Dividend stocks are valued by investors for their ability to provide income independently of stock price appreciation, particularly during periods of heightened market uncertainty. In 2025, this characteristic has been significant for U.S. stocks, as both the S&P 500 and Nasdaq Composite have experienced declines year-to-date (YTD), with the major indices spending time in correction territory. Meanwhile, the Dow Jones Industrial Average remains barely positive, up less than 1% as of March 25. Investors seeking stable investment income without significant concerns about stock price fluctuations might find the following two dividend stocks attractive additions to their stock portfolios.
1. AT&T
After five challenging years, AT&T’s stock has rebounded over the past 12 months, rising by over 60%. This turnaround might have been anticipated, yet its recent performance still surprised some observers. In early 2022, AT&T reduced its quarterly dividend from $0.52 to $0.2775 to allocate more cash towards debt repayment and vital investments as it refocused on its core telecom business. Initially, there were concerns that AT&T might eliminate the dividend, but this now appears unlikely and unwise. With free cash flow reaching $17.6 billion in 2024, AT&T can comfortably meet its dividend and debt obligations while still investing in its broadband and fiber businesses. Although AT&T’s current dividend yield of approximately 4% is lower than its five-year average of 8%, it remains around three times the S&P 500 average. AT&T’s future growth is heavily reliant on expanding its fiber business, which has shown promise with an 18% year-over-year revenue increase in the fourth quarter and an addition of 1 million customers in 2024, marking the seventh consecutive year of such growth. The telecom industry remains vital, and AT&T is expected to remain a leading player, making it a solid buy-and-hold dividend stock for those with moderate expectations about continued stock price growth.
2. Coca-Cola
Coca-Cola’s products and brands, distributed in over 200 countries, are globally recognized and favored, with its soda being an iconic product. Although the company is not entirely recession-proof, its products are consistently purchased, which provides it with more resilience than many other companies. Coca-Cola’s quarterly dividend is $0.51, with an average yield of about 2.9% over the past year. More impressively, Coca-Cola is a Dividend King, having increased its dividend for 63 consecutive years, marking a 55% increase in just the past decade. While Coca-Cola may not experience double-digit revenue growth annually, its reliability and consistently increasing dividend payments ensure that investors can remain confident in its dividend stability, barring any drastic unforeseen events. The company’s reliability is further reinforced by its proactive approach to expanding its product range beyond traditional offerings like Coca-Cola Classic, Diet Coke, and Sprite, to include water, coffee, tea, juices, plant-based drinks, and even alcohol. Coca-Cola represents a strategic purchase for investors seeking reliability, consistency, and a commitment to rewarding shareholders.
