In this article, we will take a look at some of the best rising dividend stocks to invest in.
Investors are often drawn to companies that have a consistent history of raising dividends, as such firms tend to perform well even when markets are flat or declining. During strong market phases, these dividend growers also manage to capture a substantial portion of the gains. Following a long-term dividend growth strategy can help investors benefit from compounding returns. A report by T. Rowe Price showed that, from 1985 to 2022, companies in the Russell Index that regularly increased their dividends outperformed the broader market and experienced lower price volatility.
Earning a steady income from dividend stocks takes time and requires patience as well as a focus on the long term. These stocks are especially appealing to investors with a long investment horizon, as their payouts have consistently grown faster than inflation. Data from Morningstar and Yale University’s Robert Shiller indicates that since 1871, market dividends per share have increased at an annual rate 1.6 percentage points higher than inflation. This gap has expanded over time, over the past 50 years, dividends have exceeded inflation by 2.5 percentage points annually, and in the past 20 years, the margin has widened to 4.6 percentage points per year.
Given this, we will take a look at some of the best rising dividend stocks to invest in.
Our Methodology:
For this list, we screened for companies with strong dividend histories and picked 10 companies that have raised their dividends for at least a decade. After that, we sorted these dividend stocks using Insider Monkey’s proprietary hedge fund sentiment data as of Q2 2025, which means that these stocks are the most popular dividend stocks among the elite hedge funds. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Nordson Corporation (NASDAQ:NDSN)
Number of Hedge Fund Holders: 24
Nordson Corporation (NASDAQ:NDSN) designs and produces equipment and systems that accurately apply adhesives, coatings, sealants, biomaterials, and other specialized materials. Its products are used across a wide variety of industries, including electronics, medical, packaging, and general manufacturing. Roughly two-thirds of the company’s revenue comes from customers outside the US, highlighting its strong global presence.
At the core of Nordson Corporation (NASDAQ:NDSN)’s operations is its focus on delivering high-precision, innovative solutions that meet both customer-specific and broader industry needs. The company continues to introduce new products, expands into fast-growing areas such as medical devices, and uses strategic acquisitions to grow its scale. Its success is driven by technical innovation, a worldwide sales and support network, a strong reputation for customer service, and a workplace culture that emphasizes employee development and operational efficiency.
Nordson Corporation (NASDAQ:NDSN) also stands out for its long history of rewarding shareholders. In August, it marked its 62nd consecutive year of raising its dividend, one of the longest streaks in the market. The company currently pays a quarterly dividend of $0.82 per share, which translates to a yield of around 1.38%, as of October 28.
9. Badger Meter, Inc. (NYSE:BMI)
Number of Hedge Fund Holders: 32
Badger Meter, Inc. (NYSE:BMI) is widely regarded as a high-quality company, praised for its solid operational performance and the potential to expand profit margins within an attractive industry. While its flow measurement and advanced metering infrastructure products might not immediately suggest significant growth, the company has consistently defied expectations. Over the past five years, the company’s sales and free cash flow have increased by 15% and 16% respectively, while management has boosted the dividend by 14% during the same period.
With most US water and sewer utilities still relying on outdated mechanical systems, Badger Meter, Inc. (NYSE:BMI)’s comprehensive BlueEdge solution is designed to modernize these operations. Beyond benefiting from this long-term industry trend, the company has a strong history of strategic acquisitions, having acquired 14 companies since 2010, further strengthening its market position.
The dividend adds to Badger Meter, Inc. (NYSE:BMI) appeal for income-focused investors. On August 11, the company raised its quarterly dividend by 17.6% to $0.40 per share, extending its dividend growth streak to 33 years. As of October 28, the stock offers a dividend yield of 0.87%.
