In this article, we will take a look at some of the safest dividend stocks to buy.
Dividend-paying stocks can provide stability during market swings, even when overall equity prices are rising. Many investors prefer them as a source of steady income and a partial hedge against volatility. However, not all dividend stocks carry the same appeal. Goldman Sachs has shown a preference for dividend growth stocks, which are companies with a track record of consistently raising their payouts.
A report by RMB Capital noted that over time, companies that initiate dividends and steadily increase them have delivered stronger returns than the broader market. They have also outperformed companies that either reduce dividends or do not pay them at all. According to the findings, Dividend Growers and Initiators returned 9.62%, Dividend Payers returned 8.78%, while companies with no change in dividend policy generated 6.88%.
Shareholders of established companies often prefer receiving dividends and may push firms to distribute them. A cash dividend signals that a company’s profits are genuine rather than just accounting adjustments. Dividends also act as a cushion in declining markets, giving investors cash they can either use directly or reinvest in stocks at lower prices. This tendency increases demand for dividend-paying stocks during downturns and helps support market stability.
Given this, we will take a look at some of the best dividend stocks.
Photo by Annie Spratt on Unsplash
Our Methodology:
For this article, we used a Finviz screener to identify dividend companies with at least 10 consecutive years of dividend growth. From that list, we picked stocks with dividend yields above 4%, as of September 20. The stocks are ranked according to their dividend yields.
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. Kimberly-Clark Corporation (NASDAQ:KMB)
Dividend Yield as of September 20: 4.04%
Kimberly-Clark Corporation (NASDAQ:KMB) is a multinational company known for its personal care and tissue products. Its leading brands include Huggies diapers, Kotex feminine care items, and Kleenex tissues, serving both household and commercial markets worldwide.
In recent years, Kimberly-Clark Corporation (NASDAQ:KMB) has sharpened its focus on two main areas: boosting product innovation and enhancing operational efficiency. Developing new products plays a central role in maintaining customer loyalty and capturing greater market share. Alongside this, the company has introduced a multi-year Transformation Initiative aimed at lowering costs and building a more flexible operating structure. These steps are particularly important as performance depends on how effectively it grows both premium and value product categories while navigating complex supply chains and external challenges such as tariffs and rising costs.
Kimberly-Clark Corporation (NASDAQ:KMB) is also popular among investors in terms of its dividends. The company has raised its payouts for 53 years in a row and currently pays a quarterly dividend of $1.26 per share. With a dividend yield of 4.04%, as of September 20, KMB is one of the best dividend stocks to consider.
9. The Clorox Company (NYSE:CLX)
Dividend Yield as of September 20: 4.08%
The Clorox Company (NYSE:CLX) is a consumer goods company recognized for its wide range of products, including household cleaners, disinfecting wipes, bleach, trash bags, grilling items, cat litter, and food condiments. Around 80% of its sales come from brands that rank first or second in their categories, based on FY24 results. Strong brand recognition and customer loyalty support its pricing power, particularly in the competitive US retail and grocery markets.
The Clorox Company (NYSE:CLX) is currently focused on strengthening brand value, keeping its supply chain resilient, driving product innovation, and advancing digital transformation. Protecting trademarks, defending market share, and adjusting to changing consumer preferences remain essential priorities. The company is also making significant technology investments, such as implementing a new enterprise resource planning (ERP) system, to improve efficiency and enhance data-driven supply chain management. Sustainability efforts, including reducing waste and cutting emissions, are also central to its long-term strategy.
On September 17, The Clorox Company (NYSE:CLX) declared a quarterly dividend of $$1.24 per share, which was in line with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 22 years. The stock supports a dividend yield of 4.08%, as of September 20.
8. U.S. Bancorp (NYSE:USB)
Dividend Yield as of September 20: 4.13%
U.S. Bancorp (NYSE:USB) is a financial services provider with a broad range of operations that include consumer and business banking, wealth management, payment services, and corporate banking. It serves individuals, businesses, and institutions nationwide, offering products from basic checking accounts to advanced treasury services for large corporations.
