In this article, we will take a look at the 10 No-Brainer Dividend Stocks to Buy.
On June 1, CNBC reported that investors seeking stability during periods of market volatility should consider maintaining a diversified portfolio of dividend-paying stocks, according to ClearBridge Investments portfolio manager Michael Clarfeld.
Against the current geopolitical backdrop, Clarfeld argued that dividends can offer investors a more predictable source of returns, particularly after the market’s strong run. He also noted that dividend-paying stocks can help limit downside risk by giving investors a tangible source of value during uncertain periods. He made the following remark:
“The case for dividends is as strong as it’s ever been, given the volatility in the markets, given the uncertainty about what the future looks like, and also given the importance of dividend growth as an offset to inflation that’s stickier and higher.”
Inflation remains above the Federal Reserve’s 2% target. According to data released by the Commerce Department, the personal consumption expenditures price index, the Fed’s preferred inflation measure, rose 3.8% in April and 3.3% excluding food and energy prices.“If dividends can continue to grow at a healthy rate, which we think they can, it can keep investors ahead of inflation,” Clarfeld said.
Clarfeld manages the ClearBridge Dividend Strategy Fund (SOPAX), which focuses on high-quality companies with attractive or improving dividend profiles. He also stressed the importance of diversification in helping investors navigate market swings. In his view, diversification is valuable not only from a risk-management perspective but also from an opportunity standpoint. He further said:
“The risk perspective is obvious: We always think don’t put all your eggs in one basket. The opportunity perspective is you never know where performance is going to come from, so you want to make sure you have exposure everywhere.”
Given this, we will take a look at some of the best no-brainer stocks to buy that pay dividends.
Photo by nathan dumlao on Unsplash
Our Methodology:
For this list, we screened for companies that have maintained stable dividend policies over the years and have strong financials and a sound cash position to maintain their dividend policies in the future. We finally picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 32
On June 1, Jefferies initiated coverage of Realty Income Corporation (NYSE:O) with a Buy rating and a $69 price target, compared with its previous target of $75. The firm began coverage of retail net lease real estate investment trusts with a favorable view of the sector. According to the analyst, the successful execution of investment pipelines could help drive a re-rating toward historical valuation multiples.
In a research note, Jefferies said the net lease sector is trading at the third-largest discount to its 10-year average valuation within the REIT space. The firm noted that net lease REITs are being grouped with “the same cohort as secular challenged sectors” such as office and lab properties, despite what it described as “intact fundamentals.”
Earlier, on May 13, Mizuho lowered its price recommendation on Realty Income to $66 from $68. It reiterated a Neutral rating on the stock. The firm pointed to ongoing macroeconomic and interest rate uncertainty affecting triple-net real estate investment trusts.
Realty Income Corporation is a real estate investment trust focused on acquiring, owning, and managing freestanding commercial properties. These properties are leased under long-term net lease agreements to a diversified group of tenants, including investment-grade, investment-grade-equivalent, and other operators.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 59
On June 3, Citi analyst Fatima Boolani raised her price recommendation on International Business Machines Corporation (NYSE:IBM) to $375 from $285. She reiterated a Buy rating on the shares. The move followed IBM’s announcement that it plans to invest an additional $10 billion over the next five years to strengthen its position in quantum computing and advance its long-term strategy in the field. According to Boolani, committing $10 billion in new investment so soon after securing a significant CHIPS Act grant “signals high confidence and preparedness” toward capturing what she described as an approximately $850 billion quantum market that is likely to receive strong federal support. The analyst also said IBM remains “underappreciated” and “misunderstood.”
A few days earlier, on June 1, Barclays initiated coverage of IBM with an Overweight rating. It also set a $350 price target on the stock. In a research note, the firm said IBM has built a “stable growth engine around its very defensible software portfolio.” Barclays believes that the foundation should support “solid” future growth and improved margins. The firm also views quantum computing as a “very interesting option value” and considers IBM an early leader in the space.
International Business Machines Corporation provides hybrid cloud, artificial intelligence (AI), and consulting services worldwide. The company operates through three main business segments: Software, Consulting, and Infrastructure, along with a Financing segment.
8. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 60
On June 3, Bernstein analyst Alexia Howard downgraded The Kraft Heinz Company (NASDAQ:KHC) to Underperform from Market Perform. She also lowered the price target on the stock to $21 from $25. In a research note, Howard said newly appointed CEO Steve Cahillane had announced plans to invest an additional $600 million into the business through increased marketing spending, lower prices, expanded sales teams, and product renovation efforts. The firm believes these investments would raise Kraft Heinz’s expected 2026 leverage ratio to 3.8 times and push the dividend payout ratio to around 60%, “which then begs the question of how sustainable this new model is.” Bernstein cited rising commodity costs and the company’s limited ability to raise prices as key reasons behind the downgrade.
