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.
8. Costco Wholesale Corporation (NASDAQ:COST)
Number of Billionaire Holders: 16
Costco Wholesale Corporation (NASDAQ:COST) is an American retail company, headquartered in Washington. The company operates a chain of membership-only warehouse clubs, with a global network of 897 locations. It continues to achieve steady revenue growth while maintaining membership renewal rates above 90%.
Analysts believe that in the event of a recession, Costco Wholesale Corporation (NASDAQ:COST) is likely to outperform its competitors. Its focus on offering high-quality goods at low prices makes it particularly appealing to consumers, especially for everyday essentials. The company’s successful membership model fosters customer loyalty and generates a high-margin, recurring revenue stream. Costco’s membership base now includes 78.4 million households, contributing $1.2 billion in membership fee income.
Costco Wholesale Corporation (NASDAQ:COST) is also a strong dividend payer. On April 16, the company declared a 12% hike in its quarterly dividend to $1.30 per share. Through this increase, the company stretched its dividend growth streak to 21 years, which makes COST one of the best dividend stocks according to billionaires. The stock has a dividend yield of 0.53%, as of April 27.
At the end of Q4 2024, 16 billionaires held stakes in Costco Wholesale Corporation (NASDAQ:COST), worth over $4.7 billion collectively. Billionaire Ken Fisher was the company’s largest stakeholder in Q4.
7. The Coca-Cola Company (NYSE:KO)
Number of Billionaire Holders: 16
Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) is a multinational beverage company. It faces challenges today, particularly the growing consumer preference for healthier options. However, if history is any indication, the company will adapt its products to meet these changing demands. This is a necessary step for any successful company in the consumer staples sector to stay relevant in the long run. Coca-Cola has been one of the most prominent and influential companies in this industry for decades. The stock is generating strong returns this year, surging by over 16% since the start of 2025.
The Coca-Cola Company (NYSE:KO) has consistently maintained a strong cash position. In FY24, the company generated $6.8 billion in operating cash flow, with free cash flow totaling $4.7 billion. It has a rich and successful history, with many notable achievements. One of the most impressive is Coca-Cola’s recognition as a Dividend King. It has raised its dividend every year for 63 straight years, a feat that demonstrates a robust business model that performs well in both strong and challenging markets. It currently pays a quarterly dividend of $0.51 per share and has a dividend yield of 2.84%, as of April 27.
The Coca-Cola Company (NYSE:KO) was a part of 16 billionaire portfolios at the end of Q4 2024. The consolidated value of stakes owned by these billionaires is over $27.5 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4, owning 400 million KO shares.
6. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Billionaire Holders: 17
Bristol-Myers Squibb Company (NYSE:BMY) ranks sixth on our list of the best dividend stocks for the long term, according to billionaires. The American multinational pharmaceutical company focuses on developing and delivering innovative medicines.
In the first quarter of 2025, Bristol-Myers Squibb Company (NYSE:BMY) reported revenue of $11.2 billion, down 5.6% from the same period last year. However, the revenue beat analysts’ estimates by over $494 million. The Growth Portfolio generated $5.6 billion in revenue, marking a 16% increase on a reported basis, or 18% excluding foreign exchange effects. This growth was mainly driven by Opdivo, Breyanzi, Reblozyl, and Camzyos, along with the strong early launch of Cobenfy in the US.
Bristol-Myers Squibb Company (NYSE:BMY)’s cash position remained strong. It ended the quarter with over $10.8 billion available in cash and cash equivalents, up from $10.3 billion at the end of December. The company pays a quarterly dividend of $0.62 per share, having raised it by 3.3% in December 2024. This marked its 16th consecutive year of dividend growth. In addition, BMY has been a consistent dividend payer for 93 years. As of April 27, the stock has a dividend yield of 5.18%.
As of the close of Q4 2024, 17 billionaires held stakes in Bristol-Myers Squibb Company (NYSE:BMY), worth nearly $1.9 billion in total. Israel Englander was one of the company’s leading stakeholders in Q4.
5. Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Holders: 18
Johnson & Johnson (NYSE:JNJ) is an American multinational healthcare company that specializes in pharmaceuticals, biotechnology, and medical technologies. The company recently announced its Q1 2025 earnings, reporting revenue of $21.9 billion, a 2.4% increase compared to the same quarter last year. Revenue also surpassed analysts’ expectations by $315.6 million. Net earnings came in at $11 billion, representing a 238% year-over-year surge.
Throughout the quarter, Johnson & Johnson (NYSE:JNJ) further cemented its standing as an innovation leader by advancing several projects in its development pipeline. Highlights included progress with TREMFYA for inflammatory bowel disease, the combination of RYBREVANT and LAZCLUZE for non-small-cell lung cancer, and developments with OTTAVA, its robotic soft tissue surgery system. The company also expanded its neuroscience portfolio with the acquisition of Intra-Cellular Therapies.
Johnson & Johnson (NYSE:JNJ) continued to show financial strength, posting free cash flow of $3.4 billion for the quarter, up from $2.8 billion a year earlier. On April 15, it announced a 4.8% increase in its quarterly dividend to $1.30 per share, marking its 63rd consecutive year of dividend growth. With a dividend yield of 3.36% as of April 27, JNJ is one of the best dividend stocks according to billionaires.
At the end of Q4 2024, 18 billionaires held positions in Johnson & Johnson (NYSE:JNJ), worth over $2.9 billion collectively. With over 8.1 million shares in JNJ, Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q4.
4. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Billionaire Holders: 19
QUALCOMM Incorporated (NASDAQ:QCOM) ranked fourth on our list of the best dividend stocks according to billionaires. The semiconductor manufacturing company hasn’t announced its fiscal Q2 2025 earnings yet, however, UBS Group suggested that the company might report second-quarter results that meet expectations, though its guidance could be on the softer side due to ongoing challenges. Analysts at UBS noted that while Qualcomm’s performance was likely to align with forecasts, factors such as tariffs and broader macroeconomic headwinds were expected to weigh on global smartphone demand. As a result, they anticipated that QCOM’s outlook for the third quarter ending in June would fall below typical seasonal trends, projecting a quarter-over-quarter decline in the low single digits, compared to the market’s expectation of around a 2% drop.
Although QUALCOMM Incorporated (NASDAQ:QCOM) is best known for its wireless technology, its offerings also include software, processors, and modems. Its Snapdragon system-on-chips (SoCs) power several major virtual reality platforms, such as Axon’s VR training program, which uses the HTC Vive Focus 3 headset equipped with Qualcomm’s Snapdragon XR2 chipset.
QUALCOMM Incorporated (NASDAQ:QCOM) pays a quarterly dividend of $0.89 per share, offering a yield of 2.40%, as of April 27. The company ended the quarter with over $3.1 billion in cash and cash equivalents. It also generated nearly $4.6 billion in operating cash flow and returned $942 million to shareholders through dividend payments. QUALCOMM has consistently increased its dividends for the past 21 years, which makes it one of the best dividend stocks on our list.
Billionaire Ken Griffin’s Citadel Investment Group was one of the largest stakeholders of QUALCOMM Incorporated (NASDAQ:QCOM) in Q4 2024.
3. Walmart Inc. (NYSE:WMT)
Number of Billionaire Holders: 20
An American retail corporation, Walmart Inc. (NYSE:WMT) is headquartered in Arkansas. The total number of Walmart stores worldwide fell from 11,501 at the end of fiscal 2020 to 10,593 by the close of fiscal 2022, largely due to its divestments in international markets. Since then, however, the company has steadily expanded its presence, finishing fiscal 2025 with 10,711 physical stores. This consistent growth is expected to strengthen its competitive advantage and help it maintain its leadership over smaller retail rivals.