On September 10, U.S. Bancorp (NYSE:USB) declared a 4% hike in its quarterly dividend to $0.52 per share. Through this increase, the company stretched its dividend growth streak to 15 years, which makes USB one of the best dividend stocks to consider. The stock has a dividend yield of 4.13%, as reported on September 20.
In recent years, U.S. Bancorp (NYSE:USB) has emphasized improving efficiency, strengthening its digital banking capabilities, and growing its payments and wealth management segments. These priorities are driven by evolving customer needs, regulatory demands, and the fast pace of technological change in the financial sector. Key factors for long-term success include strong risk and capital management, expanding sources of noninterest income, and investing in technology to compete effectively with both traditional banks and emerging fintech players.
7. Eastman Chemical Company (NYSE:EMN)
Dividend Yield as of September 20: 5.10%
Eastman Chemical Company is an American chemical products manufacturing company. It is working to establish itself as a leader in the circular economy with a strong focus on sustainability through advanced recycling methods such as Carbon Renewal Technology (CRT) and Polyester Renewal Technology (PRT). These processes allow the company to turn plastic waste into high-quality products, addressing the global challenge where only a small share of the 360 million metric tons of plastic waste generated each year is recycled. By advancing these technologies, Eastman is reducing environmental impact while creating growth opportunities in markets like consumer durables, textiles, and packaging.
Eastman Chemical Company (NYSE:EMN) is also pursuing major growth through investments in new recycling plants in Tennessee, Texas, and France. A key project is the world’s largest methanolysis facility in Kingsport, Tennessee, which is projected to deliver more than $500 million in EBITDA by 2029 and provide attractive returns on invested capital. With molecular recycling, Eastman can produce high-quality recycled PET that sells at a premium, strengthening its position for a more sustainable and profitable future.
In addition, Eastman Chemical Company (NYSE:EMN) is a strong dividend stock. The company currently offers a quarterly dividend of $0.83 per share and has a dividend yield of 5.10%, as of September 20. It is one of the best dividend stocks to buy as the company has raised its payouts for 15 years straight.
6. NNN REIT, Inc. (NYSE:NNN)
Dividend Yield as of September 20: 5.70%
NNN REIT, Inc. (NYSE:NNN) is an American real estate investment trust company. It follows a straightforward business model by investing in single-tenant net-leased properties. The company focuses on acquiring assets backed by long-term net leases, usually ranging from 10 to 20 years, in prime locations within strong markets. These properties generate stable and predictable rental income.
NNN REIT, Inc. (NYSE:NNN) builds lasting partnerships with growing retailers, which consistently create new investment opportunities. Most acquisitions are done through sale-leaseback deals, giving retailers the capital to expand their operations while providing the REIT with additional properties. With its conservative financial approach, NNN REIT is able to steadily grow its portfolio and dividends across different phases of the economic cycle.
NNN REIT, Inc. (NYSE:NNN) is one of the best dividend stocks with 36 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $0.60 per share and has a dividend yield of 5.70%, as of September 20.
5. Edison International (NYSE:EIX)
Dividend Yield as of September 20: 5.95%
Edison International (NYSE:EIX) is a utility holding company that delivers clean and dependable energy and related services through its subsidiaries. It serves as the parent company of Southern California Edison Company (SCE) and Trio.
Edison International (NYSE:EIX) reported strong earnings in the second quarter of 2025. The company’s revenue came in at $4.54 billion, which showed a 4.77% growth from the same period last year. Its cash position also remained stable, with operating cash flows jumping to $2.1 billion from $1.3 billion in the prior-year period. It ended the quarter with $140 million available in cash and cash equivalents.
Edison International (NYSE:EIX) currently offers a quarterly dividend of $0.8275 per share for a dividend yield of 5.95%, as of September 20. It is one of the best dividend stocks on our list as the company maintains a 21-year streak of consistent dividend growth.
4. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of September 20: 6.53%
Altria Group, Inc. (NYSE:MO) is a major tobacco company with well-known brands including Marlboro, Copenhagen, Black & Mild, Skoal, and Parliament, among others. Its stock has outpaced the broader market in 2025, rising nearly 24% compared to the market’s 12.4% increase. While recent price gains have pleased shareholders, the main draw of Altria’s stock over the past decade has been its dividend, which remains a key reason many investors hold it.
