In this article, we will take a look at some of the best debt-free stocks to invest in.
Debt was once avoided by most S&P 500 technology companies. That mindset is changing. The push into artificial intelligence is forcing companies to spend heavily on data centers, and many are borrowing to keep up. That shift has started to make some investors uneasy.
According to CNBC, US equities have been unsteady lately as investors pull back from AI-related stocks, especially those tied to infrastructure. The concern is straightforward, as companies are taking on large amounts of debt to fund multibillion-dollar AI investments, and the payoff is not guaranteed.
Oracle offers a clear example. On December 24, the company said it would need to raise capital expenditures by an additional $15 billion in the current fiscal year. It also plans to increase lease commitments tied to data centers. To cover those costs, Oracle is leaning on debt.
Separate reporting from Reuters shows this is part of a much broader trend. Global technology firms have issued debt at record levels this year as the race to build AI capacity accelerates. Even companies with strong cash positions are borrowing to fund expansion.
Dealogic data cited by Reuters shows global tech firms issued $428.3 billion of bonds in 2025 through the first week of December. US companies accounted for $341.8 billion of that total. European firms issued $49.1 billion, while Asian companies added $33 billion. For years, large tech firms relied mainly on internal cash flow. That has shifted as borrowing costs stayed low and investor appetite for bonds remained strong.
Michelle Connell, president of Portia Capital Management, said debt-funded AI spending reflects a bigger structural change. Rapid tech obsolescence and short chip lifecycles leave companies little choice but to reinvest again and again. The volume of issuance is starting to show up on balance sheets. Leverage is rising, and coverage ratios are slipping for some firms. That raises a harder question about resilience if AI investments fall short of expectations.
Even so, most large technology companies remain profitable. They hold sizable cash reserves, and many still rank among the most valuable companies in the world by market capitalization.
Given this, we will take a look at some of the best debt-free stocks that offer dividends.
Our Methodology:
To create this list, we first used a screener and identified companies with minimal or no debt. From this pool, we selected those that consistently pay dividends to shareholders and compared their enterprise value (EV) to their market capitalization to gauge which ones are debt-free. We then narrowed down the list by including stocks that had sustainable dividend yields. From that list, we picked 10 companies with the highest number of hedge funds having stakes in them, as per Insider Monkey’s database of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. RPC, Inc. (NYSE:RES)
Number of Hedge Fund Holders: 16
Market Cap: $1.20 billion
Enterprise Value: $1.12 billion
RPC, Inc. (NYSE:RES) is one of the best debt-free stocks that pay dividends.
On December 18, Piper Sandler analyst Derek Podhaizer raised the firm’s price target on RPC, Inc. (NYSE:RES) to $5 from $4 and maintained an Underweight rating. The firm stated that, although 2025 proved challenging, the industry demonstrated resilience once again. Companies turned inward, focused on execution, and leaned into new growth paths.
Looking ahead to 2026, Piper remains selective. Still, it sees early signs of improvement. Cyclical tailwinds are starting to build, including Saudi Arabia and Mexico returning to work, and signs that the US land market may be finding a floor. Offshore activity is viewed as more of a 2027 story.
In its third-quarter 2025 earnings, RPC, Inc. (NYSE:RES) reported sequential revenue growth. Most segments contributed, with the strongest results coming from pressure pumping, coiled tubing, and downhole tools. Service lines outside of pressure pumping accounted for 72% of total revenue and posted a 3% sequential increase. Management pointed to Thru-Tubing Solutions as a leader in downhole technology. The A10 downhole motor has now logged more than 100 runs with major operators and is helping the company gain share.
Full-year 2025 capital spending is expected to range from $170 million to $190 million. Most of that is earmarked for maintenance, selective asset purchases, and upgrades to IT systems. In the fourth quarter, RPC, Inc. (NYSE:RES) plans to liquidate its terminated supplemental executive retirement plan. That move is expected to result in about $8 million of net cash and a one-time increase in the effective tax rate.