In the fourth quarter of 2024, Walmart Inc. (NYSE:WMT) reported a 4.1% year-over-year increase in revenue, reaching $180.6 billion. On a constant currency basis, revenue growth was even stronger at 5.3%. Operating income grew by 8.3%, supported by better gross margins, rising membership income, and strong performance in its e-commerce business.
For the full fiscal year, Walmart Inc. (NYSE:WMT) generated $36.4 billion in operating cash flow and ended the period with $9 billion in cash and cash equivalents. The company also returned $4.5 billion to shareholders through share repurchases and announced a 13% increase in its quarterly dividend to $0.235 per share, the largest dividend hike it has made in more than a decade. It has now raised its dividend for 52 consecutive years, which makes it one of the best dividend stocks according to billionaires. It currently pays a quarterly dividend of $0.235 per share and has a dividend yield of 0.99%, as of April 27.
Cliff Asness’ AQR Capital Management was one of the company’s leading stakeholders in Q4 2024.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Billionaire Holders: 23
UnitedHealth Group Incorporated (NYSE:UNH) is an American health insurance company. The company provides a broad range of related products and services to its customers. UnitedHealth Group Incorporated (NYSE:UNH) and other major health insurers received a boost on April 8 after the Centers for Medicare and Medicaid Services (CMS) announced that Medicare Advantage plans would see a larger-than-expected payment increase in 2026.
In its Q1 2025 earnings report, UnitedHealth Group Incorporated (NYSE:UNH) posted $109.5 billion in revenue, representing a 9.8% year-over-year increase. The company expanded its customer base by 780,000 people and confirmed that its Optum Health division aims to provide value-based care to an additional 650,000 patients in 2025. Company leadership highlighted ongoing efforts to manage current challenges while remaining focused on achieving its long-term earnings growth target of 13% to 16%.
UnitedHealth Group Incorporated (NYSE:UNH) also reported strong cash generation for the quarter, with $5.5 billion in operating cash flow. It returned roughly $5 billion to shareholders through dividends and share repurchases and has consistently paid dividends since 2010. The company offers a quarterly dividend of $2.10 per share and has a dividend yield of 2.01%, as of April 27.
Insider Monkey’s Q4 2024 database indicated that 23 billionaires held stakes in UnitedHealth Group Incorporated (NYSE:UNH), worth collectively over $8.1 billion. Rajiv Jain’s GQG Partners was one of the company’s leading stakeholders in Q4.
1. Eli Lilly and Company (NYSE:LLY)
Number of Billionaire Holders: 23
Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company. In recent years, weight loss drugs have become an important growth area for the pharmaceutical industry, and Eli Lilly’s move into the GLP-1 market has been particularly successful. In addition to its progress with GLP-1 therapies, the company has gained momentum with its cancer drug, Verzenio, which, following multiple FDA approvals, has helped strengthen its position in oncology. The stock has surged by nearly 14% since the start of 2025.
Analysts also pointed out that Alzheimer’s disease (AD) treatments represent another major opportunity for Eli Lilly and Company (NYSE:LLY), as the AD market is expected to grow into the tens of billions of dollars over the coming years. Despite its potential, the market remains fragmented, with limited competition and many drugs focusing only on specific symptoms. Last summer, Lilly gained FDA approval for its AD drug, Kisunla. While weight loss treatments are expected to continue driving most of the company’s revenue for now, Kisunla is seen as a significant contributor to Lilly’s long-term growth as it expands in the Alzheimer’s field.
Alongside its strong pipeline, Eli Lilly and Company (NYSE:LLY) has maintained a solid track record of rewarding shareholders, increasing its dividends for 11 consecutive years. The company pays a quarterly dividend of $1.50 per share, offering a dividend yield of 0.68%, as of April 27.
With over 5.2 million shares, Ken Fisher’s Fisher Asset Management was the company’s largest stakeholder in Q4.
Overall, Eli Lilly and Company (NYSE:LLY) ranks first on our list of the best long-term dividend stocks according to billionaires. While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LLY but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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