In this article, we will be looking at the 10 best dividend stocks from Jim Cramer’s choices.
The market has been wobbling a lot lately. Stress testing the investor confidence is the $22 billion 30-year Treasury bond auction that grabbed the attention of Wall Street. As per a CNN report, weak demand could send yields soaring, squeezing government borrowing costs, and potentially hiking rates on everything from car loans to credit cards.
The nervousness, backed by Moody’s recent US credit downgrade, has investors questioning the risk-free label of long-term US debt. Short-term bonds are seeing solid demand while the 30-year auction signals anxieties regarding the structural US fiscal outlook. John Canavan, lead US analyst at Oxford Economics, has made the following statement.
“Trump’s tariff decisions are likely to raise inflation over the near term, while lowering economic growth and leading foreign investors to question the safe-haven allure of Treasury debt.”
The increasing market volatility has enhanced the attractiveness of dividend-paying stocks, which offer a steady stream of income. Though fluctuating, the forward dividend yield of the large caps composing the market indices consistently offers an income stream, outperforming many bonds.
But what to choose? To answer this, we seek the expertise of Jim Cramer, the host of Mad Money on CNBC and a former hedge fund manager. We have put together a list of 10 dividend stocks, hand-picked from Cramer’s suggestions, and sorted based on dividend yield, for investors interested in peppering their portfolio with steady-income stocks.
Stay with us as we count down the picks on our list. The top 5 might make it into your portfolio.
Our Methodology
When putting together our list, we followed a few criteria. Primarily, we took into consideration the suggestions made by Jim Cramer. To optimize the list, we set the minimum dividend yield as 2.5%. Only those stocks above this percentage were included in our list. The stocks are ranked based on their dividend yield. All the information provided in this article is gathered from credible sources and updated as of June 17, 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. The Home Depot, Inc. (NYSE:HD)
Dividend Yield: 2.53%
The Home Depot, Inc. (NYSE:HD) has earned a spot in our list of 10 best dividend stocks according to Jim Cramer. TD Cowen reiterated a Buy rating for the company, with a price target of $470.
The American multinational home improvement retail corporation, The Home Depot, Inc. (NYSE:HD) carries on the business of selling tools, construction products, and appliances. The company also offers some services, including fuel and transportation rentals. Headquartered in Georgia, the company is the largest home improvement retailer in the U.S.
The company’s share price has fallen this week, following the White House’s instructions to ICE, which disrupted The Home Depot, Inc. (NYSE:HD)’s day-to-day business. In an article published on June 11, 2025, The Wall Street Journal reported that ICE was instructed to target the retail giant’s parking lots as part of President Trump’s immigration crackdown. The directive disrupts a long-standing informal labor relationship.
On June 12, 2025, TD Cowen noticed an opportunity and hence reiterated the Buy rating on the stock, encouraging interested investors to purchase the stock when it is available at its lowest.
Meanwhile, for those interested in the stable income of The Home Depot, Inc. (NYSE:HD), the company offers a dividend yield of 2.53%, which it meets with a payout ratio of 61.44%. June 18, 2025, marks the 153rd consecutive quarter of dividend payments.
9. Diamondback Energy, Inc. (NASDAQ:FANG)
Dividend Yield: 3.51%
Ranking among our list of 10 best dividend stocks according to Jim Cramer, Diamondback Energy, Inc. (NASDAQ:FANG) amended its Credit Agreement with Wells Fargo Bank on June 12, 2025. With the interest rates and certain fees reduced, the maturity date has been postponed to June 12, 2030.
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company, engaged in the business of hydrocarbon exploration. The focus of the company is on acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.
With a market cap of $43.55 billion, Diamondback Energy, Inc. (NASDAQ:FANG) has announced an extension to its credit agreement on Thursday. The company’s existing credit facility had a maturity date of June 2, 2028. By successfully amending its credit terms with its lenders, the company has managed to extend the maturity date to June 12, 2030. The company’s subsidiary, Viper Energy, saw its board approve a 10% increase in base dividends after a $4.1 billion all-stock acquisition of Sitio Royalties Corp.
Following these developments, Wells Fargo reiterated their Buy rating for the stock on June 16, 2025, with a price target of $208.
Diamondback Energy, Inc. (NASDAQ:FANG) offers a dividend yield of 3.51%, with a payout ratio of 38.62%, signaling a self-sufficiency in meeting the dividend obligations. The company has had a consistent dividend payment record since 2018.
