Want Steady Income? 3 Top Dividend Stocks for July 2025

Earnings season is synonymous with market volatility. Growth-oriented investors may love trading the ups and downs, but more risk-averse investors may look for ways to generate solid returns balanced by steady cash flow.

Dividend stocks are a solid option, particularly when you find companies with a history of paying and growing dividends over several years. This is a hallmark of companies that can grow revenue and earnings in any market.

In July, three dividend-paying companies stand out as particularly compelling options.

Together, these stocks can deliver reliable income for investors seeking shelter from the market’s ups and downs.

Johnson & Johnson Will Be There When Needed

Reliability is the primary goal of any dividend stock. A high yield or an attractive payout doesn’t matter much if the company can’t sustain it over the long term. That reliability has been on display with Johnson & Johnson (NYSE: JNJ).

The company has been embroiled in a lawsuit over its talc products for several years. At the same time, it’s navigating inflation and tariff concerns.

JNJ has rewarded shareholders with a safe, growing dividend throughout. In fact, in the last two years, the dividend king has increased its dividend by over 4%. Its current dividend yield of 3.35% is better than the sector median average of 2%.

However, that reliability doesn’t just relate to a company’s dividend. It can also relate to fear of missing out (FOMO). In the case of Johnson & Johnson, the stock is trading at an attractive valuation.

However, with the company just getting ready to report its quarterly earnings, investors do not have any urgency to jump on JNJ stock, which has been in a consolidation pattern since early April.

Verizon Offers a High-Yield Dividend That Isn’t a Trap

For many investors, dividend yield is their number one consideration for dividend stocks. However, sometimes a high yield can be a sign of other problems in the company. That’s not the case with Verizon Communications Inc. (NYSE: VZ).

Verizon’s business model isn’t exciting, but it proves that a boring business can still provide beautiful growth. That business model is the reason Verizon can pay a reliable dividend that yields 6.5%, putting it in the top 10% of its sector.

VZ stock has delivered a total return of 47.14% in the last 10 years. That’s significant because the stock has delivered an above-average total return of over 8% in the last 12 months. Investors are responding positively to the company’s efforts to reduce capital expenditures as the 5G rollout winds up.

The stock may not be done. It’s trading at around 9x forward earnings, a substantial discount to its historic average. The Verizon analyst forecasts on MarketBeat have a consensus price target that’s 14% above the stock’s closing price on July 15.

Duke Energy Will Ride a Multi-Year Investment Wave

Utilities stocks won’t make investors forget about the tech sector, but they’ve been having a better year than many sectors. That’s been particularly true of companies like Duke Energy (NYSE: DUK). DUK stock is up 11% in 2025, and its dividend yield is 3.57%.

At more than $65 billion, Duke Energy’s capital expenditure (capex) plan is among the largest among regulated utility companies. The company is investing in modernizing the existing electrical grid and continuing its solar and energy storage investments.

Analysts are forecasting mid- to high-single-digit earnings per share (EPS) growth. Investors can bank on that forecast because Duke Energy is headquartered in North Carolina, which recently passed legislation that allows multi-year rate plans, performance-based ratemaking, and carbon reduction targets.

The downside of the company’s capex plans is a significant debt load. As of July 15, the company’s debt-to-equity ratio was 1.57%, which is elevated by historical standards.

However, if interest rates come down as expected, the company may be able to refinance that debt at better rates.

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The article "Want Steady Income? 3 Top Dividend Stocks for July 2025" first appeared on MarketBeat.