As 2025 approaches, investors focused on dividends are carefully analyzing stocks that not only offer consistent income but also hold the potential for strong total returns. This year’s “dividend all-stars” will likely include companies that balance robust financial health, strategic growth, and shareholder rewards. So, let’s look at two dividend stocks that stand out.
North West
North West Company (TSX:NWC) is known for its unique business model, serving remote and underserved communities with essential retail services. Despite its niche market, NWC has demonstrated remarkable consistency. Its current dividend yield of approximately 3.16% is supported by a well-managed payout ratio of 58.39%. This signals that the dividend stock has room to continue growing while rewarding its shareholders. Notably, the company declared an annualized dividend of $1.60 per share. This is a clear indicator of its commitment to income investors.
NWC’s recent quarterly earnings reported a 3.3% year-over-year increase in revenue, reaching $637.5 million for the third quarter of 2024. This growth was driven by same-store sales gains and the impact of new stores despite challenges such as higher operating costs. Net earnings for the quarter decreased by 4.3% year over year to $36.4 million, primarily due to increased expenses and a higher effective income tax rate.
The dividend stock maintained a quarterly dividend of $0.40 per share, reflecting its commitment to shareholder returns. With a strong financial position, including a solid gross profit margin and effective expense management, NWC remains financially stable. The company’s beta of 0.65 continues to highlight its low volatility, making it a safe haven for conservative investors.
BAM stock
Brookfield Asset Management (TSX:BAM), however, operates in a completely different sphere but is equally compelling. As a global alternative asset manager, BAM benefits from its vast exposure to real assets like renewable energy, infrastructure, and private equity. Its forward dividend yield of 2.61%, based on an annualized dividend of $2.13 per share, may seem modest at first glance. However, Brookfield’s real strength lies in its growth trajectory. Over the past year, the dividend stock has surged nearly 59%, significantly outpacing the broader market and underlining its strong capital appreciation potential.
In its most recent quarter, BAM reported net income attributable to common shareholders of $450 million, up 5.7% from the prior year. The dividend stock’s consistent ability to generate substantial operating cash flow, $594 million in the trailing 12 months, reflects its efficient capital deployment across high-performing assets. Brookfield’s diversified model insulates it from sector-specific risks — all while its strategic acquisitions and expansions continue to fuel growth.
Brookfield’s balance sheet is a testament to its financial discipline, with total debt at a manageable $210 million and a debt-to-equity ratio of just 6.47%. Additionally, its book value per share of $7.67 indicates a solid asset base. The dividend stock’s insider ownership of 14.15% signals a strong alignment between management and shareholder interests. Coupled with its institutional ownership of nearly 69%, BAM is clearly a trusted name in institutional and retail circles alike.
Foolish takeaway
Looking to the future, both NWC and BAM have strong tailwinds. For NWC, the growing emphasis on essential goods and services in remote communities ensures steady demand. Meanwhile, BAM is perfectly positioned to benefit from global trends like the shift to renewable energy and infrastructure modernization.
What sets these two apart as “dividend all-stars” is the balance of yield and growth. NWC caters to investors seeking stability and income. BAM offers a mix of steady payouts and dynamic capital appreciation. This combination ensures both stocks appeal to a wide range of dividend-focused investors, from the conservative to the growth-oriented.
For 2025, the choice between NWC and BAM may come down to your individual strategy. Are you looking for safety and predictable income? Then, NWC’s solid financials and consistent dividends may be the way to go. Are you ready to balance income with growth in high-demand global sectors? BAM is your ticket to long-term wealth creation. Either way, these two dividend stocks are well-positioned to deliver strong returns and anchor a successful dividend portfolio in the year ahead.
