3 Dividend Stocks for December 2025
Two of these companies just raised their dividend rates.
David Harrell: Hi, I’m David Harrell, editor of the Morningstar Dividend Investor newsletter. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.
3 Dividend Stocks for December 2025
Omnicom was the second-largest traditional advertising holding company, and following its just-completed acquisition of the Interpublic Group, it is now the world’s largest marketing company. While Omnicom had kept its dividend rate unchanged since its first payout of 2021, it just announced a 14% increase for the quarterly dividend that will be paid on Jan. 9. Based on the new rate, the stock yields 4.4% and is trading at a 37% discount to its $115 Morningstar fair value estimate.
McCormick is the leader in the global spices and herbs market. The company is a dividend aristocrat, as its most recent dividend increase, declared last month, represents its 40th consecutive annual increase. The stock now yields 2.9% with 8.1% annualized dividend growth over the past five years. Morningstar analysts expect similar growth going forward and forecast high-single-digit annual dividend increases and anticipate that the payout ratio will hold near 60% over the forecast period. The stock is currently trading in line with its $67 Morningstar fair value estimate.
Truist Financial, formed by the 2019 combination of BB&T and SunTrust, is one of the three super regional banks in the US. The stock yields 4.5%, slightly above the 4.3% it has averaged over the past five years. Annualized dividend growth during that period is 4%, though the dividend has remained flat for the past 14 quarters. While the dividend payout ratio has risen above 50% in recent quarters, Morningstar equity analysts aren’t concerned about the durability of the firm’s dividend, and they expect the payout ratio to trend down below 50% in the future as Truist increases its earnings. They also expect the dividend rate to remain unchanged through 2026, with modest dividend growth beginning in 2027. Truist is trading in line with Morningstar’s $46.10 fair value estimate.
I’m David Harrell from Morningstar Dividend Investor. Thanks for watching, and we’ll see you next month.
Watch 3 Dividend Stocks for November 2025 for more from David Harrell.
The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.
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