Although cigarette sales have declined alongside falling smoking rates among US adults, the addictive nature of tobacco has allowed Altria Group, Inc. (NYSE:MO) to maintain pricing power that supports steady cash flow. Price hikes alone are not a sustainable growth strategy, but they give the company time to develop new revenue sources, such as smokeless and non-tobacco alternatives.
Importantly, Altria Group, Inc. (NYSE:MO) free cash flow is more than sufficient to cover its dividend payments. Due to this, the company has raised its dividends 60 times in the past 56 years, which makes it one of the best dividend stocks on our list. Currently, it pays a quarterly dividend of $1.06 per share and has a dividend yield of 6.53%, as of September 20.
3. Robert Half Inc. (NYSE:RHI)
Dividend Yield as of September 20: 6.85%
Robert Half Inc. (NYSE:RHI) is a California-based international human resources consulting firm. The company provides contract talent solutions, permanent placement services, and business consulting through its Protiviti division. While most of its business is in the United States, it also operates across 32 countries, concentrating on specialized, high-value roles that are less affected by economic cycles and generate premium fees.
Contract talent solutions account for 56% of revenue, permanent placement makes up 8%, and Protiviti consulting contributes 35%. With decades of placement data, the company has a strong advantage in developing AI-driven matching tools that enable quicker, more accurate placements and support stronger profit margins.
Robert Half Inc. (NYSE:RHI) is one of the best dividend stocks as the company has raised its payouts for 21 years in a row. The company offers a quarterly dividend of $0.59 per share and has a dividend yield of 6.85%, as recorded on September 20.
2. TELUS Corporation (NYSE:TU)
Dividend Yield as of September 20: 7.56%
TELUS Corporation (NYSE:TU) is one of Canada’s leading telecommunications companies. The telecom industry benefits from a steady and recurring revenue stream, supported by a subscriber-based model that is both defensive and profitable.
TELUS Corporation (NYSE:TU) provides wireline, wireless, internet, and TV services to customers nationwide. These offerings have become even more defensive in recent years, and the company is recognized for having some of the lowest churn rates among the major telecom providers.
TELUS Corporation (NYSE:TU) stands out most with its dividend. The company pays a quarterly dividend with a strong 7.56% yield, making it one of the best dividend stocks. On top of that, the company has a long history of rewarding shareholders with consistent dividend increases, spanning 21 years. Currently, the company offers a quarterly dividend of C$0.4163 per share.
TELUS Corporation (NYSE:TU) also provides investors with meaningful growth opportunities. The company is making substantial investments to expand and modernize its network, highlighted by a recently announced $70 billion multi-year plan dedicated to these upgrades.
1. LyondellBasell Industries N.V. (NYSE:LYB)
Dividend Yield as of September 20: 10.54%
LyondellBasell Industries N.V. (NYSE:LYB) is a leading global producer of chemicals, plastics, and polymers that are used in everything from packaging and automotive components to construction materials. With major production facilities in North America and Europe, the company’s core operations center on olefins and polyolefins, which serve as key ingredients in plastic products, along with advanced polymer solutions and intermediates for manufacturing.
LyondellBasell Industries N.V. (NYSE:LYB)’s strategy is centered on growing its Circular and Low Carbon Solutions line, reshaping its portfolio, improving efficiency and cost management, and fully exiting the refining business. These initiatives are designed to address shifting market dynamics as well as rising sustainability regulations. Management highlights strict cost control, innovation in recycling and sustainable products, and disciplined capital investment as central to driving future results.
LyondellBasell Industries N.V. (NYSE:LYB) currently pays a quarterly dividend of $1.37 per share, having raised it by 2.2% in May. This was the company’s 15th consecutive year of dividend growth. The stock supports a dividend yield of 10.54%, as of September 20.
While we acknowledge the potential of LYB 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 LYB and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best NYSE Dividend Stocks to Buy and 13 Incredibly Cheap Dividend Stocks to Invest In.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
