In this article, we will take a look at some of the best dividend stocks to buy and hold forever.
In recent years, many investors have shifted from dividend-paying stocks to high-growth companies that usually do not pay dividends. However, history shows the importance of dividends. According to AGF Investments, if one dollar had been invested in the market in 1927 without reinvesting dividends, it would be worth $243 today. That same dollar, if dividends were reinvested, would be worth $3,737, showing the powerful impact of dividends on long-term returns.
Due to this potential for steady earnings and income, dividend stocks often attract investors when markets become volatile. While these stocks may not always outperform the broader market, analysts remain hopeful about their future. A report from J.P. Morgan suggested that global equities are entering a period of strong dividend growth. This trend is driven not only by a rebound in payouts but also by rising long-term momentum. Over the last 20 years, global dividends per share grew at 5.6% annually. Analysts expect this growth rate to rise to 7.6%, largely because of currently low payout ratios. Many companies cut dividends in 2020 during the COVID-19 crisis, causing a 12% global drop, which was even sharper than during the Global Financial Crisis. These cuts were a logical response to an uncertain situation.
Given this, we will take a look at some of the best dividend stocks to buy and hold forever.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
For this list, we scanned through various credible sources, including Business Insider, Forbes, Morningstar, and Barron’s, and identified their consensus picks from their recent articles. Next, we sorted these companies based on the number of hedge funds in Insider Monkey’s database that owned stakes in these companies, as of Q1 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. MSA Safety Incorporated (NYSE:MSA)
Number of Hedge Fund Holders: 28
MSA Safety Incorporated (NYSE:MSA) is an American company that produces and supplies safety equipment used in high-risk environments such as construction, firefighting, the military, and the chemical, oil, and gas industries.
In recent years, MSA Safety Incorporated (NYSE:MSA) has increasingly focused on software, with nearly half of its engineering team now dedicated to software development. This transformation has allowed it to become more integrated into its customers’ daily operations by providing real-time data and predictive analytics that enhance safety and decision-making, without driving up manufacturing costs. Alongside this internal shift, the company has followed a strategic acquisition approach, bringing companies like Bacharach and BTQ into its portfolio to strengthen its presence in related safety sectors.
MSA Safety Incorporated (NYSE:MSA) is a strong dividend stock. On May 2, the company declared a 3.9% hike in its quarterly dividend to $0.53 per share. Through this increase, the company achieved its 55th consecutive year of dividend growth, which makes it one of the best dividend stocks. MSA offers a dividend yield of 1.19%, as recorded on July 31.
9. Graco Inc. (NYSE:GGG)
Number of Hedge Fund Holders: 30
Graco Inc. (NYSE:GGG) is an American industrial firm that focuses on designing and producing fluid-handling systems and equipment. The company reported strong earnings in the second quarter of 2025. Its revenue came in at $571.8 million, which showed a 3.3% growth from the same period last year.
However, Graco Inc. (NYSE:GGG) experienced a decline in organic sales within its Contractor segment, primarily due to weakness in the North American construction sector, cautious spending by distribution channels and contractors, and decreased customer traffic in home improvement stores. This downturn in organic revenue was largely concentrated in the Americas, while the EMEA and Asia Pacific regions reported volume growth. Meanwhile, sales of powder finishing equipment remained strong during the quarter, supported by increased activity in the Chinese market.
Graco Inc. (NYSE:GGG)’s cash position for FY25 remained strong. YTD, the company generated an operating cash flow of $308 million, which was up by $50 million from the prior-year period. Due to this consistent cash position, GGG was able to raise its payouts for 24 consecutive years, which makes it one of the best dividend stocks to buy and hold. The company currently pays a quarterly dividend of $0.275 per share and has a dividend yield of 1.31%, as of July 31.
8. Atmos Energy Corporation (NYSE:ATO)
Number of Hedge Fund Holders: 31
Atmos Energy Corporation (NYSE:ATO) is one of the best dividend stocks to buy and hold. The Texas-based natural gas distribution company focuses on providing safe and reliable natural gas services and invests heavily in infrastructure upgrades and safety programs.
