Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Successful passive income investors are those who most effectively balance risk, dividend yield and stock price before deploying their capital. Any stock with a 25-year streak of rising dividends is worth considering, especially if it’s underpriced. That’s why you might be interested in these potentially undervalued Dividend Aristocrat stocks that investment writer Rick Orford thinks are poised for a breakout in 2025.
Don’t miss:
Chevron provides a product that is the lifeblood of global shipping, transportation and travel and has a huge market share. These factors have made Chevron stock a reliable dividend option for passive income investors. Public records show that Chevron has increased its dividend for 37 years in a row, meaning most Gen Z investors weren’t even born the last time the oil giant cut its dividend.
Still, Chevron shares are trading down nearly 10% from their 52-week peak, meaning there is significant upside potential next year. Rick Orford notes that analysts see Chevron’s stock trading above $190, leaving plenty of room for growth from the current stock price of $150. Buy now and you can get all that benefit while earning a 4.33% dividend.
Real estate investment trusts can be excellent options for dividend investors and Federal is a great example of this. This REIT operates prime retail and mixed-use assets in some of America’s most competitive metropolitan areas. The highly congested and visible nature of Federal’s assets allows this REIT to lease space under long-term, triple-net leases at a healthy price premium. This advantage has translated into solid profits for shareholders.
Federal Realty Investment Trust is a rarity in that it has both the status of Dividend Aristocrat and Dividend King, which it earned thanks to a 56-year streak of higher dividends. Better yet, analysts at Raymond James just raised their target for Federal to $120 and the stock is currently trading at $112. That leaves plenty of room for stock appreciation in 2025, while earning a 3.86% dividend.
Popular: These Five Entrepreneurs Are Worth $223 Billion – they all believe in one platform that offers a target return of 7-9% with monthly dividends
Although big tech gets the lion’s share of the investment world’s attention, the pharmaceutical sector is still hugely profitable. AbbVie is a pharmaceutical company that produces a variety of popular medications such as Humira, Skyrizi, Rinvoq and Botox. The combined annual revenues for these drugs are tens of billions of dollars. Because they treat chronic conditions such as arthritis and autoimmune diseases, it appears AbbVie will continue to generate revenue for its shareholders.
Morgan Stanley analysts recently raised AbbVie’s price target to $218, and Citigroup isn’t far behind with its $215 forecast. Both represent an upgrade from previous price targets, and TD Cowen sees AbbVie shares trading at $225. With AbbVie shares currently trading around $187 and paying a 3.27% dividend, 2025 could be a huge year if it lives up to analyst expectations.
It’s also worth noting that AbbVie is working on a drug to treat Parkinson’s disease. The current expectation is that this drug could hit the market in 2027, making AbbVie a stock to buy and hold soon. Of course, nothing is ever guaranteed, but adding a Parkinson’s drug to an already strong pharmaceutical offering could push AbbVie’s stock into the stratosphere.
The current interest rate environment has created incredible opportunities for income-seeking investors to earn huge returns, but not through publicly traded REITs.
Arrivald Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a net annual return of 7% to 9% paid out monthly to investors. In August it paid 8.1%. The best part? Due to high demand, the maximum investment amount is currently $5,000, with a minimum investment of ONLY $100.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener has the latest offerings.
Wondering if your investments could earn you a $5,000,000 nest egg? Talk to a financial advisor today. SmartAsset’s free tool matches you with up to three vetted financial advisors serving your region, and you can interview your advisors for free to decide which one is right for you.
This article, Analysts Believe These Dividend Aristocrats Are Poised for a Huge 2025 – Buy Them While They’re Still Overpriced originally appeared on Benzinga.com
