3 Dividend Stocks for June 2025
One technology firm, one REIT, and a utility that’s a dividend aristocrat.
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 June 2025
Accenture ACN, which is one of the world’s largest IT services firms, initiated its dividend as an annual payout in 2005, switched to a semiannual dividend in 2010, and then moved to a quarterly payout in 2019. It has a relatively modest yield of 1.9%, but it has been growing its dividend payout at a compelling rate. The most recent raise was 14.7%, and five-year annualized dividend growth is also in double figures at 12.1%. Morningstar analysts forecast that the annual dividend rate, currently $5.92 per share, will increase to $8.28 per share by 2029. The stock is currently trading just below its $318 Morningstar fair value estimate, placing it in 3-star territory.
Cell tower operator American Tower AMT initiated a quarterly dividend in 2012 when it converted to a Real Estate investment trust. From 2012 through the end of 2023, it maintained an impressive streak of dividend increases, hiking its payout to shareholders every quarter. But in early 2024, the company backtracked, knocking the rate back to where it stood in the previous quarter and holding it there through the end of the year. This year, American Tower returned to dividend growth and boosted its quarterly rate back to its previous high of $1.70 per share. When assessing American Tower’s capital allocation plan, Morningstar analysts believe that the company can increase the dividend 5% annually through 2029. The stock currently yields 3.2% and is trading at a 10% discount to its $243 Morningstar fair value estimate, which puts it in 4-star territory.
Eversource Energy ES, a mostly rate-regulated electric and gas distribution utility in the Northeast, was formed in 2012, but it’s considered a dividend aristocrat due to the dividend history of the firms that were merged to form it. Since then, it has raised its dividend in the first quarter of every year. The stock currently yields 4.7%, with 6% annualized dividend growth over the past five years. The payout ratio has ranged from 58% to 63%, and is currently at the high end of that range but still slightly below the 66% average for its peer group. Looking ahead, Morningstar analysts expect the annual dividend will increase in line with earnings growth, which they forecast at 6%. Eversource is also in 4-star territory, trading at a discount of just over 10% to its $73 Morningstar fair value estimate.
I’m David Harrell from Morningstar DividendInvestor. Thanks for watching. We’ll see you next month.
Watch 13 Elite Companies With Fast-Growing Dividends 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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