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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Top 5 dividend stocks to watch in 2025

Some companies share a percentage of their profits with their shareholders by giving them dividends. Dividend stocks are appealing to stock traders for multiple reasons, including their tendency to be associated with well-established, profitable businesses. Let’s explore more of what dividend shares have to offer stock traders.

Source: Bloomberg

Written by

Claire Williamson

Claire Williamson

Financial writer

Reviewed by

Gidon Orelowitz

Gidon Orelowitz

Financial UX Writer

Published on:

Important to know

This article is for informational purposes only and does not constitute investment advice. Please ensure you understand the risks and consider your individual circumstances before trading.

Key takeaways

  • Dividend stocks are those of public companies that pay dividends to their shareholders

  • Companies’ board of directors determine what percentage of profits to pay in dividends

  • Not all public companies pay dividends; some prefer to reinvest profits back into the business to drive growth

What are dividend stocks?

Dividend stocks are shares of companies that pay a sum of money to their shareholders – this is known as a dividend. It’s typically a percentage of the company’s profits and can be paid once-off or regularly, such as quarterly. The board of directors ultimately determines how much to pay in dividends.

In addition to the hope that the share price will rise, dividends enable stock traders to earn money from their investments. 

What percentage of the profits do investors get?

The amount of money stock traders receive in a dividend depends on how much stock they own – the number of shares they have invested in a particular company.

Do all public companies pay dividends?

Not all public companies pay dividends. Some prefer to reinvest their profits back into the business to drive growth, so that the share price will rise.

Companies in a high-growth phase of their development will often choose to reinvest their profits to keep expanding.

Advantages of dividend stocks

The main advantage of stock trading dividend stocks is that you’ll see a return on your investment at some point, either once-off or at regular intervals.

In addition, companies that pay dividends tend to be well-established, so they’re often a less risky investment. However, all investments come with inherent perils, so a risk management strategy is crucial.

If you reinvest your dividends into your stock, you’ll benefit from compounded growth, which occurs when your returns generate additional returns. 

Disadvantages of dividend stocks

The risks of trading dividend stocks are important to be aware of.

For starters, a dividend is never guaranteed; companies might choose to stop dividend payments when the business is struggling financially or if there’s economic turmoil.

Similarly, companies that abruptly stop or reduce dividends might well be under financial strain, and the share price could subsequently drop because of this.

Finally, as interest rates rise, dividends can become worth less, particularly when compared with government securities.

Top 5 dividend stocks to watch in 2025

Overview of the dividend stocks in this article

The stocks mentioned in this article are available with IG as follows:

CFD trading

  • MPLX LP
  • Nordea Banking Abp
  • Shutterstock Inc
  • TC Energy Corporation

Stock trading

  • MPLX LP
  • Shutterstock Inc
  • TC Energy Corporation

Company

Industry

Dividend yield

Market cap

Highlights

Available to trade CFDs with IG

Available for stock trading with IG

MPLX LP

Energy and logistics

7.49%

$52.20 billion

Distributed $976 million to shareholders in its most recent dividend payment

Nordea Bank Abp

Banking

6.79%

€47.71 billion

Aims to pay out 60% – 70% of its profits to shareholders in dividends

X

Space Co Ltd

Space technology and satellite services

4.41%

JP¥33.58 billion

The next dividend is expected to be around JP¥33 per share, but it isn’t guaranteed

X

X

Shutterstock Inc

Creative media

5.99%

$779.72 million

Most recent dividend was paid on 18 September 2025 at $0.33 per share

TC Energy Corporation

Energy infrastructure

5.99%

C$74.86 billion

Declared a quarterly dividend of C$0.85 per common share for the quarter ending September 2025

Let’s look at five dividend stocks in the UAE you’ll want to keep an eye on right now.

1. MPLX LP (NYSE: MPLX)
 

Industry: Energy and logistics

Dividend yield: 7.49%1

Market cap: $52.20 billion2

MPLX owns and operates midstream energy infrastructure and logistics assets, and provides fuel distribution services. Its operations are divided broadly into two segments: Crude Oil and Products Logistics and Natural Gas & NGL (Natural Gas Liquids) Services.

In the first instance, MPLX handles pipelines for crude oil and refined petroleum products, storage terminals, marine terminals and docks, and rails and terminals for refined fuel.

In the second, it deals with gathering and processing natural gas, fractionation, storage and marketing of NGLs, plus the sale of residue gas and condensate.

It has a sizeable infrastructure footprint: thousands of miles of crude oil and light product pipelines, many terminals and storage facilities, marine transport via boats and barges, and a network of refining logistics and distribution facilities.

Highlights:

  • According to its latest earnings report, it distributed $976 million to shareholders in its most recent dividend payment, which typically occurs every three months3
  • This figure works out to $0.956 per share4
  • The company repurchased $100 million worth of stock, signalling that MPLX believes its stock will increase in value5

2. Nordea Bank Abp (HEL: NDA-FI)
 

Industry: Banking

Dividend yield: 6.79%6

Market cap: €47.71 billion7

Nordea is a large Nordic financial services group headquartered in Helsinki, Finland.

As a universal bank with a 200-year history, its mission is to support and grow the Nordic economies. The current entity was formed through mergers of major Nordic banks, becoming the leading financial institution across Sweden, Finland, Norway and Denmark. The bank has evolved from traditional banking to become a comprehensive financial services provider.

Nordea Bank Abp offers banking products and services for individuals, families and businesses in the countries mentioned previously and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments.

