Looking to Grow Your Passive Income in 2025? 3 Top Dividend Growth Stocks to Double Up On Right Now

As an investor seeking to grow your passive income, dividend growth stocks can be an excellent choice. These stocks not only provide a steady income stream but also have the potential to appreciate in value over time. In this article, we will explore three top dividend growth stocks that you can consider doubling up on in 2025: ASML, Wingstop, and Zoetis.



1. ASML (ASML -1.55%)
- Dividend Yield: ASML has a forward dividend yield of 6.7% based on its original cost basis, which is significantly higher than the historical average of around 2.5% for the S&P 500 index.
- Dividend Growth: The company has delivered exceptional total returns over the long term, with annual dividend increases of 24% over the last decade.
- Business Model: ASML holds a dominant leadership position in the semiconductor industry, specifically in lithography. Its advanced technology and strong market position make it an attractive investment for long-term growth.
- Risks: ASML's dominance in lithography equipment for semiconductor manufacturing makes it vulnerable to technological changes and shifts in demand. Additionally, geopolitical tensions and trade restrictions could impact its business.

2. Wingstop (WING -1.05%)
- Dividend Yield: Wingstop has a forward dividend yield of 4.71% based on its current share price, which is higher than the industry average for restaurant stocks.
- Dividend Growth: The company has delivered respectable double-digit percentage gains last year and has a history of consistent dividend growth.
- Business Model: Wingstop is a franchisor that operates a chain of restaurants specializing in chicken wings. Its rapid store expansion and accelerating revenue growth make it an attractive investment for long-term growth.
- Risks: As a franchisor, Wingstop's success relies heavily on the performance of its franchisees. Economic downturns or changes in consumer preferences could negatively impact franchisees' profitability, affecting Wingstop's revenue and dividend growth. Additionally, intense competition in the fast-food industry poses a risk to Wingstop's market share.



3. Zoetis (ZTS -1.54%)
- Dividend Yield: Zoetis has a forward dividend yield of 4.6% based on its current share price, which is higher than the industry average for animal health stocks.
- Dividend Growth: The company has delivered annual dividend increases of 29% over the last decade, demonstrating its commitment to returning value to shareholders.
- Business Model: Zoetis is a leading animal health company that provides a wide range of products, including medicines, vaccines, and genetic tests. Its diversified product portfolio and strong balance sheet make it an attractive investment for long-term growth.
- Risks: Zoetis' business is dependent on the health of the global livestock and pet populations. Disease outbreaks, changes in consumer preferences, or regulatory issues could impact the company's revenue and dividend growth. Additionally, intense competition in the animal health industry poses a risk to Zoetis' market share.

In conclusion, ASML, Wingstop, and Zoetis are three top dividend growth stocks that offer attractive income opportunities and long-term growth potential. By diversifying your portfolio with these stocks, you can create a more resilient investment strategy and grow your passive income over time. However, it is essential to consider the risks associated with each stock and maintain a balanced portfolio to mitigate potential losses. As always, consult with a financial advisor before making any investment decisions.