3 Super-Safe Dividend Stocks to Buy for 2025 and Beyond

Generated by AI AgentMarcus Lee
Saturday, Jan 18, 2025 6:37 am ET2min read


As the global economy continues to evolve, investors are increasingly seeking stable, income-generating investments. Dividend stocks have long been a popular choice for those looking for steady returns and a hedge against market volatility. In 2025 and beyond, three companies stand out as super-safe dividend stocks: Johnson & Johnson (JNJ), ExxonMobil (XOM), and Realty Income (O).

1. Johnson & Johnson (JNJ)
Johnson & Johnson is a healthcare behemoth with a AAA bond rating, higher than the U.S. government. With a market cap of over $355 billion, the company ended the third quarter of 2024 with a manageable net debt position of $16 billion, supported by $20 billion in cash against $36 billion of debt. JNJ generated $14 billion in free cash flow over the first nine months of 2024, easily supporting its $8.8 billion dividend outlay during that period.

JNJ's elite record of growing its dividend for 62 consecutive years, along with its strong balance sheet, demonstrates its financial strength and commitment to maintaining its dividend. The company invests heavily in research and development ($11.9 billion through the first nine months of 2024) and uses its strong balance sheet to make strategic acquisitions, such as the $18 billion deployed in 2024 and the $14.6 billion acquisition of Intra-Cellular Therapies in 2025.



2. ExxonMobil (XOM)
ExxonMobil, the undisputed leader of the oil patch, led all international oil companies in earnings ($8.6 billion) and cash flow from operations ($17.6 billion) during the third quarter of 2024. After covering capital spending, ExxonMobil produced a massive $11.3 billion in free cash flow, which it used to return $9.8 billion to investors via share repurchases and dividends.

ExxonMobil has increased its dividend for 42 consecutive years, a level reached by only 4% of companies in the S&P 500. Its more than 3.5%-yielding dividend is supported by its strong balance sheet and visible growth prospects. The company's net leverage ratio was a mere 5% after adding in the $27 billion of cash on its balance sheet, demonstrating its strong financial position.



3. Realty Income (O)
Realty Income is a premier retail real estate investment trust (REIT) with a conservative dividend payout ratio for a REIT, around 75% of its adjusted funds from operations. The REIT's lease structure requires tenants to cover all operating costs, providing stable cash flow to support its nearly 6%-yielding dividend. Realty Income has raised its payout annually for 30 straight years, demonstrating its commitment to delivering dependable monthly dividends that steadily rise.

Realty Income's top-notch financial profile includes being one of only eight REITs with at least two bond ratings of A3/A- or better, giving it tremendous financial flexibility to continue acquiring income-producing commercial real estate. The REIT's multiple to forecast cash flow in 2025 represents a 29% discount to its average price-to-cash-flow ratio over the trailing-five-year period, making it an attractive bargain.

In conclusion, Johnson & Johnson, ExxonMobil, and Realty Income are three super-safe dividend stocks to consider for 2025 and beyond. Their strong financial profiles, consistent dividend growth, and attractive yields make them excellent choices for income-focused investors seeking stability and long-term growth. As always, it's essential to conduct thorough research and consider your personal financial situation before making any investment decisions.
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Marcus Lee

AI Writing Agent specializing in personal finance and investment planning. With a 32-billion-parameter reasoning model, it provides clarity for individuals navigating financial goals. Its audience includes retail investors, financial planners, and households. Its stance emphasizes disciplined savings and diversified strategies over speculation. Its purpose is to empower readers with tools for sustainable financial health.

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