In its fiscal Q2 2025 earnings, Atmos Energy Corporation (NYSE:ATO) highlighted that as part of its regulatory strategy, the company had implemented $153.2 million in regulatory initiatives by May 7, 2025, or $154.0 million when adjusted for excess deferred tax amortization. An additional $389.1 million worth of initiatives is currently underway. The company maintains a strong balance sheet, supported by approximately $5.3 billion in available liquidity and $1.0 billion in financing to sustain operations. It also issued $650 million in 30-year senior notes with a 5.00% interest rate and settled $380 million in equity forwards. As of March 31, 2025, the company’s equity capitalization stood at 61%.
Due to its solid balance sheet, Atmos Energy Corporation (NYSE:ATO) has grown its dividends for 41 consecutive years. The company currently pays a quarterly dividend of $0.87 per share and has a dividend yield of 2.23%, as of July 31.
7. Expeditors International of Washington, Inc. (NYSE:EXPD)
Number of Hedge Fund Holders: 40
Expeditors International of Washington, Inc. (NYSE:EXPD) is an American logistics firm that offers a broad range of services, including air and ocean freight, customs brokerage, and other logistics solutions.
In its first-quarter earnings report for 2025, Expeditors International of Washington, Inc. (NYSE:EXPD) noted year-over-year growth in both air tonnage and ocean volumes, attributing the performance to the dedication of its global teams amid a highly challenging market environment. The company also mentioned that brokerage teams for their exceptional efforts in navigating a volatile landscape marked by tariffs, shifting geopolitical dynamics, and other disruptions that prompted shippers worldwide to reassess risks within their supply chains.
Expeditors International of Washington, Inc. (NYSE:EXPD)’s cash position also remained strong during the quarter. The company generated $343 million in operating cash flow and also returned $177 million to shareholders. It currently offers a quarterly dividend of $0.77 per share, having raised it by 5.5% in May this year. This marked the company’s 31st consecutive year of dividend growth, which makes EXPD one of the best dividend stocks to buy and hold. The stock has a dividend yield of 1.32%, as of July 31.
6. Genuine Parts Company (NYSE:GPC)
Number of Hedge Fund Holders: 41
Genuine Parts Company (NYSE:GPC) runs several distribution and retail brands that specialize in automotive and industrial parts and components. Together, the company operates more than 10,700 locations around the world, including distribution centers, service centers, and retail outlets.
Its two main business segments, automotive and industrial, benefit from consistent demand. Genuine Parts Company (NYSE:GPC) is also expanding into fast-growing areas such as electric vehicle parts and services for commercial fleets. With a strong international presence and continued investment in digital infrastructure and research and development, Genuine Parts is well-positioned for long-term growth.
Over the past ten years, Genuine Parts Company (NYSE:GPC) has increased its dividend by an average of about 5% annually, suggesting a similar pace of growth may continue. The company holds one of the longest dividend growth streaks in the market, spanning 69 years. Currently, it pays a quarterly dividend of $1.03 per share and has a dividend yield of 3.20%, as of July 31.
5. Roper Technologies, Inc. (NASDAQ:ROP)
Number of Hedge Fund Holders: 45
Roper Technologies, Inc. (NASDAQ:ROP) is a group of technology businesses that hold strong positions in specialized niche markets. Its portfolio includes application software, network software, and technology-enabled products, all designed to deliver essential solutions that become deeply integrated into customers’ operations. These offerings typically lead to high switching costs and generate steady, recurring revenue.
In the second quarter of 2025, Roper Technologies, Inc. (NASDAQ:ROP) reported a 13.2% increase in revenue, driven by 7% organic growth and a 6% boost from recent acquisitions. GAAP net earnings rose by 12%. Management pointed to balanced growth across all major segments, crediting strong product innovation, successful integration of past acquisitions, and ongoing demand for recurring software solutions.
