Keep an Eye on These 3 Dividend Champion Stocks in 2025

These companies expect strong revenue growth and analyst sentiment suggests significant upside.

A streak lasting decades is noteworthy. Whether it’s a silver wedding anniversary, a quarter century of work, or The Simpsons‘ 37-year run, these show stability and success.

You can find examples in the stock market as well. There is a class of trusted dividend stocks known as Dividend Champions, which are on streaks of 25 years or more of raising their dividend payouts at least once each year.

There are plenty of interesting blue chip companies on that list, including McDonald’s, Walmart, ExxonMobil, and Caterpillar. But when you consider that some of those companies will likely face some economic headwinds in the second half of the year, an investment right now may not be the best idea.

If you’re looking for some excellent Dividend Champion stocks that pay a good yield, are expecting significant revenue growth, and have exciting analyst upside, I have three that you should be looking at today: International Business Machines (IBM -1.34%), NextEra Energy (NEE 0.45%), and Royal Gold (RGLD 0.07%).

A black laptop with the word Dividend superimposed on top of it.

Image source: Getty Images.

IBM: 30 consecutive years of dividend increases

I’m impressed with how IBM continues to evolve. While its history goes back more than 100 years and it was one of the pioneers of personal computers, it’s now doing some pretty cool work in the field of generative artificial intelligence (AI). Its generative AI stack, watsonx, helps companies turn AI experiments into AI solutions. It helps developers build and deploy AI quickly with products that include AI assistants, data platforms, data services, and hybrid cloud AI tools.

The company’s generative AI business now tops $7.5 billion and has become a critical part of IBM’s growth story.

Analysts surveyed by Yahoo! Finance expect 10.3% revenue growth for IBM this year, and another 11.1% next year. The average price target of $281 signals potential upside of 10.6% for IBM stock, which currently pays a dividend yield of 2.7%.

NextEra: 31 consecutive years of dividend increases

Florida-based NextEra Energy operates in two very different segments. On the one hand, it operates Florida Power & Light, the largest utility company in the U.S. serving more than 12 million people. On the other hand, its NextEra Energy Resources segment acts as a wholesale generator of electric power and works with renewable energy, nuclear, natural gas, and storage. Overall, the company has 95,000 miles of utility lines and 1,000 miles of gas pipeline.

The company plans to invest $75 billion through 2028, which will be critical as U.S. electricity demand is expected to increase 25% from 2023 to 2030, according to consulting company ICF International.

CEO John Ketchum cited that report during the company’s second-quarter earnings call. The report says demand growth over the next decade is expected to exceed the last three decades combined — just the latest data point putting into perspective how unique this moment truly is,” he said.

Analysts are expecting NextEra’s revenue to jump 15.6% this year and 10.9% in 2026. Their consensus price target of $82.29 suggest 18% near-term upside in this renewable energy dividend stock. NextEra Energy’s dividend yield is a robust 3.2%.

Royal Gold: 25 consecutive years of dividend increases

Royal Gold is a welcome newcomer to the family of Dividend Champions. Although it’s a mining stock, Royal Gold is really in the business of royalties and streaming agreements rather than digging for precious metals itself. The company markets itself as offering exposure to precious metals without the risks of mining, which is expensive and sometimes can produce nothing.

The company says its business model allows it to benefit from higher metal prices while having limited downside of operations or capital costs.

The company is also growing — it recently announced agreements to purchase Sandstorm Gold and Horizon Copper, which it says will increase the company’s production of gold equivalent ounces (GEO) by 26%. The company uses GEO as revenue for a period divided by the average gold price for that same period.

Analysts are expecting Royal Gold to see 5.2% revenue growth this year, and 7.8% growth in 2026. Analysts’ consensus price target of $211.43 shows 7.8% potential upside.

While Royal Gold has a smaller dividend yield, at just 1%, this company makes the list because of its steady, low-risk growth and a low payout ratio of 35%.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, NextEra Energy, and Walmart. The Motley Fool has a disclosure policy.

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