Future Dividend Monarchs: 3 Stocks Poised to Dominate in 2025
Forget your grandpa's blue-chips—these next-gen dividend aristocrats are rewriting the rules of passive income.
Cashflow Rebels Disrupting Old Money
While boomers cling to their 3% yields, a new breed of cash-generating machines is quietly building empires. No dusty industrial relics here—we're talking tech-adjacent cash cannons with payout ratios that'd make a CFO blush.
The Contenders
First up: A cloud infrastructure play turning AI hype into real dividend dollars. Then there's the healthcare disruptor quietly paying out 28% more than last quarter. And don't sleep on the e-commerce enabler with a dividend growth streak that puts the S&P 500 to shame.
The Bottom Line
In a world where 'growth' stocks burn cash like crypto bros in a bull market, these under-the-radar performers deliver something radical: actual profits shared with shareholders. Just don't tell the meme-stock crowd—they might start demanding fundamentals.
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1. ExxonMobil
(XOM -0.89%) is steadily marching toward Dividend King status. The oil giant has now increased its dividend for 42 straight years, the longest current streak in the oil patch. Only 4% of companies in the(^GSPC -0.25%) have delivered dividend growth of 42 or more years.
The energy company has put itself in a strong position to continue increasing its dividend. ExxonMobil's plan to 2030 aims to deliver the growth potential of $20 billion in earnings and $30 billion in cash FLOW by the dawn of the next decade. That has it on track to deliver compound annual growth rates of 10% for earnings and 8% for its cash flow over the next five years.
Exxon aims to deliver this robust growth by investing $140 billion into higher-return major capital projects and its Permian Basin development program. It also expects to achieve another $7 billion in structural cost savings by 2030, compared to the third quarter of last year.
Exxon is also building the energy company of the future by investing in several lower-carbon energy technologies, including hydrogen, carbon capture and sequestration, and lithium. These and other new businesses have the potential to add $3 billion to its earnings by 2030 and $13 billion by 2040. Combine all this with Exxon's fortress financial profile, and the oil giant seems destined to eventually earn the crown of Dividend King.
2. NNN REIT
(NNN -0.65%) reached an important milestone last year when the real estate investment trust (REIT) delivered its 35th consecutive dividend increase. Only two other REITs and fewer than 80 publicly traded companies have reached that level. The REIT has since extended its streak to 36 straight years.
The landlord has a very simple business model: It invests in single-tenant net leased properties. It acquires properties secured by long-term net leases (initial terms of 10 to 20 years) in prime locations within strong markets. These properties produce very reliable rental income.
NNN REIT establishes relationships with expanding retailers, which steadily provide it with new investment opportunities. It typically acquires properties via sale-leaseback transactions. These relationship-based transactions provide clients with capital to continue expanding their retail footprints, which ultimately presents the REIT with new investment opportunities. NNN REIT maintains a conservative financial profile, which allows it to continue expanding its portfolio (and dividend) throughout the economic cycle.
3. Medtronic
(MDT -0.15%) is close to earning Dividend King status, with 48 straight years of dividend growth. The medical device Maker is well-positioned to continue raising its payout.
The healthcare company plans to separate its diabetes business over the next 18 months. It ideally plans to complete an initial public offering of the unit and a subsequent split-off of the business. This strategy will allow it to focus all its attention on its growing cardiovascular, neuroscience, and medical-surgical units.
Those three markets are large and growing at a mid-to-high single-digit annual rate. Medtronic aims to capture a larger share of these expanding markets by continuing to invest heavily in research and development to launch new and improved products. It also has the balance sheet strength to make acquisitions as the right opportunities arise. These growth investments should increase its cash flow, enabling Medtronic to ascend to the next level of dividend royalty.
Three likely future kings
ExxonMobil, NNN REIT, and Medtronic are all well on their way to eventually becoming Dividend Kings. They have the financial strength and visible earnings growth potential to continue increasing their dividends for years to come. All this means they're ideal stocks to buy for those seeking durable, steadily rising dividend income.