RPC, Inc. (NYSE:RES) offers a wide range of specialized oilfield services and equipment. Its customers include both independent and major oilfield companies involved in the exploration, production, and development of oil and gas properties across selected US and international markets.
9. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holders: 25
Market Cap: $25.8 billion
Enterprise Value: $25.29 billion
Cincinnati Financial Corporation (NASDAQ:CINF) is among the best debt-free stocks to invest in.
On December 22, Piper Sandler raised its price target on Cincinnati Financial Corporation (NASDAQ:CINF) to $157 from $150 and kept a Neutral rating. Looking across the sector, the firm expects fourth-quarter results to be uneven. Favorable weather should support strong, and in some cases better-than-expected, results for many insurers. Pricing commentary, though, may sound more cautious. One thing to watch is whether insurers still believe they are achieving rate increases that outpace claims inflation.
Cincinnati Financial Corporation (NASDAQ:CINF) operates in the property and casualty insurance business. It is not flashy, but it is steady. The company stands out for how it balances risk while pricing policies with discipline. Its long record of dividend growth and consistent profitability shows that the approach has worked, even during difficult periods.
The company tends to perform well during periods of economic growth or inflation. As the economy expands, premiums rise gradually and support earnings. When inflation increases, management can see the pressure building and adjust pricing. That ability gives the company pricing power at a time when costs are moving higher.
Cincinnati Financial Corporation (NASDAQ:CINF) is a property and casualty insurer. Its coverage spans commercial casualty, commercial property, commercial auto, workers’ compensation, personal auto, and life insurance.
8. Janus Henderson Group plc (NYSE:JHG)
Number of Hedge Fund Holders: 28
Market Cap: $7.11 billion
Enterprise Value: $5.00 billion
Janus Henderson Group plc (NYSE:JHG) is among the best debt-free stocks that pay dividends.
On December 22, Evercore ISI lowered its price target on Janus Henderson Group plc (NYSE:JHG) to $49 from $50 and kept an In Line rating. The move followed news that the company’s largest shareholder, Trian Fund Management, along with General Catalyst, agreed to take the asset manager private at an equity value of $7.4 billion, or $49 per share.
The firm said the deal “doesn’t seem like the highest possible multiple that Janus could have gotten,” especially after six straight quarters of organic growth. At the same time, Evercore noted there is “no guarantee things are going to be like that every quarter.” From that angle, the appeal of operating as a private company is easier to understand. It could give Janus more room to continue its turnaround without constant pressure from public markets.
CNBC first reported on December 22 that Janus Henderson Group plc (NYSE:JHG) agreed to be acquired by Trian and General Catalyst. The buyers will pay $49 per share in cash, valuing the firm at about $7.4 billion. The offer reflects a 6.5% premium to the prior December 19’s close and roughly an 18% premium to the stock’s closing price on October 24.
Janus Henderson CEO Ali Dibadj made the following statement:
“With this partnership with Trian and General Catalyst, we are confident that we will be able to further invest in our product offering, client services, technology, and talent to accelerate our growth.”
The Wall Street Journal had reported on October 27 that the two firms had approached Janus Henderson Group plc (NYSE:JHG) about a potential takeover. The transaction is expected to close in mid-2026. Trian has been an investor in Janus since late 2020. Over that period, the stock has roughly doubled. Trian also holds two seats on the company’s board.
Janus Henderson Group plc (NYSE:JHG) is a British-American global asset management firm headquartered in the City of London. It provides investment products to individual investors, financial advisors, and institutions worldwide under the Janus Henderson Investors brand.
7. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Number of Hedge Fund Holders: 31
Market Cap: $22.7 billion
Enterprise Value: $19.5 billion
T. Rowe Price Group, Inc. (NASDAQ:TROW) is among the best debt-free dividend stocks to invest in.
On December 17, Keefe Bruyette analyst Alex Bond lowered the firm’s price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) to $115 from $117 and kept a Market Perform rating. The firm still expects a supportive economic backdrop in 2026, the analyst said in a research note.