Highlights:

  • The company aims to pay out 60% – 70% of its profits to shareholders in dividends
  • Its most recent dividend, which was paid on 31 March 2025, was €0.94 per share8

3. Space Co Ltd (TYO: 9622)
 

Industry: Space technology and satellite services

Dividend yield: 4.41%9

Market cap: JP¥33.58 billion10

Space Co Ltd operates in the satellite services and space technology sector, providing satellite communication services, ground station operations and space-related infrastructure solutions. The company serves both government and commercial clients in Japan and internationally. Its business model centres on recurring revenue from satellite services contracts and infrastructure operations.

It was established to capitalise on Japan's growing space industry and satellite services market, emerging as part of the country’s broader push to develop domestic space capabilities and reduce reliance on foreign satellite services.

Future initiatives likely include expanding satellite constellation services, developing next-generation space technologies and forming strategic partnerships with international space agencies and commercial space companies.

Highlights:

  • The company reported revenue of JP¥16.01 billion in Q2 of 202511
  • Its next dividend will be paid on 1 March 2026, with the ex-dividend date being 29 December 2025. This is expected to be around JP¥33 per share, but it isn’t guaranteed12
  • Its latest dividend was JP¥27 per share, paid on 10 September 202513

4. Shutterstock Inc. (NYSE: SSTK)


Industry:
Creative media

Dividend yield: 5.99%14

Market cap: $779.72 million15

Shutterstock was founded in 2003 and went public in 2012. The company revolutionised the stock photography industry by creating a subscription-based model for licensing creative content, moving away from traditional pay-per-image models to make creative assets more accessible to businesses and creators.

Shutterstock sells high-quality creative content for brands, digital media and marketing companies through its global creative platform. This hosts an extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations.

The business operates on subscription and on-demand licensing models, serving millions of customers worldwide.

In January 2025, Shutterstock announced it entered a merger agreement with Getty Images through a merger of equals. The combined company will retain the name Getty Images Holdings, Inc and trade on the NYSE under ticker GETY.

Highlights:

  • Compared to Q2 2024, its latest earnings results show healthy growth, with net income being $29.4 million, contrasted with $3.6 million16
  • Net income per diluted common share was $0.82 compared to $0.10
  • Its most recent dividend was paid on 18 September 2025 and was $0.33 per share.17 The company typically pays regular dividends quarterly

5. TC Energy Corporation (TSE: TRP)

Industry: Energy infrastructure

Dividend yield: 6.39%18

Market cap: C$74.86 billion19

Formerly TransCanada Corporation, TC Energy was founded in 1951 and has grown to become one of North America's largest pipeline operators. The company was created initially to transport natural gas across Canada and has expanded over decades to operate critical energy infrastructure across North America.

TC Energy operates approximately 93,300 kilometres of natural gas pipelines and 4,900 kilometres of oil pipelines across Canada, the United States and Mexico. Its operations are divided into three main segments: Canadian Natural Gas Pipelines, US Natural Gas Pipelines and Liquids Pipelines. Its business model is built on long-term contracts that provide stable, predictable cash flows with regulated returns on invested capital.

Highlights:

  • The company declared a quarterly dividend of C$0.85 per common share for the quarter ending September 202520
  • It proudly boasts 25 consecutive years of dividend growth21

How to trade dividend stocks with IG UAE

CFDs

  1. Open a CFD trading account with IG UAE
  2. Search for dividend stocks on the IG platform
  3. Decide whether to go long (buy) or short (sell)
  4. Choose your position size
  5. Set stop-loss and limit orders
  6. Place your trade and monitor it 

Stock trading

  1. Open a stock trading account with IG UAE
  2. Search for dividend stocks
  3. Choose the stock you want to buy
  4. Determine how many stocks you want to purchase
  5. Place your order
  6. Monitor your investment 

FAQs about dividend stocks

What are dividend yields? 

Dividend yields are expressed as a percentage and are the money a company pays its shareholders divided by its current stock price, then multiplied by 100 (to get a percentage).

Here’s an example:

Company A pays 2 dirhams per share, and its stock price is 50 dirhams. The dividend yield = (2/50) x 100 = 4%.

Are dividend stocks always a wise investment?

Dividend stocks are not necessarily a wise choice for stock trading. While they do tend to come from well-established companies, they can also be a sign of a company not growing, returning its profits to shareholders instead of reinvesting them.

Are high-yielding dividend stocks best?

High-yielding dividend stocks might seem like a good investment, but if a company is returning all of its profits to its shareholders, how much is it reinvesting in itself to drive growth? Stock traders need to conduct in-depth research to determine which dividend stocks to trade, rather than simply going with the highest-yielding ones.

Footnotes
 

  1. Trading View, September 2025
  2. Trading View, September 2025
  3. MPLX, August 2025
  4. TradingView, September 2025
  5. MPLX, August 2025
  6. TradingView, September 2025
  7. TradingView, September 2025
  8. Nordea, September 2025
  9. TradingView, September 2025
  10. TradingView, September 2025
  11. TradingView, September 2025
  12. TradingView, September 2025
  13. TradingView, September 2025
  14. TradingView, September 2025
  15. TradingView, September 2025
  16. Shutterstock, July 2025
  17. Dividend Max, September 2025
  18. TradingView, September 2025
  19. TradingView, September 2025
  20. TC Energy, July 2025
  21. TC Energy, September 2025

Important to know

This information has been prepared by IG Limited (DFSA reference No. F001780). It is intended for general information purposes only and does not take into account your personal objectives, financial situation or needs. It should not be regarded as investment advice or a recommendation. Trading CFDs carries a high level of risk and professional clients can lose more then they deposit. Please ensure you fully understand the risks involved and seek independent advice if necessary. All information is accurate at the time of publication and may be subject to change.