In this article, we will take a look at some of the best cash-rich stocks that pay dividends.
With US stocks sitting at record highs while economic weakness begins to show, Morgan Stanley warned that the market could face trouble ahead. The firm advised its clients to focus on companies with strong cash reserves, as these businesses are better equipped to handle a downturn. Analysts explained that firms generating ample free cash flow — the money left after covering operating costs and capital spending — have the advantage of funding themselves without relying heavily on outside financing. Such excess funds can be used to expand operations, reduce debt, or support other initiatives. Morgan Stanley’s preference for these companies reflects growing concerns about signs of strain in the US economy.
Firms with strong cash reserves are in a better position to keep investing in their growth, even when market conditions turn challenging. For this, investors often turn to dividend stocks because these equities have a history of navigating market fluctuations.
Our Methodology
For this article, we began by using a stock screener to find companies with a price-to-free-cash-flow ratio below 15. From this list, we selected companies with a market capitalization of at least $10 billion. Next, we focused on companies with the highest trailing twelve-month operating cash flows, ranking the stocks in ascending order based on their TTM operating cash flows. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q1 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. Skyworks Solutions, Inc. (NYSE:SWKS)
Operating Cash Flow (TTM): $1.58 billion
Skyworks Solutions, Inc. (NYSE:SWKS) is a global semiconductor leader with innovative analog and mixed-signal semiconductors that enable wireless connectivity in smartphones, automotive, and industrial automation solutions. Its technologies open up applications such as 5G networks, edge Internet of Things (IoT) devices, and next-generation automotive communications.
Over the past several years, Skyworks Solutions, Inc. (NYSE:SWKS) has been focusing on four areas of priority: maintaining leadership by building innovation and R&D, mitigating risk from a concentrated base of top customers, growing in automotive, IoT, and industrial end markets, and streamlining supply chain operations. These are the areas of priority that still drive its performance and strategy, with continued focus on bringing new technologies to market and increasing its end markets.
Skyworks Solutions, Inc. (NYSE:SWKS) dividend policy also makes it an appealing option for income investors. On August 6, the firm announced a 1% increase in its quarterly dividend to $0.71 per share. The move was the 11th consecutive year that the firm had increased its dividend. The stock has a dividend yield of 3.57%, as of September 27.
9. Franklin Resources, Inc. (NYSE:BEN)
Operating Cash Flow (TTM): $1.64 billion
Franklin Resources, Inc. (NYSE:BEN) directs investment portfolios of equities, fixed income, alternatives, multi-asset solutions, and cash management. Its business model is defined by fees from management in terms of total AUM, which stood at $1.61 trillion in Q3 FY25.
Franklin Resources, Inc. (NYSE:BEN) is a solid dividend stock, and therefore, it is one of the best cash-rich stocks. The corporation pays a quarterly dividend of $0.32 a share and enjoys a current dividend yield of 5.50%, as of September 27. BEN has provided shareholders with growing dividends for 49 consecutive years.
Franklin Resources, Inc. (NYSE:BEN) has the benefit of scale, broad product offerings, and distribution capabilities around the world. It draws customer assets in the form of mutual funds, ETFs, separately managed accounts, and alternative strategies. Success drivers include maintaining gigantic-scale AUM, positioning products in line with shifting market trends, and integrating acquisitions like Putnam and Apera Asset Management effectively.
8. VICI Properties Inc. (NYSE:VICI)
Operating Cash Flow (TTM): $2.45 billion
VICI Properties Inc. (NYSE:VICI) is a gaming, hospitality, and experiential property real estate investment trust that engages in the ownership, acquisition, and financing of gaming, hospitality, and experiential properties. The company’s business model involves triple-net leasing with large tenants for prolonged periods. In the model, the tenants take care of paying for property expenses like taxes, insurance, and maintenance. The model earns the company predictable cash flows.
VICI Properties Inc. (NYSE:VICI) concentrates its strategy on being secure and growing rental revenue. Most of its properties are fully leased with long-term leases that have automatic annual rent increases. These features shield the firm from inflation and allow consistent shareholder distributions.
VICI Properties Inc. (NYSE:VICI) dividend also makes it a good choice for income investors. The company recently declared a 4% hike in its quarterly dividend to $0.45 per share. The company’s eighth successive year of dividend hike makes it one of the top cash-rich stocks to invest in. The stock, on September 27, has a dividend yield of 5.54%.
7. Cincinnati Financial Corporation (NASDAQ:CINF)
Operating Cash Flow (TTM): $2.6 billion
Cincinnati Financial Corporation (NASDAQ:CINF) boasts a hundred-year history in the US insurance business with property and casualty coverage provided through a vast network of independent agents. It also markets excess and surplus coverage for unusual or high-exposure risks, plus life insurance products. The agent-based business model of the company is one of its strengths, with close relationships between local agencies and policyholders that foster loyalty and result in consistent, long-term growth.
Cincinnati Financial Corp. (NASDAQ:CINF)’s new strategy has been centered on four main areas: building relationships with independent agents, expanding and diversifying its commercial, personal, specialty, and life insurance lines, conservative management of its investment portfolio, and staying well capitalized.
Cincinnati Financial Corporation (NASDAQ:CINF) maintains one of the longest dividend growth histories in the market, spanning 64 years, which makes it one of the best cash-rich stocks. It offers a quarterly dividend of $0.87 per share with a dividend yield of 2.22%, as of September 27.
6. U.S. Bancorp (NYSE:USB)
Operating Cash Flow (TTM): $7.48 billion
U.S. Bancorp (NYSE:USB) is among the top financial services companies in the U.S. Based in Minneapolis, it is best known by its subsidiary, U.S. Bank, which offers an array of financial services, ranging from personal and commercial banking to wealth management and payment services. Keeping with its recent emphasis, the bank has been giving more weight to regulatory compliance, capital adequacy, and increasing its digital services to enhance customer satisfaction as well as operational efficiency.
