10 Best Large Cap Dividend Growth Stocks to Invest In

In this article, we will take a look at the 10 Best Large Cap Dividend Growth Stocks to Invest In. 

Dividends don’t always get much attention, but they’ve quietly driven a large share of long-term returns. A report from Franklin Templeton shows that from 1960 through the end of last year, about 85% of the S&P 500 Index total return came from reinvested dividends and compounding. That’s a large portion of the outcome coming from something often treated as secondary.

Strategies built around dividends tend to bring a bit more balance. They can offer a steady income, some stability, and a degree of protection when conditions become less predictable. Right now, the global outlook still feels uncertain. In that kind of setting, investors often move toward areas that feel more dependable. Dividend stocks, particularly those backed by strong businesses, usually generate steadier cash flows. Those cash flows are easier to model and value. Compared to growth stocks, where future expectations can shift quickly, dividend-paying companies often involve fewer assumptions when estimating intrinsic value. That makes them useful as a stabilizing piece within a broader portfolio.

There’s also the way they behave when markets pull back. Franklin’s report further mentioned that dividend stocks have tended to hold up better during downturns, helping to reduce volatility while still leaving room for gains when conditions improve. Looking at the three-year period ending December 31, 2024, dividend-paying stocks showed lower volatility and smaller drawdowns than the broader market across global, US, and European markets.

Given this, we will take a look at some of the best large-cap stocks that pay dividends.

Our Methodology:

For this list, we screened for dividend companies with market caps above $10 billion and identified companies that have raised their dividends consistently over the years. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.

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. Atmos Energy Corporation (NYSE:ATO)

Number of Hedge Fund Holders: 37

On April 27, Bank of America analyst Ross Fowler raised the firm’s price recommendation on Atmos Energy Corporation (NYSE:ATO) to $206 from $177. It reiterated a Neutral rating on the shares. The firm expects Atmos to report Q2 EPS of $3.39, matching consensus, the analyst tells investors in a preview. The firm is rolling its valuation year to 2028.

On April 21, Truist Financial initiated coverage of Atmos Energy with a Hold rating and a $195 price target. The firm launched coverage of 20 names in the power and utilities group. Vertically integrated electric utilities are “clear winners” in building the infrastructure to serve load growth for data centers, the analyst tells investors in a research note. Truist believes investors should lean into growth in the space and names American Electric Power, Entergy Corporation, and Xcel Energy as top picks. It also highlights Ameren Corporation, CMS Energy Corporation, and DTE Energy Company.

Atmos Energy Corporation is a natural gas-only distributor. The company delivers natural gas to over 3.3 million distribution customers across more than 1,400 communities in eight states, mainly in the South. It also manages proprietary pipeline and storage assets, including intrastate natural gas pipeline systems in Texas.

9. Franklin Resources, Inc. (NYSE:BEN)

Number of Hedge Fund Holders: 38

On April 29, Goldman Sachs raised its price recommendation on Franklin Resources, Inc. (NYSE:BEN) to $34 from $30.50. It reiterated a Buy rating on the shares. Franklin Resources reported stronger-than-expected Q2 results, reflecting improving momentum in private markets fundraising and fee-related earnings, the analyst tells investors in a research note. The firm says the outlook is supported by accelerating organic growth, strong evergreen inflows, disciplined expense management, and a faster-than-expected path toward margin expansion. It also points to a more constructive long-term earnings trajectory relative to the current valuation.

On April 29, Barclays analyst Benjamin Budish upgraded BEN to Equal Weight from Underweight. It also set a price target of $31, up from $26. The company’s fiscal Q2 report was solid and represented a continuation of improving flows, raised guidance, and solid cost controls, the analyst tells investors in a research note. Barclays cites improving fundamentals for the upgrade of Franklin Resources.

Franklin Resources, Inc. is a global investment management company, with subsidiaries operating as Franklin Templeton and serving clients in more than 150 countries. Through its specialist investment managers, the company offers capabilities across equity, fixed income, alternatives, and multi-asset solutions.

8. Dover Corporation (NYSE:DOV)

Number of Hedge Fund Holders: 49

On April 28, Seaport Research Partners raised its price recommendation on Dover Corporation (NYSE:DOV) to $265 from $245. It reiterated a Buy rating on the shares. The firm believes Dover should be recognized for consistent profitable growth and exceeding estimates, the analyst tells investors.

On April 24, Oppenheimer analyst Bryan Blair raised the firm’s price goal on Dover to $250 from $242. It maintained an Outperform rating. The firm notes Dover reported Q1 adjusted EPS of $2.28, ahead of its and consensus estimates of $2.21 and $2.27. Strength in DCEF, DCST, and DPPS helped drive the beat, while DII came in below expectations. Oppenheimer believes the reiterated guidance leans conservative. It also remains positive on Dover’s portfolio evolution and views the current valuation as supportive.