A few days earlier, on December 10, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported preliminary November month-end assets under management of $1.79 trillion. Net outflows for November 2025 totaled $8.0 billion. By asset class, Equity assets stood at $891 billion as of November 30. Fixed income, including money market funds, totaled $211 billion. Multi-asset strategies accounted for $628 billion, while Alternatives reached $57 billion.
During the third-quarter 2025 earnings call, CEO Robert Sharps spoke about a newly announced strategic collaboration with Goldman Sachs. The goal is to deliver diversified public and private market solutions. Early focus areas include a co-branded sister series for the Target Date franchise, model portfolios, multi-asset offerings, and adviser-managed accounts. Sharps said the firm is building a co-branded series of asset allocation model portfolios that include alternative investments, with plans to launch on the first platform before year-end and expand to other platforms in 2026.
He also pointed to the launch of two new retirement allocation funds in Asia and steady growth in the ETF business, which now holds $19 billion in AUM. Another highlight was the launch of the Emerging Markets Blue Economy Bond strategy, which has already attracted more than $200 million in commitments.
T. Rowe Price Group, Inc. (NASDAQ:TROW) is a publicly traded global investment manager based in the U.S. The firm offers mutual funds, subadvisory services, separate account management, and retirement solutions for individuals, institutions, and financial intermediaries.
6. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 32
Market Cap: $4.00 billion
Enterprise Value: $2.74 billion
Cal-Maine Foods, Inc. (NASDAQ:CALM) is among the best debt-free dividend stocks to invest in.
On December 1, Benchmark began coverage of Cal-Maine Foods, Inc. (NASDAQ:CALM)with a Buy rating and a $100 price target. While the Cal-Maine name is widely recognized, the firm believes the stock’s valuation is “over-indexed to its legacy as a commodity producer.” In Benchmark’s view, the market is underestimating major changes underway in the egg category and Cal-Maine’s shift toward higher-value specialty products.
That mix shift, along with an expansion into prepared foods and a move away from market-based pricing toward contract-based pricing, adds up to what the firm describes as “a positive step change in earnings power.” It also improves long-term growth visibility, according to the analyst.
On December 3, Cal-Maine Foods, Inc. (NASDAQ:CALM) announced a new $15 million network optimization and capacity expansion project at Echo Lake Foods. The project is expected to add 17 million pounds of annual scrambled egg production by mid-fiscal 2027. The plan brings all scrambled egg manufacturing into one modernized facility. That creates a more centralized and efficient operation. A new production line will support near-term demand and longer-term growth.
By consolidating production, Echo Lake Foods reduces duplication across sites, simplifies workflows, and improves supply reliability. Upgraded equipment and added automation should also lift yields and lower labor needs. Taken together, these changes are expected to boost throughput and better position the business to meet rising customer demand as part of Cal-Maine’s broader prepared foods strategy.
This investment follows a previously announced $14.8 million high-speed pancake line project, which is expected to add another 12 million pounds of annual production through early fiscal 2027.
Cal-Maine Foods, Inc. (NASDAQ:CALM) also said its joint venture, Crepini Foods, plans to invest $7 million through fiscal 2028. That spending is expected to add 18 million pounds of production capacity. The expansion will come from new equipment and production lines installed over the next two years, increasing Crepini’s volume by more than seven times.
Altogether, these projects are expected to lift Cal-Maine’s prepared foods production capacity by more than 30% over the next 18 to 24 months.
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest egg producer in the United States and a major player in the egg-based food market. With a broad national footprint, the company supplies protein products to millions of households each day.
5. Garmin Ltd. (NYSE:GRMN)
Number of Hedge Fund Holders: 34
Market Cap: $39.09 billion
Enterprise Value: $36.7 billion
Garmin Ltd. (NYSE:GRMN) is among the best debt-free stocks to invest in.
On December 19, Tigress Financial raised its price target on Garmin Ltd. (NYSE:GRMN) to $310 from $305 and kept a Strong Buy rating. The firm points to wearables and outdoor devices as key growth drivers, with aviation and marine businesses adding steady, high-margin support. Tigress said its 12-month target implies a potential total return of more than 55% from current levels, including dividends.
