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Three Dividend Stocks I'm Thankful for This Year: A Detailed Summary
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Published in Stocks and Investing on Thursday, November 27th 2025 at 5:20 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Three Dividend Stocks I’m Thankful for This Year – A Detailed Summary
In a November 27, 2025 piece on The Motley Fool, the author—an avid dividend investor and long‑time subscriber to the platform—shares a personal reflection on the dividend‑paying companies that have helped them feel financially secure and optimistic during an otherwise turbulent market year. The post, titled “3 Dividend Stocks I’m Thankful for This Year,” blends storytelling with hard data, and it ties the author’s emotional journey to the mechanics of dividend investing. Below is a comprehensive summary of the article, including key take‑aways, the companies highlighted, and the additional resources referenced in the original post.
1. Context: Why Dividends Matter
The article opens with a brief but insightful primer on why dividend stocks are essential for many investors. The author explains that dividends serve as:
- A hedge against market volatility – When equity prices tumble, the dividend income stream often remains relatively stable, providing a cushion.
- A source of compounding power – Reinvesting dividends can accelerate portfolio growth over the long term.
- A proxy for company health – Consistent or growing dividends typically indicate robust earnings and cash flow.
The author cites a Morningstar analysis (linked within the article) that shows dividend‑paying stocks historically outperform non‑dividend peers by 0.7% per year over the past decade. This statistic frames the rest of the piece: the author seeks out companies that not only pay dividends but also demonstrate resilience and growth.
2. Dividend Stock #1 – The Coca‑Cola Company (KO)
Why Coca‑Cola?
Coca‑Cola has been a staple in the author’s portfolio for over a decade. The article notes the beverage giant’s:
- Dividend yield: 3.2% (as of November 2025)
- Dividend growth: 52 consecutive years of raising its dividend
- Payout ratio: Approximately 58% of earnings, leaving ample room for future hikes
The author reminisces about the first time they invested in KO after a “sell‑off in the tech sector” and how the company’s steady returns helped them stay disciplined.
Performance Highlights
- 2025 YTD Performance: KO’s stock rose 7.6% even as the S&P 500 lagged by 4.8%.
- Total Return: Including dividends, the author reports a 13.2% total return for the year.
A chart linked in the article compares KO’s performance against the MSCI World Index, illustrating how the dividend yield compensated for any lag in price appreciation.
Why It’s “Thankful”
The author explains that during a period of high inflation, Coca‑Cola’s price‑elastic business model and brand loyalty allowed it to maintain healthy earnings. Moreover, the company’s “Share Buyback Program” – a $5 billion program in 2025 – helped push the stock price higher, making the dividend payout even more attractive. The author notes that they could rely on the dividend to fund a family vacation without dipping into the principal.
3. Dividend Stock #2 – Johnson & Johnson (JNJ)
The Health Care Staple
Johnson & Johnson is highlighted for its diversified product mix—pharmaceuticals, medical devices, and consumer health products—which the author argues buffers the company from sector‑specific shocks. Key metrics in the article include:
- Dividend yield: 2.8%
- Dividend growth: 48 consecutive years
- Cash flow: $12 billion in operating cash flow (2025)
Recent Developments
The author draws attention to JNJ’s “Regulatory Review” of its drug pipeline, citing a Pharmaceutical Research and Manufacturers of America article that discusses the company’s focus on biologics. The author believes this focus will drive future earnings growth, and the stable dividend reflects the company's confidence in its cash generation.
Market Performance
- 2025 YTD Performance: JNJ outperformed the S&P 500 by 2.3%.
- Total Return: 10.1% when dividends are reinvested.
A reference link to Bloomberg provides the 10‑year historical dividend growth curve for JNJ, reinforcing the author’s confidence.
Why It’s “Thankful”
The author underscores JNJ’s dividend consistency during the COVID‑19 pandemic and beyond. Even when other healthcare stocks faltered, JNJ’s dividend remained intact. The author mentions that the dividend provided a “steady stream of income” that funded their children’s education plans.
4. Dividend Stock #3 – NextEra Energy (NEE)
Powering a Clean‑Energy Future
NextEra Energy is the author’s favorite “growth dividend” stock. The energy company, primarily involved in renewable energy projects, presents a compelling blend of growth potential and stable income. Highlights from the article:
- Dividend yield: 1.9% (the lowest of the three but growing rapidly)
- Dividend growth: 28 consecutive years
- Payout ratio: 64% – slightly higher than industry average but justified by the company’s cash flow
Why NextEra?
The author notes NextEra’s aggressive expansion into solar and wind farms in the U.S. and its strategic acquisitions of smaller renewable developers. They reference a Reuters article linked in the post that details NextEra’s acquisition of a 2 GW solar portfolio in Texas, which has already started to produce dividends.
Market Performance
- 2025 YTD Performance: NEE’s share price jumped 15.4%, outpacing the S&P 500 by 9.7%.
- Total Return: 22.5% including dividends—highlighting its “growth dividend” nature.
A chart compares NEE’s dividend growth rate to that of its peers, illustrating how its yield is poised to catch up.
Why It’s “Thankful”
The author points to NextEra’s dividend acceleration strategy, which the company announced in a 2025 investor call. They also highlight the company’s ESG credentials, noting that dividends are increasingly seen as part of a broader “responsible investment” strategy. The author says that NextEra’s dividends “helped offset the rising costs of living” during a year of high energy prices.
5. Additional Resources & Links
Throughout the article, the author provides hyperlinks to deepen the reader’s understanding:
- Yahoo Finance pages for each stock (KO, JNJ, NEE) – for real‑time data.
- A Morningstar report on dividend‑yielding stocks – to support the historical advantage argument.
- A Bloomberg chart on JNJ’s dividend growth – illustrating long‑term consistency.
- A Reuters story on NextEra’s acquisition strategy – adding context to the company’s growth trajectory.
- A Pharmaceutical Research and Manufacturers of America article – clarifying JNJ’s pipeline focus.
- A The Motley Fool community forum thread – where other readers share their own dividend experiences.
These links give the author’s narrative credibility and allow readers to verify the data themselves.
6. Take‑away Lessons
- Diversify Across Sectors – The trio spans consumer staples, healthcare, and renewable energy. This diversity mitigates sector‑specific risks.
- Prioritize Dividend Growth – Companies that consistently raise dividends are more likely to withstand market turbulence.
- Reinvest for Compounding – The author’s total returns illustrate the power of reinvesting dividends in a portfolio.
- Align with ESG – Especially in the case of NextEra, the article demonstrates that responsible investing can also deliver solid financial performance.
7. Conclusion
The “3 Dividend Stocks I’m Thankful for This Year” post is more than a list; it’s a narrative that blends personal experience with rigorous analysis. The author showcases how a carefully curated dividend portfolio can serve as a financial safety net and an engine for growth. By following the hyperlinks and data points, readers can replicate the research and perhaps discover their own “thankful” dividend stocks for the year ahead.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/27/3-dividend-stocks-im-thankful-for-this-year/ ]
