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 (NYSE:AFL) 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 (NYSE:DVN) 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. (NASDAQ:WMT) 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 (NYSE:HSY) 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 (NYSE:PH) 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.
While we acknowledge the potential of PH 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 PH and that has 100x upside potential, check out our report about the cheapest AI stock.
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