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.
8. Energy Transfer LP (NYSE:ET)
Ex-Dividend Date: August 8
Energy Transfer LP (NYSE:ET) benefits from a well-diversified midstream business that produces strong and steady cash flow. Approximately 90% of its yearly earnings are supported by fee-based contracts, providing stability. The company expects its EBITDA to grow by about 5% this year, driven by the acquisition of WTG Midstream in the previous year, the completion of several organic expansion projects, and favorable market conditions.
Energy Transfer LP (NYSE:ET) has further growth on the horizon, with plans to invest $5 billion in capital projects this year. These include new gas processing facilities, a large natural gas pipeline, and expanded export capacity. Most of these developments are expected to be operational between the second half of 2025 and the end of 2026. As a result, the company anticipates a stronger earnings growth rate during 2026 and 2027, offering clear visibility into its near-term earnings potential.
Energy Transfer LP (NYSE:ET) is also a solid dividend company. On July 24, the company announced a 0.8% hike in its quarterly dividend to $0.33 per share. This marked the company’s 14th consecutive quarter of dividend growth, which makes ET one of the best dividend stocks on our list. As of July 28, the stock supports a dividend yield of 7.42%.
7. The Charles Schwab Corporation (NYSE:SCHW)
Ex-Dividend Date: August 8
The Charles Schwab Corporation (NYSE:SCHW), an American multinational financial services company, is bouncing back from a challenging period with solid momentum, as its core fundamentals strengthen across the board. The company has resolved the issue of cash sorting, where clients were shifting idle funds into higher-yield options, which had put pressure on its funding base. With that behind it, Schwab has begun reducing high-cost debt. This change has pushed its net interest margins closer to 3%, boosting net interest income and uncovering strong underlying earnings potential. As conditions normalize, the company is now on track to achieve over 20% annual earnings per share growth, marking a strong turnaround from previous quarters.
The Charles Schwab Corporation (NYSE:SCHW) recently announced earnings for the second quarter of 2025. The company reported revenue of $5.85 billion, which showed an impressive growth of 24.75% from the same period last year. It posted core net new assets totaling $80.3 billion, reflecting a 31% increase compared to the same period last year. The company also saw strong client activity, adding over one million new accounts during the quarter. As a result, total client assets climbed to a record high of $10.76 trillion.
On July 24, The Charles Schwab Corporation (NYSE:SCHW) declared a quarterly dividend of $0.27 per share, which was in line with its previous dividend. In addition, the Board has approved a new share repurchase program, allowing the company to repurchase up to $20 billion of its common stock. SCHW is among the best dividend stocks as the company has paid regular dividends to shareholders since 1990. As of July 28, the stock has a dividend yield of 1.10%.
6. PPG Industries, Inc. (NYSE:PPG)
Ex-Dividend Date: August 11
PPG Industries, Inc. (NYSE:PPG) is an American manufacturer of paints and coatings. In May, the company announced plans to invest $380 million in a new aerospace coatings and sealants plant in Shelby, North Carolina. Construction is set to start in October, with completion expected in the first half of 2027. The 198,000-square-foot facility will create over 110 jobs and produce PPG’s full range of aerospace coatings and sealants. The company stated that the added production capacity, along with improved transportation access, will enhance supply chain efficiency and customer service.
In addition to its strong commitment to growth, PPG Industries, Inc. (NYSE:PPG) is also a strong dividend company. On July 17, it declared a 4.4% hike in its quarterly dividend to $0.71 per share. Through this increase, the company stretched its dividend growth streak to 54 consecutive years, which makes it one of the best dividend stocks on our list. Moreover, PPG has paid regular dividends to shareholders for 54 consecutive years. The stock has a dividend yield of 2.49%, as of July 28.
5. Donaldson Company, Inc. (NYSE:DCI)
Ex-Dividend Date: August 12
Donaldson Company, Inc. (NYSE:DCI) is among the best dividend stocks to invest in. On July 25, the company declared a quarterly dividend of $0.30 per share, which was consistent with its previous dividend. Overall, it has been growing its payouts for 29 years, which makes it a prominent Dividend Champion. As of July 28, the stock has a dividend yield of 2.49%.
Donaldson Company, Inc. (NYSE:DCI) showcased solid performance in fiscal Q3 2025, delivering record sales and record adjusted earnings per share. The company raised its full-year earnings guidance and ramped up its share repurchase efforts, having bought back 3.3% of its outstanding shares since the beginning of the year. Quarterly revenue came in at $940.1 million, a 1.3% increase year-over-year and ahead of analyst expectations by $6.65 million.
Over the first nine months of the fiscal year, Donaldson Company, Inc. (NYSE:DCI) generated $251 million in operating cash flow and held $178.5 million in cash and cash equivalents. It also remained focused on shareholder returns, distributing $32.3 million in dividends during the third quarter. The company’s strong cash position makes it a reliable stock among income investors.
