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.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
Dividend Yield as of June 24: 1.86%
On June 24, Reuters reported that QUALCOMM Incorporated (NASDAQ:QCOM) is in talks to provide chip-design services to China’s ByteDance, according to four people familiar with the matter. The move is part of Qualcomm’s effort to diversify its business and reduce its reliance on the smartphone market, which remains its largest source of revenue.
If the discussions lead to a deal, ByteDance, the parent company of TikTok, would become one of the first customers of Qualcomm’s chip-design services business. Qualcomm is currently the world’s largest supplier of smartphone modem chips. They mainly handle cellular communications.
According to three sources, Qualcomm is discussing the design of custom chips for ByteDance. Two of the sources said the chips would be based in part on technology from AlphaWave Semi. It is a high-speed connectivity specialist that Qualcomm acquired last year. The talks are ongoing, but their outcome remains uncertain, according to three sources. It is still unclear whether the discussions will result in a completed chip design and manufacturing agreement. The sources added that ByteDance could also choose to work with other partners.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry. Its portfolio includes 3G, 4G, and 5G wireless connectivity, as well as high-performance and low-power computing technologies, including on-device artificial intelligence.
7. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 71
Dividend Yield as of June 24: 1.87%
On June 24, Stifel raised its price recommendation on Texas Instruments Incorporated (NASDAQ:TXN) to $360 from $340. It reiterated a Buy rating on the stock. The firm pointed to improving momentum across the semiconductor sector. In a note to investors, analyst Tore Svanberg said Stifel had highlighted analog chipmakers last quarter as being positioned for a potential breakout in calendar 2026. According to the firm, that view “has now been firmly validated” after Astera Labs, Credo Technology, and Marvell all reported beat-and-raise quarters in the first quarter. Stifel also said it continues to see periods of weakness in AI-related stocks as “a buying opportunity for long-term investors focused on clear technological innovators.” Svanberg made the comments in the firm’s second-quarter earnings preview.
Earlier this month, on June 15, Citi raised its price objective on Texas Instruments to $345 from $280. It maintained a Buy rating on the shares. The firm cited recent price increases and a stronger recovery in the analog market, supported by demand from data centers. Citi also expects Texas Instruments to gain market share in data center power applications beginning in the second half of 2026.
Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors. The company operates through two business segments: Analog and Embedded Processing.
6. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 73
Dividend Yield as of June 24: 0.96%
On June 24, Citi raised its price recommendation on The Sherwin-Williams Company (NYSE:SHW) to $380 from $355. It reiterated a Buy rating on the shares. The move was part of the firm’s second-quarter earnings preview for companies in the specialty chemicals sector.
Earlier, on June 4, BMO Capital lowered its price objective on SHW to $355 from $420. It kept an Outperform rating on the shares. The firm said it is trimming its estimates to account for a tougher macroeconomic backdrop. In a research note, the analyst pointed to continued pressure from high raw material costs. In addition, the analyst also pointed to a weakness in the housing market. These conditions, the firm believes, could reduce the likelihood of a meaningful recovery in the later stages of fiscal 2026 and fiscal 2027.
The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, distributes, and sells paints, coatings, and related products. The company serves a broad customer base that includes professional contractors, industrial businesses, commercial clients, and retail consumers.
While we acknowledge the potential of SHW as an investment, 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 SHW and that has 100x upside potential, check out our report about the cheapest AI stock.
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