In this article, we will take a look at the 10 Best Long-Term Dividend Stocks to Invest In According to Billionaires.
According to a report from Merrill Lynch, many investors closely track the stock market’s day-to-day movements, focusing primarily on share price appreciation. In doing so, they often overlook another important contributor to returns: dividends paid by companies to their shareholders.
Kirsten Cabacungan, an investment strategist in the Chief Investment Office for Merrill and Bank of America Private Bank, said investors should consider both capital appreciation and dividend income when evaluating total return. She noted that dividend-paying stocks can serve multiple purposes within a portfolio.
One benefit is the income they generate, which can help investors meet liquidity needs. Another is their historical ability to reduce portfolio volatility and provide some protection during market downturns. Dividend-paying investments can play two important roles. They can provide a source of income for investors seeking regular cash flow, particularly retirees, while also offering a measure of downside protection during periods of market weakness. She made the following remark:
“Companies that have consistently increased their dividends tend to be more stable, higher-quality businesses, which historically have weathered downturns and are more likely to have the ability to pay dividends consistently.”
For investors focused on generating income, Cabacungan suggests looking at stocks that have maintained above-average dividend yields over time. Those with a stronger focus on long-term growth may benefit from companies that regularly increase their dividends as earnings and cash flows expand.
Given this, we will take a look at some of the best dividend stocks according to billionaires.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of billionaire holders as of Q1 2026 and identified companies with strong and consistent dividend policies. We picked dividend companies that were popular among billionaire investors, focusing on companies that have recently reported noteworthy developments likely to impact investor sentiment.
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. Aflac Incorporated (NYSE:AFL)
Number of Billionaire Holders: 21
Piper Sandler analyst John Barnidge raised the firm’s price target on Aflac Incorporated (NYSE:AFL) to $130 from $125 on May 26 and maintained an Overweight rating on the stock. The firm pointed to the stock’s recent performance and the passage of time as reasons for the target increase. Piper Sandler modestly raised price targets for most insurance carriers while lowering targets for some insurance brokers.
Its analysis takes a bottom-up approach. Following first-quarter results, the firm believes investors may be better served focusing on insurance carriers rather than brokers. Underwriting performance came in stronger than expected for carriers, while brokers delivered weaker organic growth results.
Aflac Incorporated provides financial protection to policyholders and customers through its subsidiaries in the United States and Japan. The company’s primary business is supplemental health and life insurance products.
9. Devon Energy Corporation (NYSE:DVN)
Number of Billionaire Holders: 22
Mizuho analyst Nitin Kumar raised the firm’s price recommendation on Devon Energy Corporation (NYSE:DVN) to $68 from $62 on May 27. He reiterated an Outperform rating on the shares. The firm expects the effects of the Iran crisis on global oil prices and refining margins to persist for some time. Mizuho increased its 2026 oil price forecast by 25% and its 2027 outlook by 6%. It also raised its projections for US refining cracks by 61% for 2026 and 51% for 2027. According to the analyst, a decline in stock valuations despite strong commodity prices has created an opportunity for investors to seek “alpha” in the US oil and gas sector. Mizuho also updated ratings and price targets across the group.
On May 26, Barclays raised its price goal on Devon Energy to $62 from $54. It kept an Overweight rating on the stock. The firm said declining inventories, reduced OPEC spare capacity, and a “muted” US production response to the Middle East conflict are contributing to a tighter oil market backdrop that is not yet fully reflected in energy stocks. Barclays believes these conditions could lead to a share re-rating for oil-focused exploration and production companies after the conflict. The firm also lowered its near-term gas price outlook due to oversupply and adjusted ratings and price targets across the integrated oil and exploration and production sector.
Devon Energy Corporation is a US oil and gas producer with a diversified multi-basin portfolio. Its operations are anchored by a significant acreage position in the Delaware Basin.
8. Walmart Inc. (NASDAQ:WMT)
Number of Billionaire Holders: 24
Tigress Financial analyst Ivan Feinseth raised the firm’s price recommendation on Walmart Inc. (NASDAQ:WMT) to $155 from $150 on May 29. He reiterated a Buy rating on the shares. The analyst said Walmart’s “AI-driven platform transformation” is creating “multiple high-margin growth engines.” In a research note, Feinseth told investors that the company’s investments in AI infrastructure, along with the expansion of higher-margin revenue verticals, support a premium valuation for the stock.
On May 21, Reuters reported that Walmart maintained its conservative full-year sales and profit guidance, a move that weighed on the shares despite an increase in demand from shoppers seeking lower-priced groceries and essential goods as fuel costs climbed.
