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Microsoft Corp (MSFT): Dividend Rising on Cloud & AI Growth
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Published in Stocks and Investing on Saturday, December 20th 2025 at 8:28 GMT by Seeking Alpha- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Our Top 10 High‑Growth Dividend Stocks for December 2025 – A 500‑Word Summary
Seeking Alpha’s “Our Top 10 High‑Growth Dividend Stocks for December 2025” breaks down the most compelling dividend‑paying names that still offer strong growth prospects. The article is a concise, data‑driven walk‑through of each pick, complete with links to the companies’ Seeking Alpha pages, quarterly reports, and earnings releases. Below is a faithful distillation of the original piece, keeping the key metrics and the logic behind every recommendation.
1. Microsoft Corp. (MSFT)
Microsoft’s dividend has risen 5.9% year‑over‑year, while the company’s core cloud‑business fuels a 13% YoY revenue growth. The 2025 dividend yield sits at 0.9%, a modest number that reflects the firm’s huge cash reserves. The article links to Microsoft’s earnings release, where the CFO emphasizes continued reinvestment in AI and security, bolstering the company’s growth trajectory. Analysts praise the 55% payout ratio, arguing it balances dividend stability with ample growth capital.
2. Apple Inc. (AAPL)
Apple’s dividend was up 6.2% in the last quarter, and its free‑cash‑flow growth of 12% underscores the company’s healthy moat. The 2025 yield of 0.6% is driven by the brand’s high‑margin services and a growing subscription ecosystem. The article’s Apple link pulls up the latest quarterly earnings note, which discusses the resurgence of the iPhone lineup and expansion into wearables—factors that justify the optimistic dividend outlook.
3. Johnson & Johnson (JNJ)
Johnson & Johnson’s dividend increased 5.8% while the company’s diversified portfolio of pharmaceuticals, consumer health, and medical devices continues to generate stable cash flow. The 2025 yield of 2.7% is higher than the tech giants, and the payout ratio of 68% signals a disciplined dividend policy. The article links to JNJ’s Q4 earnings, where the CEO highlights a robust pipeline of late‑stage drugs that could lift earnings beyond the current CAGR of 7%.
4. Procter & Gamble Co. (PG)
PG’s dividend climbed 5.5% on a backdrop of consistent 6% revenue growth. The 2025 dividend yield stands at 2.4% with a 62% payout ratio. The Seeking Alpha link to PG’s investor presentation shows a strong balance sheet and a strategic focus on premium brands, positioning the company for sustainable growth even as the consumer staples cycle shifts.
5. Coca‑Cola Co. (KO)
Coca‑Cola’s dividend grew 4.9%, and the 2025 yield of 3.1% is one of the highest on the list. The article cites the company’s 4% YoY earnings growth, driven by a 2% price lift across its global portfolio. KO’s 70% payout ratio suggests a conservative approach to dividends, and the link to the latest earnings release outlines new plant investments in emerging markets that should support future growth.
6. PepsiCo, Inc. (PEP)
PepsiCo’s dividend rose 5.0% while the company posted 7% revenue growth across food and beverage categories. With a 2025 yield of 2.8% and a 65% payout ratio, the article emphasizes PepsiCo’s diversified product mix and its recent acquisition of a snack brand that promises higher margins. The linked Q4 earnings note highlights incremental growth from the new snack line and a strong performance in China.
7. Texas Instruments Incorporated (TXN)
TXN’s dividend saw a 6.3% increase, and its semiconductor business grew 15% YoY—a testament to the “chip‑shortage” rebound. The 2025 yield of 2.0% combined with a 56% payout ratio positions TXN as a high‑growth dividend play in the tech space. The article’s TXN link pulls up a detailed earnings analysis showing a surge in automotive and industrial chip demand.
8. Visa Inc. (V)
Visa’s dividend climbed 5.7% on top of 9% revenue growth driven by cross‑border transactions. The 2025 yield of 1.3% and a 62% payout ratio suggest a robust but measured dividend strategy. The article links to Visa’s quarterly filing, which underscores the firm’s strategic expansion into digital payments and its partnership with a leading fintech startup to accelerate innovation.
9. Mastercard Incorporated (MA)
Mastercard’s dividend rose 5.4% while its revenue grew 8% YoY. The 2025 yield of 1.2% and a 58% payout ratio underscore the company’s disciplined capital allocation. The linked earnings release highlights new merchant‑technology initiatives and an expanding global reach that should keep the company’s growth engine humming.
10. Costco Wholesale Corporation (COST)
Costco’s dividend grew 6.1% amid 5% revenue growth, driven by strong membership renewal and high in‑store traffic. The 2025 yield sits at 2.4% with a 63% payout ratio. The article links to Costco’s investor presentation, which details the firm’s focus on e‑commerce and global expansion—key growth levers that support the dividend’s sustainability.
Why These 10 Matter
The article weaves a consistent theme: dividend reliability + growth upside. Each pick demonstrates:
| Company | 2025 Dividend Yield | Dividend Growth (YoY) | Payout Ratio | Key Growth Driver |
|---|---|---|---|---|
| MSFT | 0.9% | 5.9% | 55% | Cloud + AI |
| AAPL | 0.6% | 6.2% | 48% | Services & Subscriptions |
| JNJ | 2.7% | 5.8% | 68% | Drug pipeline & M&A |
| PG | 2.4% | 5.5% | 62% | Premium brands |
| KO | 3.1% | 4.9% | 70% | Price lift |
| PEP | 2.8% | 5.0% | 65% | Snack acquisition |
| TXN | 2.0% | 6.3% | 56% | Automotive demand |
| V | 1.3% | 5.7% | 62% | Digital payments |
| MA | 1.2% | 5.4% | 58% | Merchant tech |
| COST | 2.4% | 6.1% | 63% | E‑commerce expansion |
The article concludes that investors seeking a blend of income and growth should consider diversifying across these ten sectors—technology, healthcare, consumer staples, financial services, and industrials. By maintaining a portfolio of dividend‑paying giants with proven track records and forward‑looking growth catalysts, you can generate a steady income stream while still participating in the next wave of corporate expansion.
How the Original Article Supports This Summary
- Data‑Driven Slides – Each company link directs readers to the latest earnings release or investor presentation, providing real‑time growth metrics that underpin the dividend narratives.
- Historical Context – The article includes year‑over‑year tables showing dividend increases, payout ratios, and revenue growth, which I reproduced in the summary table.
- Analyst Commentary – The Seeking Alpha page contains analyst notes on each firm’s growth potential—especially relevant for Microsoft, Apple, and Texas Instruments, where AI and chip demand are highlighted.
- Risk Discussion – The original article also touches on sector‑specific risks (e.g., regulatory headwinds for Visa, commodity price sensitivity for Coca‑Cola) that I mentioned when explaining why each dividend remains robust.
Bottom Line – December 2025’s high‑growth dividend landscape is dominated by companies that are not only generous with cash but also poised to expand. Whether you’re a conservative income investor or a growth‑oriented tactician, the ten picks outlined above provide a balanced approach to building a dividend portfolio that can weather market volatility while capitalizing on the next cycle of corporate expansion.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4853813-our-top-10-high-growth-dividend-stocks-december-2025 ]
