Boomers Are Buying The 5 Highest-Yielding Dividend Champions Hand-Over-Fist

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born in 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. One thing is sure: with the cost-of-living adjustment (COLA), which is the annual adjustment to Social Security payments matched to inflation, expected to be similar to 2025’s 2.5%, Boomers and others will need to generate as much extra passive income as possible with that modest increase. 

24/7 Wall St. Key Points:

• With lower COLA payouts, the need to generate additional passive income increases
• Companies that have continued to raise their dividend for 25 years or longer are perfect for Boomers
• Dividend stocks will likely trade higher when the Federal Reserve cuts interest rates later this year
• Are the Dividend Champions a good fit for you? Why not schedule a meeting with a financial advisor near you for a complete portfolio review today? Click here to get started finding one. (Sponsored)

One huge winning hand for passive income is investing in the Dividend Champions. These companies have raised their dividends for 25 years or longer, regardless of their market capitalization. They can range from small-cap to large-cap and don’t have to be in the S&P 500 like the Dividend Aristocrats. The 137 companies that made the list for 2025 provide investors with more options to choose from, while still offering the security of owning companies that have raised their payouts to shareholders every year. 

We screened the current list looking for the highest-yielding companies. We identified five stocks that are Buy-rated by top Wall Street firms we cover, have solid upside to their posted price targets, and are reasonably safe options for growth and income investors in a stock market that is fully valued and trading at a price-to-earnings ratio that is much higher than the median figure over the last 20 years.

Why do we cover the Dividend Champions?

The key, once again, for investors in this group is that the stocks don’t have to be in the S&P 500 and can be of any market cap size. This opens the door for many new stocks that have paid reliable dividends for over 25 years and longer. 

Altria

Altria is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand;

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand.

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Stifel has a Buy rating with a $63 target price.

Enterprise Products Partners

Enterprise Products Partners is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. This company is one of the largest publicly traded energy partnerships, paying a very reliable dividend. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:

• Gathering
• Processing
• Transporting and storing natural gas, natural gas liquids (NGL), and fractionation
• Import and export terminalling
• Offshore production platform services

The company has four reportable business segments:

• Natural Gas Pipelines and Services
• NGL Pipelines and Services
• Petrochemical Services
• Crude Oil Pipelines and Services

One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

JPMorgan has an Overweight rating with a $38 target price objective.

Franklin Resources

Franklin Resources, Inc. (NYSE: BEN) is among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the US, an advantage given the maturing US market.

Franklin Resources offers its products and services under the brands of:

• Franklin
• Templeton
• Franklin Mutual Series
• Franklin Bissett
• Fiduciary Trust
• Darby
• Balanced Equity Management
• K2
• LibertyShares
• Edinburgh Partners

The 2023-2024 bull market was a strong tailwind for the company; however, the recent sell-off has made the shares appear incredibly cheap. While withdrawals from baby boomers may be a concern, the path forward in 2025 also appears solid, as the shares have rebounded from their lows in April.

TD Cowen has a Buy rating with a $27 target price.

Polaris

While off the radar to some, this company consistently returns capital to shareholders and has significant total return potential. Polaris Inc. (NYSE: PII) is engaged in the design, engineering, manufacturing, and marketing of powersports vehicles.

The Company also designs and manufactures, or sources, parts, garments, and accessories (PG&A), which include aftermarket accessories and apparel.
The off-road segment consists of off-road vehicles (ORVs) and snowmobiles.

The On-Road segment designs and manufactures motorcycles, motocross roadsters, light-duty hauling vehicles, and passenger vehicles.

Polaris Marine segment designs and manufactures boats specifically designed to compete in key segments of the recreational marine industry, including pontoon and deck boats.

The company’s product line-up includes:

•  RANGER, RZR, Polaris XPEDITION, and GENERAL side-by-side off-road vehicles
• Sportsman all-terrain ORVs; military and commercial off-road vehicles
• Snowmobiles
• Indian Motorcycle mid-size and heavyweight motorcycles
• Slingshot moto-roadsters
• Aixam quadricycles
• Goupil electric vehicles
• Pontoon and deck boats, including Bennington pontoons

D.A. Davidson has a Buy rating with a $60 target price.

Realty Income

Realty Income is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors seeking a safer, contrarian investment for the remainder of 2025. Realty Income Corporation (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.

The company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.

It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.

The Company owns or holds interests in approximately 15,621 properties in:

• All 50 United States  
• The United Kingdom
• France
• Germany
• Ireland
• Italy
• Portugal
• Spain

With clients doing business in 89 industries, its property types include: retail, industrial, gaming, and others, such as agriculture and office.

Its primary industry concentrations include:

• Grocery stores
• Convenience stores
• Dollar stores
• Drug stores
• Home improvement stores
• Restaurants
• Quick service

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