During Kraft Heinz’s first-quarter 2026 earnings call, Cahillane said the company had reviewed several categories across its portfolio and adjusted its priorities. Frozen foods were moved from “Win Big” to “Hold,” while hydration products were upgraded from “Win” to “Win Big.” Cahillane said the changes reflected a more realistic assessment of the portfolio and a greater focus on categories with stronger growth potential and higher margins.
When asked whether the category changes suggested future asset sales, Cahillane said the company was not signaling a specific divestiture plan. He noted that management continues to evaluate the portfolio, invest in key businesses, and look for opportunities to accelerate growth.
Executive Vice President and Global CFO Andre Maciel said the company expects revenue pressure to continue in the near term. He projected second-quarter sales would decline between 3% and 5%. Maciel also said inflationary pressures had increased, particularly in energy and resin costs. He attributed much of that pressure to ongoing disruptions related to global conflicts.
The Kraft Heinz Company manufactures and markets food and beverage products worldwide. Its portfolio is organized around eight consumer-focused platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery products.
7. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 64
On June 3, Goldman Sachs lowered its price recommendation on Accenture plc (NYSE:ACN) to $270 from $300. It reiterated a Buy rating on the shares. In a research note, the firm said growing concerns around the long-term impact of artificial intelligence, along with continued geopolitical uncertainty, are weighing on demand across the IT services sector and putting pressure on valuations. The analyst noted that these factors could affect Accenture’s near-term results and its fiscal 2026 outlook, despite the company’s strong backlog and clear visibility into client budgets.
Also on June 3, Stifel analyst David Grossman reduced his price goal on Accenture to $270 from $315. He kept a Buy rating on the stock. Ahead of the company’s fiscal third-quarter earnings report, scheduled for June 18 before the market opens, Grossman said the firm expects business conditions to remain stable. Even so, he noted that the market appears to be “expecting less” heading into the results.
Accenture plc (NYSE:ACN) is a global professional services company that provides services and solutions across strategy and consulting, technology, operations, Industry X, and Song.
6. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 73
On June 2, UBS downgraded The Sherwin-Williams Company (NYSE:SHW) from Buy to Neutral. It also lowered its price target on the stock to $330 from $385. According to the firm, the company’s earnings remain closely tied to a recovery in the U.S. housing market. The analyst noted that the “unsupportive housing market pushes that timeline further out,” making it less likely that a meaningful recovery will occur in the near term.UBS now expects Sherwin-Williams to grow earnings by about 5% annually over the next two years. The firm does not anticipate above-average earnings growth before 2028.
The analyst also pointed to potential challenges from the company’s changing business mix and the possibility of higher leverage tied to future acquisitions. UBS believes these factors could weigh on the stock and create a risk of a near-term share re-rating. As a result, the firm does not see a clear catalyst that could drive the stock higher over the medium term.
The Sherwin-Williams Company manufactures, develops, distributes, and sells paint, coatings, and related products. It serves professional, industrial, commercial, and retail customers across North and South America. The company also has operations in the Caribbean, Europe, Asia, and Australia.
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
On June 3, Goldman Sachs analyst Joe Ritchie raised his price target on Honeywell International Inc. (NASDAQ:HON) to $276 from $258 and maintained a Buy rating on the shares. In a research note, Ritchie said Honeywell’s planned Aerospace separation remains on schedule for June 29. Following the spin-off, the automation business will operate as Honeywell Technologies, while the aerospace business will trade under the ticker HONA. The analyst also pointed to lower-than-expected stranded costs, several upcoming investor events, and Quantinuum’s IPO filing as positive developments. According to Ritchie, the IPO filing provides another valuation benchmark as Honeywell continues its broader restructuring efforts.
Earlier, on May 27, Barclays raised its price target on Honeywell to $251 from $243 and maintained an Overweight rating on the stock. The firm said Honeywell has “clear catalysts ahead,” including two capital markets days and two planned spin-offs in the coming weeks. Barclays believes the shares could have 10% to 15% upside potential before those transactions are completed.
Honeywell International Inc. is an integrated operating company that serves customers across a wide range of industries and regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.
4. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 78
On June 3, Morgan Stanley raised its price recommendation on Philip Morris International Inc. (NYSE:PM) to $200 from $190. It reiterated an Overweight rating on the shares. The firm said its confidence improved following updates shared by Philip Morris at a recent investor conference. The company announced that Zyn Ultra will launch in the U.S. this month and also provided an update on IQOS in Japan. At the same time, Morgan Stanley lowered its Q2 and full-year 2026 estimates by $0.05 per share to reflect foreign exchange impacts, in line with the company’s updated outlook.
