When it comes to building a resilient and profitable portfolio, selecting the right investments is key. In 2025, a mix of well-established dividend payers, innovative growth companies, and strategic funds are catching the attention of savvy investors. From 3M’s bold restructuring efforts to Brookfield Infrastructure’s steady cash flow generation, and from ExxonMobil’s robust dividend history to Illinois Tool Works’ sector-spanning resilience, these companies present intriguing opportunities. Add to that the JPMorgan Equity Premium Income ETF, offering a unique passive income strategy, and you have a lineup worth exploring.
3M aims for growth through restructuring
3M’s new CEO, Bill Brown, is committed to positioning the company for growth despite a challenging global economic environment. Interest rate pressures are likely to hinder revenue growth outlook for 2025; however, Brown’s comprehensive restructuring plan focuses on improving margins and earnings. This involves revitalizing product development through research and development, enhancing machinery asset utilization, optimizing delivery processes, improving inventory turnover, consolidating suppliers, and implementing lean management techniques.
Previous management had prioritized the healthcare business and faced uncertainties from litigation over PFAS chemicals and faulty combat arms earplugs. Although 3M will make multi-year payments related to these legal issues, clarity on these matters now exists. With a new CEO, there is potential for self-help initiatives to drive margin expansion and earnings growth.
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Brookfield Infrastructure presents passive income opportunities
Brookfield Infrastructure’s units are currently valued at about 2.9 times operating cash flow, which is a discount to their five-year average cash flow multiple of 4.3. The company operates a diversified portfolio of infrastructure assets, including transportation (42% of the company’s funds from operation), midstream (21%), utilities (26%), and data assets (11%).
From 2009 to 2023, Brookfield Infrastructure achieved a 15% compound annual growth rate in funds from operations (FFO). The management anticipates more than 10% annual growth in FFO per unit, supported by a backlog of projects totaling approximately $7.8 billion as of September 30. The company also targets a consistent annual distribution growth of 5% to 9%, allowing for stable returns for income investors.
ExxonMobil might be a strong addition
ExxonMobil is considered a strong addition for portfolios focused on steady growth and dividend income. The company expects earnings and operating cash flow to rise at compound annual growth rates of 10% and 8%, respectively, from 2024 to 2030, aided by increased production from its Permian Basin assets. It boasts a long history of dividend growth, having increased its dividend for 42 consecutive years, maintaining a payout ratio of 86% over the last five years.
Illinois Tool Works: An eye-catcher
Investors might also find value in Illinois Tool Works (ITW). The company’s diversity, having exposure to various sectors including automotive, food processing, and welding equipment, enhances its resilience in economic downturns. ITW is recognized as a Dividend King with 53 consecutive years of dividend increases, with its most recent dividend raise of 7% occurring in August 2024.
JPMorgan Equity Premium Income ETF
For a different approach to passive income, the JPMorgan Equity Premium Income ETF provides a yield of 7.3%. The fund invests a minimum of 80% of its assets in equities and implements a strategy that utilizes equity-linked notes (ELNs) to generate monthly income through sold call options linked to the S&P 500 index.
These five options — 3M, Brookfield Infrastructure, ExxonMobil, Illinois Tool Works, and JPMorgan Equity Premium Income ETF — represent strong contenders for investors looking to diversify and bolster their portfolios in 2025. Each presents unique strengths, from restructuring and margin growth potential to robust dividend histories and innovative income-generating strategies. Brookfield Infrastructure and ExxonMobil offer steady passive income opportunities with proven growth trajectories, while Illinois Tool Works stands out for its sector diversification and resilience. Meanwhile, JPMorgan’s Equity Premium Income ETF offers a more strategic, yield-focused approach for those prioritizing consistent returns.
However, while these stocks and funds display compelling investment theses, the decision to buy ultimately depends on your individual goals, risk tolerance, and portfolio strategy. These companies may align with different investor priorities—be it dividend income, growth potential, or market stability—so thorough research and consultation with a financial advisor are crucial.
Disclaimer:The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
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