Investing in the stock market is one of the most effective ways to build long-term wealth, but navigating the vast sea of investment strategies can feel overwhelming. One of the most reliable methods to generate passive income from your investments is dividend investing.
Unlike chasing high yields alone, dividend-growth stocks offer a powerful combination of steady income, capital appreciation, and resilience through market cycles. With that in mind, here are three dividend-growth stocks to consider adding to your portfolio: AbbVie Inc. (ABBV), Energy Transfer LP (ET), and Cheniere Energy Partners, L.P. (CQP).
Historically, dividend-growing companies have outperformed non-dividend payers, delivering higher returns with lower volatility. A study by Ned Davis Research and Hartford Funds found that over the past 50 years (1973-2023), dividend payers generated an impressive 9.2% annual return, more than double the 4.3% return of non-dividend stocks. This steady compounding effect can significantly enhance wealth accumulation, especially when reinvesting dividends.
With the Federal Reserve keeping interest rates steady at 4.25% – 4.50% and no immediate cuts expected, dividend stocks remain attractive. A stable economy favors strong dividend growers, especially as slightly elevated inflation is expected to ease. If rate cuts materialize in late 2025, dividend-paying stocks could become even more appealing, offering steady income and capital appreciation in a shifting market.
Given these favorable trends, let’s examine the fundamentals of the above-mentioned dividend growth stocks in detail:
AbbVie Inc. (ABBV)
ABBV is a global diversified research-based biopharmaceutical company engaged in manufacturing and selling medications and therapies. It offers a comprehensive product portfolio across Immunology, Oncology, Neuroscience, Eye Care, Aesthetics, and Other Specialties.
On December 13, 2024, ABBV announced the acquisition of Nimble Therapeutics to strengthen its immunology pipeline further. The deal includes Nimble’s lead asset, an investigational oral peptide IL-23R inhibitor currently in preclinical development for psoriasis, as well as a pipeline of innovative oral peptide candidates targeting various autoimmune diseases with significant unmet needs.
Additionally, ABBV will gain access to Nimble’s proprietary peptide synthesis, screening, and optimization platform, designed to enable the discovery and optimization of oral peptide therapeutics.
On October 30, the company’s board of directors increased the quarterly dividend from $1.55 to $1.64 per share, which was paid to its shareholders on February 14, 2025. This reflects an increase of approximately 5.8%, continuing ABBV’s strong commitment to returning cash to shareholders through a growing dividend.
It pays an annual dividend of $6.56, which translates to a yield of 3.40% at the current share price. Its four-year average dividend yield is 3.86%. Moreover, the company’s dividend payouts have increased at an impressive CAGR of 7.5% over the past five years.
During the fiscal fourth quarter (ended December 31, 2024), ABBV’s net revenue increased 5.6% year-over-year to $15.10 billion, while the company’s Neuroscience segment reported net revenue of $2.51 billion, indicating a 19.8% growth from the prior-year quarter. Its oncology and eye care segments also registered a year-over-year increase of 12% and 10.2%, respectively. ABBV’s adjusted net earnings for the quarter came in at $3.84 billion and $2.16 per share.
The consensus revenue estimate of $12.93 billion for the fiscal first quarter (ending March 2025) represents a 5% increase year-over-year. The consensus EPS estimate of $2.52 for the same period indicates a 9.1% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus revenue estimates in each of the trailing four quarters.
ABBV shares gained 19.4% over the past nine months and 8.5% year-to-date to close the last trading session at $192.87.
ABBV’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has a B grade for Growth, Value, Stability, Sentiment, and Quality. Out of 152 stocks in the Medical – Pharmaceuticals industry, ABBV is ranked #6. Click here to see ABBV’s rating for Momentum.
Energy Transfer LP (ET)
ET provides energy-related services. It owns and operates natural gas transportation pipelines and natural gas storage facilities in Texas and Oklahoma, as well as approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.
On February 10, 2025, the company signed a long-term agreement to supply natural gas to CloudBurst Data Centers’ AI-focused facility in Central Texas. The deal, via its Oasis Pipeline, will provide up to 450,000 MMBtu per day, enough to generate 1.2 GW of power for at least 10 years, pending a final investment decision later this year.
This marks ET’s first direct gas supply deal for a data center, with more agreements expected as demand for AI-driven infrastructure grows.
On January 27, ET increased its quarterly cash distribution to $0.3250 per common unit for the fourth quarter, reflecting an increase of 3.2% year-over-year. The cash distribution will be paid on February 19, 2025, to unitholders of record as of the close of business on February 7, 2025.
ET pays a $1.30 annual dividend yielding 6.50% at the current share price. Its four-year average dividend yield is 7.65%. Also, the company’s dividends have increased at a 26.7% CAGR over the past three years.
For the fourth quarter (ended December 31, 2024), ET’s revenues amounted to $19.54 billion, while its operating income increased 5.3% year-over-year to $2.28 billion. Also, the company reported a net income of $1.45 billion or $0.29 per common unit for the same quarter. Further, ET’s adjusted EBITDA increased 7.8% from the year-ago value to $3.88 billion. Also, its distributable cash flow was up 2.4% from the prior year to $1.97 billion.
Analysts expect ET’s revenue for the first quarter (ending March 2025) to increase 3.4% year-over-year to $22.37 billion. Meanwhile, its EPS for the same quarter is expected to grow 18.3% from the prior year to $0.38.
The stock has soared 25.2% over the past six months and 41.7% over the past year to close the last trading session at $19.99.
ET’s promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Momentum and a B for Value and Stability. Within the Energy – Oil & Gas industry, ET is ranked #4 out of 76 stocks. To access additional ET ratings for Growth, Sentiment, and Quality, click here.
Cheniere Energy Partners, L.P. (CQP)
CQP provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates a natural gas liquefaction and export facility at the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, along with a supply pipeline that interconnects the terminal to multiple interstate pipelines.
On February 14, 2025, the company paid its shareholders a quarterly dividend of $0.820 per common unit to unitholders of record as of February 10. CQP’s annual dividend of $3.25 translates to a yield of 5.27% at the current share price. Its four-year average dividend yield is 7.58%. Moreover, the company’s dividend payments have grown at CAGRs of 6.3% and 5.7% over the past three and five years, respectively.
CQP’s total revenue for the third quarter that ended September 30, 2024, came in at $2.06 billion. Its income from operations amounted to $827 million, while its net income for the quarter stood at $635 million or $1.08 per common unit. Additionally, the company’s adjusted EBITDA of $852 million indicates growth of 7.4% from the prior year’s quarter.
Street expects CQP’s revenue to increase 6.9% year-over-year to $2.45 billion for the first quarter (ending March 2025). For the fiscal year 2025, the company’s revenue and EPS are expected to grow 17.6% and 3.7% year-over-year to $10.03 billion and $4.26, respectively. Also, it has surpassed the consensus EPS estimates in each of the trailing four quarters.
Over the past nine months, the stock has gained 27%, closing the last trading session at $61.66.
It’s no surprise that CQP has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Momentum and a B for Quality. Among 22 stocks in the A-rated MLPs - Oil & Gas industry, CQP is ranked #7.
Beyond what is stated above, we’ve also rated CQP for Growth, Value, Stability, and Sentiment. Get all CQP ratings here.
What To Do Next?
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ABBV shares were trading at $192.87 per share on Monday morning, down $0.58 (-0.30%). Year-to-date, ABBV has gained 9.56%, versus a 4.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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