These Are The Best Dividend Picks for Over 20% Gains

In 2025, markets rewarded investors with dividend income-paying stocks that returned 20% or more. Nexstar Media (NXST), which peaked at $223.36, closed at $191.02 on Wednesday.

NXST star offers a 3.90% dividend yield.

In the tech sector, Cisco Systems (CSCO), once the poster child for the Y2K bubble bursting, gained 28.50% YTD. Add 2.17% in dividend yield for a nearly 30% yearly return. Network demand is rising as Cisco’s customers spend heavily on AI hardware. This requires a network backend infrastructure.

IBM (IBM) is another tech darling on the list. Up by 37.9% YTD, the dividend yield is 2.21%. The firm benefits from advising clients on AI solutions.

AbbVie (ABBV) gained 28.11% YTD and pays a 2.86% dividend yield. The drugmaker is managing its patent cliff expiry effectively. It has two blockbuster drugs. This includes Skyrizi and Rinvoq. Together, those products will generate $25 billion or more in sales this year.

In the tobacco sector, Philip Morris (PM) gained 20.39%, plus 3.58% in dividend yield. The firm’s stock closed at $156.49, down from a high of $186.69 set in June. British American Tobacco (BTI) fared better. Shares gained 59.17% YTD. BTI stock yields 5.64% in dividends. Investors may also consider Altria (MO). Although the return is 12.24% YTD, the dividend yield is 7.08%.

Dividend Stocks