During its Q1 2026 earnings call, Dover Corporation indicated that, compared with the prior quarter, it had shifted from introducing formal 2026 EPS guidance to simply reaffirming it without restating the range. The company noted that in Q4 2025, Richard J. Tobin had projected adjusted EPS of $10.45 to $10.65 per share for 2026. In the latest call, he reaffirmed that outlook and added that Dover planned to revisit its guidance in the next quarter.

Dover Corporation is a diversified global manufacturer and solutions provider. Its Engineered Products segment supplies equipment, components, software, and services to the vehicle aftermarket, as well as aerospace and defense markets, among others.

7. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)

Number of Hedge Fund Holders: 49

On April 30, Barclays raised its price recommendation on C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to $210 from $200. It reiterated an Overweight rating on the shares following the Q1 report. Despite concerns about pressure on the company’s core brokerage margins due to higher spot rates, its efficiency initiatives, supported by AI capabilities, more than offset the impact, the analyst tells investors in a research note.

During its Q1 2026 earnings call, C.H. Robinson Worldwide, led by President, CEO and Director David Bozeman, pointed to another strong quarter of execution. Bozeman said adjusted EPS rose 15% year over year, even as truckload spot market costs moved higher. He noted that the company was able to improve adjusted gross profit per truckload shipment while keeping its NAST gross margin percentage steady, despite higher capacity costs.

He also said the NAST segment continued to gain market share, marking its 12th straight quarter of gains. Bozeman added that management remained confident in executing its strategic priorities. He said the company is reaffirming its 2026 operating income target, which had been raised in October of the prior year. In discussing innovation, he described “Lean AI” as the company’s distinct and disciplined approach to advancing AI initiatives.

C.H. Robinson Worldwide, Inc. is a global logistics provider. Its segments include North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate. The NAST segment provides transportation and logistics services across North America through a network of offices in the United States, Canada, and Mexico.

6. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 60

On April 21, Morgan Stanley lowered its price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $136 from $137. It reiterated an Overweight rating on the shares. The firm said it is updating price targets across Regulated & Diversified Utilities and IPPs in North America under its coverage. In March, utilities outperformed the S&P’s return, the analyst tells investors.

On April 21, Truist Financial initiated coverage of AEP with a Buy rating. It also set a $148 price target on the stock. The firm launched coverage of 20 names in the power and utilities group. Vertically integrated electric utilities are “clear winners” in building the infrastructure to serve load growth for data centers, the analyst tells investors in a research note. Truist believes investors should lean into growth in the space and names American Electric Power Company, Inc., Entergy Corporation, and Xcel Energy as top picks. It also highlights Ameren Corporation, CMS Energy Corporation, and DTE Energy Company.

American Electric Power Company, Inc. is an electric public utility holding company. Its operating utilities provide generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

5. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 62

On April 29, Bank of America lowered its price recommendation on Ecolab Inc. (NYSE:ECL) to $335 from $345. It reiterated a Buy rating on the shares. The firm said it is cutting its 2026 and 2027 EPS forecasts to better reflect the expected dilution in the second half of 2026 from CoolIt, the analyst tells investors in a post-earnings note.

During its Q1 2026 earnings call, Ecolab CEO, President, and Chairman Christophe Beck said the quarter reflected strong performance, with momentum building across the portfolio. He noted that adjusted diluted EPS increased 13%, while organic sales rose 4%. Growth came from value pricing, which contributed 3%, along with volume growth that improved to 1%. Beck also said both the Global High-Tech and digital segments delivered growth of more than 20%. He added that the Life Sciences segment accelerated to 11% growth, supported by bioprocessing, where sales more than doubled.

Looking ahead, he said the company expects Life Sciences to maintain double-digit growth. He also noted that operating income margins in that segment are projected to expand toward a 30% target over the next few years.

Ecolab Inc. provides water, hygiene, and infection prevention solutions and services that protect people and critical resources. Its Global Industrial segment offers water treatment and process applications, along with cleaning and sanitizing solutions, primarily for large industrial customers.

4. McKesson Corporation (NYSE:MCK)

Number of Hedge Fund Holders: 72

On April 28, William Blair initiated coverage of McKesson Corporation (NYSE:MCK) with an Outperform rating. The company has a “durable competitive moat” with specialty-led growth upside, the analyst tells investors in a research note. The firm believes McKesson is well-positioned to benefit from a favorable demand backdrop, supported by demographic trends and rising use of specialty medicines.

