3 Top Dividend Stocks Under $100 to Buy in 2025

Investing in dividend stocks can be an excellent way to generate passive income and grow your wealth over time. With the U.S. economy cooling in 2024 and inflation still higher than the Federal Reserve's 2% target rate, dividend stocks can help offset the negative impact of inflation. Here are three top dividend stocks under $100 that offer attractive yields and growth prospects for 2025:

1. Brookfield Infrastructure (BIPC -0.83%) (BIP 0.97%)
- Brookfield Infrastructure is a global infrastructure company with a diversified portfolio of utilities, energy midstream, transportation, and data assets.
- The company currently trades at around $40 per share, offering a dividend yield right above 4%, which is several times higher than the broader market's average.
- Brookfield Infrastructure has a strong track record of dividend growth, increasing its payout at a 9% compound annual rate over the past 15 years.
- The company generates a very stable cash flow, with 85% of it being contracted or regulated, and pays out a conservative percentage of that money in dividends (60% to 70% of its funds from operations [FFO] annually).
- Brookfield retains the rest of its cash flow to help fund expansion projects, with over $8 billion of projects in its backlog. This drives its view that it can grow its FFO per share by more than 10% per year, supporting its expectation of delivering 5% to 9% annual dividend growth.



2. Realty Income (O 0.07%)
- Realty Income is a real estate investment trust (REIT) with a diversified portfolio of properties net leased to many of the world's top companies.
- Shares of Realty Income currently cost around $55 apiece, yielding nearly 6% at that level.
- The company has a strong balance sheet and pays out about 75% of its steady income in dividends, retaining the rest to invest in additional income-generating properties.
- Realty Income has a long history of dividend growth, raising its payout every year since 1994, including the last 109 quarters in a row.
- The company expects to grow its adjusted FFO per share by a mid-single-digit annual rate in the future, driven by rental increases, new property acquisitions, and management income from its private fund platform.

3. NextEra Energy (NEE -0.85%)
- NextEra Energy is a leading utility with a focus on renewable energy, which provides a powerful growth tailwind.
- The company's stock price is a bit above $70 these days, offering a nearly 3% dividend yield.
- NextEra Energy has a strong balance sheet and a low dividend payout ratio (59% at the end of 2023), which supports its ability to maintain and increase its dividend.
- The company has a history of dividend growth, increasing its payment annually for the past three decades and growing its dividend at around a 10% compound annual rate over the past 20 years.
- NextEra Energy plans to grow its dividend by around 10% per year through at least 2026, driven by its lower dividend payout ratio and earnings growth outlook.

In conclusion, Brookfield Infrastructure, Realty Income, and NextEra Energy are three top dividend stocks under $100 that offer attractive yields and growth prospects for 2025. Their strong financial profiles, stable cash flows, and histories of dividend growth make them excellent choices for income-oriented investors seeking steady, though not spectacular, growth as they earn steady income from dividends.