10 Best Dividend Stocks According To Jim Cramer

Published November 14, 2023 at 4:05 pm EST Updated September 7, 2026 at 12:07 pm EDT

In this article, we will take a look at the 10 best dividend stocks according to Jim Cramer.

US stocks jumped on November 10, a day after the markets broke one of the longest streaks of gains. Talking about the stock market declines on November 9, Jim Cramer on his program said that a few days of market declines does not mean that the market will stay in the red. However, Cramer emphasized that investors need to practice a lot of caution to pick stocks that actually make money. He gave the example of Intel and Microsoft which remained strong in the 90s when inflation was high. Cramer said that today the Magnificent Seven group of stocks (which MSFT is a part of) is gaining because their fundamentals are strong. Cramer emphasized that MSFT remains strong because it’s actually making money from AI and it’s not just a false hope or hype.

Overall, the market sentiment is expected to waver in the coming days. A latest report by University of Michigan shows a worsening consumer sentiment. The report said that the long-term economic outlook tanked in November amid effects of interest rates and wars in Palestine and Ukraine, among other factors. The report also noted that long-term inflation expectations of consumers jumped to new highs since 2011 as consumers now expect inflation at 3.2% over the next five years, significantly higher than the Fed’s target of 2%. Analysts believe this new report will be an important point for the Fed in the days to come as it charts its path regarding rate hikes. The Federal Reserve has already made it clear time and again that it won’t hesitate to up interest rates if needed.

In this environment dividend stocks could become relevant again. Dividend stocks haven’t been as attractive in 2023 so far as they were in 2022, thanks in part to the rise in risk appetite fueled by the AI rally. But recession calls are creeping back in the market again and amid the expected doom and gloom investors are expected to pile into stable dividend-paying equities to hedge against inflation. In this backdrop it’d be interesting to see which dividend stocks Jim Cramer likes.

Best Dividend Stocks Picks of Jim Cramer

Methodology

For this article we went through Jim Cramer’s recent programs on CNBC and picked dividend stocks he’s bullish on. Cramer likes some of these stocks solely for their dividends while others he is bullish on for a variety of reasons which we’ve briefly touched upon in each section. Jim Cramer is a fan of high dividend yields but he also gives huge importance to fundamentals and growth. Cramer has been recommending investors to stay away from money-losing companies this entire year and has been recommending solid stocks that are stable and are not prone to waver when markets decline. Some top dividend picks of Cramer include The Procter & Gamble Company, Costco Wholesale Corporation (NASDAQ:COST) and Walmart Inc. (NYSE:WMT).

Best Dividend Stocks According To Jim Cramer

10. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 24

Earlier this month, Jim Cramer, while answering a question about a dividend stock, recommended Realty Income Corporation (NYSE:O) and praised the stock’s yield. Realty Income Corporation recently posted third quarter results. FFO in the period came in at $1.04, beating estimates by $0.02. Revenue in the period jumped 24.2% year over year to $1.04 billion, surpassing estimates by $84.22 million.

As of the end of the second quarter of 2023, 24 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Realty Income Corporation. The biggest stakeholder of Realty Income Corporation was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $59 million stake in the company.

Unlike The Procter & Gamble Company, Costco Wholesale Corporation and Walmart Inc., Realty Income is a monthly dividend stock.

Answering a question during Q3 earnings call, Realty Income Corporation’s CEO Sumit Roy said the following about his expectations for 2024:

“I think if you look at where we are today and you look a year ahead in 2024, we believe that without having to rely on the equity capital markets, we’ll be able to deliver approximately 4% to 5% AFFO per share growth. And that is a pretty powerful statement to make and that obviously assumes that the Spirit transaction closes either in the first month, either in January or in February. And with just the free cash flow that we are going to generate pro forma, which is going to be right around $800 million, some of the headwinds that we are going to experience in the refinancing, absorbing all of that to be able to sit here today and say that we could deliver that growth without having to raise $1 of equity.

I think it’s a very good place to be. And so when I said about being hyper selective, what has happened more recently is that the cost of capital has moved so dramatically, so quickly that the cap rates haven’t had a chance to sort of adjust. And so we find ourselves in this – like I said in the second quarter, we had about 135 basis points of spread. And then in this quarter we have 105 basis points of spread. It’s a tough environment to be in when we are entering into transactions six months, seven months in advance of closing a transaction and the cap rate environment – I mean the cost of capital environment changes and when you are permanently financing it, it sort of eats into what you had originally underwritten. That is what I meant when I said, we want to be hyper selective because we want to help drive the cap rates out to help accommodate for these unforeseen movements in the cost of capital.”

Read the full earnings call transcript here.

9. The Clorox Company (NYSE:CLX)

Number of Hedge Fund Holders: 34

Consumer products company The Clorox Company (NYSE:CLX) ranks 9th in our list of the best Jim Cramer dividend stock picks. Answering a question about The Clorox Company on his program, Cramer said he would own the stock and praised the company’s management. He said The Clorox Company has found a bottom and the recently reported quarter was “OK.” The stock has a dividend yield of 3.6%. Earlier this month, UBS upgraded The Clorox Company to Neutral from Sell, adding that the stock’s risk/reward ratio is now balanced.