Roper Technologies, Inc. (NASDAQ:ROP) has garnered investor attention because the company has a strong dividend policy. On June 11, the company declared a quarterly dividend of $0.825 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 33 consecutive years, which makes ROP one of the best dividend stocks to buy and hold. The stock has a dividend yield of 0.60%, as of July 31.
4. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is a well-established defense contractor with long-term agreements covering a wide range of products, including fighter jets, aircraft, missiles, weapons systems, helicopters, and satellite-based space systems.
In the second quarter of 2025, Lockheed Martin Corporation (NYSE:LMT) posted mixed financial results. Net profit for the period ending June 29 stood at $342 million, reflecting a decline of nearly 80% due to a $950 million loss tied to a classified program. Despite this setback, Lockheed Martin expects its free cash flow for the year to reach at least $6.6 billion, more than twice the amount it distributes in cash dividends.
Lockheed Martin Corporation (NYSE:LMT) remained committed to its shareholder obligation, returning $1.3 billion to investors through dividends in the most recent quarter. In addition, the company has raised its payouts for 22 years in a row and currently offers a quarterly dividend of $3.30 per share. With a dividend yield of 3.14% as of July 31, LMT is among the best dividend stocks to buy and hold.
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The Procter & Gamble Company (NYSE:PG) is a familiar name found on the shelves of nearly every store, with a portfolio that includes well-known household brands such as Tide, Pampers, Gillette, Old Spice, Swiffer, Cascade, and Dawn. While the products themselves— ranging from cleaning supplies to personal care items— aren’t particularly unique, the company’s strength lies in its brand recognition and the premium shelf placement its products receive.
These everyday essentials are used regardless of economic conditions, giving The Procter & Gamble Company (NYSE:PG) a level of resilience that has helped it consistently raise its dividend year after year for 69 years. Over the past decade, it has increased its dividend by an average of just under 5% annually, reflecting its steady and reliable growth approach.
The Procter & Gamble Company (NYSE:PG) offers a quarterly dividend of $1.0568 per share and has a dividend yield of 2.81%, as of July 31.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational healthcare and insurance company. The company is facing short-term challenges, mainly due to rising medical costs, especially in its Medicare Advantage plans. To address this, the company plans to raise premiums— some of which will take effect next year—while also tightening provider networks and improving cost controls. Its Optum segment is also undergoing changes, including pricing adjustments and reducing patient volume.
In addition, UnitedHealth Group Incorporated (NYSE:UNH) is rolling out cost-cutting measures and expanding the use of AI to improve efficiency. Despite current issues, the company expects to return to earnings growth in 2026, with further acceleration in 2027. Former CEO Stephen Hemsley is back at the helm, bringing experienced leadership during this transition.
UnitedHealth Group Incorporated (NYSE:UNH) is a solid dividend company. In June, the company declared a 5.2% hike in its quarterly dividend to $2.21 per share. This was the company’s 15th consecutive year of dividend growth, which makes it one of the best dividend stocks to invest in. The stock has a dividend yield of 3.54%, as of July 31.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is among the best dividend stocks to buy and hold. The company is embracing AI to stay ahead, launching its Intelligent Commerce platform that uses AI agents for shopping, digital credentials, and personalized payment insights. It’s working with top tech firms like OpenAI and Microsoft, and has upgraded its Authorize.net platform with AI features. Visa also acquired AI-based fraud detection firm Featurespace to boost security.
On the financial side, Visa Inc. (NYSE:V) is a strong dividend stock with 17 years of consecutive increases and a low 18.5% payout ratio. As a payment processor, it profits from card usage without lending risk, making it a reliable stock in any economy. Over the past decade, the company has delivered an impressive annualized dividend growth rate of 17%. While recent increases have been slightly more modest, the one-, three-, and five-year growth rates all remain above 10%, making Visa a strong pick for dividend growth investors.
On July 29, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. As of July 31, the stock has a dividend yield of 0.68%.
While we acknowledge the potential of V 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 V and that has 100x upside potential, check out our report about this cheapest AI stock.
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