All selections feature strong dividend safety ratings, reasonable payout ratios, and proven track records of returning capital to shareholders.
getty
Following a strong quarter of market appreciation, investors may want to proceed with more caution as they head into August. With valuations elevated and the potential for a market pullback on the horizon, this month’s top stock picks emphasize total return—a combination of dividend income and capital growth—rather than yield alone.
The stocks featured in this list are designed to help investors weather near-term volatility while still participating in long-term upside. Each company combines a track record of stable dividend payouts with strong fundamentals and forward growth potential, making them well-positioned for both income and appreciation in a more uncertain market environment.
How These Top Stock Picks Were Chosen
These stock picks were selected through a disciplined process focused on identifying companies that offer sustainable total return. Rather than chasing the highest yields, this list emphasizes businesses with strong dividend safety ratings (as per Dividend.com)—those most likely to maintain and grow payouts even during periods of market stress. Each company demonstrates solid cash flow generation and maintains a healthy payout ratio, providing room for continued dividend growth. Just as important, I sought out firms with meaningful upside potential, supported by credible growth catalysts and competitive positioning in their sectors.
Valuation played a critical role as well; in today’s environment, avoiding overpaying for quality is key to preserving capital. This list also prioritized management teams with proven capital allocation strategies, the kind that consistently reward shareholders over time. The result is a diverse group of stocks across real estate, energy, financials and healthcare—each offering a compelling mix of income and growth potential, and collectively forming a more resilient approach to investing as markets become increasingly vulnerable to correction.
5 Top Stocks To Buy Now In August 2025
MORE FOR YOU
1. EastGroup Properties (EGP)
Business Overview
- Current Share Price: $166.22
- Sector: Real Estate Investment Trust (REIT)
- Market Cap: $8.81 billion
- Dividend Yield: 3.37%
- Forward Dividend: $5.60
- Valuation: 17.2x Forward P/FFO
- Dividend Growth Streak: 4 years
EastGroup Properties operates as a self-administered equity real estate investment trust specializing in the development, acquisition and operation of industrial properties in major Sunbelt markets. The company focuses primarily on business distribution facilities, serving the growing e-commerce and logistics sectors. With a concentrated geographic footprint across Florida, Texas, Arizona, California and North Carolina, EastGroup benefits from favorable demographic trends and robust economic growth in these regions.
The REIT’s strategy centers on developing high-quality, functional distribution facilities that meet the evolving needs of modern supply chain operations. Their properties typically feature strategic locations near major transportation hubs, airports and population centers, making them attractive to tenants requiring efficient last-mile delivery capabilities.
Why EGP Stock Is A Top Choice
EastGroup Properties presents an excellent opportunity for dividend investors seeking exposure to the long-term growth trajectory of the industrial real estate sector. The company’s focus on Sunbelt markets positions it to capitalize on continued population migration and business relocations to these economically dynamic regions. Despite a challenging 2024 that saw the stock decline 8.76% over the past year, the underlying fundamentals remain strong with a solid “A” dividend safety rating.
The REIT’s 7.18% year-to-date total return demonstrates improving investor sentiment as market conditions stabilize. EastGroup’s conservative approach to development and acquisition, combined with its expertise in industrial properties, provides a stable foundation for future dividend growth. The company’s four-year dividend growth streak, while relatively modest, reflects management’s commitment to sustainable payout increases aligned with cash flow generation.
2. Energy Transfer LP (ET)
Business Overview
- Current Share Price: $17.72
- Sector: Energy (Midstream)
- Market Cap: $59.5 billion
- Dividend Yield: 7.39%
- Forward Dividend: $1.31
- Valuation: 5.2x Forward P/FFO
- Dividend Growth Streak: 4 years
- Beta: 0.8
Energy Transfer operates one of the largest and most diversified midstream energy infrastructures in North America. The partnership owns and operates approximately 120,000 miles of pipelines and related facilities, transporting natural gas, crude oil, natural gas liquids and refined products across key production basins and demand centers. The company’s strategic asset base includes gathering systems, processing plants, fractionation facilities and export terminals.
The partnership’s extensive pipeline network serves as critical infrastructure connecting major shale production areas with refineries, petrochemical facilities and export markets. Energy Transfer’s fee-based business model provides relatively stable cash flows that are less sensitive to commodity price fluctuations compared to upstream energy companies. Their diversified operations span multiple energy segments, creating natural hedges against market volatility.
Why ET Stock Is A Top Choice
Energy Transfer offers dividend investors an exceptional 7.39% yield backed by essential energy infrastructure assets that generate predictable cash flows. The partnership’s attractive valuation at just 5.2x forward P/FFO suggests the market may be undervaluing this critical midstream operator. Despite energy sector headwinds reflected in the -8.38% year-to-date return, Energy Transfer’s underlying business continues to generate strong distributable cash flow.
The company’s “A” dividend safety rating and four-year streak of distribution growth demonstrate management’s commitment to returning capital to unitholders. Energy Transfer’s strategic positioning in key energy corridors, combined with ongoing infrastructure investments and potential export growth opportunities, supports the long-term sustainability of its distributions. The partnership’s conservative payout ratio of 83.26% provides adequate coverage while leaving room for future growth investments and potential distribution increases.
3. Wells Fargo & Company (WFC)
Business Overview
- Current Share Price: $83.87
- Sector: Financials (Banking)
- Market Cap: $268 billion
- Dividend Yield: 1.91%
- Forward Dividend: $1.60
- Valuation: 12.5x Forward P/E
- Dividend Growth Streak: 4 years
- Beta: 1.2
Wells Fargo is one of America’s largest banking institutions, offering comprehensive financial services to consumers, businesses and institutions nationwide. The bank operates through four primary segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo serves approximately 70 million customers through its extensive branch network and digital platforms.
