In this article, we will take a look at the 10 Reliable Dividend Stocks to Buy for Long-Term Investors.
Dividend stocks have long been a favorite among investors focused on building wealth over time. Christine Benz, Morningstar’s director of personal finance and retirement planning, said companies that pay dividends are often viewed as being on a stronger financial footing than those that do not. In her view, regular dividend payments can signal financial strength and stability. She also noted that historical data show dividend-paying stocks have generally been less volatile, especially during periods of economic uncertainty, than companies that do not distribute dividends.
Benz said these characteristics make a strong case for including dividend stocks in an investment portfolio. She added that some investors may even choose to concentrate entirely on dividend-paying companies because of those benefits.
In addition, she highlighted the appeal of dividend growth strategies. Benz explained that investors looking at these strategies may find that the dividend yield is not much higher than that of the broader market. The real advantage, she said, lies in owning a portfolio of stable, high-quality companies that have tended to experience less volatility over time.
Given this, we will take a look at some of the best dividend stocks with reliable income.
Photo by Dan Dennis on Unsplash
Our Methodology:
For this list, we screened for companies that have consistent dividend policies, strong financials, and sound balance sheets. These stocks have paid regular dividends to shareholders over the years. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among hedge funds.
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. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 62
Dividend Yield as of June 24: 2.83%
On June 24, Morgan Stanley raised its price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $136 from $129. It reiterated an Overweight rating on the stock. The firm updated its price targets for North American Regulated & Diversified Utilities and Independent Power Producers (IPPs) for May. According to the analyst, utilities lagged the S&P 500’s return during the month.
Earlier, on May 29, Truist lowered its price goal on AEP to $145 from $148. It maintained a Buy rating on the shares. The adjustment was part of a broader research note covering power and utilities companies. Truist said that positive revisions would reinforce the view that the company is well-positioned to benefit from data center construction activity across the country. The firm added that the pace of development remains a potential source of upside, even compared with its already favorable outlook. Analyst Richard Sunderland shared these views in a research note to investors.
American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company. Its utility operating companies provide generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.
9. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 65
Dividend Yield as of June 24: 1.22%
On June 24, RBC Capital raised its price recommendation on CSX Corporation (NASDAQ:CSX) to $51 from $47. It reiterated an Outperform rating on the stock. The update came as part of a broader preview of second-quarter results for Class I railroads. The firm believes CSX is in a strong position regardless of how rail industry consolidation plays out. RBC said the company has “really turned it around” operationally and expects its core business to deliver stronger performance, whether or not a merger between Union Pacific and Norfolk Southern moves forward.
Earlier, on June 17, BofA increased the firm’s price goal on CSX to $53 from $51. It maintained a Buy rating on the shares. Analyst Ken Hoexter also raised earnings-per-share estimates by 3% for the second quarter and by 2% for both 2026 and 2027 after reviewing the company’s quarter-to-date update. BofA noted that carloads were up 6.0% year over year during the quarter so far, well above its previous growth estimate of 2.7%.
CSX Corporation (NASDAQ:CSX) provides transportation services through its rail network, intermodal operations, and rail-to-truck transload solutions. The company serves a wide range of industries, including energy, industrial, construction, agricultural, and consumer products.
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