David Harrell: Hi, I’m David Harrell, editor of the Morningstar DividendInvestor Newsletter. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.
3 Dividend Stocks for August 2025
With a 5.8% dividend increase for 2025, Amgen has grown its dividend, which it initiated in 2011, at an annualized rate of 9.2% over the past five years. The stock’s yield, which spent a large portion of 2024 below 3%, is currently 3.1%, in line with its five-year average. Morningstar analysts expect the annual dividend rate, which is currently $9.52 per share, to increase to $12.02 by 2029. The stock is trading at around a 9% discount to its $333 Morningstar fair value estimate, placing it in 3-star territory.
Our next stock for August is another healthcare name. Bristol-Myers Squibb currently yields 5.3%, well above the five-year average of 3.7%, placing it among the top yielders in its industry. The company has increased its dividend at a 7.6% annualized rate over the past five years. When assessing the company’s financial strength, Morningstar analysts wrote that we believe the dividend looks secure over the next several years with a current dividend payout ratio well below 50%, which is more typical of peers. The stock trades in 4-star territory, priced at a discount of more than 25% to its $66 fair value estimate.
Like Bristol, Portland General Electric, with a yield of 5.1%, is one of the better-yielding stocks in its peer group. Portland’s yield is also well above its five-year average of 4%. Utilities increased its dividend in an annualized rate of 5.4% over the past five years, and Morningstar analysts expect dividends to grow near 5% annually, slightly slower than earnings growth, given the amount of capital necessary to fund the company’s investment plan. Trading at more than a 20% discount to its $54 fair value estimate, the stock is in 5-star territory. For disclosure purposes, I’ll add that Portland is a stock that I own.
I’m David Harrell from Morningstar DividendInvestor. Thanks for watching, and we’ll see you next month.
Watch 3 Dividend Stocks for June 2025 for more from David Harrell.
