Dividend Kings: The Steady Ships in a Stormy Market
May 4, 2025, 10:05 am
In the tumultuous seas of 2025, where the S&P 500 has taken a 5.5% dive, a few sturdy ships remain afloat. These are the dividend kings—companies that not only weather the storm but thrive amid uncertainty. Investors are seeking refuge in these defensive stocks, drawn by their reliable dividends and strong performance. Let’s explore three standout names that have captured attention this year.
The market is a fickle beast. Economic slowdowns, tariffs, and overvalued tech stocks have left many investors feeling uneasy. In this risk-off environment, dividend stocks have become a beacon of hope. They offer stability and income when the waves get rough. Among these, a select few have emerged as true champions.
**Philip Morris (NYSE: PM)** is one such champion. With shares soaring 41% year-to-date, it stands as the fourth-best performer in the S&P 500. This isn’t just luck; it’s a strategic pivot. Philip Morris is transitioning from traditional tobacco to smoke-free products like IQOS and ZYN. This shift is not just a trend; it’s a necessity. The company aims to derive two-thirds of its revenue from smoke-free offerings by 2030. Recent earnings reports show promise, with Q1 2025 earnings of $1.69 per share, surpassing estimates. Revenue climbed 5.8% to $9.3 billion, driven by the growing acceptance of smoke-free alternatives.
Investors are drawn to Philip Morris not just for its growth potential but also for its 3.17% dividend yield. With 17 consecutive years of dividend increases, it’s a reliable choice for income-focused investors. The company’s commitment to operational efficiency and shareholder returns makes it a compelling option in a challenging market.
**AT&T (NYSE: T)** is another name that has surprised many this year. Known primarily as a telecommunications giant, AT&T has not only maintained a robust 4% dividend yield but has also seen its stock surge 20% year-to-date. This is a remarkable turnaround, especially considering its struggles in recent years. The company reported Q1 2025 earnings with an EPS of $0.51, just shy of expectations, but revenue grew 2% year-over-year to $30.63 billion, beating forecasts.
What sets AT&T apart is its strong subscriber growth, outpacing key rivals. Analysts have taken notice, giving it a Moderate Buy consensus rating. The stock is currently trading just 6% below its 52-week high, showing strong bullish momentum. With a reliable dividend and positive market sentiment, AT&T has become a safe harbor for investors in these choppy waters.
Then there’s **Williams Companies (NYSE: WMB)**, a lesser-known player that has quietly made waves in the dividend space. This $73 billion energy infrastructure firm operates a vast network of natural gas pipelines across the U.S. Its shares are up 10% year-to-date, trading just 3% below their 52-week high. With a 3.35% dividend yield and a three-year dividend growth rate of 5%, it appeals to both growth and income investors.
Williams is set to report Q1 2025 earnings soon, and analysts are optimistic. The company has met EPS expectations in the past, and recent price target increases from major firms suggest confidence in its future performance. While the overall consensus remains a Moderate Buy, the upcoming earnings report could shift the narrative significantly. Investors should keep a close eye on this stock as it navigates the market’s currents.
**Altria (NYSE: MO)** also deserves a mention. Despite facing headwinds from declining smokeable product sales, Altria is adapting. The company is focusing on consumable and smokeless products, which are gaining traction. Its profitability is improving, even as sales dip. The robust cash flow and solid capital return program are key reasons to consider this stock.
Altria’s dividend is substantial, with a payout of $1.7 billion in Q1 alone, translating to an annualized yield of 7%. The company is committed to share repurchases, reducing the share count and offsetting distribution increases. Despite some balance sheet concerns, such as an impairment related to NJoy devices, the overall picture remains positive. Analysts are cautiously optimistic, rating it a Hold with a price target around $55.
In a market riddled with uncertainty, these dividend kings stand tall. They offer a blend of stability, income, and growth potential. Investors are flocking to these stocks, seeking shelter from the storm. As the market continues to fluctuate, these companies provide a steady hand.
