In this article, we will take a look at some of the best NYSE dividend stocks.

Stocks that pay dividends, particularly those that have been increasing their payouts, can help stabilize portfolios during uncertain times. Dividend-paying companies give investors a degree of protection against market shocks. According to Morgan Stanley strategist Todd Castagno, dividends become a more important part of total returns when risks and valuations are high, as they help reduce volatility and support share prices. He also pointed out that sustainable dividend yields are especially appealing when economic growth slows and interest rates move lower.

That said, not all dividend stocks are equally reliable. Very high yields can sometimes signal a declining stock price, and payouts that are not sustainable may eventually be cut if a company faces financial challenges. To overcome this, investors often look toward dividend growers. Around the globe, many companies are steadily raising their dividend payouts.

In 2024, global dividend growth picked up pace, climbing by an impressive 8.5%. The sharpest gains came from Asia-Pacific, where government policies encouraged companies to shift from annual to semiannual payouts. At the same time, the US saw a wave of record dividend initiations and reinstatements, largely fueled by the technology, media, and telecommunications sector.

Given this, we will take a look at some of the best dividend stocks.

Our Methodology

For this article, we looked for the biggest companies listed on the NYSE. Next, we focused on the top 10 dividend stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of nearly 1,000 elite hedge funds. The stocks were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.

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. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 64

3M Company (NYSE:MMM) is a diversified technology company that produces a wide range of products serving industries such as electronics, automotive, and consumer goods. Its offerings include adhesives, abrasives, filtration systems, safety gear, and office supplies.

3M Company (NYSE:MMM) operates through three main segments: Safety and Industrial, Transportation and Electronics, and Consumer. In recent years, it has sharpened its focus by boosting investment in innovation and restructuring its portfolio, including the spin-off of its Health Care division. Key factors behind 3M’s success include its capacity to develop new products, effectively handle legal and regulatory challenges, maintain strong manufacturing efficiency, and generate consistent free cash flow.

3M Company (NYSE:MMM) currently offers a quarterly dividend of $0.73 per share, having raised it by 4.3% earlier this year. This was the company’s first dividend hike after slashing its payout by half in 2024. The stock has a dividend yield of 1.86%, as of September 20.

9. The Sherwin-Williams Company (NYSE:SHW)

Number of Hedge Fund Holders: 67

The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based paints and coatings company. It has a long history that goes well beyond its reputation as a top dividend payer. From modest beginnings, it has grown into a leading name in the paints and coatings industry, serving areas such as automotive and marine applications, industrial wood coatings, and more. The company supports its operations with a network of over 5,400 stores and branches, along with more than 140 manufacturing and distribution sites.

What makes The Sherwin-Williams Company (NYSE:SHW) attractive as an income stock is the reliability of its dividend. Over the past ten years, it has maintained a conservative payout ratio of 26.6%, while also generating strong free cash flow that easily covers its dividend distributions.

The Sherwin-Williams Company (NYSE:SHW) is among the best dividend stocks as the company has increased its payouts for 46 years in a row. The company’s quarterly dividend comes in at $0.79 per share and has a dividend yield of 0.91%, as recorded on September 20.

8. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 68

The Kroger Co. (NYSE:KR) is one of the largest grocery chains in the US, operating thousands of food stores nationwide. Its business includes supermarkets, multi-department stores, and an expanding digital platform that supports online grocery shopping. Alongside traditional retail, the company has been growing its pharmacy services, private label products, and digital sales.

At present, The Kroger Co. (NYSE:KR) is focused on strengthening its e-commerce and digital channels, expanding its private brand portfolio, and improving operational efficiency. A major emphasis is placed on its Fresh offering, which highlights high-quality produce and prepared foods. The company also uses customer data to deliver personalized shopping experiences. Its long-term success depends on building customer loyalty, controlling costs, managing its workforce effectively, and reshaping its store network to keep pace with evolving consumer shopping patterns.

The Kroger Co. (NYSE:KR) is also popular among income investors because of its strong dividend history. On September 18, the company declared a quarterly dividend of $0.35 per share, which was in line with its previous dividend. Overall, it has been rewarding shareholders with growing dividends for the past 19 years, which makes it one of the best dividend stocks. KR supports a dividend yield of 2.13%, as of September 20.

7. Kenvue Inc. (NYSE:KVUE)

Number of Hedge Fund Holders: 72

Kenvue Inc. (NYSE:KVUE) produces and sells consumer health products across several categories, including over-the-counter medicines, personal care, and wellness items. Its portfolio features well-known household brands such as Tylenol for pain and fever relief, Neutrogena for skin care, and Listerine for oral hygiene.

Following its separation from Johnson & Johnson in 2023, Kenvue Inc. (NYSE:KVUE) has concentrated on using digital tools and consumer insights to strengthen brand relevance. At the same time, it is working to modernize its supply chain and ensure ongoing compliance with regulations. Recent initiatives highlight productivity improvements, stronger operating margins, and selective investments in digital marketing and product innovation.

After its separation from Johnson & Johnson, Kenvue Inc. (NYSE:KVUE) inherited the status of being recognized as a Dividend King. The company offers a quarterly dividend of $0.2075 per share, having raised it by 1.2% in July. With a dividend yield of 4.53%, as of September 20, KVUE is among the best dividend stocks on our list.

6. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 76

Caterpillar Inc. (NYSE:CAT), the world’s largest maker of construction equipment, is a classic example of a cyclical stock. Its performance closely follows the state of the economy, thriving during periods of growth but taking sharp hits during downturns. As a result, the company’s long-term revenue pattern resembles a roller coaster rather than a steady climb.