The success of U.S. Bancorp (NYSE:USB) depends mainly on navigating the complicated regulatory landscape, having healthy cushions of capital, and leveraging technology improvements to stay ahead of competitors as well as defend against cyber threats.
U.S. Bancorp (NYSE:USB) is a solid dividend company, having raised its payouts for 15 consecutive years. The company currently offers a quarterly dividend of $0.52 per share and has a dividend yield of 4.21%, as of September 27.
5. The Travelers Companies, Inc. (NYSE:TRV)
Operating Cash Flow (TTM): $9.63 billion
Travelers Companies, Inc. (NYSE:TRV) is a US insurer that sells property and casualty insurance to individuals and companies. In the second quarter of 2025, the firm had core income of $1.5 billion ($6.51 per share) and a core return on equity of 18.8%. Other figures saw $11.5 billion of net written premiums, $809 million returned to shareholders, and its $2.4 billion notification to sell its Canadian business, as announced in May.
The Travelers Companies, Inc. (NYSE:TRV) is presently paying a dividend of $1.10 per share, having increased it by 4.8% this April. It marked the 12th consecutive year of dividend increase by the company. The yield of the stock is 1.58%, as of September 27.
The Travelers Companies, Inc. (NYSE:TRV) for 2025 sees its expense ratio in the range of 28% to 28.5%. It also intends to utilize funds from Canadian divestment to support another $700 million of share repurchases in 2026. After-tax net investment income fixed income guidance is approximately $770 million in Q3 and $805 million in Q4. Management expects to phase out the majority of its personal insurance rate and capacity constraints by year-end 2025 so as to enable long-term premium growth and robust underwriting margins.
4. Canadian Natural Resources Limited (NYSE:CNQ)
Operating Cash Flow (TTM): $13.8 billion
Canadian Natural Resources Limited (NYSE:CNQ) engages in the production of oil and gas in Western Canada, the North Sea, and offshore Africa. The company is able to maintain a broad and balanced portfolio of assets with low reinvestment requirements, and over the years, effective reserve management, operational efficiencies, and reduced cost structures have translated to even lower WTI breakeven levels. This has allowed the company to retain and grow profitability and cash flow, the latter of which has funded unrelenting dividend growth.
Canadian Natural Resources Limited (NYSE:CNQ) has a quarterly dividend of C$0.5875 and has been increasing its dividend payouts for 25 years. As of September 27, the dividend yield stood at 5.22%.
Canadian Natural Resources Limited (NYSE:CNQ) has 32 years of proven reserve life index as well as extensive, high-value oil and natural gas reserves and products. More so, CNQ is also growing its production capacity and is expected to make a capital investment of $6 billion this year.
3. Chubb Limited (NYSE:CB)
Operating Cash Flow (TTM): $14 billion
Chubb Limited (NYSE:CB) is a property and casualty insurer focused on high-end customers, specializing in insuring valuable homes and other businesses. While most insurers rely on generic policies and try to contain costs on claims, Chubb does not operate that way.
Chubb Limited (NYSE:CB) insures high-value homes under Masterpiece Homeowner’s insurance plans and provides flexible insurance on luxury items, as well as other features, which most companies standardize and treat as add-ons. The company does not devalue items when calculating replacement costs on claims, and they are known to make swift payments.
Chubb Limited (NYSE:CB)’s premium pricing can be attributed to the quality and trust that its service provides. This pricing power has resulted in steady profitability and combined ratios under 100. For the past 32 years, the company has provided increasing shareholder returns, and the company’s quarterly dividend is $0.97 with a 1.38% yield, as of September 27.
2. Merck & Co., Inc. (NYSE:MRK)
Operating Cash Flow (TTM): $18.5 billion
Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company. Concerns are growing, however, as its top-selling cancer drug, Keytruda, starts losing patent protections in 2028. Since Keytruda is approximately half of Merck’s revenue, this is a potential risk.
To mitigate said risks, Merck & Co., Inc. (NYSE:MRK) is developing an injectable version of Keytruda, which is expected to expand its drug pipeline through internal development and acquisitions. Most recently, the company won approval for Winrevair, a therapy for pulmonary arterial hypertension, and it has potential blockbuster status. The company is also buying Verona Pharma for $10 billion, acquiring Ohtuvayre, a promising drug for chronic obstructive pulmonary disease (COPD) as well.
Merck & Co., Inc. (NYSE:MRK)’s dividend policy is also a positive feature that grabs investors’ attention. The company has raised its dividends for 16 consecutive years, and it currently offers a quarterly dividend of $0.81 per share. As of September 27, the stock supports a dividend yield of 4.12%.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Operating Cash Flow (TTM): $28.9 billion
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company offering insurance in the United States through its UnitedHealthcare sector and internationally through its Optum segment.
The largest health insurer has faced headwinds of late, including management turnover and disappointing earnings, but the latest forecast provides at least a bit of reassurance. The company expects roughly 78% of members to be covered by highly rated Medicare plans in 2026, which would lead to higher government payments and revenue growth. The company also reaffirmed its 2025 guidance of at least $16 a share in earnings — below what Wall Street had forecast previously but still a recognition of stability — indicating that there is steady ground and that investor confidence may be able to restore itself.
UnitedHealth Group Incorporated (NYSE:UNH) is popular among income investors because of its strong dividend history. The company has grown its dividends for 14 years in a row, which makes it one of the best cash-rich stocks. Currently, it offers a quarterly dividend of $2.21 per share and has a dividend yield of 2.57%, as of September 27.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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