Three companies with their roots firmly planted in America are outperforming the market in 2025 and adding to their dividends. Although it feels odd to say, being an American stock that’s outperforming in 2025 is a particularly impressive feat. Using the S&P 500 Index as the barometer, U.S. stocks are among the worst-performing globally. In fact, out of 41 major country-specific stock market indexes, the S&P 500 is one of only seven with a negative return. Underperformance from U.S. stocks simply hasn’t happened much in the recent past. Vanguard notes that U.S. stocks recorded annualized returns 7% higher than Euro area stocks from Sept. 2014 to Sept. 2024.
The analysis below details three firms that are managing to hold the torch for U.S. stocks despite overall weakness. They have long histories that all begin in the United States, even though some now derive revenues globally. All return and other data use information as of the May 8 close.
AWK: All-American Company and Performer in 2025
[content-module:DividendStats|NYSE: AWK]First up is American Water Works (NYSE: AWK). This stock has notched a strong total return in 2025 of approximately 18%. Being an American utilities company, American Water Works still derives 100% of its revenue from the United States.
Along with its Q1 results, the company announced a substantial 8%+ increase to its quarterly dividend. Its next dividend of just under $0.83 will be payable on June 3 to shareholders of record as of May 13. The stock now has an indicated dividend yield of just under 2.3%.
The company also reaffirmed its plans to continue growing its dividend at a similar pace. In its earnings call, the company said it expects to continue growing its dividend by 7% to 9% per year, the same growth rate it is targeting for its earnings per share (EPS).
The dividend growth rate for the S&P 500 Index was approximately 7.3% annually from 2013 to 2023. Based on this history, American Water Works’ dividend growth rate could outpace that of the S&P 500 going forward.
IBM: Big Blue’s GenAI Push Is Generating Returns
[content-module:DividendStats|NYSE: IBM]Next up is the company that really put the United States on the map when it comes to computers, International Business Machines (NYSE: IBM). Despite its name, most people immediately associate this company with America.
Today, the company generates around half of its revenue from its “Americas” segment, although this includes many countries outside the United States. IBM has also performed impressively in 2025, with a total return of approximately 17%.
The company’s shift in focus toward helping companies integrate generative AI has been resonating. It now has a book of business in this vertical of approximately $6 billion. IBM announced a dividend increase of $0.01, raising its payout to $1.68 per quarter.
Although a very small increase, IBM has a proven track record of increasing dividends and a very strong yield for a tech company. This increase boosts its streak of dividend hikes to 30 years in a row, and its indicated dividend yield sits at over 2.6%.
VRSN: Dividend Initiator Holding the Internet’s Master Key
[content-module:DividendStats|NASDAQ: VRSN]Last up is VeriSign (NASDAQ: VRSN). Although the company doesn’t scream “America” like the other two, the firm gets its power through the direct sanction of the U.S. government. The company operates the authoritative registries for the .com and .net general top-level domains (gTLDs).
Basically, if someone wants to run a website using .com or .net at the end, they are paying VeriSign to do so. VeriSign gets this right under its Cooperative Agreement with the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce. Additionally, VeriSign generates around 66% of its revenue from the United States. VeriSign has performed exceptionally well in 2025, with a total return of approximately 38%.
Along with allowing investors to invest in its resilient business, they can now also get paid a dividend. VeriSign just initiated its first dividend ever along with its latest earnings release. The first quarterly $0.77 dividend will be payable on May 28 to shareholders of record on May 19. Right off the bat, VeriSign is providing investors with a solid dividend yield of around 1.1%.
Overall, despite U.S. stocks disappointing so far in 2025, areas of strength are far from impossible to find. These three names stand out for their strong price returns and willingness to provide investment income.
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