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.
8. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield: 3.61%
American Electric Power Company, Inc. (NASDAQ:AEP) is among the 10 best dividend stocks, picked from Jim Cramer’s recommendations. Raymond James has initiated coverage of the stock, giving it an Outperform rating alongside a price target of $115.
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the largest electric utility companies in the U.S., serving more than 5 million customers in 11 states. Headquartered in Ohio, the company utilizes multiple energy sources, including coal, natural gas, wind, solar, nuclear, and hydro, to generate and transmit electricity to its customers.
On June 5, 2025, the company finalized a partnership with KKR and PSP Investments. Jointly, these companies acquired a 19.9% equity interest in American Electric Power Company, Inc. (NASDAQ:AEP)’s Ohio and Indiana Michigan transmission companies for $2.82 billion. With this investment, the company aims to meet over 20 gigawatts of new power demand expected by 2030 across its footprint. American Electric Power Company, Inc. (NASDAQ:AEP) will maintain operational control.
A few days after this transmission investment, on June 13, 2025, Raymond James initiated coverage of American Electric Power Company, Inc. (NASDAQ:AEP), assigning the stock an Outperform rating and a $115 price target, thereby enhancing the company’s positive outlook.
On June 17, 2025, the company announced Rob Berntsen as the new EVP and General Counsel, effective July 14, 2025. The stock rating is yet to absorb this change in leadership.
American Electric Power Company, Inc. (NASDAQ:AEP) offers a dividend yield of 3.61%, potentially funded by its earnings as expressed with a payout ratio of 69.88%. Sixteen years of consecutive dividend growth signal a strong financial stability.
7. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield: 4.23%
Kinder Morgan, Inc. (NYSE:KMI) holds a place in our list of 10 best dividend stocks according to Jim Cramer. UBS has reiterated a Buy rating on the stock, with a price target of $38.
One of the largest energy infrastructures in North America, Kinder Morgan, Inc. (NYSE:KMI) owns and operates 83,000 miles of pipelines and 141 terminals. Based in Texas, the company transports a range of products, including natural gas, gasoline, crude oil, and CO2. Using its terminals, the company also stores and handles commodities like petroleum products, chemicals, and renewable fuels.
In April, Kinder Morgan, Inc. (NYSE:KMI) reported its Q1 2025 results, whereby it stated adding approximately $900 million to its project backlog. 70% of it is focused on serving power demand. Particularly, the company noted a record high demand for natural gas during the quarter, improving its outlook.
Following the company‘s progress, UBS reiterated a Buy rating on the stock on June 11, 2025. It maintained the rating further on June 16, 2025, with a price target of $38, indicating a strong confidence in the company’s performance ahead.
Kinder Morgan, Inc. (NYSE:KMI) offers a dividend yield of 4.23%, attracting income-seeking investors. However, the 99.14% payout ratio indicates that the company may not be retaining any earnings for investment. Paying dividends quarterly, the company has held 8 years of consecutive growth.
6. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield: 4.44%
The J. M. Smucker Company (NYSE:SJM) is one of the 10 best dividend stocks, picked from Jim Cramer’s recommendations. Jefferies reiterated a Buy rating for the stocks, maintaining the earlier adjusted price target of $115.
Ohio-based company, The J. M. Smucker Company (NYSE:SJM) is among the largest food and beverage manufacturers, primarily operating in North America. The company’s product portfolio includes coffee, pet food, peanut butter, fruit spreads, baking mixes, and frozen handheld items, among others. Operating through various brands like Folgers, Dunkin’, Café Bustelo, Jif, and Smucker’s, the company has enhanced its global presence.
On June 11, 2025, Jefferies upgraded The J. M. Smucker Company (NYSE:SJM)’s rating from Hold to Buy. Though the rating went up, the price target was adjusted from $118.00 to $115.00, reaching a 2.54% decrease.