A total of 34 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in The Clorox Company as of the end of the second quarter of 2023.

8. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 42

Jim Cramer recently said in a program that U.S. Bancorp (NYSE:USB) is undervalued and he also praised the stock’s high dividend yield of over 6%. Cramer also said that he was beginning to like U.S. Bancorp because he believes the Fed might be “done” with the rate hikes for now.

In October U.S. Bancorp posted Q3 results. Adjusted EPS in the quarter came in at $1.05, surpassing estimates by $0.05. Revenue in the quarter jumped 11.1% year over year to $7.03 billion, beating estimates by $10 million.

As of the end of the second quarter of 2023, 42 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in U.S. Bancorp. The biggest stakeholder of U.S. Bancorp was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $300 million stake in the company.

Here is what Davis New York Venture Fund has to say about U.S. Bancorp in its Q3 2023 investor letter:

“In spring 2023, a number of high-profile regional banks, none of which we owned, collapsed over the course of a few weeks. In contrast, the select, large banks we own, including U.S. Bancorp, actually saw deposit inflows and increasing profits, reinforcing our thesis that high-quality financial services companies remain among the most misunderstood and attractive sectors of the market. This stress test models a dramatic recession—one meaningfully worse than the great financial crisis of 2008-2009. It includes a 3.5% decline in gross domestic product, a 10% unemployment rate, a 37% decline in residential real estate, a 40% decline in commercial real estate and a 55% decline in the stock market. The resilience and strength required to weather such an economic storm combined with proven economies of scale in branding and technology should drive DNYVF market share gains and growth for years to come. Trading at some of the lowest valuations in the market, our financial sector holdings—such as U.S. Bancorp, deserve to be revalued upwards over time. In the meantime, increasing dividends and a shrinking share base create value while we wait.”

7. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 48

Jim Cramer recently disclosed during one of his programs on CNBC that Constellation Brands, Inc. (NYSE:STZ) is part of his charitable trust’s portfolio. He recommended Constellation Brands, Inc. while answering a question about Diageo, which he recommends to stay away from. Constellation Brands, Inc. has a dividend yield of 1.49%.

Of the 910 funds tracked by Insider Monkey, 48 hedge funds had stakes in the Constellation Brands, Inc.. The biggest hedge fund stakeholder of Constellation Brands, Inc. was Brandon Haley’s Holocene Advisors which owns a $196 million stake in the company.

6. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 51

Jim Cramer in September said that International Business Machines Corporation (NYSE:IBM) is a very “inexpensive” stock and it is “off to the races.” Cramer was commenting on RBC Capital’s initiation of International Business Machines Corporation stock coverage with a Buy rating. RBC Capital set a price target of $188 on International Business Machines Corporation. International Business Machines Corporation stock has a dividend yield of over 4%.

As of the end of the second quarter of 2023, 51 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in International Business Machines Corporation.

Earlier in November International Business Machines Corporation announced that it was launching a $500 million venture fund focused on AI.

Like IBM, The Procter & Gamble Company, Costco Wholesale Corporation and Walmart Inc. are among the top dividend picks of Jim Cramer.

Diamond Hill Long-Short Fund made the following comment about International Business Machines Corporation in its Q4 2022 investor letter:

“New positions initiated in Q4 included shorts International Business Machines Corporation, Acushnet Holdings (GOLF) and elf Beauty (ELF). Since diversified information technology company IBM’s 2019 acquisition of Red Hat, the company has aggressively pursued a hybrid cloud strategy. Though IBM and its new management team have made solid progress on this pivot, we believe the company still meaningfully lags the cloud hyperscalers and other cloud-native companies. Management has also laid out aggressive long-term targets for revenue growth and free cash flow, both of which we believe the company will struggle to achieve as it faces intense competition in its hybrid cloud business and structural headwinds in the company’s legacy businesses.”

5. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 55

Jim Cramer recently said in a program that Cisco Systems, Inc. (NASDAQ:CSCO) is a Buy. He said that Cisco Systems, Inc. was recently getting Sell ratings after the company bought Splunk since Splunk was the biggest competitor of Datadog. Cramer however said these concerns were unfounded. Cramer was referring to an overall skepticism in the industry around Cisco Systems, Inc.’s deal to buy Splunk. For example, Needham analyst Alex Henderson said in a note that the acquisition of Splunk will not solve Cisco Systems, Inc.’s problems. The analyst thinks Cisco Systems, Inc. has a “poor” track record handling synergies in the past.

Cisco Systems, Inc. stock has a dividend yield of 3%.

A total of 55 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Cisco Systems, Inc.. The most significant stake in Cisco Systems, Inc. was owned by Cliff Asness’s AQR Capital Management which owns a $568 million stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about Cisco Systems, Inc. in its Q2 2023 investor letter:

“Cisco Systems, Inc. (NASDAQ:CSCO), which provides IT and networking services in the form of network security, software development and cloud computing, traded down as enterprise customers showed signs of tightening their IT spending budgets and news of cybersecurity concerns, even while it beat expectations and raised its full-year guidance. Concerns over increased competition and share loss in its core verticals led us to exit our position during the quarter as we made several moves to add to existing higher-conviction holdings or initiate new positions that we find more compelling in the long term.”

