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Key Takeaways

• Johnson & Johnson has taken the lead with a 3.0% yield and 62 consecutive years of dividend increases. The stock has been trading at around $201, with strong analyst support targeting the $227 level.
• Coca-Cola offers a 2.9% yield with 63 years of dividend growth, backed by its AI strategy and emerging market expansion. Analysts have aimed at $82.
• Verizon provides the highest yield, at 6.6%, with 18 years of raises. The stock has been seen trading at $41, with analysts targeting the $48.50 level, as Verizon's 5G rollout has continued.
• Merck has delivered a 3.2% yield after a 41% six-month surge to $100, driven by Keytruda’s $25 billion in sales and its strong HIV pipeline.
• Realty Income and Chevron round out the list with 5.0% monthly dividends and 4.2% yield, respectively. These two may offer diversification in real estate and energy.

As the first week of December 2025 closes, investors are looking at dividend-paying stocks amid the market's reaction to Federal Reserve rate signals and global tensions. These six companies across healthcare, consumer staples, telecom, energy, and real estate offer yields averaging 4% with long histories of dividend growth.

The selections represent decades of consistent payments. Each company operates in different sectors to provide portfolio diversification.

Johnson & Johnson (JNJ): Healthcare Leader

Johnson & Johnson yields 3.0% with 62 consecutive years of dividend increases. The stock has recently been trading at around $201, up 14% year-to-date.
 

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The company’s oncology products, including Keytruda-related treatments, have driven its current growth. Its medical device division has added revenue stability.

25 analysts have rated the stock a “Buy” with an average price target of $198. Guggenheim analyst Vamil Divan recently raised his target to $227. Barclays has maintained an “Equal-Weight” rating at $197. The firm projects earnings per share of $10.86 in 2025.

Coca-Cola (KO): Global Beverage Giant

Coca-Cola delivers a 2.9% yield backed by 63 years of dividend growth. The stock has been trading at around $70 with gains seen from emerging markets.
 

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Image Source: KnockoutStocks

13 analysts have given the stock a “Strong Buy” rating, with the average price target of $78, representing a 7% potential increase.

UBS has maintained an $82 target following discussions about the company’s AI strategy. Seeking Alpha analysts noted the potential for cash recovery and dividend expansion. Bank of America set an $80 price target. The firm pointed to a 25% increase in net income.

Verizon (VZ): Telecom Income Provider

Verizon offers the highest yield among the six at 6.6%. The stock has recently been trading at around $41 with 18 years of dividend raises.
 

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Image Source: KnockoutStocks

The company has continued the rollout of its 5G network expansion. 12 analysts have rated it a “Buy”, with a $48.50 average target representing 18% upside. Scotiabank maintained a “Sector Perform” rating at $50.50. The firm cited subscriber additions as a positive factor.

BNP Paribas Exane noted limited near-term growth drivers. Mizuho maintained a “Hold” rating at $45 while highlighting the company's free cash flow coverage.

Merck (MRK): Pharmaceutical Innovator

Merck provides a 3.2% yield, as Keytruda has generated over $25 billion in annual sales. The stock was seen trading near $100 after climbing 41% over six months.

13 analysts have rated it a “Buy” with an average price target of $107. J.P. Morgan set a $120 price target based on the company's HIV pipeline developments. Goldman Sachs also raised its target to $120. The upgrade reflects improved valuation metrics.

Analysts also highlighted the company’s revenue mix and profit margins. Patent expirations may present future challenges offset by research investments.

Realty Income (O): Monthly Dividend REIT

Realty Income yields 5.0% with monthly dividend payments. The stock has recently been trading at around $59 with a portfolio of 15,500 properties.

13 analysts gave it a “Hold” rating with a $62 target. Barclays set a $64 price target, noting the $6 billion amount in planned 2025 investments. Wall Street Zen issued a “Sell” rating, citing high valuation. Seeking Alpha pointed to the company’s A-rated balance sheet supporting dividend payments.

The real estate investment trust has focused on retail properties with long-term leases. Its portfolio design has aimed to withstand e-commerce pressure.

Chevron (CVX): Energy Producer

Chevron yields 4.2% at approximately $150 per share. The company operates major assets in the Permian Basin.

17 analysts have rated it a “Buy” with an average price target of $172. HSBC set a target of $169, highlighting the company's share buyback programs. Wells Fargo maintained a target of $196 based on earnings beats. Morgan Stanley maintained an “Overweight” rating at $177.

The company has generated free cash flow to support dividend payments. It should be noted that oil price movements often create volatility in the stock price.

Summary

Johnson & Johnson leads the pack for defensive prowess, but all of the stocks discussed blend yield and growth for a fortified 2026 portfolio. With positive analyst ratings dominating the list, it may be the right time to reinvest in dividends to help weather any financial storms.

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