Dividend stocks can be the unsung heroes of your portfolio. When interest rates are low, dividend yields can rival bond and cash yields, with added appreciation potential on top. When interest rates are high, dividend stocks can deliver resilience to offset extra volatility in your growth positions.
To add to your dividend portfolio in the second half of 2025, opt for stocks offering good yields and quality indicators, like low debt and rising cash flow. See five qualified options below.
5 Top Dividend Stocks To Buy Now In October 2025
These top five dividend stocks for October were identified using these screening criteria:
- Dividend yield between 3% and 5%. A yield over 3% is more than double the yield of the S&P 500. The 5% yield cap limits the inclusion of overly risky, unsustainable dividends.
- Debt-to-equity ratio or DTE of 1 or less. DTE measures a company’s reliance on debt to fund its operations. Lower is better.
- Payout ratio below 70%. The payout ratio is the percentage of earnings used to pay dividends. A lower payout ratio implies a more sustainable dividend.
- Dividend growth in the last three years. Companies increase their dividends when business is growing, and the outlook is positive.
- Positive free cash flow or FCF growth in the last three years. Rising cash flow supports higher dividends.
- Buy or strong buy ratings from analysts. A consensus of buy or higher ratings indicates a positive outlook for the stock.
The table below includes five dividend stocks meeting these parameters, ordered by market capitalization. You can also find more dividend payers in Best Stocks To Buy For 2025.
Metrics on the companies below are sourced from company reports and stockanalysis.com.
1. Sanofi (SNY)
Sanofi by the numbers:
- Stock price: $50.90
- Dividend yield: 3.1%
- Payout ratio: 18.5%
- Three-year FCF growth: 5.5%
- DTE: 0.32
Sanofi Business Overview
Sanofi is a French bio-pharmaceutical company that develops treatments in five practice areas: immunology, neurology, oncology, rare diseases and vaccines. The immunology drug Dupixent is Sanofi’s best-selling therapy.
The company also has 30 projects in the later stages of clinical testing or that have been submitted for regulatory approval.
Why SNY Is A Top Choice
Sanofi pays an annual dividend of $1.60 per share.
Sanofi has produced strong revenue growth in recent quarters. Dupixent is the primary contributor, but several of other therapies have delivered double-digit sales gains.
Sanofi also has momentum in its drug pipeline, which bodes well for the future. The company received three regulatory approvals in the July quarter, and two drugs received fast track designations from the FDA in September. The FDA only expedites therapies that show potential to fill unmet needs for serious or life-threatening conditions. These traits also imply good demand and sales potential.
Know that the Paris-based company may be subject to current and future U.S. import taxes. In July, Sanofi’s leadership team said it expects no material impact from new U.S. tariffs in 2025. Subsequently, the Trump administration announced a new 100% tariff on imported pharmaceuticals. This levy is not yet in effect.
In the second quarter, Sanofi raised its annual sales guidance to high single-digit growth. The previous outlook was mid-to-high single-digit growth.
2. Schlumberger Limited (SLB)
Schlumberger Limited by the numbers:
- Stock price: $34.26
- Dividend yield: 3.3%
- Payout ratio: 38.6%
- Three-year FCF growth: 40.8%
- DTE: 0.64
Schlumberger Limited Business Overview
Schlumberger Limited provides technology and services to the energy industry. The company’s solutions help energy companies find and access oil and gas underground and improve the efficiency of drilling operations.
Why SLB Is A Top Choice
Schlumberger Limited pays an annual dividend of $1.14 per share.
SLB generates more revenue than any other oilfield services company in the world. Schlumberger has a global footprint and strong reputation, complemented by a healthy balance sheet — with manageable debt and more than $3 billion in cash as of June 30. SLB also has a long-running partnership with Nvidia to develop AI models that cater to the energy industry. This could be an increasingly important differentiator going forward.
