In this article, we will take a look at some of the best dividend stocks to buy.
Dividend stocks have long been favored by investors for their potential to deliver solid returns over time, often outperforming the broader market.
Research shows that dividends have played a significant role in total equity returns. According to a T. Rowe Price report, dividends have made up nearly one-third of US stock returns since 1926. Between 1980 and 2019, when interest rates were falling, dividends accounted for 75% of overall market returns. The report also noted that in low-interest-rate environments, dividends provide reliable income when other fixed-income investments may offer less appeal.
Experts advise investors to focus on companies with consistent dividend growth rather than simply chasing high yields. Morningstar strategist Dan Lefkovitz emphasized that dividend growth signals financial strength and a solid outlook, distinguishing it from high-yield investing. Given this, we will take a look at some of the best safe dividend stocks to invest in.
Photo by Vitaly Taranov on Unsplash
Our Methodology
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, and Business Insider. From their latest articles, we gathered the stocks they collectively favored. The companies mentioned below have strong dividend histories and robust balance sheets. In addition, we assessed the sentiment of hedge funds for each stock using Insider Monkey’s Q1 2025 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. NNN REIT, Inc. (NYSE:NNN)
Number of Hedge Fund Holders: 26
NNN REIT, Inc. (NYSE:NNN), formerly known as National Retail Properties, stays true to its original focus— owning and managing retail real estate. The company primarily invests in high-quality retail properties under long-term net leases, which typically require minimal capital outlays. As of March 31, 2025, NNN REIT held 3,641 properties across all 50 states, covering around 37.3 million square feet of leasable space, with an average remaining lease term of 10 years.
NNN REIT, Inc. (NYSE:NNN) boasts a strong history of dividend increases, having raised its payout for 36 consecutive years as of 2024, an achievement matched by only two other REITs and fewer than 80 publicly traded companies in the US. On July 15, the company declared a 3.4% hike in its quarterly dividend to $0.60 per share. The stock supports a dividend yield of 5.64%, as of July 27.
NNN REIT, Inc. (NYSE:NNN) remains well-positioned to maintain its high-yield dividend growth. It maintains a low payout ratio— under 70% of funds from operations (FFO)— and operates with a conservative balance sheet and below-average leverage. These factors provide the company with the financial flexibility to continue acquiring income-generating retail assets.
9. Black Hills Corporation (NYSE:BKH)
Number of Hedge Fund Holders: 27
Black Hills Corporation (NYSE:BKH) is among the best dividend stocks on our list. The company stands out as one of the few utility companies to earn Dividend King status, even though it’s relatively small, with a market cap of about $4.1 billion.
Black Hills Corporation (NYSE:BKH) has been expanding its customer base at a pace nearly three times faster than the U.S. population growth, a promising sign that may help it continue gaining regulatory approval for its investment strategies and rate plans. This growth trend supports the company’s long-term objective of achieving 4% to 6% annual earnings growth, with dividend increases expected to follow a similar path.
On July 23, Black Hills Corporation (NYSE:BKH) declared a quarterly dividend of $0.676 per share, which was in line with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 55 years. The stock has an attractive dividend yield of 4.77%, as of July 27.
Hedge Fund Resource Center