As 2025 approaches, investors are increasingly turning to reliable dividend stocks that offer both steady income and growth potential.
Chevron (NYSE: CVX) and Verizon (NYSE: VZ) stand out in this regard, thanks to their attractive yields, consistent dividend growth, and sound financial strategies.
With Chevron navigating the complexities of the energy sector and Verizon making strategic moves in the telecom space, both companies are well-positioned to deliver strong returns for dividend-focused portfolios in the coming year.
Picks for you
Chevron Corporation (NYSE: CVX) stock
Chevron Corporation, a leading integrated energy giant, stands as one of the top oil and gas producers in the Permian Basin, the most prolific oil field in the United States.
With a strong balance sheet and disciplined capital spending, Chevron is well-equipped to navigate market volatility.
Its integrated operations, spanning upstream and downstream activities, play a crucial role in stabilizing earnings, even during periods of low oil prices.
CVX stock price analysis
Currently trading at $154.23—down over 6% from its six-month high of $165.82, the stock has rebounded over 8% from its September low.
Despite challenges such as weaker refining margins, Chevron remains a dividend powerhouse, boasting over 35 consecutive years of dividend increases.
Chevron fundamental analysis
The company’s dividend yield of 4.24% significantly exceeds the S&P 500 average, underscoring its appeal to income-focused investors.
Chevron’s consistent cash flow from operations, recorded at $9.7 billion in Q3 2024, demonstrates its ability to cover capital expenditures and sustain its dividend payouts.
Furthermore, the acquisition of Hess is expected to more than double Chevron’s free cash flow by 2027, paving the way for potential dividend growth.
With a market capitalization of approximately $280 billion as of November 2024, Chevron’s financial health remains robust, attracting value investors.
The potential for rising oil and gas prices during the winter, driven by global supply constraints, adds to its investment appeal.
Trading at a PE ratio of 16.99, according to StockAnalysis, Chevron offers a reasonable valuation, especially given its growth prospects and robust free cash flow generation. ‘
For value investors seeking a balance of yield and growth, Chevron presents a compelling investment opportunity.
Verizon (NYSE: VZ) stock
Verizon’s stock price stands at $41.06, down 0.41% in the last trading session. While its recent performance may not seem impressive, Verizon’s 6.55% dividend yield offers a compelling reason for income investors to consider the stock.
The company has a solid track record, having increased its dividend for 18 consecutive years. Its most recent quarterly dividend payment of $0.6775 per share was distributed in November 2024.
Verizon dividend and fundamental analysis
In Q3 2024, Verizon reported $33.33 billion in revenue and $3.41 billion in net income, reflecting stable operational performance.
Its forward PE ratio of 8.75 indicates a relatively undervalued stock, providing potential upside for value investors.
With $5.01 billion in cash on hand, Verizon is well-equipped to sustain its dividend payouts and fund its growth initiatives.
One of Verizon’s key growth drivers is its ongoing $20 billion acquisition of Frontier Communications, which is expected to enhance its fiber network and boost revenue over the long term. The deal is expected to close in approximately 18 months and should be slightly accretive to financials in 2027.
Additionally, Verizon’s investments in 5G infrastructure and partnerships with tech giants like Amazon Web Services and IBM position it for future growth in emerging areas such as industrial automation and cloud services.
These initiatives, coupled with its strong dividend history, make Verizon a compelling pick for investors looking for both income and growth.
Conclusion on these dividend stocks for 2025
In summary, both Chevron and Verizon offer compelling dividend yields and are strategically positioned for future growth. Chevron’s ability to maintain strong cash flows despite operational challenges highlights its resilience and commitment to shareholder returns.
Meanwhile, Verizon’s high dividend yield, coupled with its strategic investments in 5G and fiber, positions it as a stable income-generating stock with growth potential.
Despite facing sector-specific challenges, both stocks offer consistent dividend payments, providing investors with steady cash flow in the year ahead.
For those seeking reliable dividends and solid growth potential, Chevron and Verizon are two stocks that should not be overlooked in 2025.
