3 Dividend Stocks for December 2025

Morningstar spotlights three dividend names for December 2025: Omnicom, which after completing its Interpublic acquisition raised its quarterly dividend 14% (payable Jan. 9), yields 4.4% and trades about 37% below Morningstar’s $115 fair-value estimate; McCormick, a global spices leader and dividend aristocrat that just recorded its 40th consecutive annual increase, yields 2.9%, has delivered 8.1% annualized dividend growth over five years and is expected to post high-single-digit dividend growth with a payout near 60% while trading roughly in line with its $67 fair value; and Truist Financial, a US super-regional bank yielding 4.5% (slightly above its five-year average), whose dividend has been flat for 14 quarters and whose payout ratio has recently exceeded 50% but is forecast by Morningstar to decline as earnings recover, with the dividend likely unchanged through 2026 and modest growth from 2027 while shares trade near a $46.10 fair value.

Analysis

Omnicom recently completed its Interpublic acquisition and announced a 14% increase to its quarterly dividend payable Jan. 9, lifting the yield to 4.4% while the stock trades about 37% below Morningstar’s $115 fair-value estimate. The combination makes Omnicom the world’s largest marketing company and the dividend raise signals management confidence, but investors should weigh the valuation gap against integration and execution risk tied to the newly combined operations.

McCormick is presented as a defensive dividend-growth name: it recorded its 40th consecutive annual dividend increase, yields 2.9%, and has delivered 8.1% annualized dividend growth over the past five years. Morningstar expects high-single-digit annual dividend increases going forward with a payout ratio near 60%, and the shares trade roughly in line with a $67 fair-value estimate, implying limited upside on current fundamentals.

Truist yields 4.5% (slightly above its 4.3% five-year average) but its dividend has been flat for 14 quarters and the payout ratio has recently exceeded 50%. Morningstar expects the payout ratio to fall below 50% as earnings recover, with the dividend unchanged through 2026 and modest growth starting in 2027; the shares trade near a $46.10 fair-value estimate, making near-term upside dependent on earnings improvement and capital dynamics.

Taken together, Morningstar’s tone is mildly positive with low market-impact expectations: Omnicom offers the most immediate income and valuation play, McCormick offers steady dividend-growth durability, and Truist is a conditional income trade that depends on bank earnings normalization and payout-ratio improvement.

Key Decisions for Investors

• Consider adding Omnicom on weakness or a staged buy given the 14% dividend raise, 4.4% yield and ~37% Morningstar valuation discount while actively monitoring Interpublic integration metrics
• Favor McCormick as a hold or selective buy for dividend-growth exposure given 40 years of consecutive increases and projected high-single-digit dividend growth, but avoid overpaying since it trades in line with fair value
• Treat Truist cautiously: its 4.5% yield is attractive but the dividend has been flat for 14 quarters and the payout ratio is elevated, so limit position size until earnings and payout-ratio trends confirm durability
• Monitor key indicators—Omnicom integration progress and free cash flow, McCormick’s margin and payout ratio around 60%, and Truist’s quarterly earnings and capital guidance—as triggers to increase or reduce exposure