In this article, we will take a look at some of the best dividend stocks in the long term according to billionaires.
Dividend stocks are increasingly popular with both every day and billionaire investors. A CNBC report noted that for many, dividend stocks are always a solid choice, offering a steady income from corporate cash flow, which provides stability despite fluctuations in stock prices. With both the stock and bond markets experiencing significant volatility, these stocks are becoming even more attractive, serving as a balanced option between growth and yield for a broader range of investors.
The long-term appeal of dividend-paying stocks remains robust, especially for investors aiming to reduce risk while still pursuing growth. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, typically prefers high-quality companies that offer reliable dividends and are attractively priced. She highlighted that declining interest rates can benefit dividend stocks, as their yields become more appealing compared to bonds. Additionally, Persaud mentioned that lower rates could help drive broader market gains, unlike the recent performance, which was mainly driven by a few large growth stocks.
Her investment strategy focuses on companies with strong balance sheets, consistent cash flows, and significant return potential. She also stresses the importance of valuation—seeking stocks that are reasonably priced compared to their peers and historical averages—while targeting dividend yields that stand out in the current market. This blend of quality, value, and income, she believes, has contributed to the fund’s strong performance in both rising and declining markets.
Dividend stocks are gaining popularity once more in the current market, following two years of losses amid the dominance of high-performing tech stocks. The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, is down by a little over 2% since the start of 2025, compared with a nearly 6% decline in the broader market. This trend indicates that dividends are gaining traction, with more companies introducing dividend policies and existing dividend payers gradually increasing their payouts to attract investors. An S&P Global report projects that 408 companies in the broader market will pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next year, contributing to an estimated 6% growth in total dividends compared to the previous year. In the overall US market, aggregate dividend growth is forecasted to be 4.6% in 2025. Since S&P companies account for about 85% of all US dividend payments, the S&P index serves as a reliable indicator of broader dividend trends.
Dividend stocks are also a key component of many billionaire investors’ portfolios. For instance, Warren Buffett has been earning billions annually from dividend stocks, setting a strong example for other investors, as his strategies are highly regarded. In fact, nearly 90% of the companies in his Q4 portfolio pay dividends, and many of them are also known for growing their dividends over time. Given this, we will take a look at some of the best dividend stocks according to billionaires.
Our Methodology
To compile this list, we screened for dividend stocks that have strong financials and solid dividend policies. From that group, we picked 10 companies that were most popular among billionaire investors, as per Insider Monkey’s billionaire database of Q4 2024. The stocks are ranked according to the number of billionaires having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. 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. Ecolab Inc. (NYSE:ECL)
Number of Billionaire Holders: 15
Ecolab Inc. (NYSE:ECL) is a Minnesota-based company that specializes in water treatment and cleaning solutions. Management anticipates that long-term trends in the industries it operates within will drive increased demand for the company’s innovative technologies. Ecolab has also made investments in sectors such as data centers, microelectronics, and life sciences, which are expected to experience strong growth this year and in the future. The stock has surged by over 3% since the start of 2025.
For Q4 2024, Ecolab Inc. (NYSE:ECL) reported $4 billion in revenue, marking nearly a 2% increase compared to the same period last year. Organic sales grew by 4%, driven by strong performance in its Industrial and Healthcare & Life Sciences segments, as well as continued success in its Pest Elimination and Institutional & Specialty divisions. Regionally, the U.S. led in organic sales growth, while international markets also showed positive results, with new business gains helping to offset the effects of varying macroeconomic conditions. The company’s operating income margin was 14.6%.
For FY24, Ecolab Inc. (NYSE:ECL) demonstrated a strong cash position, with operating cash flow of $2.8 billion and free cash flow of $1.8 billion. This robust cash flow allowed the company to increase its dividends for the 33rd consecutive year, which makes it one of the best dividend stocks on our list. The company pays a quarterly dividend of $0.65 per share and has a dividend yield of 1.09%, as of April 27.
At the end of Q4 2024, 15 billionaires held stakes in Ecolab Inc. (NYSE:ECL), with a collective stake value of over $1.7 billion. Ken Griffin’s Citadel Investment Group was one of the company’s major stakeholders at the end of Q4.
9. The Kraft Heinz Company (NASDAQ:KHC)
Number of Billionaire Holders: 15
An American multinational food company, The Kraft Heinz Company (NASDAQ:KHC) offers a wide range of food and beverage products. The company reported mixed results for Q4 2024, with weak sales offset by improved profitability. Adjusted earnings per share were $0.84, exceeding expectations by $0.06, partly due to favorable tax effects and a reduction in shares outstanding. Revenue decreased by 5% year-over-year to $6.58 billion, falling short of the anticipated $6.66 billion, with continued softness in organic sales. In the crucial U.S. market, net sales dropped by 3.9%, as price hikes were not enough to compensate for lower sales volumes.
Despite these challenges, The Kraft Heinz Company (NASDAQ:KHC) maintained a solid financial position throughout fiscal 2024. Free cash flow grew by 6% year-over-year, reaching $3.2 billion, and operating cash flow rose by 5.2%, totaling $4.2 billion. The company also returned $2.7 billion to shareholders through dividends and share buybacks. Its quarterly dividend comes in at $0.42 per share and has a dividend yield of 5.43%, as of April 27.
Warren Buffett was the largest stakeholder in The Kraft Heinz Company (NASDAQ:KHC) at the end of Q4 2024. The hedge fund owned over 325 million shares in the company, worth over $10 billion.