To soften the impact of these economic swings, Caterpillar Inc. (NYSE:CAT) has been working to expand its services business, which provides more consistent recurring revenue. Another major opportunity lies in the rapid expansion of data centers fueled by artificial intelligence and cloud computing. Goldman Sachs Research projects that global electricity demand from data centers could rise by as much as 165% by 2030, creating heavy pressure on the power grid. Caterpillar is well-positioned to benefit from this trend through its power generation and energy storage solutions, which can help meet the soaring energy needs of data centers until grid infrastructure catches up.

In addition, Caterpillar Inc. (NYSE:CAT) is a strong dividend company. The company’s quarterly dividend stands at $1.51 per share and has a dividend yield of 1.29%, as of September 20. CAT has been growing its payouts for 31 consecutive years.

5. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 78

McDonald’s Corporation (NYSE:MCD), one of the most recognizable fast food brands in the world, operates more than 40,000 restaurants across over 100 countries, making it the second-largest chain by store count. Its winning formula has long been tasty food served quickly, but what truly differentiates McDonald’s is its ability to consistently offer meals at an affordable price.

McDonald’s Corporation (NYSE:MCD) is leaning into that advantage by reintroducing its Extra Value Meals, which save customers up to 15% compared to buying items separately. These value-focused promotions played a big role in boosting the company’s second-quarter revenue by 5% and earnings per share by 11%.

Beyond value, technology is becoming a key driver of efficiency. McDonald’s Corporation (NYSE:MCD) is planning to increase its investments in AI, partnering with Alphabet’s Google Cloud to bring advanced edge computing to more than 44,000 locations. These AI-powered systems are designed to improve order accuracy, reduce equipment downtime, and ease administrative work for managers.

In addition, McDonald’s Corporation (NYSE:MCD) is a solid dividend payer, increasing its payouts for 48 consecutive years, which makes it one of the best dividend stocks to invest in. The company currently pays a quarterly dividend of $1.77 per share and has a dividend yield of 2.34%, as of September 20.

4. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 105

Walmart Inc. (NYSE:WMT) is the largest retailer in the world, with more than 5,200 stores in the United States and nearly 5,600 additional locations overseas.

Although Walmart Inc. (NYSE:WMT) may not deliver strong net growth each year, that does not mean investors are limited to modest returns of around 5% annually. The company consistently generates solid profits, which it uses to create value for shareholders through stock buybacks. By reducing the number of shares outstanding, buybacks make each remaining share more valuable. Since 1995, the company has cut its share count by almost half.

Moreover, Walmart Inc. (NYSE:WMT) is a Dividend King with 52 consecutive years of dividend growth under its belt. Currently, it offers a quarterly dividend of $0.235 per share and has a dividend yield of 0.92%, as recorded on September 20.

3. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 124

JPMorgan Chase & Co. (NYSE:JPM) is a leading financial services company with operations across consumer banking, payments, investment banking, markets, commercial banking, and asset management. Its strong earnings power, combined with disciplined risk management, is reflected in solid returns on equity, healthy capital reserves, and consistent shareholder returns through buybacks and dividends. These qualities make JPM a strong dividend stock for long-term investors.

JPMorgan Chase & Co. (NYSE:JPM) continues to return significant capital to shareholders. In the latest quarter, it distributed $3.9 billion in dividends and repurchased $7.1 billion worth of stock. Over the past year, total net payouts, including both dividends and buybacks, amounted to 71% of earnings. Despite this, the company maintains a conservative dividend payout ratio of just 28%.

On September 17, JPMorgan Chase & Co. (NYSE:JPM) declared a 7.1% hike in its quarterly dividend to $1.50 per share. This was the company’s fourth dividend hike in the last two years. As of September 20, the stock has a dividend yield of 1.91%.

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 158

Mastercard Incorporated (NYSE:MA) is a leading name in digital payments and widely recognized as a blue-chip company in the industry. Its strong competitive position comes from its global brand and its role as a partner to banks and lenders that issue cards. Each time a transaction runs through its network, Mastercard earns a small fee, giving it a reliable source of revenue.

With an estimated one billion more people expected to enter the global consumer class in the coming decade, Mastercard Incorporated (NYSE:MA) has significant room to grow its payment processing network. At the same time, the company has been steadily increasing the amount of cash it returns to shareholders.

Mastercard Incorporated (NYSE:MA) has been growing its payouts for 13 consecutive years, which makes it one of the best dividend stocks. The company currently pays a quarterly dividend of $0.76 per share and has a dividend yield of 0.52%, as of September 20.

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 167

Visa Inc. (NYSE:V) operates a global payment network that handles prepaid, debit, and credit card transactions. Accepted in over 200 countries and territories, it is one of the most widely used payment systems in the world. In fiscal 2024 alone, the company processed 234 billion transactions.

Visa Inc. (NYSE:V) is often at the forefront of payment technology. It was the first major network to complete a cryptocurrency transaction and has invested significantly in artificial intelligence systems to strengthen fraud detection. At present, the company processes roughly $13 trillion in annualized payment volume through about 4.8 billion branded debit and credit cards.

In addition, Visa Inc. (NYSE:V) is popular among investors because of its strong dividend history. The company has been rewarding shareholders with growing dividends for the past 17 years. It currently offers a quarterly dividend of $0.59 per share and has a dividend yield of 0.69%, as of September 20.

While we acknowledge the potential of V to grow, 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 V and that has 100x upside potential, check out our report about this cheapest AI stock.

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