Garmin Ltd. (NYSE:GRMN) continues to draw attention as consumers lean into its GPS and wearable products. In the third quarter of 2025, revenue reached $1.77 billion, up 12% from the same period last year. Those sales translate into strong cash generation. Free cash flow totaled $425 million for the quarter, well above the company’s $173 million dividend payout.
The dividend yield sits at a modest 1.76%, but the balance sheet remains solid. That financial flexibility matters during slower growth periods. It also gives management room to invest when opportunities appear.
Over time, Garmin has used that strength to make acquisitions that extend its technology lead and bring more distributors in-house. By the end of Q3, the company held $3.9 billion in cash and marketable securities, roughly 10% of its recent market value.
Looking ahead, Garmin Ltd. (NYSE:GRMN) expects revenue of about $7.10 billion and pro forma EPS of $8.15. That outlook assumes a gross margin of 58.5%, an operating margin of 25.2%, and a pro forma effective tax rate of 17.5%.
Garmin Ltd. (NYSE:GRMN)’s product lineup covers a wide range of outdoor uses. It includes adventure and dive watches, golf devices, handheld outdoor units, satellite communicators, automotive GPS products, and dog tracking and training systems.
4. Expeditors International of Washington, Inc. (NYSE:EXPD)
Number of Hedge Fund Holders: 36
Market Cap: $20.3 billion
Enterprise Value: $19.6 billion
Expeditors International of Washington, Inc. (NYSE:EXPD) is one of the best debt-free dividend stocks to invest in.
On December 16, Stifel raised its price target on Expeditors International of Washington, Inc. (NYSE:EXPD) to $136 from $130 and kept a Hold rating. Looking toward 2026, the firm expects transport stocks to center on supply rationalization and cost-focused self-help. The analyst said positioning remains “more conservatively in high-quality names that preserve or even expand share in a mild pullback.”
Expeditors International of Washington, Inc. (NYSE:EXPD)’s service mix stays well-balanced. Airfreight accounts for 34% of revenue, ocean for 30%, and customs brokerage for 36%. That blend makes the company a key partner for customers across electronics, healthcare, automotive, and retail. Changing tariff rules bring pressure to global trade volumes, but they also raise supply chain complexity. That complexity often works in Expeditors’ favor, especially in areas like foreign trade zones and tariff-efficient restructuring.
Technology plays a meaningful role. The company’s platform, anchored by EXP.O NOW and supported by systems such as TMS and OMS, improves visibility and compliance. Tools like Tradeflow and Cargo Signal help customers make decisions in real time while staying connected to carriers around the world.
Still, technology is only part of the story. The company’s culture and people often stand out more. Teams are built around experience, accountability, and long-term retention. That approach tends to create durable client relationships and high switching costs. Management’s preference for organic growth over large acquisitions helps protect that culture and keeps the technology platform unified.
Expeditors International of Washington, Inc. (NYSE:EXPD) provides global logistics and supply chain services. It supports customers moving goods worldwide through air, ocean, and ground freight networks.
3. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 66
Market Cap: $166.6 billion
Enterprise Value: $165.1 billion
Accenture plc (NYSE:ACN) is among the best debt-free stocks to invest in.
On December 19, RBC Capital raised its price target on Accenture plc (NYSE:ACN) to $295 from $285 and kept an Outperform rating after the company’s Q1 earnings beat. The quarter came in strong. Overall bookings rose 10% year over year in local currency, while AI bookings increased about 22% from Q4, the analyst noted. RBC also nudged the target higher to reflect Accenture’s expanding AI partnership ecosystem, which it sees supporting long-term growth.
In other news, Accenture plc (NYSE:ACN) agreed to acquire Cabel Industry from the Fibonacci Group. The firm said the deal will strengthen its technology and solutions offering for financial institutions in Italy. Massimiliano Colangelo, Financial Services lead for Accenture in Italy and Greece, made the following statement:
“Combining Cabel Industry’s capabilities with Accenture’s existing AFAST assets will create important synergies for our clients and lead to a stronger platform for innovation and efficiency. We can further support financial institutions in their IT reinvention journeys—from core banking modernization to managed services—reinforcing our role as a trusted partner in the region.”
