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Top 3 Dividend Stocks to Double Up on in 2025
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Published in Stocks and Investing on Friday, December 5th 2025 at 21:30 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 Worth Doubling Up On Right Now – A 2025 Snapshot
When the U.S. Federal Reserve has been tightening policy for months, investors are increasingly looking for the kind of steady, inflation‑protected returns that dividend stocks can offer. In a recent The Motley Fool feature published on December 5, 2025, the authors cut through the noise and identified three “double‑up” dividend plays that, according to their analysis, combine a solid track record with an attractive yield and a favourable valuation. Below is a comprehensive summary of the article’s key points, including the stocks themselves, the data the writers used to justify each pick, and the extra context that the linked resources provide.
1. Procter & Gamble Co. (PG)
Why It’s a Dividend Darling
- Dividend Growth History: PG has increased its dividend for 22 consecutive years—a record that signals a strong commitment to returning cash to shareholders.
- Yield & Payout Ratio: The current yield sits at 2.5 %, and the payout ratio of roughly 70 % suggests the company can comfortably sustain, and potentially grow, its dividends.
- Valuation Metrics: With a price‑to‑earnings ratio of 24, PG trades at a modest premium to its 5‑year average, implying that there’s still room for upside.
- Cash Flow Strength: The company’s free‑cash‑flow yield is around 3 %, comfortably covering the dividend.
What the Article Notes
The writers highlight PG’s diversified product portfolio—everything from cleaning supplies to personal care—creating a moat that protects cash flow even when macro‑economic conditions tighten. They also point out that the company has recently re‑invested in digital channels, potentially adding incremental growth that could be returned to investors later.
Linked Resources
A link in the article directs readers to a Fool guide titled “Dividend Growth Investing: How to Pick Stocks That Pay and Grow”. This guide expands on the importance of a company’s payout ratio and the idea of “quality cash flow” as a prerequisite for long‑term dividend sustainability.
2. Johnson & Johnson (JNJ)
Why It’s a Dividend Darling
- Dividend Growth History: JNJ has a 50‑year streak of dividend increases—an impressive benchmark for any investor.
- Yield & Payout Ratio: The current yield is around 2.7 %, with a payout ratio of about 65 %, meaning the company retains ample cash for future growth or dividend hikes.
- Valuation Metrics: The stock trades at a P/E of 17, slightly below the sector average, indicating a potential undervaluation.
- Cash Flow Strength: Free‑cash‑flow yield stands at approximately 4 %, which comfortably covers dividend obligations.
What the Article Notes
Johnson & Johnson’s multi‑segment structure—pharmaceuticals, medical devices, and consumer health—creates diversified revenue streams that cushion the company against downturns in any single area. The article also underscores the firm’s strong pipeline of new drugs, which could lead to higher earnings and a higher dividend in the future.
Linked Resources
The article links to a Fool analysis of “Healthcare Stocks: 5 Companies With the Best Dividend Yields”. That piece expands on JNJ’s standing in the healthcare sector and compares it to its peers, reinforcing the case for its solid dividend track record.
3. Coca‑Cola Co. (KO)
Why It’s a Dividend Darling
- Dividend Growth History: KO boasts a 58‑year dividend‑growth streak, making it one of the most reliable players in the consumer staples arena.
- Yield & Payout Ratio: KO’s yield sits at 3.1 %, slightly higher than the average for large‑cap consumer staples, while the payout ratio of 65 % suggests sustainable dividend payments.
- Valuation Metrics: The P/E ratio is about 27, which is on the higher side but can be justified by the company’s strong brand and global distribution network.
- Cash Flow Strength: Free‑cash‑flow yield is around 3.5 %, sufficient to cover the current dividend.
What the Article Notes
The writers point out that KO’s global presence and resilient brand portfolio (including Diet Coke, Sprite, and newer craft‑drink ventures) give it a competitive edge. They also note that the company’s recent focus on sustainability and plant‑based beverage options may open new revenue streams and, eventually, support higher dividends.
Linked Resources
A link in the article refers to the Fool article “Dividend Aristocrats: 10 Companies That Are Likely to Pay Higher Dividends in 2026”. That analysis provides a deeper dive into KO’s growth prospects, especially around emerging markets and product diversification.
Common Themes and Risks
The Fool article draws a few broad lessons that apply to all three picks:
- Dividend Growth > High Yield: A sustainable, growing dividend often outweighs a higher yield that is unsupported by strong fundamentals.
- Cash Flow Cushion: Companies with robust free cash flow are better positioned to weather economic downturns.
- Valuation Check: Even high‑quality dividend stocks can be overvalued; the authors recommend comparing each stock’s P/E to its historical average and sector peers.
Risks Highlighted: Interest‑Rate Risk: Rising rates can compress dividend yields and push valuations lower. Sector‑Specific Concerns: For example, the consumer staples sector could face higher raw‑material costs, while healthcare may see regulatory changes. * Currency Exposure: KO’s global operations make it susceptible to exchange‑rate fluctuations.
The Takeaway – “Double Up” in Context
The phrase “double up” in the headline is a bit of playful marketing. It essentially encourages investors to consider putting more capital into these three dividend plays now, in anticipation of their continued dividend growth and potential price appreciation. The authors suggest that, given current market volatility, a carefully sized allocation to these three high‑quality dividend stocks can act as a stabilizing anchor in an otherwise jittery portfolio.
They also recommend reviewing the linked Fool resources for deeper understanding:
- Dividend Growth Investing – to learn how to screen for dividend sustainability.
- Healthcare Stocks – for a broader view of the sector.
- Dividend Aristocrats – to contextualize the long‑term stability of the picks.
Bottom Line
If you’re a long‑term investor looking for a blend of yield, stability, and potential upside, the three companies highlighted in the article—Procter & Gamble, Johnson & Johnson, and Coca‑Cola—are worth a closer look. They all share a history of consistent dividend increases, strong cash flow, and a valuation that leaves some room for appreciation. With the additional context provided by the linked Fool articles, investors can assess whether “doubling up” on these dividend stocks fits within their broader risk‑return profile.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/05/3-dividend-stocks-to-double-up-on-right-now/ ]
