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During Q4 2024, US companies decreased common dividends 18.8% from the year-ago quarter. However, between the two periods, dividend decreases were also down, by an even greater 35.7%. Likewise, the net dividend rate increased from $36.5 billion to $53.3 billion, according to S&P Global.

In other words, although payouts were lower year-over-year, fewer firms were cutting dividends outright, signaling that companies were approaching a more stable baseline for dividend policies. As the Fed enters a rate-cutting regime, the relative attractiveness of equities as income-generating assets could improve, reinforcing corporate incentives to sustain or even raise dividends.

Let’s take a look at the top 3 dividend stocks to consider before the year-end.

Lockheed Martin Corp. (NYSE: LMT) – 2.61% dividend yield

Over the last few years, it has been revealed in unmistakable terms that the entire U.S. political class is beholden to Israeli interests. This is good for investors seeking strong balance sheets, reliable cash flows, and a defensive market position that stands out, exemplified by Lockheed Martin.

Most recently, Israeli Prime Minister Benjamin Netanyahu moved an important goal post in relation to Iran’s nuclear program. Specifically, he noted on Fox News there was advanced knowledge that “…we wouldn’t get these 450 kilograms of enriched uranium,” referencing the last attack on Iran.

This is a signal that the mission to attack Iran is far from complete – a trajectory consistent with the Brookings Institution paper titled Which Path to Persia? And given the highly unusual Israel-US relationship, this means steady forward momentum for the defense sector’s procurement cycle. Lockheed Martin, as the nation’s premier defense contractor, sits at the heart of that cycle.

In addition to servicing Israel, the company is the main beneficiary from President Trump’s renewed commitment to ship weapons to Ukraine via NATO allies. Just as the EU is dependent on the US tech stack, it is even more dependent on high-end U.S. arms manufacturing such as LMT’s F-35 fighter jets and advanced missile defense systems.

As of Q2 earnings, LMT reported a total backlog of $166.5 billion, paying out $1.65 billion in dividends to shareholders at a quarterly dividend of $3.29 per share. Following multiple steep price corrections during the year, LMT stock gained nearly 12% in value over the last 30 days.

Against the current price of $513.17, Wall Street’s average LMT price target is $475.47, with the bottom outlook of $398 and a ceiling price target of $565 per share. On October 21, LMT is scheduled to announce its Q3 earnings.

Pfizer Inc. (NYSE: PFE) – 6.29% dividend yield

Following the controversial rollout of mRNA injections, there was some concern that the pharma giant would receive punitive fallout. However, there were numerous signals that this scenario is unlikely to materialize.

After Tuesday, when President Trump announced a deal with Pfizer to lower drug prices through the direct-to-consumer TrumpRx platform, that possibility is now firmly in the rearview mirror. Moreover, the company committed a record $70 billion to biotech research in the next few years, on top of $83 billion for the period between 2018 and 2024.

On the highly lucrative obesity front, Pfizer is also looking to gain market share against Novo Nordisk and Eli Lilly. This was made clear after the acquisition of weight loss company Metsera, estimated at up to $7.3 billion value. At the end of September, Metsera released positive Phase 2b results for its take on Glucagon-Like Peptide 1 (GLP-1) treatment dubbed MET-097i.

“These excellent results confirm the potential of MET-097i as a first- and best-in-class ultra-long acting nutrient-stimulated hormone analog, delivering competitive efficacy with category-leading scalability, tolerability, and convenience.”

Steve Marso, Chief Medical Officer of Metsera

Although PFE stock gained nearly 10% in value over the last 30 days, this is likely the beginning of Pfizer’s return to previous highs. In late 2021, Pfizer stock reached its all-time high of $50.75. Against the 52-week peak of $30.43, PFE stock is now priced at $27.02 per share.

According to WSJ’s forecasting data, the average PFE price target is aligned with this price level, at $28.79 per share. The bottom outlook for Pfizer stock is $24, while the top is $35. The company pays shareholders a quarterly dividend of $0.43 per share.

Schlumberger Ltd. (NYSE: SLB) – 3.32% dividend yield

For all exploration, drilling, production and reservoir management needs, oil companies turn to Schlumberger. The company generates steady cash flows from long-term contracts that cover the entire oil and gas lifecycle. Case in point, oil giant Shell gave SLB a three-year contract across multiple regions in early 2025.

President Trump’s administration is especially favorable towards the oil industry, having issued multiple executive orders to support the industry. Although the global tariff alignment triggered recessionary concerns and uncertainty, this is likely a temporary hurdle.

In Q2, the company increased its earnings by 27% over the prior quarter, to $1.01 billion, though it posted a year-over-year decline of 9%. Nonetheless, considering the long-term perspective, Schlumberger’s board approved a quarterly cash dividend of $0.285 per share. For the first six months in 2025, SLB churned $725 million free cash flow from just $554 million in the same period last year, leaving the quarter with $3.7 billion in cash reserves.

At the current price of $34.69 per share, the overwhelming majority of analysts recommend buying SLB stock with zero bearish calls. The average SLB price target is now $46.37, with a bottom outlook of $36 and the ceiling price target of $82 per share.

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