3 Dividend Champion Stocks I'm Watching in 2025

Key Points

• AbbVie could be a great stock to buy on the dip if pharmaceutical tariffs cause the shares to fall.

• Oil price volatility could give investors a great buying opportunity with Chevron.

• Target could rebound, although the company faces multiple challenges.

• 10 stocks we like better than Target ›

What does it take to be a Dividend Champion? A company must increase its dividend for at least 25 consecutive years for its stock to make the list. Nearly 140 stocks meet the criteria right now.

Just because a stock is a Dividend Champion doesn't mean it's an overall winner. However, some members of the group could be attractive to investors. Here are three Dividend Champion stocks I'm watching in 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

1. AbbVie

AbbVie (NYSE: ABBV) isn't just a Dividend Champion; it's a Dividend King. To join this elite group of stocks, a company must increase its dividend for at least 50 consecutive years. AbbVie has increased its dividend for 53 years in a row. And its payout is attractive, with a yield of 3.39%.

I'm keeping my eye on AbbVie mainly to see how the stock responds to potential tariffs on pharmaceutical imports to the U.S. President Donald Trump has threatened to levy steep pharmaceutical tariffs.

I suspect that the stocks of major drugmakers will tumble if and when those tariffs are finalized. However, I think it would present a great buying opportunity if AbbVie's share price pulls back.

TD Cowen analyst Steve Scala believes that the drugmaker would be less affected by those tariffs than many of its peers. I agree with that assessment. While the company has overseas manufacturing operations (primarily in Ireland), it also has an even greater domestic capacity.

CEO Rob Michael noted in the May earnings call that its top-selling autoimmune disease drug Skyrizi is one example of a product made in the U.S.

In the interim, AbbVie's business is rocking along nicely. The drugmaker beat Wall Street's estimates with its second-quarter results. It expects Skyrizi and Rinvoq to generate combined sales this year that exceed the peak annual sales for Humira, which ranked as the world's best-selling drug for several years before losing exclusivity in 2023.

2. Chevron

Chevron (NYSE: CVX) isn't a Dividend King yet. However, it's a longtime Dividend Champion, with 38 consecutive years of payout increases to its credit. The oil stock remains a favorite for income investors with its forward yield of 4.5%.

Two key things put Chevron on my radar screen. First, I've been interested in seeing how the acquisition of Hess would unfold. Second, I've wondered what would happen with oil prices this year -- and how the company's share price would be affected.

After a legal skirmish with ExxonMobil, Chevron completed its acquisition of Hess on July 18. So far, the stock hasn't moved much on the news. As the company integrates Hess' operations, we may see a delayed impact.

Oil prices are down somewhat so far this year. Chevron's shares have held up pretty well, though. If oil prices decline because of slower demand, the stock would likely fall in tandem. I view any sell-off as a buying opportunity for long-term investors, especially income investors seeking to lock in an even juicier yield.

3. Target

Like AbbVie, Target (NYSE: TGT) is a Dividend King. The giant retailer has increased its payout for 54 consecutive years. Thanks mainly to its stock sinking over the last 12 months, the company's forward dividend yield of 4.5% is near its highest level ever.

Why am I watching Target? I'm waiting for a turnaround. So far, it hasn't materialized. I suspect a comeback will eventually happen, although it might not be this year.

Target faces multiple challenges. Some are largely outside of its control. For example, consumer confidence has declined with uncertainty about the impact of the Trump administration's tariffs.

But other issues are the result of the company's own moves. In particular, Target continues to face a customer backlash after rolling back diversity, equity, and inclusion (DEI) efforts.

On a positive note, the company continues to generate solid profits. Its stock is also valued attractively after the sell-off, with a forward price-to-earnings ratio of 14.2.

Should you invest $1,000 in Target right now?

Before you buy stock in Target, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*

Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Keith Speights has positions in AbbVie, Chevron, ExxonMobil, and Target. The Motley Fool has positions in and recommends AbbVie, Chevron, and Target. The Motley Fool has a disclosure policy.