- In a fluctuating market, dividend-growth finance stocks offer a beacon of stability and income.
- Standout performers in this category are Blackstone, T. Rowe Price, and American Financial Group.
- Each company presents a compelling case for a buy-and-hold strategy.
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Investing in dividend-growth finance stocks offers a compelling blend of income and capital appreciation.
Three notable companies in this sector—Blackstone (NYSE:BX), T. Rowe Price Group (NASDAQ:TROW), and American Financial Group (NYSE:AFG), which stand out for their robust business models, consistent dividend histories, and promising outlooks for the remainder of 2025.
These three dividend champions offer compelling value for long-term investors seeking both income and appreciation in today’s market environment.
1. Blackstone: The Alternative Investment Titan
- Dividend Yield: 3.99%
- Market Cap: $176.5 Billion
- Fair Value Upside: +16.9%
Blackstone stands as one of the world’s largest alternative asset managers, with over $1.1 trillion in assets under management spanning real estate, private equity, credit investments, and hedge funds. The firm’s diversified approach allows it to capitalize on opportunities across various market cycles, while its fee-based revenue model provides stability even during volatile periods.
Source: Investing.com
BX stock closed at $144.50 on Thursday, earning the New York-based investment management company a market value of $176.5 billion. Shares are up by 13.6% over the last 12 months.
Looking ahead to the remainder of 2025, Blackstone is well-positioned to benefit from institutional investors’ increasing allocations to alternative assets. With interest rates expected to stabilize, the company’s real estate and credit portfolios should see improved performance.
Blackstone’s InvestingPro Financial Health Score registers as "GOOD," indicating strong balance sheet fundamentals and operational efficiency. Analysts project a price target upside of approximately 25% from current levels, while InvestingPro Fair Value estimates suggest a potential 16.9% appreciation opportunity.
Source: InvestingPro
Despite a volatile dividend policy—where payouts fluctuate based on distributable income—Blackstone has shown a long-term upward trajectory in returns to shareholders through dividends and share repurchases. The firm’s current dividend yield of 3.99% outpaces many financial sector peers.
2. T. Rowe Price: The Dividend Stalwart in Asset Management
- Dividend Yield: 5.36%
- Market Cap: $21.1 Billion
- Fair Value Upside: +34.6%
T. Rowe Price has built its reputation as a premier asset management firm focused on active investment strategies across equity, fixed income, and multi-asset solutions. With approximately $1.5 trillion in assets under management, the company serves individual and institutional investors worldwide through a disciplined, research-driven approach.
Source: Investing.com
TROW shares ended Thursday’s session at $94.70, valuing the Baltimore-based investment management firm at $21.2 billion. Shares are down 20% during the past 12 months.
For the remainder of 2025, T. Rowe Price is expected to benefit from improved market sentiment and potential Federal Reserve easing. The firm’s strong brand recognition and solid long-term investment performance should help drive asset inflows.
With a "GOOD" Financial Health Score, T. Rowe maintains a debt-free balance sheet—a rarity among financial firms of its size. Analyst price targets suggest an upside potential of approximately 17%, while Fair Value estimates indicate a possible 34.6% appreciation from current levels.
Source: InvestingPro
What sets T. Rowe apart is its remarkable 40-year streak of consecutive dividend payouts, a testament to management’s shareholder-friendly capital allocation policies. The company currently pays an annual dividend of $5.08 per share, at a yield of approximately 5.4%—significantly higher than the broader market.
3. American Financial Group: The Insurance Powerhouse
- Dividend Yield: 7.20%
- Market Cap: $10.7 Billion
- Fair Value Upside: +24.9%
American Financial Group operates as a specialty insurance holding company primarily focused on property and casualty insurance products for businesses. The company specializes in niche markets, including inland and ocean marine, agricultural, aviation, and specialty casualty coverage, allowing it to maintain pricing discipline and underwriting expertise.
Source: Investing.com
AFG is currently trading at $127.77, earning the Cincinnati, Ohio-based insurance company a market value of $10.7 billion. The shares are just about flat over the past year.
Looking toward the remainder of 2025, American Financial Group is well-positioned to capitalize on hardening insurance markets and improving investment income as interest rates stabilize. The company’s disciplined underwriting approach and focus on specialty lines should continue to generate strong combined ratios and underwriting profits.
AFG maintains a "GOOD" Financial Health Score, reflecting its strong capital position and consistent profitability. Analysts project a price target upside of approximately 7%, while Fair Value models suggest a potential 24.9% appreciation opportunity.
Source: InvestingPro
AFG has consistently paid out a dividend for 40 consecutive years, dating back to 1985, with a current yield of 7.2%. What’s particularly impressive is the company’s history of declaring special dividends during strong performance periods, significantly enhancing shareholder returns beyond the stated yield.
Conclusion
In summary, Blackstone, T. Rowe Price, and American Financial Group represent three dividend-growth finance stocks that are well-positioned for the remainder of 2025. Each company, with its unique services and outlook, offers not only the potential for capital appreciation but also the stability of regular dividend payouts.
For investors looking to build a portfolio that can navigate market fluctuations while providing steady income, these three stocks are solid candidates for a buy-and-hold strategy.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.