On June 12, 2025, Director Tarang Amin purchased 1,050 shares of The J. M. Smucker Company (NYSE:SJM). Acquired at an average price of $96.09 each, the value of the total shares purchased by Amin stands at $100,894.50. The move was considered bold since, in addition to Jefferies, other investment managers like Stifel and Wells Fargo also lowered their price target on the company.
On June 14, 2025, Jefferies maintained their Buy rating on the stock without any changes to the price target, earlier iterated as $115.
For investors interested in the company’s dividend payments, The J. M. Smucker Company (NYSE:SJM)’s dividend yield stands at 4.44% and is backed by a payout ratio of 86.06% and 28 years of consecutive growth.
5. Chevron Corporation (NYSE:CVX)
Dividend Yield: 4.72%
Chevron Corporation (NYSE:CVX) holds a place among our list of 10 best Jim Cramer dividend stocks. On June 17, 2025, the company announced the closing of a transaction to acquire all equity interests in two subsidiaries of TerraVolta Resources and its investor, The Energy & Minerals Group.
The American multinational energy corporation, Chevron Corporation (NYSE:CVX) engages in the exploration and extraction of crude oil and natural gas. Headquartered in Texas, the company focuses on multiple aspects of the oil and gas industry, from production and refining to marketing and transportation.
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX) has completed the acquisition of 125,000 net acres in Northeast Texas and Southwest Arkansas from TerraVolta Resources and East Texas Natural Resources on June 17, 2025. With this acquisition, the company enters the domestic lithium sector, targeting the Smackover Formation known for its high lithium content.
The company plans to use direct lithium extraction (DLE), an advanced method with a smaller environmental footprint, to establish a lithium business with commercial value. Through the investment, Chevron Corporation (NYSE:CVX) could potentially support the growing demand for critical minerals essential for electrification.
With a payout ratio of 75.43%, indicating the company’s capabilities to handle the dividend payments, Chevron Corporation (NYSE:CVX) offers a dividend yield of 4.69%. The increase in dividends for 38 consecutive years further makes the stocks appealing to investors looking for less risky, long-term, stable income.
4. Realty Income Corporation (NYSE:O)
Dividend Yield: 5.57%
Realty Income Corporation (NYSE:O) is one of the 10 best dividend stocks, according to Jim Cramer. Stifel Nicolaus reiterated a Buy rating on the company, following an announcement on Notes offering valued at €1.3 billion.
Realty Income Corporation (NYSE:O), based in California, is a real estate investment trust (REIT) that acquires and manages freestanding, single-tenant commercial properties. The company’s focus is on those properties leased to retail clients under long-term net lease agreements. Known for paying monthly dividends, the company aims to offer a steadily growing monthly income stream.
On June 11, 2025, the company announced an agreement to issue €1.3 billion in notes. As per the agreement, Realty Income Corporation (NYSE:O) will offer €650 million of 3.375% senior unsecured notes due June 20, 203, and €650 million of 3.875% senior unsecured notes due June 20, 2035. The company intends to use the net proceeds from these Notes offerings for general corporate purposes, including the repayment or repurchase of the company’s debts.
Following the announcement, Stifel Nicolaus reiterated a Buy rating on the stock, pointing out that the Notes will reduce the dilution from the repayment.
The dividend yield of 5.57%, supported by a consecutive growth of 25 years, makes the stock attractive to investors seeking consistent income. Currently, the company’s payout ratio stands at 283.37%.
3. Vail Resorts, Inc. (NYSE:MTN)
Dividend Yield: 5.71%
Vail Resorts, Inc. (NYSE:MTN) is among the 10 best dividend stocks, picked from Jim Cramer’s recommendations. The company received a Hold rating from Morgan Stanley, with a price target of $146.
Headquartered in Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resort company that owns and operates a network of resorts, hotels, and real estate properties across the globe. The company provides experience related to skiing, snowboarding, and other mountain-based activities. Additionally, it also offers lodging and retail services to its customers.