These advantages have helped Schlumberger weather a period of weak industry demand. In the second quarter, the company reported a 6% revenue decline and 13% EPS decline compared to the prior-year period. CEO Olivier Le Peuch cited geopolitical turbulence and softer upstream spending.
3. Fidelity National Financial (FNF)
Fidelity National Financial by the numbers:
- Stock price: $59.97
- Dividend yield: 3.3%
- Payout ratio: 50.9%
- Three-year FCF growth: 19.7%
- DTE: 0.54
Fidelity National Financial Business Overview
Fidelity National Financial provides title insurance and settlement services on real estate and mortgage transactions. The company also offers complementary services including home warranties, relocations and warranty services, as well as retirement annuities and life insurance.
Why FNF Is A Top Choice
Fidelity National Financial pays an annual dividend of $2 per share.
FNF has produced solid financial results and maintained its healthy balance sheet, despite a slow housing market. The company benefits from strong margins and cash flow, a market-leading position in title insurance and an effective capital allocation strategy.
FCF margins have run about 50% since 2023. Fidelity National uses its cash for dividends, share buybacks and strategic investments in security, technology and recruiting to support long-term growth.
In the second quarter of 2025, FNF spent $159 million on share repurchases and paid cumulative dividends of $135 million.
4. ZTO Express (Cayman) (ZTO)
ZTO Express (Cayman) by the numbers:
- Stock price: $18.99
- Dividend yield: 3.2%
- Payout ratio: 55.9%
- Three-year FCF growth: 34.2%
- DTE: 0.29
ZTO Express (Cayman) Business Overview
ZTO is one of the largest express delivery service providers in China. The company has built a scalable network where it manages sorting and line-haul transportation but outsources first- and last-mile pickup and delivery. ZTO has leveraged China’s expanding ecommerce industry by becoming a trusted delivery partner for Alibaba, PDD and JD.com — leading Chinese ecommerce sites.
Why ZTO Is A Top Choice
ZTO Express pays an annual dividend of $0.60 per share.
ZTO’s scalable business model and prominent positioning within a fast-growing industry are strengths. Recent margin pressures have caused some concern among analysts, as lower-priced competitors have gained traction. However, ZTO is sticking to its high-quality positioning and investing in AI-driven cost efficiency initiatives. The company expects to grow faster than the industry average in 2025, despite “economic, competitive, and policy” pressures affecting China’s ecommerce delivery market.
In the second quarter of 2025, ZTO reported 10.8% sales growth and 16.5% parcel volume growth compared to the prior-year quarter. Income from operations declined 23%.
5. Interparfums (IPAR)
Interparfums by the numbers:
- Stock price: $94.50
- Dividend yield: 3.4%
- Payout ratio: 62.8%
- Three-year FCF growth: 395.4%
- DTE: 0.26
Interparfums Business Overview
Interparfums makes and sells a portfolio of branded fragrances in the. U.S. and Europe. The company sells direct-to-consumers online and wholesales to department stores and other retailers. Interparfums achieves growth through acquisitions and licensing agreements.
Why IPAR Is A Top Choice
Interparfums pays an annual dividend of $3.20 per share.
Between 2015 and 2024, Interparfums steadily increased its revenue from $469 million to $1.45 billion, disrupted only by the Covid-19 pandemic. The track record indicates a reliable value-creation process that involves:
- Partnering with the right brands
- Developing appealing fragrances
- Packaging and marketing products effectively
- Leveraging a global distribution network
In 2024, IPAR valued the global fragrance market at $57 billion and projected a compound annual growth rate of 6% between 2025 and 2034. The company’s 2024 sales were $4.5 billion, which leaves plenty of runway for upside.
IPAR’s 2025 outlook includes 4% increases in net sales and diluted EPS, which would deliver record performance on both metrics.
Bottom Line
Quality dividend stocks with 3% or higher yields provide income and resiliency, which can be welcome characteristics in any economic environment. Look for companies with a healthy balance sheet, reliable business model, and stated commitment to shareholder returns.
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