3 Top Dividend Stocks to Buy and Hold in 2025

As we step into 2025, investors are looking for stable and attractive income opportunities. Dividend stocks have consistently outperformed non-payers over the last 50 years, offering a combination of passive income and upside potential. Here are three top dividend stocks to consider buying and holding in 2025, based on their strong fundamentals, growth prospects, and attractive yields.

1. Ares Capital (ARCC) - Yield: 8.65%

Ares Capital is one of the largest business development companies (BDCs) in the United States, providing capital to middle-market businesses with revenue between $100 million and $1 billion. The demand for direct lending offered by Ares continues to grow, supported by the company's strong track record and experienced management team.

Ares Capital offers a juicy forward dividend yield of 8.65%, which is well-covered by its earnings. The company has delivered exceptional total returns over the long term, making it an attractive choice for income-oriented investors. Additionally, Ares Capital's diversified portfolio and strong balance sheet provide a solid foundation for its dividend payments and growth prospects.

2. Enbridge (ENB) - Yield: 6.19%

Enbridge is an energy infrastructure company operating pipelines and natural gas utilities, with a strong presence in North America. The company's extensive network of pipelines transports crude oil, natural gas, and refined products, providing a stable and growing cash flow stream.



Enbridge's dividend is well-supported by its strong cash flow generation and conservative payout ratio. The company has a proven track record of dividend growth, with a 10-year compound annual growth rate (CAGR) of 10%. Enbridge's exposure to the growing demand for energy infrastructure, particularly in the renewable energy sector, positions it well for long-term growth and dividend increases.

3. Pfizer (PFE) - Yield: 6.46%

Pfizer is a large drugmaker that markets therapies targeting autoimmune diseases, cardiovascular diseases, cancer, migraine, and more. The company's strong pipeline and diversified product portfolio support its attractive dividend yield and growth prospects.

Pfizer's dividend yield stands near the top of the list, but it is important to note that the company's share price has plunged more than 50% since late 2021. Despite this, Pfizer has multiple new products on the market that should be key growth drivers, and it has a promising pipeline with 108 clinical programs, including 30 late-stage trials. Pfizer's dividend is well-covered by its earnings, and the company has a history of dividend growth, with a 10-year CAGR of 6%.

In conclusion, these three top dividend stocks offer attractive yields, strong fundamentals, and growth prospects. Ares Capital, Enbridge, and Pfizer are well-positioned to provide investors with passive income and upside potential in 2025 and beyond. As always, it is essential to conduct thorough research and consider your personal financial situation before making any investment decisions.