Retailers across the United States have pointed to mounting pressure on consumer spending this year. Consumer sentiment fell to a record low in May, while inflation recorded its largest increase in three years. For the first quarter, Walmart reported a 5% increase in operating income to $7.49 billion. Net sales rose 7.1% to $175.7 billion. CEO John Furner kept the company’s annual outlook unchanged. Analysts have characterized the forecast as conservative, with Walmart continuing to target net sales growth of 3.5% to 4.5% and earnings per share of $2.75 to $2.85.
Walmart Inc. is a technology-powered omnichannel retailer. The company operates retail and wholesale stores and clubs, as well as eCommerce websites and mobile applications, across the United States (U.S.), Africa, Canada, Central America, Chile, China, India, and Mexico.
7. The Hershey Company (NYSE:HSY)
Number of Billionaire Holders: 25
Evercore ISI upgraded The Hershey Company (NYSE:HSY) to Outperform from In Line on May 27. It reiterated its price target of $255. The upgrade followed what the firm described as a “disappointing” Easter season. Still, recent discussions with retail contacts have reinforced a “constructive view” on the confectionery category and Hershey’s plans for the second half of 2026, according to the analyst.
Earlier in the month, on May 4, DA Davidson lowered its price recommendation on Hershey to $208 from $230. It maintained a Neutral rating after the company reported first-quarter results. The firm said it remains neutral on the stock as competition continues to be intense and consumers remain under pressure. In a research note, the analyst noted that the stock’s valuation has become more attractive at current levels. The firm also stated that it would be more “positively inclined” if Hershey’s market share stabilizes.
The Hershey Company is a snacks company with operations across three segments: North America Confectionery, North America Salty Snacks, and International.
6. Parker-Hannifin Corporation (NYSE:PH)
Number of Billionaire Holders: 25
On May 26, Wells Fargo lowered the firm’s price recommendation on Parker-Hannifin Corporation (NYSE:PH) to $950 from $980. It reiterated an Overweight rating on the shares. Analyst Joseph O’Dea noted that Wall Street’s current consensus calls for 2027 earnings per share of about $34.00. Based on pending acquisitions that have not yet closed and a conservative tax assumption, Wells Fargo expects the company’s initial earnings guidance midpoint to range between $33.00 and $33.30 per share. The analyst added that earnings could ultimately rise above $34.50 per share if the acquisitions are completed, the tax rate comes in lower, and incremental margins perform slightly better than expected.
On May 1, Truist raised its price goal on PH to $1,147 from $1,139. It kept a Buy rating on the shares. The firm cited the company’s third-quarter earnings beat and pointed to continued strength in order activity. According to the analyst, Parker-Hannifin is seeing solid order momentum across a wide range of end markets, with demand remaining healthy in both short-cycle and long-cycle businesses.
Parker-Hannifin Corporation specializes in motion and control technologies. The company designs and manufactures highly engineered solutions and provides aftermarket support for its products. Its operations are organized into two segments: Diversified Industrial and Aerospace Systems.
5. Costco Wholesale Corporation (NASDAQ:COST)
Number of Billionaire Holders: 27
Truist raised its price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,011 from $977 on May 29. It reiterated a Hold rating on the stock. In a research note, the analyst said Costco’s ability to consistently deliver mid-single-digit comparable sales growth despite operating at an annualized sales run rate of about $300 billion continues to be impressive. The firm noted that one of the few fundamental concerns is that membership growth has continued to slow.
Also on May 29, BofA increased its price goal on Costco to $1,200 from $1,185. It maintained a Buy rating following the company’s third-quarter results, which came in “largely in line with expectations.” After reviewing the results, the firm left its FY26 EPS estimate unchanged and raised its FY27 EPS forecast by $0.10, citing a modest improvement in its SG&A outlook.
Costco Wholesale Corporation operates membership warehouses and e-commerce platforms that sell a mix of nationally branded and private-label products across a broad range of categories.
4. The Cigna Group (NYSE:CI)
Number of Billionaire Holders: 29
On May 26, Barclays turned more cautious on The Cigna Group (NYSE:CI), downgrading the stock to Equal Weight from Overweight. It also trimmed its price target on the stock to $304 from $310.The firm said Cigna has less room for earnings upside than some of its peers because of its limited exposure to government insurance programs. In addition, Barclays pointed to uncertainty tied to the company’s pharmacy benefit manager transition and questions around how quickly investment spending may ease. The analyst also sees a less attractive risk-reward setup ahead of Cigna’s investor day in September. Concerns around commercial membership losses and the possibility of AI-driven job cuts were among the factors cited in the research note.
