9 Upcoming Dividend Increases in 2025: A Strategic Investor’s Guide

Investors seeking steady income streams in a volatile market can find solace in companies with confirmed dividend increases for 2025. Amid rising interest rates and economic uncertainty, firms with strong balance sheets, consistent earnings, and shareholder-friendly policies are standing out. Below are nine S&P 500 companies poised to deliver robust dividend growth in the coming year, along with insights into their strategies and risks.

1. NextEra Energy (NEE): The Renewable Energy Dividend Champion

NextEra Energy, a Dividend Aristocrat with 25+ years of consecutive increases, has declared a 10% dividend boost for 2025. This follows its track record of prioritizing shareholder returns while expanding its renewable energy portfolio. With a payout ratio of 48% and $3.6 billion in free cash flow in 2024, NEE’s dividend growth is underpinned by its dominance in solar and wind energy.

2. Snap-on (SNA): Tools of Growth

Snap-on, a leader in professional tool and equipment sales, is projecting a 10.9% year-over-year dividend increase for 2025. The raise stems from its 2024 payout structure, which ensures compliance with growth targets. Despite stock volatility, SNA’s recurring revenue model and focus on industrial maintenance bodes well for sustained dividends.

3. Regions Financial (RF): Banking on Stability

Regions Financial, a regional bank, has increased its dividend annually since 2015, with a $0.25 quarterly payout in 2025. The company’s 23% Q1 2025 EPS growth and a 48% payout ratio highlight its financial resilience.

4. Target (TGT): Retail Resilience

Target has maintained its 50+ year dividend growth streak, raising its payout to $1.12 per share quarterly in 2025. Despite stock price declines, the retailer’s focus on consumer staples and cost controls has kept its payout ratio at a manageable 51%.

5. Diamondback Energy (FANG): Energy’s High-Yield Bet

Diamondback’s 5.01% dividend yield makes it a top pick for income investors. The oil and gas producer’s $3.6 billion 2024 free cash flow supports dividends even amid fluctuating oil prices. However, tariff-related headwinds remain a risk.

6. Citizens Financial Group (CFG): Banking on Growth

CFG’s dividend has surged 320% since 2015, reaching $0.42 per share quarterly in 2025. With 18% Q1 EPS growth and a 53% payout ratio, the regional bank balances dividend growth with share repurchases.

7. Eastman Chemical (EMN): Chemicals and Sustainability

Eastman’s dividend has grown annually since 2010, now at $0.83 per share quarterly. Its diverse product portfolio and focus on sustainability drove 13% Q1 EPS growth, despite tariff-related volatility.

8. PepsiCo (PEP): A Beverage King’s Steady Hand

PepsiCo extended its 53-year dividend streak with a 5% increase to $5.69 annually in 2025. Despite flat 2024 revenue, strong EPS growth and its global beverage dominance ensure dividend sustainability.

9. PPG Industries (PPG): Coatings on Success

PPG, a Dividend King with over 50 years of raises, maintains dividend growth through its paints and coatings business. A 2025 EPS outlook of $7.75–$8.05 and share buybacks reinforce its income appeal.

Key Trends and Risks

• Sustainability Drivers: All companies exhibit payout ratios below 60%, indicating manageable dividend burdens.
• Sector Strength: Utilities (NEE), consumer staples (TGT), and energy (FANG) sectors dominate, reflecting their defensive and cash-rich profiles.
• Risks: High inflation, interest rate hikes, and sector-specific challenges (e.g., tariffs on energy or chemicals) could pressure dividend growth.

Conclusion

Investors eyeing 2025 dividends should prioritize firms with multi-year growth streaks, strong earnings momentum, and conservative payout ratios. NextEra Energy’s 10% raise and Snap-on’s structural increase highlight the rewards of sector leadership, while Target and PepsiCo underscore the power of long-term shareholder commitment.

For example, PEP’s 53-year streak and 5% 2025 increase ($5.69 annual payout) contrast with FANG’s 5.01% yield, offering different risk/reward profiles. Meanwhile, Regions’ 23% EPS growth and 48% payout ratio demonstrate how banks can balance capital returns with growth.

However, caution is warranted. While these companies have weathered past storms, prolonged economic slowdowns or sudden rate hikes could test their dividend policies. Investors should monitor payout ratios and earnings trends closely.

In 2025, dividend growth remains a reliable income source—but only for those willing to pick winners with both resilience and vision.