Absolutely, dividend stocks still have a place in a portfolio, especially for income-focused strategies. However, the criteria for choosing them have shifted a bit in 2025. Given the current high-rate environment, companies with consistent free cash flow, low debt levels, and a strong dividend history are standing out.

Sectors like utilities and consumer staples remain reliable, but even some tech names are now offering dividends. It's also important to avoid companies with high payout ratios or those overly reliant on cyclical revenues.

Dividend reliability is more critical than yield right now. A flashy high dividend yield might look appealing, but it could signal trouble ahead. Look for dividend aristocrats—companies that have increased dividends for many consecutive years.

Also, consider global dividend stocks. Some international companies, particularly in Europe, are offering attractive yields with solid fundamentals.

In 2025, with inflation slowly cooling but not back to pre-2020 levels, dividend stocks that offer inflation-beating yields are a hot topic. REITs and infrastructure stocks are regaining popularity due to built-in inflation escalators.

Just make sure to review how interest rate-sensitive the stock is. Some REITs with floating-rate debt are under pressure.