Are you looking to add dividend-paying stocks to your investment portfolio? The year 2025 has seen some exciting developments in the world of dividends, with notable names like Salesforce and Meta Platforms initiating their first dividend payments. But which other stocks may join the ranks of dividend payers in the near future?
According to Wolfe Research, there are several companies that could be poised to kick off their first dividend payments. These companies have strong free cash flow yields, are returning capital to investors through share buybacks, and are not highly leveraged. One such company is Skechers, a footwear manufacturer that has seen a 13% increase in shares in 2025. With an estimated 2024 free cash flow to firm yield of 3%, Skechers is a company to watch in the dividend space.
Another potential dividend initiator is O’Reilly Automotive, with an estimated free cash flow to firm of 3% in 2024. While shares are up only 1.5% in 2024, analysts remain bullish on the stock, with 64% of analysts covering it rating it a buy or strong buy. PayPal is also on Wolfe’s list of contenders, with an estimated free cash flow to firm yield of 7% for 2024. While the stock has seen modest gains year to date, consensus price targets imply a 22% upside from current levels.
These companies, along with others like Mattel, Fiserv, and Centene, may be on the cusp of initiating dividend payments. With the potential for growing dividends over time, investors could see a boost to their income portfolios. Stay tuned to see which companies make the leap into the world of dividend payouts and how this could impact your investment strategy.
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