In this article, we will take a look at some of the best dividend stocks to buy in August.
Dividend investing may seem straightforward, but it actually involves detailed analysis and a long-term outlook. These types of stocks are often favored by experienced investors because of their strong performance during economic downturns. Over time, dividend growth stocks have typically outpaced other asset classes during periods of market stress.
While many investors hold dividend stocks for steady income and long-term gains, others try to profit quickly using a method called the dividend capture strategy. This approach involves purchasing a stock just before it pays a dividend and then selling it shortly after receiving the payout. The idea is to benefit from both the dividend itself and any potential price increase leading up to the payment date.
Analysts have fine-tuned this strategy to improve its effectiveness. Harry Domash, publisher of DividendDetective.com, discussed the strategy in an interview with MoneyShow. He explained that investors could improve their chances by buying a stock the day before it goes ex-dividend and selling it right before the ex-dividend date. Since stock prices often rise following a dividend announcement and tend to peak just before the ex-dividend date, this approach allows investors to lock in gains before a likely drop. According to Domash, this strategy could offer average returns of around 3% to 4% per trade.
Given this, we will take a look at some of the best dividend stocks to buy in August.
Photo by Artem Beliaikin on Unsplash
Our Methodology
For this list, we scanned dividend stocks that will trade ex-dividend in August 2025 and picked 10 prominent companies. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. The stocks are ranked according to their ex-dividend dates.
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. Costco Wholesale Corporation (NASDAQ:COST)
Ex-Dividend Date: August 1
Costco Wholesale Corporation (NASDAQ:COST), a top membership-based warehouse retailer known for selling bulk items, posted strong sales results for June. According to a recent company update, Costco Wholesale reported a 5.8% increase in total comparable sales for the month. US comparable sales alone grew by 4.7%. Monthly net sales reached $26.44 billion, marking an 8% increase from $24.48 billion in the same period a year earlier.
When excluding the effects of fuel prices and foreign exchange, total comparable sales rose 6.2%, while US sales adjusted for those factors were up 5.5%. The company continues to grow steadily despite its already massive size. For the current fiscal year, which wraps up around late August, the company plans to add a net total of 24 new warehouse locations. Looking ahead, the leadership team is targeting the opening of 25 to 30 new stores annually, with significant growth potential still available in both the US and global markets.
Costco Wholesale Corporation (NASDAQ:COST) is a solid dividend payer. On July 16, the company declared a quarterly dividend of $1.30 per share, having raised it by 12% in April. This marked the company’s 21st consecutive year of dividend growth, which makes COST one of the best dividend stocks. COST has a dividend yield of 0.56%, as of July 28.
9. Citigroup Inc. (NYSE:C)
Ex-Dividend Date: August 4
Citigroup Inc. (NYSE:C) primarily focuses on traditional banking services for both individuals and businesses, offering standard products like checking accounts, mortgages, and business loans. While these services are common and highly competitive— facing rivals from both local institutions and large players like Bank of America— Citigroup stands out due to its extensive scale. Unlike smaller banks, it operates across the US and internationally, giving it a broader reach and stronger presence in global markets.
Citigroup Inc. (NYSE:C) recently announced its earnings for the second quarter of 2025. The company posted revenue of $21.7 billion, which showed an 8% growth from the same period last year. It reported an 18% increase in banking revenues, highlighting its involvement in several major transactions. Wealth management revenues rose by 20%, with all three business lines showing strong performance. In US Personal Banking, the company experienced solid growth in its Branded Cards segment, while Retail Banking saw gains driven by higher deposit spreads.
Citigroup Inc. (NYSE:C) also remained committed to its shareholder obligation, returning $3.1 billion to investors through dividends and share repurchases. It is among the best dividend stocks on our list as the company has paid uninterrupted dividends to shareholders for the past 34 years. On July 15, the bank declared a 7% hike in its quarterly dividend to $0.60 per share. The stock has a dividend yield of 2.51%, as of July 28.
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