There’s been a pretty meaningful shake-up in the top 100 dividend stocks between late May and mid June. Roughly a third of the list turned over, with 34 new names jumping in and just as many falling off.
When you see moves like DTE Energy rocketing from the middle of the pack all the way to the top spot, it’s worth paying attention. That kind of leap doesn’t happen without a strong combination of rising fundamentals and favorable market sentiment. Meanwhile, a name like BlackRock, which held the number one spot just a few weeks earlier, slid all the way down to 24. And then there’s JPMorgan, once ranked 11th, completely dropping out of the top 100.
This level of churn is pointing to a rotation in what sectors are offering the best income opportunities. We’re seeing a transition from steady blue-chip consistency to more dynamic, possibly undervalued plays gaining favor. And for dividend-focused investors, that kind of pivot deserves a closer look.
New Faces Climb the Rankings
June’s dividend rankings saw a meaningful shift, and the new entries paint a picture of where investor sentiment is drifting. Financials clearly took center stage. Several Canadian powerhouses muscled their way into top spots Toronto-Dominion landed at #6, while Royal Bank of Canada followed closely at #9. Both are backed by sturdy balance sheets and dividend yields hovering near the 4% mark. That’s not a fluke. U.S. regional banks also came in strong. From smaller names like Calvin B. Taylor Bankshares and TowneBank to larger players like Synovus and PNC, it’s clear that income investors are increasingly drawn to financials offering generous yields and steady fundamentals.
Insurance companies weren’t left out either. MetLife and Evercore found their way into the mix, further underscoring how dividend strength within the financial sector is capturing attention. Energy and utility names also mounted a comeback, with the likes of Duke Energy, UGI Corp., Alliant Energy, and Cheniere Energy Partners stepping up. These sectors are classic dividend staples, and the market appears to be rotating back to their reliability as rates remain elevated and macro uncertainty lingers.
Familiar Names Lose Their Footing
On the flip side, the turnover wasn’t kind to some once-reliable dividend names. JPMorgan Chase, which had been sitting comfortably at #11 in May, vanished from the top 100 altogether. The same fate hit Discover Financial, Garmin, and Motorola Solutions. These are not fringe companies—they were staples, and their fall from the rankings suggests a recalibration in what income-focused investors now value.
Even more surprising was the exit of long-respected dividend payers like Automatic Data Processing and Travelers. Utility mainstays like American Water Works and Pinnacle West also dropped out. These are names investors have historically counted on for consistency. That they’re no longer making the cut tells us something: some of the sectors we’ve leaned on for reliable income are starting to look comparatively less attractive.
A Changing Dividend Landscape
What stands out most about the latest reshuffle is the near-total disappearance of tech and electronics-oriented companies. Garmin and Motorola—both with tech leanings – were nudged aside in favor of more yield-heavy financials and utilities. This isn’t surprising, though. High-dividend lists have rarely been tech-heavy. Many companies in that space either don’t pay dividends or offer relatively modest yields, choosing instead to reinvest in growth.
This month’s changes reflect that classic pattern, but with added clarity. In a market where consistency and yield matter more than ever, sectors like financials and utilities are regaining their edge. Meanwhile, former standouts from more cyclical or lower-yield sectors are feeling the pressure. The rankings are telling us something important – not just about individual companies, but about where investors are finding value and stability in today’s environment.
Financials Lead the Way
June’s top dividend stocks saw a noticeable tilt toward financials. About a third of the list is now made up of banks, insurers, and asset managers, which marks a small but meaningful rise from May. Interestingly, it wasn’t the big Wall Street names driving this shift. Smaller regional banks and Canadian firms stepped in.
Popular Inc. is a standout. Based in Puerto Rico, it jumped from #58 to #11 as the stock gained momentum and the one-year return climbed around 25%. Even with a modest yield, the market seems to be rewarding its improving fundamentals. Others like Regions Financial and German American Bancorp also climbed rapidly. The trend is clear: investors are chasing balance-sheet strength and steady income. Long-time dividend growers like United Bankshares are now yielding over 4%, making them more attractive in today’s market.
Utilities and Energy Stocks Gain Ground
Utilities are quietly having a strong year. They’ve outpaced the broader market in 2025 so far, and that strength is starting to show up in the dividend rankings. DTE Energy is a prime example. It surged from the middle of the list to the top spot, helped by solid revenue growth and a yield above 3%. That combination gave it a higher dividend score and pushed it to the front of the pack.
Atmos Energy and WEC Energy Group followed suit. Atmos jumped more than 60 spots thanks to its reliable payout history and a one-year stock gain of over 30%. It doesn’t offer the highest yield, but the consistency and underlying growth made it hard to ignore.
At the same time, a few utilities did fall off – Evergy and Pinnacle West among them. But they were quickly replaced by names like Duke Energy and ONE Gas, offering both yield and a stronger growth outlook. As markets become more volatile, it’s no surprise investors are rotating back into these steady sectors.
Yield Still Rules the Rankings
Tech stocks remain mostly absent from the list. That’s not new, but it’s becoming more obvious. Many tech names either don’t pay dividends or yield too little to compete. The trend continues: the highest-ranked dividend stocks tend to come from financials, utilities, and energy – sectors known for income and resilience when the market gets choppy.
Yield Trends and Stock Movement
June’s list showed a modest uptick in average dividend yields, now sitting around 3%. That’s a step up from the high-2% range we saw in May. While yields over 5% are still rare—and usually found further down the rankings – there’s a sweet spot forming in the 2–4% range. Interestingly, the highest-ranked names don’t necessarily offer the fattest payouts. What really seems to matter is how well a company balances yield with growth and consistency.
