opportunities.
A 4.53% yield with a measured 40% payout and a Value Score of B suggest room for steady cash returns without over-distributing. Investment-grade balance sheet quality adds cushion through lodging cycles and rate shifts.
Recent updates highlight continued RevPAR progress and active portfolio management, including selective dispositions and reinvestment, key levers for sustaining cash flow and dividends. Rising room rates across the portfolio, strong transient leisure demand, and the continuing recovery in Maui will further boost the company's RevPAR.
At an 8.4x price-to-cash-flow and with portfolio breadth across top U.S. markets, HST offers a pragmatic path to sustainable income with optionality as travel demand and financing conditions continue to improve.
Lincoln National (LNC)
$42.47 USD +0.55 (1.31%)
3-Year Stock Price Performance
Premium Research for LNC
- Zacks Rank
- Hold 3
- Style Scores
C Value F Growth D Momentum F VGM
- Market Cap: $7.96 B (Mid Cap)
- Last Announced Dividend Amount: $0.45
- Dividend Payout Date: Feb. 2, 2026
- Projected EPS Growth:11.17%
- Next EPS Report Date: Feb. 5, 2026
Our Take:
Lincoln provides life insurance, annuities and group protection through a broad, multi-channel platform. The business mix generates spread income and fees that, alongside improving risk management, support normalized cash generation.
For income seekers, the 4.29% yield, conservative 23% payout and low 5.44x price-to-cash-flow indicate headroom to fund and potentially grow the dividend as earnings stabilize. Strong annuity deposits and solid Group Protection and Life Insurance performance will support its bottom line.
Strategically, Lincoln has executed sizable block reinsurance to de-risk legacy exposures and bolster capital, and it continues to enhance balance-sheet flexibility, moves aimed at smoothing earnings and freeing cash for shareholder returns. Stable mortality results will increase its Life Insurance operating income.
While estimate momentum is still rebuilding, diversified franchises, new product introduction, enhancement of the existing ones and ongoing capital actions will provide a credible base for steady, sustainable dividends, through the cycle.
TIM (TIMB)
$22.49 USD +0.30 (1.35%)
3-Year Stock Price Performance
Premium Research for TIMB
- Zacks Rank
- Strong Buy 1
- Style Scores
A Value C Growth A Momentum A VGM
- Market Cap:$10.74 B (Large Cap)
- Last Announced Dividend Amount:$0.15
- Dividend Payout Date:Jan. 28, 2026
- Projected EPS Growth:28.10%
- Next EPS Report Date:Feb. 10, 2026
Our Take:
TIM is a leading Brazilian telecom operator with nationwide mobile and growing broadband, supported by shared-fiber venture I-Systems that extends reach while moderating capital intensity.
Dividend appeal rests on a 4.28% yield, 55% payout and double-digit five-year dividend growth, with improving scale and continued 5G expansion to deepen ARPU opportunities. Its tower infrastructure expansion partnership with IHS Brasil will be used in both B2C and B2B operations. This will reinforce TIMB’s competitive positioning for stable cash generation.
Interconnection agreements with other operators and consistent expansion in the postpaid unit will support its top-line growth. Meanwhile, its efficiency-improving initiatives are expected to keep costs and leases under control, boosting profits.
A Zacks Rank #1 (Strong Buy) and a Value Score of A provide a favorable entry signal alongside strong current-year EPS growth, compelling pillars for investors targeting steady, sustainable emerging-market telecom income.
Methodology
The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).
Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.
For this list, only companies trading on the New York Stock Exchange or NASDAQ with a dividend yield of 4 to 6% were included. We also only evaluated stock with a low debt-to-equity ratio, as well as a conservative payout ratio and dividend growth. Only stocks with a Zacks Rank #3 (Hold) or higher were considered. All information is current as of market open, Dec. 4, 2025.
Guide to Best Dividend Stocks
What Are Dividend Stocks?
Dividend stocks are shares of companies that return a portion of their earnings to shareholders on a regular basis. Rather than relying solely on stock price appreciation, dividend investors benefit from this income stream, which can complement long-term growth.
How Do Dividend Stocks Work?
Corporations that generate surplus cash may decide to share part of it with shareholders through dividends. The firm’s board will declare a dividend — often expressed as a dollar amount per share — and set a record date to identify eligible shareholders. On the payment date, the company sends the dividend (in cash or additional shares) to investors who held the stock on the record date.
Dividends typically come out of a company’s profits or free cash flow. To continue paying dividends, companies need consistent earnings, prudent capital allocation, and manageable debt levels.
How Often Do Dividend Stocks Pay in a Year?
Most U.S. dividend-paying companies distribute dividends quarterly (four times per year). Some firms choose semiannual or annual payments, depending on business norms or cash flow timing. What matters more than the frequency is consistency — companies that maintain or increase their dividend over time tend to instill more investor confidence.
Benefits and Risks of Dividend Stocks
Benefits:
- Supplemental income stream — Dividends provide cash flow even if the stock price is flat or in decline.
- Total return boost — Over long horizons, dividends have historically contributed a meaningful share of returns. (Many capital markets analyses show dividends often account for 30–50% of total equity returns.)
- Downside cushion — In volatile markets, dividend income helps offset capital losses.
- Sign of stability — Companies that consistently pay or increase dividends often have disciplined management and stable cash flows.
