Top 5 dividend stocks to watch in 2025

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

Let’s look at five global dividend stocks you’ll want to keep an eye on in 2025.

All figures are accurate as of 23 December 2025.

Overview of the dividend stocks in this article

The stocks mentioned in this article are available to CFD and stock trade with IG UAE, except for Lion Rock Group Limited.

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

1. Lion Rock Group Limited (HKEX: 1127)

Industry: Commercial services

Dividend yield: 7.86%¹

Market cap: HK$1.04 billion²

Lion Rock Group Limited is a Hong Kong–listed company that operates in the printing and publishing services industry. Its core business involves producing books and printed materials for customers around the world, including major publishers and educational organisations in markets such as the US and Europe. While printing is not a high-growth industry, Lion Rock focuses on specialised and higher-quality printing work, which has helped it remain profitable despite long-term digital disruption.

From a dividend perspective, Lion Rock stands out due to its relatively high dividend yield, which has typically sat in the 7%–8% range in recent periods. This is significantly higher than the average yield offered by many Asian stocks.

The company has a track record of returning cash to shareholders, using free cash flow generated from its operations to support dividend payments.

It’s important to note that Lion Rock’s dividend payments haven’t followed a perfectly stable upward path.

Highlights:

• Earnings can fluctuate depending on global publishing demand, pricing pressure and input costs such as paper and labour. As a result, dividends may rise or fall from year to year
• Lion Rock may suit stock traders looking for high income potential from a non-traditional sector, with the understanding that dividends are more sensitive to business conditions than those of larger, more defensive companies
• The company’s stock price has increased by 11.11% YTD³

2. Franklin Resources, Inc (NYSE: BEN)

Industry: Finance

Dividend yield: 5.37%⁴

Market cap: US$12.81 billion⁵

Franklin Resources, commonly known as Franklin Templeton, is a US-based global asset management company. It manages money on behalf of individuals, institutions and governments through mutual funds, exchange-traded funds (ETFs) and other investment strategies across stocks, fixed income and multi-asset products.

Franklin Resources has a long history of paying dividends and is often considered an income-focused stock within the US financial sector. Its dividend yield has recently been in the mid-5% range, which is higher than that of many large US companies. The company has also raised its dividend multiple times over the years, reflecting a stockholder-friendly capital return approach.

The company’s earnings are largely driven by assets under management (AUM) – in simple terms, the total value of money it manages for clients. When markets rise or when clients invest more funds, revenues tend to increase. When markets fall or investors withdraw money, earnings can come under pressure, which may affect dividend coverage.

Highlights:

• Franklin benefits from a diversified product offering and a strong global brand, which helps stabilise revenues over time. However, asset management is a competitive industry, and fee pressure remains an ongoing challenge
• Its stock price has risen by 20.54% YTD⁶

3. WAM Capital Limited (ASX: WAM)

Industry: Miscellaneous

Dividend yield: 10.95%⁷

Market cap: A$2.01 billion⁸

WAM Capital is an Australian listed investment company (LIC) managed by Wilson Asset Management. Rather than operating a traditional business, WAM invests in a diversified portfolio of Australian small and mid-cap companies, aiming to deliver both long-term capital growth and regular income.

WAM is particularly well known for its high dividend yield, which has been around 10% in recent years. Dividends are funded through a combination of realised investment gains and income received from the companies in its portfolio.

One advantage of WAM’s structure is flexibility. The investment manager can increase cash holdings when markets appear expensive or deploy capital when opportunities arise. This active approach allows WAM to adjust its portfolio based on changing market conditions.

The portfolio is diversified across sectors such as financials, industrials, resources and technology, reducing reliance on any single company or industry

Highlights:

• Because WAM focuses on smaller companies, returns can be more volatile than those of large-cap equity funds
• While WAM’s dividend history is attractive, it’s important to understand that dividends depend on investment performance. Market downturns or weaker stock selection could reduce future payouts
• The company’s stock price has increased by 13.38% YTD⁹

4. Zurich Insurance Group Limited (SIX: ZURN)

Industry: Finance

Dividend yield: 4.68%¹⁰

Market cap: CHF84.81 billion¹¹

Zurich Insurance Group is one of the world’s largest insurance companies, headquartered in Switzerland. It provides a broad range of insurance products, including life insurance, property and casualty insurance, and corporate risk solutions. Zurich operates in more than 200 countries, giving it a highly diversified global footprint.

Insurance companies are often attractive to dividend stock traders because they generate relatively predictable cash flows from premiums and long-term investment portfolios.

Zurich has built a reputation for disciplined underwriting and strong risk management, which has supported stable earnings over time.

The company typically offers a dividend yield of around 4%–5%, placing it among the higher-yielding global insurers. It follows a clear dividend policy, aiming to return a significant portion of profits to stockholders while maintaining a strong capital position.

Highlights:

• Unlike many US stocks that pay dividends quarterly, Zurich generally pays an annual dividend, which may suit stock traders focused on long-term income rather than frequent payments
• Insurance profits can be affected by factors such as natural disasters, claims trends and interest rate movements. However, Zurich’s global diversification helps reduce reliance on any single market or event
• Its stock price has jumped 11.05% YTD¹²

5. Industrial and Commercial Bank of China Limited (SSE: 601398)

Industry: Finance

Dividend yield: 3.88%¹³

Market cap: CN¥2.61 trillion¹⁴

Industrial and Commercial Bank of China (ICBC) is the largest bank in the world by assets and one of China’s most important financial institutions. It provides a wide range of services, including personal banking, corporate lending, wealth management and international trade finance.

ICBC plays a central role in China’s financial system and is majority owned by state entities. This government backing has historically supported stable operations and regular dividend payments. The bank typically offers a dividend yield of around 4%, which is higher than many large Western banks.

Dividends are usually paid twice a year, in line with common practice among Chinese banks.

Dividend levels are influenced by profitability, regulatory requirements and broader economic conditions.

ICBC’s size and extensive customer base help generate consistent earnings, but performance is closely linked to China’s economic growth and financial policy. Factors such as property market conditions, credit quality and government regulation can all affect profitability and dividends.

Highlights:

• For stock traders, ICBC offers exposure to China’s banking sector alongside income generation. However, it also carries emerging-market and geopolitical risks, which can influence stock price performance and sentiment
• The company’s stock price has increased by 14.62% YTD¹⁵

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 and collect any dividends

FAQs about dividend stocks

Footnotes

1. TradingView, December 2025
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