In this article, we are going to discuss the 10 best Fortune 500 dividend stocks to invest in right now.
Dividend growth stocks tend to offer a steady mix of earnings growth and reliable cash flow. Many of these companies also maintain strong balance sheets and follow consistent dividend policies. Over time, they have shown an ability to perform well when markets are rising. They have also held up better during downturns, offering some stability when conditions become more volatile.
Nuveen observed that, over longer periods, companies that grow or initiate dividends have delivered higher returns with less risk, based on standard deviation, compared with firms that maintained dividends, paid none, or reduced or eliminated them. Dividends are not guaranteed and can change, but their role in total returns has been significant. From 1930 to 2025, 39% of the S&P 500’s annualized total return came from dividends and their reinvestment, and capital appreciation accounted for the rest.
Dividend income can support a broader investment approach focused on growth. It may help reduce volatility and add to total returns over time. Market movements can still affect portfolio values. Even so, companies with strong balance sheets and the ability to grow dividends often provide some stability.
Dividend stocks have been performing well in 2026, and analysts expect that momentum to carry through the year. S&P Global Market Intelligence Dividend Forecasting estimates global aggregate dividends will rise by 2.9% in 2026 to $2,471 billion. That is slower than the 4.7% growth seen in 2025, but it reflects a return to more typical levels. Since the post-COVID-19 rebound, dividend growth has been easing, pointing to a more normalized pace of shareholder returns.
Given this, we will take a look at some of the best large-cap dividend stocks to invest in.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology
To collect data for this article, we scanned the top companies among the Fortune Global Rankings and identified companies with a steady dividend history. From that group, we shortlisted dividend stocks with an annual dividend yield of over 3%, as of April 26. Then we ranked these stocks by the number of hedge funds invested in them at the end of Q4 2025, as per the Insider Monkey database. Lastly, we limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best Large Cap Dividend Stocks to Buy Now.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 26
Dividend Yield as of April 26: 4.08%
TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.
TotalEnergies SE (NYSE:TTE) revealed on April 24 that it had made a final investment decision (FID) on the $1.2 billion Mirny onshore wind and Battery Energy Storage System project in Kazakhstan. The approval comes despite the company facing some ongoing legal challenges in the country, including a $4.6 billion environmental fine and a multibillion-dollar cost dispute linked to the Kashagan offshore oilfield in the Caspian Sea.
The Mirny project consists of a 1 GW onshore wind farm totaling 150 turbines, together with a 600 MWh battery energy storage system. The farm is expected to generate 100 TWh of renewable electricity over 25 years, enough to supply about 1 million people in Kazakhstan. TotalEnergies SE (NYSE:TTE) holds a 60% stake in the project, with Kazakh state‑owned KazMunayGas and Samruk Energy each owning 20%.
Olivier Jouny, SVP Renewables at TotalEnergies SE (NYSE:TTE), commented:
“We are delighted to launch one of Kazakhstan’s largest renewable energy initiatives to date, thereby contributing to the country’s target of increasing the share of renewables in electricity generation to 15% by 2030. We look forward to advancing construction of the Mirny project alongside our partners and in cooperation with the Kazakhstani authorities. This 1 GW onshore wind farm will also contribute to the 9 GW renewables portfolio that we are combining with Masdar through a 50/50 joint venture across nine Asian countries, including Kazakhstan”
With a current forward P/E ratio of 9.31, TotalEnergies SE (NYSE:TTE) was also recently included in our list of the 12 Most Undervalued Natural Gas Stocks to Buy Now.
9. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 38
Dividend Yield as of April 26: 4.04%
Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. The company operates through its Iron Ore, Aluminium and Lithium, and Copper segments.
On April 22, RBC Capital analyst Ben Davis trimmed the firm’s price target on Rio Tinto Group (NYSE:RIO) from £6,400 to £6,300, while keeping a ‘Sector Perform’ rating on the shares.
On the other hand, also on April 22, JPMorgan analyst Dominic O’Kane instead raised the firm’s price target on Rio Tinto Group (NYSE:RIO) from £7,030 to £7,200, while maintaining a ‘Neutral’ rating on the shares.
The mixed analyst sentiment comes after Rio Tinto Group (NYSE:RIO) announced encouraging production results for its Q1 2026 on April 20. The company revealed that it produced more iron ore, copper, and aluminum compared to the same period in 2025, while also reassuring investors of the limited impacts so far from the Middle East conflict on its supply chains in the latter half of this year.
8. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 43
Dividend Yield as of April 26: 3.24%
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
On April 22, Scotiabank analyst Betty Zhang lifted the firm’s price target on Shell plc (NYSE:SHEL) from $91 to $122, while maintaining an ‘Outperform’ rating on the shares. The raised target, which reflects an upside of almost 37% from the current price levels, comes as the analyst firm adjusted its price targets for the U.S. Integrated Oil, Refining, and Large Cap E&P stocks under its coverage.
Scotiabank presented a mixed outlook on the sector, with its earnings forecasts generally above consensus for the E&P peer group but below consensus for the independent refiners. Beyond the ongoing quarter, the firm believes investors will focus on whether the ongoing Middle East conflict will lead to any changes in activity levels in 2026 and beyond.
Shell plc (NYSE:SHEL) is set to report its Q1 2026 results on May 7.
7. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 51
Dividend Yield as of April 26: 4.28%
Next on our list of the Best Large Cap Dividend Stocks is BP p.l.c. (NYSE:BP). It is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
On April 22, Scotiabank raised its price target on BP p.l.c. (NYSE:BP) from $41 to $58, while maintaining an ‘Outperform’ rating on the shares. The revised target, which represents an upside potential of around 25% from the current share prices, comes as the analyst firm adjusted its price targets for the U.S. Integrated Oil, Refining, and Large Cap E&P stocks under its coverage.
Scotiabank holds a mixed outlook on the sector, with its earnings forecasts generally above consensus for the E&P peer group but below consensus for the independent refiners. Beyond the current quarter, the firm expects investors to focus on the impact of the ongoing Middle East conflict and whether it will lead to any changes in activity levels in this year and beyond.
Similarly, UBS also turned more bullish on BP p.l.c. (NYSE:BP) earlier on April 15, upgrading the stock from‘Neutral’ to ‘Buy’ and also boosting its price target by £50 (read more details here).
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 55
Dividend Yield as of April 26: 3.47%
Mondelēz International, Inc. (NASDAQ:MDLZ) is an American multinational confectionery, food, and beverage company that employs approximately 80,000 people around the world.
On April 13, Deutsche Bank slightly upped its price target on Mondelēz International, Inc. (NASDAQ:MDLZ) from $54 to $55, while keeping a ‘Hold’ rating on the shares.
A day later, BTIG analyst Rob Dickerson initiated coverage of Mondelēz International, Inc. (NASDAQ:MDLZ) with a ‘Buy’ rating and a price target of $70, indicating an upside of over 21% from the current levels.
BTIG sees MDLZ as “overly discounted” at the current price levels, considering the company’s long-term growth potential in emerging markets, margin expansion from cost deflation, and a “hopeful” stabilization of the biscuits business in the United States. The analyst firm believes that an upside in Mondelez’s out-year cash flows could lead to further acquisitions in the future.
Mondelēz International, Inc. (NASDAQ:MDLZ) has remained prudent with its guidance for FY 2026, given the recent cocoa volatility and the subdued biscuit category performance in the US.
While we acknowledge the potential of MDLZ as an investment, 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 MDLZ and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Fortune 500 Dividend Stocks to Invest In Right Now.
Disclosure: None. Follow Insider Monkey on Google News.