Risks:
- Dividend cuts — If a company hits a rough patch, it might reduce or suspend dividends, which often leads to share price declines.
- Limited growth reinvestment — High dividend payments may reduce funds available for expansion or innovation.
- Interest rate competition — When bond yields rise, dividend stocks (especially those with modest growth prospects) may look less attractive in comparison.
- Tax drag — Dividends are taxed (depending on account structure and holding period), which can eat into net return.
Dividend Stock ETFs vs Individual Stocks
When considering dividend exposure, investors have two main paths:
- Individual dividend stocks: You pick specific companies you trust to pay and grow dividends. This gives you direct control over stocks and allows targeted allocation to sectors or themes you favor.
- Dividend ETFs / mutual funds: Pools of dividend-paying stocks maintained by professional managers. These provide instant diversification, reduce individual stock risk, and simplify portfolio management.
Pros of Dividend ETFs
- Automatic diversification lowers the risk of a single holding failing.
- Fund managers monitor holdings and rebalance.
- Easier to scale and maintain, especially for smaller portfolios.
Cons of Dividend ETFs vs Individual Stocks
- Yields tend to be diluted by including lower-yielding names.
- Less control over specific holdings or sector weightings.
- Management fees may erode yields over time.
Many investors use a hybrid strategy: core allocation via a dividend ETF (for stability) supplemented by hand-picked individual dividend stocks for yield or growth.
How to Choose the Best Dividend Stocks
Not all dividend stocks are created equal. Here’s what to look for when evaluating candidates:
Dividend Yield
Yield = (Annual Dividend per Share) ÷ (Current Share Price). A moderate, well-supported yield (say 2 %–6 %, depending on sector) can be healthy, while extremely high yields often signal trouble (e.g. deep decline in share price)
Dividend Payout Ratio
This ratio shows what percentage of a company’s earnings are paid out as dividends. If a company distributes too much (e.g. > 80–90 %), it may lack flexibility to weather downturns. More conservative ratios (e.g. 30–60 %) often indicate room for future increases or a buffer in tough times.
Dividend Growth History
Look for firms that have steadily raised their dividends over years. A consistent upward trend signals confidence in future earnings. Dividend “Aristocrats” — firms in the S&P 500 that have raised dividends for at least 25 consecutive years — are often viewed as safer dividend picks.
Company Financial Health
Examine fundamentals:
- Free cash flow and cash flow stability
- Debt load and interest coverage
- Profit margins
- Growth prospects
- Competitive advantage (moat)
A company with healthy cash flow and manageable debt is more likely to sustain and grow dividends.
Sector and Market Trends
Some sectors are inherently more dividend-friendly (utilities, consumer staples, real estate, energy) because they generate steady cash flows. Others (like high-growth tech) may pay little to none in dividends as they reinvest heavily.
Also consider macro conditions — for example, rising interest rates, inflation pressures, regulatory risks — which may disproportionately affect certain sectors.
Tips for Building a Dividend Portfolio
- Start with a foundation of blue-chip dividend stocks — Established companies with strong balance sheets and long payout histories.
- Diversify across sectors — Avoid being overly concentrated in one industry (e.g. energy or REITs).
- Reinvest dividends — Using a Dividend Reinvestment Plan (DRIP) can compound returns over time.
- Allocate some portion to growth or higher-yield names, if your risk tolerance allows — but don’t let them dominate.
- Review and rebalance periodically — Monitor fundamentals, payout changes, valuation shifts, and sector dynamics.
- Use metrics and screening tools — Apply filters (yield, payout ratios, growth, fundamentals) to narrow your universe, then do deeper research.
Mistakes to Avoid about Dividend Stocks
- Chasing the highest yield blindly — extremely high yields can indicate a distressed company or impending cuts.
- Ignoring payout sustainability — yield without coverage (earnings, cash flow) is precarious.
- Overconcentration in one stock or sector — a dividend cut or sector downturn can deeply hurt.
- Neglecting growth potential — pure high-yield stocks may underperform in growth cycles.
- Forgetting taxes and fees — dividends taxed or fees eroding yield can reduce net returns.
Also, be cautious if yield spikes because of falling share price — that could be a warning sign rather than opportunity.
Frequently Asked Questions About Dividend Stocks
How are dividends taxed?
In the U.S., qualified dividends (if holding periods are met) are taxed at long-term capital gains rates (0 %, 15 %, or 20 %, depending on income bracket). Non-qualified dividends are taxed at ordinary income rates. Additionally, when you sell shares, capital gains taxes may apply to the appreciation portion.
Are dividend stocks good for retirees?
Yes. They can provide a predictable stream of income and may buffer volatility. However, retirees should emphasize safety and sustainability — favor those with strong balance sheets, stable business models, and moderate payout ratios. Also, be aware of tax effects and inflation.
What’s a good dividend yield?
There’s no one “ideal” yield. Many investors view 2 %–6 % as reasonable, depending on the sector and interest rate environment. Yields well above that range warrant extra scrutiny — high yields often come with higher risk.
Are dividend stocks safe for beginners?
They can be, especially when you start with well-known, financially sound dividend payers and diversify. The income cushion helps offset downside risk. But beginners must still research fundamentals, avoid yield traps, and avoid overconcentration.
