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.
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