3 Dividend Stocks Poised for Strong Growth in 2025: ACN, AMT, and ES Offer Sustainable Income and Value

In a world where inflation and market volatility test income investors, three companies—Accenture (ACN), American Tower (AMT), and Eversource Energy (ES)—stand out as compelling picks for dividend-focused portfolios. Each combines robust dividend growth, conservative payout ratios, and undervalued stock prices relative to Morningstar's fair value estimates. Let's break down why these stocks could deliver both income and capital appreciation in 2025 and beyond.

1. Accenture (ACN): IT Services Power Sustainable Dividend Growth

Dividend Snapshot:
- Yield: 1.9%
- Payout Ratio: 46.7% (well below the 60% sustainability threshold).
- 5-Year Dividend Growth: 12.1% annually.

Why It's Undervalued:
Accenture's stock trades at just below $318, slightly below Morningstar's $320 fair value estimate. This tech consultancy has thrived by shifting clients toward cloud computing, AI, and digital transformation. Its dividend growth is projected to accelerate, with the annual payout expected to rise from $5.92 to $8.28 per share by 2029—a 5%+ annual growth rate.

Strategic Advantage:
As businesses globally invest in IT modernization, Accenture's services remain in high demand. Its payout ratio leaves ample room for reinvestment, while its quarterly dividend cadence (now in place since 2019) offers consistent income.

2. American Tower (AMT): REIT Infrastructure Dominance

Dividend Snapshot:
- Yield: 3.0%
- Payout Ratio: ~65% (based on AFFO, a REIT-specific metric).
- 5-Year Dividend Growth: ~15%, with a 5% annualized forecast through 2029.

Why It's Undervalued:
AMT trades at a 10% discount to its $243 Morningstar fair value estimate, earning a 4-star rating. The company owns 265,000+ wireless towers and data centers, critical infrastructure as 5G and mid-band networks expand.

Strategic Advantage:
As a REIT, American Tower must distribute 90% of taxable income, but its cash flows are remarkably stable. While some quarters see payout ratios over 100% (due to earnings volatility), its Adjusted Funds from Operations (AFFO) consistently cover dividends. The $1.70-per-share dividend—up 5% from 2024—reflects confidence in its growth pipeline.

3. Eversource Energy (ES): Regulated Utility Resilience

Dividend Snapshot:
- Yield: 4.7%
- Payout Ratio: 58-63% (below the 66% peer average).
- 5-Year Dividend Growth: 6% annually.

Why It's Undervalued:
ES trades at over a 10% discount to its $73 fair value estimate, rated 4 stars by Morningstar. This New England-focused utility benefits from regulated rates, allowing steady earnings growth.

Strategic Advantage:
Regulated utilities like Eversource are inflation hedges: they can pass through cost increases to customers, protecting margins. The 6% dividend growth aligns with its earnings trajectory, and its payout ratio leaves room for further hikes.

Why These Stocks Belong in Income Portfolios

• Dividend Sustainability: All three have payout ratios below or near conservative thresholds, ensuring dividends won't be cut.
• Valuation Upside: Their stock prices lag Morningstar's fair value estimates, offering dual upside: rising dividends and potential price appreciation.
• Inflation-Beating Returns: The 4.7% yield on ES and AMT's infrastructure exposure (which thrives in growth economies) provide resilience against rising prices.

Investment Thesis

For income investors, this trio checks all boxes:
1. ACN: A tech leader with room to grow dividends and close its valuation gap.
2. AMT: A REIT with fortress-like cash flows and a dividend yield above its sector average.
3. ES: A regulated utility offering one of the highest yields in its peer group.

Action Items:
- Buy ACN near $315 to capture its dividend growth and fair-value catch-up.
- Add AMT below $243 to benefit from its infrastructure tailwinds and 3%+ yield.
- Dollar-cost average into ES at $65, targeting its 4.7% yield and regulated stability.

In 2025, these dividend stalwarts offer a rare combination: growth, safety, and undervaluation. For investors prioritizing income and inflation protection, this trio could be a cornerstone of their portfolios.