3 Dividend Stocks for August 2025
These three dividend payers have an average yield of 4.5%.
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.
The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.
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