4. Blackstone Inc. (NYSE:BX)

Number of Hedge Fund Holders: 60

Answering a question about Blackstone Inc. (NYSE:BX) in a Lightning Round on his program, Jim Cramer recently praised Blackstone Inc.’s management and said that he “likes” to “invest” with them. He added that Blackstone Inc. has come down enough but he is not as concerned as he was once. Over the past one year the stock has lost about 6% but on a year-to-date basis Blackstone Inc. is up about 27%.

Hedge funds are also piling into Blackstone Inc.. As of the end of the second quarter of 2023, 60 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Blackstone Inc., up from 45 hedge funds in the previous quarter. The biggest stakeholder of Blackstone Inc. was Thomas Steyer’s Farallon Capital which owns a $284 million stake in the company.

Ithaka US Growth Strategy made the following comment about Blackstone Inc. in its Q3 2023 investor letter:

“Blackstone Inc. is one of the world’s leading alternative asset management firms with total Assets Under Management now in excess of $1 trillion. Over the past few decades Blackstone has evolved into one of the financial service industry’s largest asset gatherers, managing money on behalf of pension funds, insurance companies, and individual investors. The company remains at the forefront of financial innovation, broadening its product offering through time. Today, Blackstone invests clients’ capital across four business segments: (a) Real Estate, (b) Private Equity, (c) Hedge Fund Solutions, and (d) Credit & Insurance. The stock’s relative outperformance in the quarter was in part due to the announcement in early September that it would be added to the S&P 500.”

3. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

Last month Jim Cramer talked about how Costco Wholesale Corporation was falling even after receiving several price target boosts. Cramer said Costco Wholesale Corporation fell because the company did not offer any special dividend and did not announce price hikes for members. Earlier this year Cramer disclosed that Costco Wholesale Corporation was part of his charitable trust’s portfolio. He said at the time that Costco Wholesale Corporation’s problems would be resolved in a couple of months.

Earlier this month Costco Wholesale Corporation said its net sales in October jumped 4.5% year over year to $18.53 billion from $17.73 billion reported last year.

Cooper Investors made the following comment about Costco Wholesale Corporation in its Q3 2023 investor letter:

“With the market rally in the first half of 2023 driving double digit returns we took the opportunity early in the quarter to reassess Value Latency embedded in the portfolio. The spotlight was on more highly valued stocks that represent some of our longest held positions and among the better performers over the years. The outcome is that we have exited several long-term positions at what we consider attractive prices, where the balance of Risk Adjusted Value Latency was no longer in our favour.

We remain admirers of these businesses and they remain on our watchlist, but the reality is their appeal is widely recognised today. Management have executed well on earnings growth, but returns have also come from substantial multiple re-ratings that we see as unlikely to reoccur from today’s higher base.

Costco Wholesale Corporation (NASDAQ:COST) was acquired in March 2015 at ~$150 and has more than tripled over its holding period to ~$550 today, delivering a total return with dividends reinvested of ~330% in USD or IRR of 20%. Over the journey the multiple re-rated from 25 times to ~35 times.”

2. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 74

Jim Cramer has long been a fan of The Procter & Gamble Company. In October the analyst counted The Procter & Gamble Company among the names to own if the economy enters a recession. Cramer said that The Procter & Gamble Company was a “textbook slowdown stock” to own that will grow even if the economy slows down.

Jim Cramer also believes The Procter & Gamble Company is among the best of breed stocks. Read more on Cramer’s best of breed picks here.

ClearBridge Sustainability Leaders Strategy made the following comment about The Procter & Gamble Company in its Q2 2023 investor letter:

“Reinforcing defensive exposure and pushing our consumer staples positioning from underweight to overweight the benchmark, we added The Procter & Gamble Company, a leading consumer products company with leading franchises in a variety of stable categories, including fabric care, baby, beauty and health. It is a high-quality company with a track record of superior growth, market share gains and attractive returns on capital. It also has defensive attributes when economic conditions deteriorate. Procter & Gamble is a sustainability leader with a demonstrated commitment to addressing environmental and social objectives in how it manages the business, and it has above-average corporate governance practices. Many Procter & Gamble products have a positive impact by promoting hygiene, self-care or health.”

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 81

Jim Cramer yet again praised Walmart Inc. in a recent program and said he “likes” Walmart. This isn’t the first time the analyst has recommended Walmart Inc.. Earlier this year Cramer had praised Walmart Inc.’s first quarter results and said the company posted just an “excellent quarter.” Jim Cramer also thinks Walmart Inc. could defeat Amazon. In early 2023 he talked about Walmart Inc.’s advantage over other retailers due to its size.

A total of 81 hedge funds tracked by Insider Monkey reported owning stakes in Walmart Inc. as of the end of the second quarter of 2023. The most significant stakeholder of Walmart Inc. was D. E. Shaw which had an $862 million stake in the company.

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