On April 20, Reuters reported that McKesson will sell a minority stake in its medical-surgical solutions business to Apollo Global Management for $1.25 billion, as the company plans to spin off the unit through an initial public offering. Apollo will acquire about 13% of the business through a convertible preferred equity investment, valuing it at roughly $13 billion, while McKesson will retain control and majority ownership of the unit, the companies said.McKesson is streamlining its operations to focus on its core pharmaceutical distribution business after years of investor pressure.

The investment by Apollo is a crucial milestone that helps reduce uncertainty around the medical-surgical unit’s standalone valuation, Leerink Partners analyst Michael Cherny said. The company first outlined plans to spin off the unit in May 2025. Since then, it has exited several overseas markets and divested other non-core assets over the past few years.

McKesson Corporation is a diversified healthcare services company focused on improving patient outcomes. Its US Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter drugs, along with other healthcare-related products across the United States.

3. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 84

On April 30, Bank of America analyst Tim Anderson upgraded AbbVie Inc. (NYSE:ABBV) to Buy from Neutral. It also lifted the price target on the stock to $234 from $226. The firm believes concerns around competitive erosion in the key immunology segment are “overdone.” It points to strong forward indicators for Skyrizi and says new competitors appear to be “category expanding.” With durable growth expected into the mid-2030s, the firm views AbbVie as offering “one of the best ex-pipeline growth profiles in large cap pharma with room for upside,” the analyst tells investors.

During its Q1 2026 earnings call, AbbVie management tied the quarter’s performance to specific portfolio drivers, along with pipeline progress and business development activity. The company said this included US regulatory submissions for Rinvoq in alopecia areata. It also pointed to Skyrizi’s subcutaneous induction in Crohn’s disease, with an approval decision expected later in the year.

Management also noted the closing of the RemeGen Co., Ltd. agreement, which provides access to a novel PD-1 VEGF bispecific antibody. It further disclosed new US manufacturing investments. The company plans to invest $1.4 billion to build a pharmaceutical manufacturing campus in North Carolina, along with $380 million to construct two new plants in North Chicago.

AbbVie Inc. is a global, research-based biopharmaceutical company. It focuses on the development, manufacturing, and commercialization of medicines across immunology, oncology, aesthetics, neuroscience, eye care, and other key areas.

2. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 87

On April 29, TD Cowen raised its price recommendation on The Coca-Cola Company (NYSE:KO) to $90 from $85. It reiterated a Buy rating on the shares. The firm noted the company delivered strong 1Q results and raised EPS due to a lower tax rate. Coca-Cola remains a top pick, supported by its pricing power, steady volume growth, and the resilience of its business model across changing economic, political, and commodity conditions.

During its Q1 2026 earnings call, The Coca-Cola Company President and CFO John Murphy said organic revenue increased 10%, supported by 3% growth in unit case volume. He noted that comparable EPS reached $0.86, up 18% from the prior year, while free cash flow totaled about $1.8 billion. Murphy also said comparable gross margin declined by roughly 30 basis points. Even so, comparable operating margin improved by around 70 basis points, as the company benefited from operating expense efficiencies while continuing to invest in its brands.

Looking ahead, he said the company still expects organic revenue growth of 4% to 5% for 2026. He added that comparable currency-neutral EPS growth, excluding acquisitions and divestitures, is now expected in the range of 6% to 7%.

The Coca-Cola Company is a global beverage company. Its segments include Europe, the Middle East and Africa, Latin America, North America, Asia Pacific, and Bottling Investments. The company sells a broad portfolio of brands across multiple beverage categories worldwide.

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 90

On April 27, TD Cowen raised its price recommendation on The Procter & Gamble Company to $150 from $142. It reiterated a Hold rating on the shares. The firm said volume growth and share trends were strong enough to support the higher target.

During its fiscal Q3 2026 earnings call, the company’s CFO Andre Schulten said the company delivered steady growth in the quarter. He noted that organic sales increased by more than 3% year over year, driven by a 2-point gain in volume and a 1-point contribution from pricing, while mix remained flat. Schulten said growth was broad-based, with all 10 product categories posting organic sales gains.

He added that global aggregate market share improved to roughly in line with the prior year, with momentum building through the quarter. On profitability, he said core EPS was $1.59. He also noted that core gross margin declined by 100 basis points and core operating margin decreased by 80 basis points compared with the prior year. In terms of cash flow, Schulten said adjusted free cash flow productivity reached 82%. He added that the company returned $3.2 billion to shareholders during the quarter, including $2.5 billion in dividends and more than $600 million through share repurchases.

The Procter & Gamble Company provides branded consumer packaged goods to consumers worldwide. Its segments include Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The company sells its products in around 180 countries and territories.

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