The lesson here is clear: in turbulent times, look for the ships that can weather the storm. Dividend stocks like Philip Morris, AT&T, Williams Companies, and Altria are not just surviving; they are thriving. They remind us that even in the darkest waters, there are always beacons of light guiding the way. As we navigate through 2025, these dividend kings are worth keeping an eye on. They may just lead the way to calmer seas ahead.
The market is a fickle beast. Economic slowdowns, tariffs, and overvalued tech stocks have left many investors feeling uneasy. In this risk-off environment, dividend stocks have become a beacon of hope. They offer stability and income when the waves get rough. Among these, a select few have emerged as true champions.
**Philip Morris (NYSE: PM)** is one such champion. With shares soaring 41% year-to-date, it stands as the fourth-best performer in the S&P 500. This isn’t just luck; it’s a strategic pivot. Philip Morris is transitioning from traditional tobacco to smoke-free products like IQOS and ZYN. This shift is not just a trend; it’s a necessity. The company aims to derive two-thirds of its revenue from smoke-free offerings by 2030. Recent earnings reports show promise, with Q1 2025 earnings of $1.69 per share, surpassing estimates. Revenue climbed 5.8% to $9.3 billion, driven by the growing acceptance of smoke-free alternatives.
Investors are drawn to Philip Morris not just for its growth potential but also for its 3.17% dividend yield. With 17 consecutive years of dividend increases, it’s a reliable choice for income-focused investors. The company’s commitment to operational efficiency and shareholder returns makes it a compelling option in a challenging market.
**AT&T (NYSE: T)** is another name that has surprised many this year. Known primarily as a telecommunications giant, AT&T has not only maintained a robust 4% dividend yield but has also seen its stock surge 20% year-to-date. This is a remarkable turnaround, especially considering its struggles in recent years. The company reported Q1 2025 earnings with an EPS of $0.51, just shy of expectations, but revenue grew 2% year-over-year to $30.63 billion, beating forecasts.
What sets AT&T apart is its strong subscriber growth, outpacing key rivals. Analysts have taken notice, giving it a Moderate Buy consensus rating. The stock is currently trading just 6% below its 52-week high, showing strong bullish momentum. With a reliable dividend and positive market sentiment, AT&T has become a safe harbor for investors in these choppy waters.
Then there’s **Williams Companies (NYSE: WMB)**, a lesser-known player that has quietly made waves in the dividend space. This $73 billion energy infrastructure firm operates a vast network of natural gas pipelines across the U.S. Its shares are up 10% year-to-date, trading just 3% below their 52-week high. With a 3.35% dividend yield and a three-year dividend growth rate of 5%, it appeals to both growth and income investors.
Williams is set to report Q1 2025 earnings soon, and analysts are optimistic. The company has met EPS expectations in the past, and recent price target increases from major firms suggest confidence in its future performance. While the overall consensus remains a Moderate Buy, the upcoming earnings report could shift the narrative significantly. Investors should keep a close eye on this stock as it navigates the market’s currents.
**Altria (NYSE: MO)** also deserves a mention. Despite facing headwinds from declining smokeable product sales, Altria is adapting. The company is focusing on consumable and smokeless products, which are gaining traction. Its profitability is improving, even as sales dip. The robust cash flow and solid capital return program are key reasons to consider this stock.
Altria’s dividend is substantial, with a payout of $1.7 billion in Q1 alone, translating to an annualized yield of 7%. The company is committed to share repurchases, reducing the share count and offsetting distribution increases. Despite some balance sheet concerns, such as an impairment related to NJoy devices, the overall picture remains positive. Analysts are cautiously optimistic, rating it a Hold with a price target around $55.
In a market riddled with uncertainty, these dividend kings stand tall. They offer a blend of stability, income, and growth potential. Investors are flocking to these stocks, seeking shelter from the storm. As the market continues to fluctuate, these companies provide a steady hand.
The lesson here is clear: in turbulent times, look for the ships that can weather the storm. Dividend stocks like Philip Morris, AT&T, Williams Companies, and Altria are not just surviving; they are thriving. They remind us that even in the darkest waters, there are always beacons of light guiding the way. As we navigate through 2025, these dividend kings are worth keeping an eye on. They may just lead the way to calmer seas ahead.