3 Amazing Dividend Stocks to Buy in 2025

There may be no better place to find winning stocks that can slowly make you rich over decades than the healthcare industry. This is a perennial, multi-billion dollar market that promotes growth and innovation because better health care saves lives.

If you want to know which healthcare companies to choose to invest in, the answer is easy: look for those that keep collecting dividends. It’s not a sure thing, but it’s an excellent litmus test because a company needs to innovate, grow and manage itself well to allow itself to give more cash to its shareholders every year.

These three companies are leaders in health. They treat their shareholders well and offer promising growth prospects at attractive valuations. Consider buying them in 2025 to boost your dividend portfolio.

You won’t be exploring the health field for long before you find yourself Medtronic (NYSE: MDT). The company develops numerous products, devices and treatment technologies for dozens of conditions. Its product portfolio includes everything from cardiovascular pacemaker devices to glucose monitoring systems for people with diabetes. It is a very diverse and consistent business as people need care and treatment around the clock. Since the 1980s, Medtronic’s sales have not fallen by more than 10% in a 12-month period.

This has made it a stellar dividend stock. Medtronic is not much King of dividends not yet, but it will be soon. The company has paid and increased its dividend for 47 consecutive years. You cannot fake or borrow for decades of dividend increases. Medtronic’s payout ratio is still just 65% of cash flow, so you can trust that the dividend is safe and likely to continue to grow.

Medtronic isn’t growing very fast, but it’s well positioned for the future. The company has grown its organic revenue at an average single-digit rate over the past eight quarters, and analysts estimate the business will grow earnings by 6% annually over the long term. Finally, the stock is well-priced for growth with a forward P/E ratio below 15. The stock’s 3.5% dividend yield could push annualized total investment returns between 9% and the 10%

Giant of insurance and health services UnitedHealth Group (NYSE: UNH) it is a key cog in the US healthcare system. It has become one of the largest corporations in the world, generating more than $389 billion in annual revenue. Its massive size allows it to offer more for less than its competitors, so it continues to gobble up patient dollars in a system that will only spend $4.9 trillion by 2023. The company operates two main segments: UnitedHealthcare (insurance) and Optum (assistance services and technologies).

The company’s seemingly never-ending growth has fueled 15 consecutive annual dividend increases, averaging 15% per increase over the past five years. Its dividend yield of 1.6% isn’t huge, but sustained double-digit growth creates significant income over time. Furthermore, the dividend consumes only 56% of the company’s cash flow. Because analysts estimate UnitedHealth will grow earnings by 15% annually over the long term, investors should reasonably expect dividend increases and price gains from the top stocks.

Shares of UnitedHealth declined after the CEO of the insurance segment was killed in early December, igniting the health insurance controversy in the United States. Lawmakers have since introduced potential legislation to take back the power that companies like UnitedHealth have in the industry, though it may not pass into law. The stock’s recent slide has pushed UnitedHealth’s valuation down to a forward P/E of 17, a bargain valuation that helps offset the company’s political risks.

Pharmaceutical company AbbVie (NYSE: ABBV) has remained a stalwart in healthcare for its ability to innovate and find new opportunities for growth. Although he was once part of it Abbott LabsAbbVie has thrived independently since its separation in 2013. Today, AbbVie’s portfolio of medicines includes treatments in immunology, oncology, cosmetics, neuroscience and eye care. The company has turned masterfully after losing patent protection for Humira, its former best-selling product, in 2023.

Few stocks offer high dividend yields and strong growth, but AbbVie does. The company is also a dividend king if you count its years with Abbott Labs, which is another impressive feat. AbbVie shares currently yield 3.4%, and the company has increased its dividend by an average of 8% annually over the past five years. Those increases have slowed in recent years, but that could change if growth picks up again. The stock’s dividend payout ratio is still manageable at 70% of cash flow.

AbbVie shares have fallen after its promising schizophrenia drug, the centerpiece of an $8.7 billion acquisition, failed to meet its primary endpoint in phase 2 trials. It was considered a future blockbuster for AbbVie. However, analysts still expect annualized earnings growth of around 9% over the long term. That’s enough growth to make AbbVie an easy buy at its current sub-15 P/E ratio.

Before you buy stock in Medtronic, consider this:

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Medtronic and UnitedHealth Group and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has one disclosure policy.

3 Amazing Dividend Stocks to Buy in 2025 was originally published by The Motley Fool

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