2 Dividend Stocks Defying the Market Dip to Buy for a Lifetime of Passive Income

In today’s market, dividend stocks remain a powerful tool for investors seeking a steady income stream in retirement and balance out some of the risks longer-duration assets provide portfolios. Growth stocks are excellent sources of capital appreciation, and have outperformed most other equity groups over the past 15 years. However, in times of distress, companies that produce solid cash flows (which dividend-paying companies typically rely on) are those that tend to catch a bid when investors look to rotate their portfolios.

As we turn the page on Q1 2025, investors may be looking to rotate some of the capital within their portfolios. Let’s take a look at some top dividend stocks worth considering right now. These companies are a mix of higher-yielding and more defensive dividend stocks, each with their own unique catalysts and from very diverse sectors.

Enbridge (ENB): A Steady Stream of Income

Enbridge (NYSE:ENB) stands out as a top dividend stock in 2025, backed by its consistent dividend growth, reliable cash flow, and diversified operations. The company has marked its 30th consecutive year of annual dividend increases, raising its payout by 3% to $3.77 per share starting March 1, 2025. Enbridge’s predictable cash flow, with 98% derived from long-term contracts, ensures stability even in volatile markets.

ENB maintains a strong 6.3% dividend yield, rarely dipping below 6% in the past five years. Since 2005, its annual total shareholder return, including reinvested dividends, has averaged 12.3%, surpassing the S&P 500 and midstream energy stocks. With 30 consecutive years of dividend increases, the latest being a 3% hike in December 2024, Enbridge continues to reward investors.

Additionally, its diversified energy infrastructure and expansion into renewables bolster its resilience. With a strong financial outlook and projected EBITDA of up to $20 billion, Enbridge remains a compelling dividend investment this year.

JPMorgan Chase (JPM): A Financial Powerhouse

JPMorgan Chase (NYSE:JPM) operates across banking, investment banking, and wealth management, covering nearly all major finance sectors except insurance. With a $700 billion market cap, it saw strong performance in late 2024, reporting 11% revenue growth, a 58% earnings increase, and a return on equity rising to 17%. Despite a slight pullback, the stock remains up 28% over the past year, more than doubling the S&P 500’s gain.

JPMorgan Chase remains an attractive dividend stock due to its consistent quarterly payments, sustainable payout ratio, and strong shareholder yield. The company pays dividends quarterly, offering investors a steady income stream. With a low payout ratio of 25-26%, JPMorgan retains ample earnings for growth while ensuring dividend sustainability. Although its dividend yield of 2.1-2.22% is modest, it provides stability in a volatile market.

Additionally, its shareholder yield of 4.40%, which includes dividends, buybacks, and debt reduction, enhances long-term returns, making JPMorgan Chase a compelling choice for income-focused and growth-oriented investors alike.

Why These Stocks Stand Out

The selected dividend stocks, such as Enbridge (ENB) and JPMorgan Chase (JPM), stand out as lifetime investments due to their consistent dividend growth, sustainable payout ratios, and strong financial stability. Here’s a detailed comparison with other high-yielding dividend stocks:

1. Dividend Growth:
- Enbridge (ENB): Enbridge has marked its 30th consecutive year of annual dividend increases, raising its payout by 3% to $3.77 per share starting March 1, 2025. This consistent growth is a testament to its reliability and stability.
- JPMorgan Chase (JPM): JPMorgan Chase offers a steady income stream with consistent quarterly payments and a sustainable payout ratio of 25-26%. This ensures dividend sustainability while retaining earnings for growth.

2. Payout Ratio:
- Enbridge (ENB): With a strong 6.3% dividend yield, Enbridge’s payout ratio is sustainable, ensuring that the company can continue to pay dividends even in volatile markets.
- JPMorgan Chase (JPM): JPMorgan Chase’s low payout ratio of 25-26% allows the company to retain ample earnings for growth while ensuring dividend sustainability.

3. Financial Stability:
- Enbridge (ENB): Enbridge’s predictable cash flow, with 98% derived from long-term contracts, ensures stability even in volatile markets. Its strong financial outlook and projected EBITDA of up to $20 billion further bolster its resilience.
- JPMorgan Chase (JPM): JPMorgan Chase’s strong performance in late 2024, with 11% revenue growth, a 58% earnings increase, and a return on equity rising to 17%, demonstrates its financial stability.

In summary, the selected dividend stocks stand out as lifetime investments due to their consistent dividend growth, sustainable payout ratios, and strong financial stability. These factors make them more reliable and less risky compared to other high-yielding dividend stocks.

Conclusion

In conclusion, Enbridge and JPMorgan Chase exemplify the key characteristics of reliable dividend stocks, including durable dividends, strong financial health, and consistent dividend growth, making them attractive options for long-term passive income. As investors look to rotate their portfolios in the wake of Q1 2025, these stocks offer a steady stream of income and a hedge against market volatility.