Top 3 Dividend Stocks to Consider in January 2025

As we step into the new year, investors are looking for stable income and growth opportunities. Dividend stocks have long been a favorite among income-oriented investors, and with the incoming Trump administration expected to prioritize deregulation, the financial services sector could be a top performer in 2025. Here, we highlight three dividend stocks that stand out in January 2025, offering attractive yields and potential for growth.

1. Ares Capital (ARCC)
Ares Capital is one of the largest business development companies (BDCs), providing capital to middle-market businesses with revenue between $100 million and $1 billion. The demand for the direct lending offered by Ares continues to grow, which is a positive sign for the company's future prospects. ARCC offers a juicy forward dividend yield of 8.65%, significantly higher than the market average. The company has delivered exceptional total returns over the long term, indicating a strong track record of performance.



2. Bank of America (BAC)
Bank of America is a large financial services company providing banking and financial products, with a forward dividend yield of 2.34%. The incoming Trump administration is expected to make deregulation one of its top priorities, which could benefit financial services companies like BAC. BAC's share price has increased by 1.32% as of January 16, 2025, indicating positive sentiment among investors.



3. Citigroup (C)
Citigroup is a large financial services holding company with a forward dividend yield of 3.18%. Similar to BAC, C is also expected to benefit from the incoming Trump administration's deregulation efforts. C's share price has increased by 2.45% as of January 16, 2025, reflecting investor confidence in the company's prospects.



These three dividend stocks stand out in January 2025 due to their high dividend yields, positive market sentiment, and the potential benefits they may receive from the incoming Trump administration's deregulation efforts. However, it's essential to consider the risks and sustainability of these dividends before making an investment decision. As always, it's crucial to conduct thorough research and consult with a financial advisor before investing in any security.