Vail Resorts, Inc. (NYSE:MTN) held its Q3 earnings call earlier this month. The company reported a 3% growth in resort-reported EBITDA year-to-date and a 4% increase in season pass revenue. However, the lower-than-expected lift ticket visitation, in addition to one-time costs related to Rob Katz’s succession to Kirsten Lynch as the company’s CEO, has caused the company to adjust its fiscal 2025 guidance.
Following the earnings call, Morgan Stanley has given a Hold rating for the stock, with a price target of $146. The company’s share price when closing on Tuesday was $155.76.
With a dividend yield of 5.71%, Vail Resorts, Inc. (NYSE:MTN) gains a position on our list. Though the payout ratio of 113.12% highlights riskiness, 4 years of consecutive dividend growth keep the stock appealing to income-seeking investors.
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield: 6.28%
Verizon Communications Inc. (NYSE:VZ) is one of the 10 best dividend stocks, picked from Jim Cramer’s recommendations. Raymond James maintains a Buy rating, following the network slice in more than 20 new markets and an announcement of the initiation of private exchange offers for ten series of its outstanding notes.
Headquartered in New York, Verizon Communications Inc. (NYSE:VZ), the second largest communications technology company in the U.S., offers a range of services, including wireless and wireline communications. With over 146 million subscribers as of March 31, 2025, the company has the largest wireless network in the U.S. while also having established a strong presence in Europe, the Middle East, Africa, and the Asia-Pacific region.
The company launched its network slice for first responders coast-to-coast in more than 20 markets earlier in April. Recently, on June 12, 2025, Verizon Communications Inc. (NYSE:VZ) announced the launch of its slice in 20+ new markets. Reaching together a total of 50 markets, the company has officially made the service available nationwide alongside 5G Ultra-Wideband service.
On the same day, Verizon Communications Inc. (NYSE:VZ) also announced initiating private exchange offers for ten series of its outstanding notes. Exchanging them for newly issued debt securities, the company intends to optimize its debt structure and improve financial stability.
On June 17, 2025, Raymond James reiterated the Buy rating for the stock while maintaining the price target of $47.
The dividend yield offered by the company stands attractively at 6.28% while the payout ratio is maintained at 64.23%, signaling sustainability in the dividend payments. Investors purchasing stock before July 10, 2025, will benefit from the dividend payment on August 1, 2025.
1. Dow Inc. (NYSE:DOW)
Dividend Yield: 9.29%
Dow Inc. (NYSE:DOW) holds a place among our list of 10 best dividend stocks according to Jim Cramer. On June 11, 2025, Citi reaffirmed its Hold rating on the stock but has adjusted the price target from $29 to $30.
Headquartered in Michigan, Dow Inc. (NYSE:DOW) is one of the world’s leading manufacturers and suppliers of chemicals, plastics, and sealants. The company’s products and services are used in multiple sectors, including packaging, infrastructure, mobility, and consumer care. With manufacturing sites in 31 countries, the company is a heavy investor in R&D with a special focus on areas like energy efficiency, sustainable packaging, and mobility.
Citi’s Hold rating and the price target adjustment on the stock arrive after a Canadian court order ordered Nova Chemicals to pay Dow Inc. (NYSE:DOW) an additional amount of $1.2 billion in damages. The judgment, arrived on June 10, was in relation to losses incurred by the company from a jointly owned ethylene asset in Joffre, Alberta, Canada. The judgment translated positively among the market experts, particularly after a fall in stock price on June 2, 2025, following the sale of 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş.
Dow Inc. (NYSE:DOW) offers a dividend yield of 9.29%, thereby attracting investors seeking high and consistent income. However, the payout ratio of over 700% signals caution when investing in the stock.
While we acknowledge the potential of DOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOW and that has 100x upside potential, check out our report about the cheapest AI stock.
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