The stock market’s tumultuous ride has been quite an adrenaline rush in 2025, with pronounced dips swiftly followed by strong rebounds. Amidst this ebb and flow, a particular set of investors are judiciously focusing their efforts on stocks which allocate part of their earnings as dividends to their shareholders. Dividend investments offer an effective route to passive income generation, unaffected by market activity. Therefore, they may be particularly appealing to cautious investors, conservation-focused individuals, or those seeking to balance their portfolio with a diversity of growth stocks. Devon Energy, Brookfield Infrastructure, and Clorox are three strong contenders to consider for dividend investment in the coming month.
Devon Energy commands attention as a dependable provider of dividends in the energy sector. One might question how an oil and gas exploration and production company can maintain a dividend’s reliability. The key lies in your level of familiarity with and trust in oil prices. Here’s a concrete example: Devon Energy has calculated its ‘breakeven funding level’ to be $45 per barrel. This is the bare minimum oil price the company requires to cover all operational expenses, debt service, as well as the fixed dividend.
When you’re at ease with the factors affecting oil prices, you would naturally feel comfortable with the idea that Devon could maintain its current $0.96-per-share dividend, effectively resulting in a dividend yield over 3%. Enhanced by the present oil price standing at $63 per barrel, Devon is well-positioned to raise its dividends or further buy back its stock. If we assume oil prices averaging $60 per barrel, Devon’s management projects to obtain $2.6 billion in free cash flow (FCF) for 2025, which is equivalent to 12.9% of its current market capitalization. Consequently, should Devon utilize all its FCF to meet dividend payments, this would be the possible dividend yield.
As long as there isn’t a massive drop in oil prices, Devon’s dividend seems stable. Building up holdings in proven dividend-earning stocks is a time-tested strategy for portfolio fortification. Trustworthy stocks offering substantial dividends, such as Brookfield Infrastructure, should certainly never be overlooked by investors, especially when they are currently undervalued.
While purchasing Brookfield Infrastructure shares might not yield huge growth, it certainly promises a conservative path to significant passive income. Brookfield Infrastructure’s portfolio boasts a myriad of global infrastructure assets, encompassing rail, data centers, and oil pipelines. The company holds huge appeal for income-focused investors as its operations consistently produce enough funds to cover dividend payments.
Over the past decade and a half, Brookfield has mastered the skill of increasing its funds from operations. For the period spanning from 2009 to 2024, it has documented an impressive 14% compound annual growth rate in its available funds. Therefore, investors seeking a reliable source of passive income can rest assured of the management’s ability to pave future growth.
Currently, Brookfield Infrastructure’s stock is being traded at 3.1 times its operating cash flow, which is considerably lower than its five-year average cash-flow multiple of 4. This is indeed a noteworthy discount. Clorox, despite its struggles with a slower-than-anticipated turnaround, tariff implications and cost challenges, remains as a potential high-yield dividend stock investment for long-term investors.
Clorox, the household name behind common products such as Clorox cleaners, Kingsford charcoal, Burt’s Bees, Hidden Valley Ranch dressing, and Glad trash bags, has likely crossed the most difficult part of its ongoing turnaround phase. Its longstanding initiative to bolster internal operations is poised to start reaping cost benefits as of 2026.
Frequent indicators reflect Clorox’s situation improving, with the company now reporting 10 successive quarters of gross margin growth. This conveys efficient cost control, despite relatively static sales figures. While Clorox’s evolution is on the upward trend, the stock itself faces depreciation, largely due to investors growing restless over the time-consuming revival.
Another cause of concern may be opportunity cost. While Clorox does offer a substantial 3.8% yield and a 48-year streak of dividend increases, some investors might be more inclined to consider risk-free options such as the 4.4% offering on three-month Treasury bills. It’s important to remember that Clorox isn’t the only consumer-centric, high-yield brand experiencing weakened margins and sluggish sales growth that’s leading to multi-year low stock prices.
Overall, Clorox benefits from its status as a high-yielding dividend stock, offering a rewarding path for those looking to enjoy a piece of the stock market’s income potential compared with non-equity options like T-bills. With these perspectives in mind, Devon Energy, Brookfield Infrastructure, and Clorox all emerge as promising candidates for your dividend investment considerations. Just as the roller-coaster nature of the market is unpredictable, the path of dividend-paying stocks also winds with the journey of their parent companies.
It’s worth keeping in mind that dividends are a fraction of their company’s overall profits shared with investors. Therefore, as an investor, your comfort level with the company’s industry, as well as overall business health and market conditions, plays a vital role. This includes factors such as oil price assumptions in the case of Devon Energy, or turnaround struggles like Clorox is facing.
Moreover, the stability of such companies adds to the dividend reliability. This is precisely where Brookfield Infrastructure with its consistent operational funds growth ricochets trust. Each of the mentioned companies has its own strengths and considerations, which must be weighed carefully before adding these to your portfolio.
Armed with these insights, it is advised to diversify your investment portfolio to balance risk and rewards. Dividend-paying stocks like Clorox, Devon Energy, and Brookfield Infrastructure are excellent examples that provide not only a steady stream of income but also potential capital appreciation over time.
Favorable conditions for the dividend-yielding stocks like assumed oil prices and economic conditions, consistency in operations, and successful strategical turnarounds ensure the stability and growth of dividends. However, as with all investments, due diligence is key before making any decisions. In conclusion, investors interested in a blend of portfolio strength and passive income might want to consider these three companies for their next addition.