A few days earlier, on May 22, UBS took a more positive view. The firm raised its price recommendation on Cigna to $400 from $375. It reiterated a Buy rating on the stock. According to UBS, managed care companies broadly lifted their guidance after reporting stronger-than-expected first-quarter results. Performance benefited from favorable respiratory trends and typical seasonal cost patterns. The firm added that higher Medicare Advantage rates, steadier enrollment in ACA exchanges, and modestly better Medicaid results have increased confidence in a recovery in margins. At the same time, insurers continue to face pressure from specialty drugs, GLP-1 treatments, and behavioral health costs.
The Cigna Group is a global health company with two operating segments: Evernorth Health Services and Cigna Healthcare.
3. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Holders: 31
Reuters reported on May 27 that Bank of America Corporation (NYSE:BAC) expects its trading revenue to rise 15% in the second quarter from the same period a year earlier, following market volatility driven by higher US tariffs, according to CEO Brian Moynihan.
Speaking at a financial conference, Moynihan cautioned against making straightforward year-over-year comparisons. He made the following remark:
“Got to be careful year over year. You got to remember last year was liberation quarter, so some of these numbers will look big.”
Moynihan said investment banking remains in “pretty good shape.” He also noted that wealth management revenue is expected to grow in the low teens on a percentage basis compared with the prior year. Global dealmaking has recently regained momentum after a sharp slowdown in the weeks following the start of the Iran war. Companies and investors have largely looked past market volatility and continued to pursue larger transactions.
According to Moynihan, the pipeline for initial public offerings remains full, with activity levels staying strong. He also said consumer spending and credit quality continue to hold up well, supported by a healthy labor market despite ongoing inflationary pressures and elevated interest rates.
Bank of America’s internal data showed that total credit and debit card spending per household increased 4.8% year over year in April, up from 4.3% growth recorded in March.
Bank of America Corporation is a bank holding company and financial holding company. Its business segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Billionaire Holders: 34
Mizuho analyst Vijay Rakesh raised the firm’s price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $540 from $500 on May 27. He reiterated an Outperform rating on the shares. The firm also increased its wafer fab equipment spending forecast for 2026 to $153 billion from $142 billion and for 2027 to $190 billion from $163 billion. In a research note, Rakesh said the earnings estimates for Lam Research, Applied Materials, and MKS appear understated given the improving industry outlook. According to Mizuho, the wafer fab equipment market continues to benefit from NAND node transitions, spending by TSMC, and strength in DRAM and high-bandwidth memory pricing.
Earlier in the month, on May 19, Argus raised the firm’s price goal on Applied Materials to $500 from $420. It maintained a Buy rating following the company’s second-quarter earnings beat. Analyst Jim Kelleher said Applied Materials appears well-positioned for long-term growth, supported by a combination of cyclical, demographic, and secular trends. The analyst noted that some of the industry’s newest growth drivers include surging demand for large CPU and GPU configurations used to power large language models for generative AI and, more recently, agentic AI. Argus also pointed to the growing focus on domestic semiconductor manufacturing, which is increasingly viewed as a national security priority.
Applied Materials, Inc. is a materials engineering solutions company that provides equipment, services, and software to the semiconductor, display, and related industries.
1. Visa Inc. (NYSE:V)
Number of Billionaire Holders: 46
On May 28, Replit announced a partnership with Visa Inc. (NYSE:V) aimed at expanding the use of AI-powered software development within large enterprises. As part of the agreement, Visa has invested in Replit, which is an agentic software creation platform. The two companies are also working to integrate Visa Intelligent Commerce into Replit’s platform. The integration is intended to help developers build applications and AI agents that can initiate secure transactions and accept payments through Visa’s global network directly within their workflows.
The investment reflects Visa’s long-term view that AI-native software creation will become an important part of the future commerce infrastructure.
Visa initially adopted Replit to support internal prototyping and software development across its teams. The platform is now used by more than 1,000 Visa employees. Building on that relationship, the companies are exploring ways to bring Visa Intelligent Commerce into Replit’s development environment. Visa Intelligent Commerce is the company’s portfolio of initiatives designed to enable secure, AI-driven commerce experiences at scale.
The planned integration would allow developers to access payment capabilities natively while building AI agents and applications, embedding those tools directly into their development workflows.
Visa Inc. is a global payments technology company that facilitates commerce and money movement across more than 200 countries and territories. Its network connects consumers, merchants, financial institutions, and government entities through a range of payment technologies.
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