High-Yield Dividend Stocks to Buy in September 2025 for Passive Income and Long-Term Growth

In a market environment marked by tariff uncertainties and macroeconomic volatility, dividend champions remain a compelling option for investors seeking passive income and long-term growth. These companies, characterized by decades of consecutive dividend increases and robust fundamentals, are often undervalued during periods of short-term disruption. Below, we analyze four high-conviction stocks—Novo Nordisk (NVO), Cisco Systems (CSCO), Johnson & Johnson (JNJ), and Realty Income (O)—that exemplify resilience amid temporary headwinds and offer compelling growth catalysts.

1. Novo Nordisk: Leading the Obesity Revolution Despite Short-Term Setbacks

Novo Nordisk, the global leader in diabetes and obesity treatments, has faced a 16.7% monthly decline in 2025 due to competitive pressures and regulatory headwinds. The rise of Eli Lilly’s oral GLP-1 drug, orforglipron, and Medicare’s exclusion of weight-loss medications from coverage have dampened near-term expectations [2]. Additionally, mixed results from Novo’s CagriSema trial and broader pharmaceutical industry challenges, including Trump-era tariff risks, have fueled investor caution [2].

However, these challenges are temporary. Novo Nordisk’s dominant position in the GLP-1 market—bolstered by blockbuster drugs like Wegovy and Ozempic—remains unshaken. Wegovy sales surged 86% to DKK 58 billion in 2024, and the obesity market is projected to reach $100 billion by 2030 [2]. The company is also expanding semaglutide’s indications into chronic kidney disease and heart failure, unlocking new revenue streams [2]. Strategic partnerships, such as its collaboration with Hims & Hers Health to reduce Wegovy’s cost and a distribution deal with CVS Caremark, further enhance accessibility [5]. With a 3.2% dividend yield and a 20.7% annualized dividend growth rate, Novo Nordisk trades 36.1% below intrinsic value, offering a margin of safety for long-term investors [1].

2. Cisco Systems: AI and Cybersecurity Catalysts in a Tech Transition

Cisco Systems, a stalwart of the technology infrastructure sector, has seen revenue decline due to U.S. federal spending delays and supply chain normalization. Q1 FY2025 results showed a -6% year-over-year revenue drop, with networking revenue falling -23% as prior-year backlog shipments normalized [4]. However, these are temporary hiccups in an otherwise transformative phase for the company.

Cisco’s AI infrastructure business is surging, with over $300 million in AI orders from webscale clients in Q1 FY2025 [4]. The company is capitalizing on AI training, connectivity, and inference opportunities, with AI POD shipments expected to begin in December 2024 [4]. The recent acquisition of Splunk is another catalyst, enhancing Cisco’s cybersecurity and observability offerings and driving cross-selling opportunities [2]. Management projects the deal to be cash flow positive in FY2025, with non-GAAP EPS and revenue growth anticipated by FY2026 [2].

Cisco’s shift to a recurring revenue model—now accounting for 57% of total revenue—strengthens its resilience. With a forward P/E of 17, a 2.4% yield, and undervaluation of 13.2%, Cisco is well-positioned to benefit from the AI-driven infrastructure boom [1].

3. Johnson & Johnson: Navigating Legal Risks with Diversified Innovation

Johnson & Johnson, a healthcare dividend aristocrat, faces ongoing talc litigation and the loss of exclusivity for STELARRA, a multibillion-dollar product. These pressures have created valuation headwinds, though the company’s diversified portfolio and R&D strength mitigate long-term risks. In Q2 2025, J&J reported double-digit growth in 13 brands, including DARZALEX, TECVAYLI, and TREMFYA, driven by its $17.23 billion R&D investment in FY2024 [4].

Strategic acquisitions, such as Ambrx Biopharma and Abiomed, are expanding J&J’s footprint in antibody-drug conjugates and cardiovascular devices [2]. Despite biosimilar competition and margin pressures, the company raised its full-year guidance, reflecting confidence in its ability to adapt [4]. With a 2.8% yield, a 3.9% undervaluation, and a fortress-like balance sheet, J&J offers stability in uncertain markets [1].

4. Realty Income: A High-Yield REIT Weathering Real Estate Headwinds

Realty Income (O), the “Monthly Dividend Company,” has faced declines due to high interest rates and a sluggish retail sector. A 9% drop in one investor’s position underscores the REIT’s sensitivity to macroeconomic conditions [2]. However, Realty Income’s triple-net lease model—characterized by 98.6% portfolio occupancy—provides resilience [3].

The company is expanding into industrial, gaming, and data centers, sectors with stronger growth potential. Management also anticipates benefits from Federal Reserve rate cuts, which could reduce borrowing costs and enhance Realty Income’s 5.4% yield [3]. With a conservative net debt-to-EBITDA ratio of 5.5X and a 30-year dividend growth streak, Realty Income remains a compelling income play [4].

Conclusion

The four stocks above exemplify the intersection of undervaluation, resilient business models, and growth catalysts. While macroeconomic and sector-specific headwinds persist, these companies’ strong fundamentals and strategic initiatives position them to outperform in the long term. For investors prioritizing passive income and capital preservation, these dividend champions offer a balanced approach to navigating the uncertainties of 2025.

Source:
[1] Undervalued Dividend Aristocrats September 2025 [https://blog.valuesense.io/undervalued-dividend-aristocrats-september-2025/]
[2] Novo Nordisk Plunges 17% in a Month: Buy, Sell or Hold the ... [https://finance.yahoo.com/news/novo-nordisk-plunges-17-month-151800238.html]
[3] Is Realty Income Stock a Buy, Hold or Sell Amid Fed Rate Cut ... [https://finance.yahoo.com/news/realty-income-stock-buy-hold-151600822.html]
[4] Johnson & Johnson (JNJ) Q2 2025 Earnings Call Transcript [https://www.aol.com/johnson-johnson-jnj-q2-2025-154914928.html]