Atmos Energy is a good example. Its yield isn’t flashy—just above 2% – yet it shot up the list to rank #13 thanks to strong earnings and solid price appreciation. That tells you something: investors (and the ranking formula) aren’t just chasing yield. They’re looking for the full picture—steady payouts, room for growth, and underlying financial strength.
The Catch-22 of Rising Prices
One of the quirks in dividend investing is how a rising stock price can work against a company’s placement in a yield-focused ranking. When a stock takes off, its yield naturally drops unless the dividend gets a boost too. Goldman Sachs felt the impact this month. Despite strong performance, its yield dipped below 2%, and its rank tumbled. BlackRock faced a similar drop as its share price surged.
These moves don’t mean the fundamentals are weakening. Quite the opposite. But in a list where yield still matters, falling into the sub-2% territory can knock a stock down a few pegs. It’s the tradeoff between capital gains and current income, an ongoing balancing act for dividend-focused investors.
Dividend Growth Streaks Still Matter
While yield and returns fluctuate, one thing remains consistent: companies with long dividend growth streaks continue to anchor the list. About a quarter of the top 100 have raised payouts for over 25 consecutive years. That includes names like Atmos Energy (41 years), Cullen/Frost (31 years), and First Financial (35 years).
At the same time, newer names with shorter—but promising – histories are making their way in. Royal Bank of Canada, with a decade-long streak, and Novartis, with six years, both climbed into the top 50. That mix of old guard and new blood shows the rankings aren’t just about legacy – they also reward companies demonstrating real financial strength and a clear commitment to growing their payouts over time.
Sector Momentum Shifting to Where the Yield Is
There’s been a quiet but steady shift in where the strongest dividend plays are coming from. We’re seeing financials and utilities take center stage, edging out some of the former high-flyers in tech and growth. That’s not surprising given today’s economic backdrop—banks and insurers tend to benefit from higher interest rates, and utilities often shine when the broader market gets choppy.
What’s interesting isn’t just that these sectors are climbing the ranks—it’s why. It comes down to a blend of reliable income and improving fundamentals. Investors aren’t just chasing yield for yield’s sake anymore. They’re looking for companies that are adapting well to current conditions, showing resilience, and still rewarding shareholders with healthy, growing payouts.
Dividend Yields Getting a Little More Attractive
The overall yield environment has nudged slightly higher, especially in the sweet spot between 3 and 4 percent. That’s a range that feels rewarding without getting into red-flag territory. Part of this bump comes from weaker names dropping off the list, and stronger, higher-yielding stocks stepping in.
But let’s be real – yield alone isn’t doing all the heavy lifting here. Some of the biggest climbers in the rankings didn’t necessarily have the highest payouts. What they did have was momentum: improving earnings, positive stock performance, and cleaner balance sheets. That combination—decent yield and strong fundamentals – is what really moved the needle.
On the flip side, a few old favorites slid down or disappeared completely. In most cases, their dividend yield didn’t keep pace with the rise in their stock price, or their growth simply hit a wall. It’s a good reminder that past performance or long-standing reputation doesn’t guarantee a top spot going forward.
Sector Positioning Still Matters
If you’re building a dividend-focused portfolio in 2025, it pays to lean into the sectors that naturally support strong, stable payouts. Financials, utilities, and energy still carry the torch here. These sectors tend to operate with higher payout ratios and more predictable cash flow, which sets them up well to return capital to shareholders.
By contrast, tech and high-growth sectors remain underrepresented for a reason. Their yields are lower, and their focus tends to be on reinvestment over payouts. That doesn’t make them bad investments—just not the typical territory for dividend seekers right now.
Rotations Within Sectors Tell Their Own Story
Even within those income-friendly sectors, there’s movement. Some of the big names that once dominated are making way for regional players and overlooked mid-caps. Regional banks, in particular, have seen a resurgence. While some of the giants fell down the list, smaller players with healthy loan books and rising net interest margins are picking up steam.
Same goes for utilities. Not all of them are created equal. Some with stagnant growth or bloated valuations have slipped, while others—especially those with a strong regulatory backdrop or capital discipline—have climbed.
Growth Track Record Isn’t Everything, But It Helps
One thing that hasn’t changed? Investors still value consistency. A long streak of dividend growth carries weight, even if it doesn’t guarantee a top spot. The best performers tend to pair that history with current yield and a growth story that’s still alive.
Take United Bankshares, for example. It’s not just a name with a 50-year dividend growth streak – it’s also yielding over 4 percent. That kind of combination is what keeps a stock relevant, even as others come and go.
But newer dividend growers are earning their spots, too. You don’t need a decades-long track record if you’re showing solid payout growth, a healthy balance sheet, and a business model that works in this macro environment. The list isn’t just made up of legacy names—it’s also where some of the rising stars break through.
Valuation and Momentum Are Always in Play
Valuation still matters – and so does momentum. A stock that’s doing everything right on paper can still slip if it gets too expensive or loses steam operationally. The rankings reflect that. Some names rose fast because of sharp earnings beats or a wave of buying interest. Others slid quietly down the list just because they couldn’t keep pace.
It’s a reminder that this is a moving target. Dividend quality is dynamic. Investors can’t afford to rely on static screens or last year’s winners. The top spots are being earned in real time based on a mix of current yield, business strength, and where each company stands in the broader market cycle.
Wrapping It All Up
The dividend landscape right now feels like it’s leaning toward strength and stability. There’s been a clear rotation into sectors that can weather the current economy and still deliver solid income. Banks, insurers, and utilities are finding their stride, while some of the usual suspects are quietly drifting out of the spotlight.
This isn’t a time for set-it-and-forget-it dividend investing. It’s a time to stay curious, keep watching the rotation, and favor companies that not only pay but also grow, adapt, and execute. If your portfolio leans toward the 3–4 percent yield range, with names showing consistent performance and sound fundamentals, you’re probably on the right track.