On June 2, Reuters reported that Philip Morris lowered its annual profit forecast because of currency fluctuations. Even so, CEO Jacek Olczak said other risks to achieving the company’s outlook, including rising energy prices, were manageable.
Speaking at the Deutsche Bank Global Consumer Conference, Olczak said recent U.S. FDA actions to ease enforcement on unauthorized vaping products and nicotine pouches were a “net positive.” He said the move reduces regulatory uncertainty around Zyn and should support growth across the category.
Philip Morris now expects 2026 adjusted earnings per share of $8.31 to $8.46, representing growth of 10.2% to 12.2% from 2025 levels. The updated range is lower than its previous forecast of $8.36 to $8.51. Analysts had been expecting earnings of $8.41 per share. Olczak also said the company has more flexibility than initially expected this year to offset certain headwinds.
Philip Morris International Inc. is an international tobacco company. Its portfolio includes cigarettes and smoke-free products. The smoke-free business also includes wellness and healthcare products, along with consumer accessories such as lighters and matches.
3. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 83
On June 1, CNBC reported that McDonald’s Corporation unveiled a new global growth strategy aimed at helping the fast-food giant remain its customers’ top choice as it faces increasing competition and pressure from consumers dealing with high gas prices.
The strategy, called “McDonald’s > NEXT,” is built around four key areas: a new restaurant design, better-tasting food and beverages, consumer-led innovation, and improved customer service. Company executives introduced the plan during McDonald’s biennial Worldwide Convention for franchisees in Las Vegas. The company’s previous global strategy, “Accelerating the Arches,” was launched in November 2020 as sales recovered from the pandemic.
The new growth plan comes at a time when restaurants are competing for a smaller pool of customers. McDonald’s is also facing growing competition from newer chains such as Raising Cane’s and 7 Brew Drive-Thru Coffee. Even so, the company has maintained its leading position as the largest US restaurant chain by revenue, supported by four consecutive quarters of same-store sales growth.
As part of the strategy, McDonald’s plans to introduce a new restaurant design that gives locations a more recognizable look while making operations easier for employees. The company said its back-end systems will be more intuitive and better connected, helping improve kitchen efficiency.
McDonald’s is also testing automated order-taking technology at five US restaurants through a system called ARCHY. The goal is to allow employees to focus on other tasks. On a broader level, the company said it wants to “redefine hospitality” by improving customer service and encouraging employees to engage more with diners.
McDonald’s Corporation is a global foodservice retailer. Its operating segments include the US, International Operated Markets, and International Developmental Licensed Markets & Corporate.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 107
On June 1, DA Davidson maintained its Neutral rating on Costco Wholesale Corporation (NASDAQ:COST). It also set a $1,000 price target on the stock. At the same time, the firm added the stock to its “Best-of-Breed Bison List,” a group of companies it believes offer strong business opportunities, durable competitive advantages, solid financial performance, and attractive risk-reward profiles.
According to the analyst, Costco has positioned itself as a destination where consumers can stock up on goods every few weeks. The company stands out through its high-quality private-label products, a well-balanced general merchandise selection, and additional businesses such as pharmacy, optical, and gas services that help bring customers into its warehouses.
The analyst also noted that Costco’s warehouse model has one of the strongest competitive advantages in retail. The business benefits from low prices, efficient distribution, and a relatively limited number of SKUs, creating significant barriers to entry for competitors. Membership fee income further supports the model and adds another layer of stability to the business.
Costco Wholesale Corporation operates membership warehouses and e-commerce platforms that offer a range of nationally branded and private-label products across multiple categories.
1. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 115
On June 2, Scotiabank raised its price recommendation on Oracle Corporation (NYSE:ORCL) to $290 from $215. It reiterated an Outperform rating on the stock. The firm said it continues to favor Oracle’s structural position in the AI-accelerated cloud market. While the analyst expects the shares to remain “choppy” over the next few weeks, Scotiabank believes the stock’s risk-reward profile still leans to the upside.
Earlier, on May 13, Wedbush raised its price goal on Oracle to $275 from $225. It maintained an Outperform rating. The firm said its confidence increased following additional checks on Oracle’s position within the AI infrastructure landscape. Wedbush argued that the market continues to misunderstand the Oracle story. According to the firm, investors are placing too much focus on the near-term appearance of the company’s heavy, contract-backed capital spending cycle and not enough on the demand visibility supporting those investments.
The firm also said it has become more comfortable with Oracle’s relationship with OpenAI and is more constructive on the broader data center opportunity. In Wedbush’s view, concerns surrounding Oracle remain overdone, while the company is becoming increasingly well-positioned to emerge as a global AI winner.
Oracle Corporation provides integrated application suites and secure, autonomous infrastructure through Oracle Cloud. The company operates through three business segments: cloud and license, hardware, and services.
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