3 Dividend Stocks for November 2025
This month’s trio includes two ADRs.
David Harrell: Hello, 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 November 2025
Wide-moat Diageo is home of brands such as Guinness, Captain Morgan rum, and Crown Royal Canadian whisky. The company is based in London but also trades in the US as an ADR. It pays a semiannual dividend and yields 4.4% based on the two most recent payments. Morningstar Equity analysts note that the firm pays out roughly 50% of its earnings as dividends, which is about standard for its industry. They forecast that the annual dividend will increase by approximately 18% by 2029. The stock currently trades in 4-star territory at a discount of more than 25% to its fair value estimate, $130 per ADR share.
Morningstar Equity analysts believe that GSK’s dividend payments have been, historically, a bit too high. They note that over the past five years, GSK has paid out roughly 70% of normalized earnings as dividends, which they believe has limited the pharmaceutical firm’s ability to reinvest via internal R&D and external acquisitions of new pipeline drugs. However, following the divestment of the consumer group in 2022, GSK lowered its dividend to a level that they consider to be more appropriate. They believe that the reduced dividend rate is secure and likely to grow in line with earnings over the next five years. Owners of the US ADR shares receive a quarterly payout of 32 pence per share, which, at current exchange rates, translates into an annual dividend rate of $1.70 and a yield of 3.7%. GSK trades at a 20% discount to fair value, landing it in 4-star territory.
Kimberly-Clark is a leading manufacturer in the tissue and hygiene space, with brands such as Kleenex, Huggies, and Kotex. The firm is both a dividend aristocrat and a dividend king, having increased its per share annual dividend payout for 53 consecutive years. The 3.3% dividend hike for 2025 was in line with its five-year annualized dividend growth rate of 3.4%. The stock currently yields 4.3%, slightly above its five-year average and above that of peers such as Procter & Gamble and Unilever.
In assessing the company’s capital allocation, Morningstar analysts said that Kimberly-Clark remains resolute in its desire and ability to return cash to shareholders. Their long-term outlook calls for mid-single-digit annual dividend growth. The stock trades at a 15% discount to its $140 fair value estimate, placing it, like this month’s other two stocks, in 4-star territory.
I’m David Harrell from Morningstar DividendInvestor. Thanks for watching. We’ll see you next month.
Watch 3 Dividend Stocks for October 2025 for more from this series.
Editor’s Note: This video was recorded before the Nov. 3 news that Kimberly-Clark is acquiring Kenvue. Morningstar analysts subsequently lowered Kimberly-Clark‘s fair value estimate to $133 per share from $140 and downgraded its Capital Allocation Rating to Standard from Exemplary. Despite the fair value reduction, the stock’s discount to fair value has increased to more than 20% after a share price decline on Nov. 3.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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