4. International Paper Company (NYSE:IP)
Ex-Dividend Date: August 15
International Paper Company (NYSE:IP), headquartered in Tennessee, produces a broad array of paper and packaging products. It also manufactures cellulose fibers, which are key components in items like diapers, baby wipes, and feminine hygiene products. The company sees potential for growth thanks to its involvement in e-commerce packaging, which now makes up roughly 18% of its total sales.
Earlier this year, International Paper Company (NYSE:IP) finalized the acquisition of DS Smith, a British multinational packaging firm. This strategic move positions the company as a global competitor in the packaging industry. Such consolidations are common in mature sectors and often lead to earnings growth by unlocking cost savings and revenue opportunities through the integration process.
On July 23, International Paper Company (NYSE:IP) announced a quarterly dividend of $0.4625 per share, which was in line with its previous dividend. Though the company does not have a dividend growth streak, it has paid regular dividends to shareholders since 1986. The stock supports a dividend yield of 3.33%, as of July 28.
3. The Gorman-Rupp Company (NYSE:GRC)
Ex-Dividend Date: August 15
The Gorman-Rupp Company (NYSE:GRC) is an American company that focuses on the design, production, and sale of a broad selection of pumps and related equipment used across multiple industries and applications.
The Gorman-Rupp Company (NYSE:GRC) recently reported its earnings for the second quarter of 2025, with revenues coming in at $179 million, up 5.62% from the same period last year. The revenue also beat analysts’ estimates by $4.45 million. The company posted record net income of $15.8 million for the second quarter, equal to $0.60 per share, up from $8.3 million or $0.32 per share in the same period of 2024. It also reported a 15.7% year-over-year increase in new orders, totaling a record $188.0 million—an increase of $25.5 million from the prior year.
The Gorman-Rupp Company (NYSE:GRC) also demonstrated a strong cash position. Its operating cash flow for the first six months came in at $48.9 million, up from $33.4 million during the same period last year. The growth in operating cash flow during the first half of 2025 was mainly driven by higher net income and a boost in accrued expenses.
The Gorman-Rupp Company (NYSE:GRC) currently offers a quarterly dividend of $0.185 per share and has a dividend yield of 1.78%, as of July 28. The company has been rewarding shareholders with growing dividends for the past 52 years.
2. NextEra Energy, Inc. (NYSE:NEE)
Ex-Dividend Date: August 28
NextEra Energy, Inc. (NYSE:NEE), the largest global producer of wind and solar energy, plays a central role in the United States’ transition to clean energy. The company operates through two main divisions: Florida Power & Light, a regulated utility, and NextEra Energy Resources, which focuses on clean energy solutions. Together, these segments have positioned the company as a major force in reducing carbon emissions from the national power grid. Over the past ten years, NextEra has delivered returns that have exceeded those of the broader market, showcasing its strength and consistent value generation in the renewable energy space.
NextEra Energy, Inc. (NYSE:NEE) reported a strong cash position in the second quarter of 2025. For the first six months of the year, the company generated $5.9 billion in operating cash flow. It ended the quarter with nearly $1.8 billion available in cash and cash equivalents. Due to this stable cash profile, the company expects to increase its dividend per share by around 10% annually through at least 2026, starting from its 2024 level.
On July 24, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.5665 per share, which was the same as in the previous quarter. Overall, NEE is a Dividend Aristocrat, with 29 consecutive years of dividend growth under its belt. The stock has a dividend yield of 3.18%, as of July 28.
1. Union Pacific Corporation (NYSE:UNP)
Ex-Dividend Date: August 29
Union Pacific Corporation (NYSE:UNP), a railroad holding company, earns its freight revenue from three main segments: bulk, industrial, and premium, each contributing about one-third of the total. Its diverse range of products and efficient cost structure help the company stay resilient even during times of higher tariffs. The company regularly delivers strong operational results and solid returns on invested capital, with a high operating margin that reflects its ability to stay profitable after covering expenses.
In one of the recent developments, Union Pacific Corporation (NYSE:UNP) is reportedly nearing an agreement to acquire Norfolk Southern in a potential cash-and-stock transaction, which could be finalized as soon as next week, according to Bloomberg News. The two railroad companies, which together are valued at around $200 billion, have confirmed that their merger discussions are in advanced stages.
If the deal goes through, it would combine Union Pacific Corporation (NYSE:UNP)’s western US rail network, based in Omaha, Nebraska, with Norfolk Southern’s East Coast operations, headquartered in Atlanta.
In addition to its growth strategies, Union Pacific Corporation (NYSE:UNP) is a solid dividend payer. On July 16, the company declared a 3% hike in its quarterly dividend to $1.38 per share. This was the company’s 19th consecutive year of dividend hikes, which makes it one of the best dividend stocks. Moreover, UNP has never missed a dividend in 125 years. The stock has a dividend yield of 2.41%, as of July 28.
While we acknowledge the potential of UNP 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 UNP and that has 100x upside potential, check out our report about this cheapest AI stock.
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