The bank has undergone significant operational improvements and regulatory remediation efforts in recent years, streamlining operations and strengthening risk management practices. Wells Fargo’s diversified revenue streams include net interest income from lending activities, fee income from wealth management and investment banking services, and various consumer banking products. The institution maintains strong capital ratios and has demonstrated consistent improvements in profitability.
Why WFC Stock Is A Top Choice
Wells Fargo presents compelling value for dividend investors seeking exposure to the financial sector’s recovery story. The bank’s impressive 18.52% year-to-date total return and 41.37% one-year return reflect improving investor confidence in management’s operational turnaround efforts. The company’s conservative payout ratio of 23.85% provides substantial dividend coverage and flexibility for future increases.
Trading at a reasonable 12.5x forward P/E ratio, Wells Fargo offers an attractive valuation compared to historical norms and peer institutions. The bank’s “A” dividend safety rating and four-year streak of dividend growth signal management’s confidence in sustainable capital returns. As interest rate environments stabilize and credit conditions normalize, Wells Fargo is well-positioned to benefit from improved net interest margins and loan growth, which will support continued dividend progression.
4. Abbott Laboratories (ABT)
Business Overview
- Current Share Price: $125.64
- Sector: Healthcare
- Market Cap: $219 billion
- Dividend Yield: 1.88%
- Forward Dividend: $2.36
- Valuation: 22.2x Forward P/E
- Dividend Growth Streak: 54 years
- Beta: 0.7
Abbott Laboratories operates as a diversified healthcare company developing, manufacturing and marketing pharmaceuticals, medical devices, diagnostics and nutritional products globally. The company’s four primary business segments include Established Pharmaceutical Products, Medical Devices, Diagnostics and Nutrition. Abbott’s innovative product portfolio serves patients across multiple therapeutic areas and life stages, from infant nutrition to advanced medical technologies.
The company has consistently demonstrated remarkable innovation in its products and market leadership across its diverse healthcare segments. Abbott’s medical device portfolio includes leading products in cardiovascular care, diabetes care and neuromodulation, while its diagnostics division provides essential testing solutions for hospitals and laboratories worldwide. The nutritional products segment offers specialized formulas and supplements tailored to various consumer needs.
Why ABT Stock Is A Top Choice
Abbott Laboratories represents the gold standard for dividend reliability, boasting an extraordinary 54-year dividend growth streak that makes it one of the most dependable income generators in the healthcare sector. The company’s “A” dividend safety rating and conservative 41.57% payout ratio provide confidence in the continued sustainability of its dividend and its growth potential. Abbott’s defensive healthcare business model offers stability during economic uncertainty.
The stock’s strong performance with 12.86% year-to-date returns and 19.58% one-year gains reflects investor appreciation for Abbott’s consistent execution and innovation capabilities. Despite trading at a premium 22.2x forward P/E ratio, Abbott’s diversified revenue streams, global market presence, and pipeline of innovative products justify the valuation. The company’s low beta of 0.7 provides portfolio stability while maintaining exposure to long-term growth trends in the healthcare sector.
5. Popular, Inc. (BPOP)
Business Overview
- Current Share Price: $114.37
- Sector: Financials (Regional Banking)
- Market Cap: $7.89 billion
- Dividend Yield: 2.45%
- Forward Dividend: $2.80
- Valuation: 9.4x Forward P/E
- Dividend Growth Streak: 6 years
- Beta: 0.6
Popular, Inc. operates as the holding company for Banco Popular de Puerto Rico, providing comprehensive banking and financial services primarily in Puerto Rico and the United States. The bank serves retail, commercial and institutional customers through a range of traditional banking products, including deposits, loans, mortgages and investment services. Popular maintains a significant market share in Puerto Rico while expanding its presence in mainland U.S. markets.
The bank has successfully navigated challenging economic conditions in Puerto Rico while building a resilient business model focused on relationship banking and credit quality. Popular’s operations benefit from its deep local market knowledge and established customer relationships, providing competitive advantages in serving the unique needs of Puerto Rican businesses and consumers. The institution maintains strong capital ratios and conservative risk management practices.
Why BPOP Stock Is A Top Choice
Popular, Inc. offers dividend investors an attractive combination of yield, value and growth potential with its 2.45% dividend yield and exceptional 24.69% year-to-date total return. The bank’s impressive six-year dividend growth streak and “A” safety rating demonstrate management’s commitment to consistent capital returns despite operating in a challenging geographic market. The conservative 22.73% payout ratio provides substantial dividend coverage.
Trading at an attractive 9.4x forward P/E ratio, Popular represents compelling value compared to mainland banking peers. The bank’s low beta of 0.6 provides defensive characteristics, while its strong five-year CAGR of 17.21% demonstrates the institution’s ability to generate consistent long-term returns. As Puerto Rico’s economy continues to stabilize and Popular expands its mainland operations, the bank is well-positioned for continued dividend growth and capital appreciation.
Bottom Line
These five dividend stocks offer investors a balanced portfolio of income-generating opportunities across diverse sectors, each providing unique advantages for August 2025. From EastGroup Properties’ industrial real estate exposure to Energy Transfer’s high-yield infrastructure play, Wells Fargo’s financial sector recovery story, Abbott’s status as a healthcare dividend aristocrat, and Popular’s undervalued regional banking opportunity, this selection offers both current income and long-term growth potential. All selections feature strong dividend safety ratings, reasonable payout ratios, and proven track records of returning capital to shareholders, making them ideal defensive holdings during periods of high market optimism.