In this article, we will take a look at some of the best dividend stocks to invest in.
For income-focused investors, dividend stocks are often a top choice. These stocks provide regular payments to shareholders, offering a steady way to build income over time. Data supports this strategy. According to a report by Hartford Funds, dividends have made up about 39% of total returns on average since the 1940s. The report also showed that stocks with higher dividend payouts have generally outperformed other dividend-paying stocks while experiencing lower volatility.
The income factor is key to investment success because it can help boost total returns and support long-term financial goals. A study by Eagle Investment Management compared the results of a $1,000,000 investment made on December 31, 2012, in the Dividend Aristocrats Index to a broader market index, assuming dividends were reinvested. The Dividend Aristocrats are companies that have increased their dividends for at least 25 years. By 2022, this investment would have generated $93,212 in income compared to $55,726 from the market. This gap highlights the stronger income potential of dividend aristocrats. Although based on past performance, the example shows the value of focusing on both dividend income and its long-term growth when building a portfolio.
Given this, we will take a look at some of the best dividend stocks for income investors.
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Our Methodology
To compile this article, we screened for stocks known for their consistent dividend track records and sustained shareholder payouts over an extended period. This group reflects stability and long-term performance in dividend payouts. From that group, we picked companies with the highest number of hedge fund investors, as per Insider Monkey’s database of Q1 2025. The stocks are ranked in ascending order of the number of hedge funds having stakes in them.
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).
11. WD-40 Company (NASDAQ:WDFC)
Number of Hedge Fund Holders: 27
WD-40 Company (NASDAQ:WDFC) is an American firm, that is known for its household and multi-use products. The company manages a broad portfolio of well-known brands across maintenance, home care, and cleaning categories. Its products are distributed in more than 176 countries and territories worldwide.
In the third quarter of fiscal 2025, WD-40 Company (NASDAQ:WDFC)’s core maintenance segment saw a 2% increase in sales, bringing year-to-date growth to 6%, in line with its long-term targets. In addition, the company achieved a gross margin of 56% in the quarter, marking a 310-basis-point improvement from the previous year. This puts the company on track to surpass its 55% long-term gross margin goal for fiscal 2025, one year ahead of schedule.
WD-40 Company (NASDAQ:WDFC) also reported a strong cash position. The company ended the quarter with $51.6 million available in cash and cash equivalents and generated nearly $60 million in operating cash flow. Due to this solid cash position, the company raised its payouts for 17 consecutive years. It currently offers a quarterly dividend of $0.94 per share and has a dividend yield of 1.75%, as of July 31.
10. Portland General Electric Company (NYSE:POR)
Number of Hedge Fund Holders: 28
Portland General Electric Company (NYSE:POR) is a publicly traded utility headquartered in Oregon, focused on generating, transmitting, and distributing electricity. The stock presents both potential and risk. One concern is its West Coast location, where wildfires remain a persistent threat. However, the company also benefits from serving a strategically important area that hosts key international subsea communication cable landings. This makes it an attractive utility for data centers and tech firms, particularly in Oregon’s “Silicon Forest” region.
Portland General Electric Company (NYSE:POR) recently announced earnings for the second quarter of 2025. The company posted revenue of $807 million, which showed a 6.4% growth from the same period last year. These quarterly results were largely driven by a surge in demand from data center customers, which led to a 16.5% quarter-over-quarter increase in industrial load. Progress continued on several key initiatives, including the recovery of the Seaside battery, upgrades to the distribution system, and enhancements to the holding company structure. The company also reaffirmed its adjusted earnings guidance for 2025, projecting earnings of $3.13 to $3.33 per diluted share.
Portland General Electric Company (NYSE:POR) is a solid dividend payer. On July 19, the company declared a quarterly dividend of $0.525 per share, which fell in line with its previous dividend. It has been rewarding shareholders with growing dividends for the past 19 years, which makes POR one of the best dividend stocks for consistent income. As of July 31, the stock has a dividend yield of 5.11%.
9. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 32
Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturer known for its industrial tools, home hardware, and security products. The company is in the midst of a steady yet impactful transformation. It has already completed $1.7 billion of a planned $2 billion cost-reduction effort, resulting in a rebound in gross margins to 31.2%, which is a 1,200-basis-point improvement from the low point. At the same time, operating leverage is strengthening, and inventory levels are declining.
While Stanley Black & Decker, Inc. (NYSE:SWK)’s Tools & Outdoor division accounts for 87% of its revenue, the smaller Engineered Fastening segment plays a key role in areas like aerospace, automotive, and industrial production. Despite its strong market position and ties to reshoring, infrastructure, and automation trends, the stock is still down more than 69% from its 2021 peak and trades at under seven times its peak free cash flow.
Stanley Black & Decker, Inc. (NYSE:SWK) has paid uninterrupted dividends to shareholders for the past 148 years. On July 24, it declared a 1.2% hike in its quarterly dividend to $0.83 per share. This marked the company’s 59th consecutive year in which it has raised its dividends. The stock supports a dividend yield of 4.91%, as of July 31.
