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 (NYSE:O) 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 (NYSE:IBM) 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 (NASDAQ:KHC) 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 (NYSE:SHW) 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.
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