With the acquisition, Accenture expects to deepen its capabilities across banking and insurance, including credit management. It also plans to speed technology adoption among mid-market institutions. Cabel provides core banking platforms and managed IT services to mid-sized financial firms. The company employs about 200 professionals. Financial terms were not disclosed, and the transaction remains subject to customary closing conditions.
Accenture plc (NYSE:ACN) helps enterprises modernize by building digital foundations and applying AI across operations. The focus stays on delivering value at scale and speed across the organization.
2. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 78
Market Cap: $82.5 billion
Enterprise Value: $76.7 billion
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best debt-free stocks to invest in.
On December 12, Morgan Stanley analyst Terence Flynn raised the firm’s price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $768 from $767 and kept an Equal Weight rating. The firm expects many of the policy concerns that weighed on biopharma this year to fade in 2026. As those pressures ease, attention is likely to shift back to company fundamentals, the analyst said in a 2026 outlook note.
In other news, on December 23, the Ministry of Health, Labour and Welfare in Japan granted marketing and manufacturing authorization for Dupixent (dupilumab). The approval covers the treatment of bronchial asthma in children ages 6 to 11 with severe or refractory disease whose symptoms are not adequately controlled with existing therapies. This decision expands the earlier approval in Japan, which applied to patients 12 and older.
Dupilumab is being jointly developed by Sanofi and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) under a global collaboration agreement. To date, the drug has been studied in more than 60 clinical trials involving over 10,000 patients across multiple chronic conditions linked in part to type 2 inflammation.
Beyond current approvals, Sanofi and Regeneron continue to study dupilumab in a wide range of diseases driven by type 2 inflammation or other allergic processes. Phase 3 trials are underway in areas such as chronic pruritus of unknown origin, lichen simplex chronicus, and allergic fungal rhinosinusitis. These potential uses remain under investigation, and safety and efficacy for these indications have not yet been fully evaluated by regulators.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company focused on discovering, developing, and commercializing medicines for serious diseases, with an emphasis on translating science into treatments that can meaningfully change patients’ lives.
1. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 88
Market Cap: $379.4 billion
Enterprise Value: $370.3 billion
Costco Wholesale Corporation (NASDAQ:COST) is one of the best debt-free stocks that pay dividends.
On December 19, Wells Fargo analyst Edward Kelly lowered the firm’s price target on Costco Wholesale Corporation (NASDAQ:COST) to $900 from $1,000 and kept an Equal Weight rating. The firm sees a mixed setup for 2026 across the group, though opportunity remains. Wells is constructive on broadlines and food service. Fiscal and tariff-related trade activity is already in motion, and momentum looks sustainable through the first half of EPS revisions. Food retail appears more challenging, and company-specific drivers will matter more than sector trends.
Costco Wholesale Corporation (NASDAQ:COST)’s membership model continues to stand out. Renewal rates in the US and Canada have stayed above 90% quarter after quarter. That matters, since more than 700 of the company’s 923 warehouses are located in the US, Puerto Rico, and Canada. A large, stable member base provides clearer visibility into future earnings.
The company offers two membership tiers: Gold Star at $65 and Executive at $130. More members are choosing to upgrade. In the most recent quarter, executive memberships rose more than 9% from the prior year. That trend supports higher fee income and deeper customer engagement.
Costco Wholesale Corporation (NASDAQ:COST) now operates 923 warehouses worldwide, with roughly two-thirds in the US, its core market. Scale has not slowed growth. In fiscal Q1 2026, which ended November 23, net sales reached $66 billion. Management continues to invest for the long term, with plans to open 28 net new warehouses in fiscal 2026.
There is still room to grow domestically, and international markets offer additional upside. China remains an area of interest. That expansion path supports revenue growth in 2026 and beyond and helps explain why investors continue to focus on the durability of the model.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouse clubs with a simple goal of offering members strong value on quality, brand-name merchandise.
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