Dividend stocks offer an ideal option for investors aiming to build a portfolio in 2025 due to their ability to provide income and growth.
They offer a steady stream of passive income, which can be reinvested for compounding growth or used for regular payouts. Most importantly, these equities are less volatile, making them a reliable foundation for long-term portfolios.
Heading into the new year, the following two dividend stocks, backed by strong fundamentals, are worth considering.
Picks for you
Iron Mountain (NYSE: IRM)
Iron Mountain (NYSE: IRM), a key player in data storage and information management, offers an annual dividend yield of 2.38% with a consistent track record of payments over the years. The next payout is slated for January 7, 2025, at $0.714 per share.
The company’s stable business model, especially in core storage and records management, suggests potential for further growth.
This stability was highlighted by the fact that Iron Mountain’s organic storage rental revenue rose 9.3% from the prior year quarter during Q3 2024. Revenue came in at $1.56 billion, growing over 12% year-over-year.
Operating income also surged 8% YoY to $304.8 million. However, net income plunged more than 130% from the same quarter a year earlier.
Iron Mountain’s balance sheet is also strong, with $2 billion in liquidity as of September 30, 2024. This position supports its growth initiatives, with cash flow projected to surge by 4.46%.
Regarding stock price movement, IRM has had an impressive run in 2024, gaining 75% year-to-date. At the close of the latest trading session, the equity was valued at $120.
Altria (NYSE: MO)
Altria (NYSE: MO) also has a strong reputation for solid dividend payouts, with an annual yield of about 7%. The tobacco industry player pays a quarterly dividend of $1.02, translating to $4.08 per share annually. Overall, Altria remains a dividend king, having recorded 59 hikes in 55 years.
The Virginia-based firm is likely to see additional upside thanks to its strong market position, which enables it to tackle challenges such as declining sales volume through effective price hikes to offset the declines.
At the same time, Altria boasts of strong financials. During the third quarter, it reported $5.34 billion in revenue, up 1.1% from last year, driven by the strength of Marlboro and profitability from its MST and oral tobacco brands.
Altria’s ‘Optimize & Accelerate’ initiative aims to modernize operations and improve efficiency, supporting its 2024 adjusted EPS guidance of $5.07 to $5.15, with 2.5% to 4% growth.
The company is also diversifying into non-combustible, smoke-free products like the NJOY e-vapor line, aligning with shifting consumer preferences.
These moves are likely to drive revenue growth, boost the stock price, and strengthen the company’s ability to maintain strong dividend payouts, reinforcing its position as a reliable dividend stock.
As of press time, MO was valued at $57, with 24-hour gains of about 0.7%. In 2024, the stock gained 37% year-to-date.
In conclusion, Iron Mountain and Altria are strong dividend stocks with solid fundamentals, making them attractive options for 2025 portfolios. However, general market sentiment, including economic conditions, could impact their performance.
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