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%.
8. Robert Half Inc. (NYSE:RHI)
Number of Hedge Fund Holders: 34
Robert Half Inc. (NYSE:RHI), a California-based international human resources consulting firm, offers contract staffing solutions, permanent placement services, and business consulting through its Protiviti division.
On October 23, Barclays cut its price target on Robert Half Inc. (NYSE:RHI) from $45 to $36 while maintaining an Equal Weight rating after the company’s third-quarter results. The firm described the outlook as disappointing and noted that management would rather “sleep well” than lever up the balance sheet for share buy-backs.
For the three months ended September 30, 2025, Robert Half Inc. (NYSE:RHI) reported net income of $43 million, or $0.43 per share, on revenue of $1.35 billion. The company indicated that contract talent revenues held steady through most of the quarter, showing sequential growth in September and continuing into October. Management added that Q4 revenue guidance reflects a return to sequential growth on a same-day constant currency basis for the first time since the second quarter of 2022.
Robert Half Inc. (NYSE:RHI)’s consistent dividend growth has also gained investors’ attention, as the company has raised its dividends for 21 consecutive years. The firm offers a quarterly dividend of $0.59 per share, corresponding to a yield of 8.14%, as of October 28.
7. FactSet Research Systems Inc. (NYSE:FDS)
Number of Hedge Fund Holders: 36
FactSet Research Systems Inc. (NYSE:FDS) offers a wide range of financial data and analytics solutions, primarily through a subscription-based model. Its services are designed to integrate seamlessly into client workflows, providing multi-asset class data and advanced analytics. The company relies heavily on its annual subscription value (ASV), which enjoys a retention rate above 95%, giving it a stable and predictable revenue base that underpins its strong market position.
FactSet Research Systems Inc. (NYSE:FDS) has consistently rewarded shareholders with rising dividends for 26 consecutive years. It pays a quarterly dividend of $1.10 per share, translating to a yield of 1.52%, as of October 28. This long-standing dividend growth reflects the company’s solid cash position and financial strength.
FactSet Research Systems Inc. (NYSE:FDS) is currently focused on technological innovation and expanding its global footprint. Recent initiatives include the launch of its Intelligent Platform and AI-driven solutions like IRN 2.0 and DaaS. These advancements are aimed at embedding AI more deeply into client operations, improving service delivery across multiple regions, and reinforcing FactSet’s role as a leader in financial analytics.
6. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 47
Dover Corporation (NYSE:DOV) is an American company that specializes in industrial products, which serve a wide range of industries, including energy, transportation, healthcare, retail refrigeration, and electronics. The company balances short-cycle products, which are sold frequently and in high volumes, with longer-cycle project components, allowing it to navigate economic fluctuations while pursuing opportunities across multiple sectors.
Recently, Dover Corporation (NYSE:DOV)’s management has concentrated on increasing sales of higher-margin products while actively controlling costs, leading to a notable rise in profitability. The company is also pursuing growth through acquisitions. In early August, it completed the purchase of Site IQ, a specialist in fueling site monitoring products, which has been integrated into Dover’s fueling solutions division.
On August 11, Dover Corporation (NYSE:DOV) announced a modest but steady 1% increase in its quarterly dividend, extending its dividend growth streak to 69 years. The company currently pays a quarterly dividend of $0.52 per share, providing a yield of 1.16%, as of October 28.
5. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 59
Ecolab Inc. (NYSE:ECL) is widely regarded as a global leader in water management, sanitation, and pest control, serving millions of sites around the world. Its solutions are applied across diverse areas, including cooling water systems at data centers, water recycling in electronics manufacturing, infection control in hospitals, and sanitation and pest management for hotels and restaurants.
Ecolab Inc. (NYSE:ECL) has recently focused on sustainability, digital innovation, and improving operating efficiency. Its success is supported by value-based pricing, investments in technologies such as digital monitoring and advanced chemical solutions, and a strong global supply network. Ecolab’s presence across multiple industries also helps it navigate periods of weaker demand in any single sector.
For income-focused investors, Ecolab Inc. (NYSE:ECL)’s dividend adds to its appeal. The company pays a quarterly dividend of $0.65 per share, offering a yield of 0.96%, and has a history of increasing its payouts for 33 consecutive years.
4. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 61
Chubb Limited (NYSE:CB) is one of the world’s largest insurance companies, offering coverage for a broad range of risks on a global scale. The insurance business is attractive because it generates steady cash flow and can achieve long-term growth through disciplined underwriting.
Chubb Limited (NYSE:CB) provides both commercial and personal insurance, catering to high-net-worth individuals and covering complex corporate risks. The company’s cautious approach to risk, combined with its extensive international presence, has helped it navigate economic cycles effectively. Large insurers like Chubb are generally insulated from economic downturns because policyholders rarely cancel coverage even when cutting other expenses. The company has also expanded rapidly overseas, with international operations accounting for 43% of its revenue in 2024.
Chubb Limited (NYSE:CB) has rewarded shareholders with rising dividends for 32 consecutive years. It pays a quarterly dividend of $0.97 per share, offering a yield of 1.39%, as of October 28.
3. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 63
International Business Machines Corporation (NYSE:IBM) has long been a cornerstone of the technology sector, known for its remarkable ability to adapt over more than a century. When the company was founded in 1911, it specialized in products like scales and clocks. Today, IBM develops a wide range of technology, including quantum computers, and plays a key role in supporting cloud computing, which underpins the artificial intelligence (AI) industry.
International Business Machines Corporation (NYSE:IBM) has demonstrated growth in 2025. In the first half of the year, revenue approached $32 billion, marking a 4% increase compared with the same period in 2024, including an 8% rise in the second quarter. Operating income also grew, climbing 14% year over year in the first two quarters. However, net earnings of $3.2 billion fell 5% due to significantly higher income tax expenses.
Despite this, International Business Machines Corporation (NYSE:IBM) projects free cash flow of $13.5 billion, up from $12.7 billion the previous year, comfortably exceeding the $6.2 billion expected for dividend payments. This supports the company’s long-standing record of dividend growth, which has continued for 30 consecutive years. As IBM pays a quarterly dividend of $1.68 per share, offering a yield of 2.11%, as of October 28.
2. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 79
Analog Devices, Inc. (NASDAQ:ADI) is a prominent company in the semiconductor industry, specializing in products designed to meet diverse market needs. The company primarily develops, designs, and manufactures high-performance analog, mixed-signal, and digital signal processing integrated circuits, which play a critical role in capturing and processing real-world data for electronic systems.
In recent years, Analog Devices, Inc. (NASDAQ:ADI) has placed a strong emphasis on innovation and research and development (R&D). Its aim is to maintain a leading position in technology while addressing the evolving requirements of customers in industrial, automotive, communications, and consumer sectors. The company’s continued success depends on sustained R&D investment, close collaboration with customers, and its ability to capitalize on major growth trends such as manufacturing digitization and the expansion of AI-driven infrastructure.
Analog Devices, Inc. (NASDAQ:ADI) is considered a strong choice for dividend investors, having increased its dividend for 21 consecutive years. The company currently pays a quarterly dividend of $0.99 per share, which corresponds to a yield of 1.64%, as of October 28.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is seen as a strong healthcare stock that investors can confidently hold for many years. Known for its long track record of innovation and extensive drug pipeline, the Indianapolis-based pharmaceutical company boasts impressive financial performance and promising long-term growth potential.
At present, Eli Lilly and Company (NYSE:LLY) operations revolve around two widely popular injectable GLP-1 products, “Mounjaro” for diabetes and “Zepbound” for weight loss. Both share the same active ingredient, tirzepatide, which has shown significant potential in treating other conditions as well. Recent clinical trials have suggested that tirzepatide could help manage fatty liver disease, while data also indicates that GLP-1 drugs might play a role in curbing addiction. In the near future, the company aims to introduce a weight loss pill, possibly as early as next year.
The company’s financial results have already been impressive. For the current year, Eli Lilly and Company (NYSE:LLY) projects revenue in the range of $60 billion to $62 billion. It also recently declared a quarterly dividend of $1.50 per share, consistent with its prior payout. Overall, the company has increased its dividend for 11 consecutive years. The stock has a dividend yield of 0.73%, as of October 28.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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