In this article, we will take a look at the 11 Best Rising Dividend Stocks to Buy Right Now.
According to Morningstar, the best dividend stocks are not always the ones with the highest yields or the strongest short-term returns. The firm believes investors should pay closer attention to companies that can consistently support their dividends over time, especially when those stocks are trading below what they are actually worth.
Dan Lefkovitz, a strategist for Morningstar Indexes, said unusually high dividend yields can sometimes be misleading. In many cases, the highest yields are tied to riskier sectors, industries, or companies, which can make those dividend payments harder to maintain over the long term.
David Harrell, editor of Morningstar DividendInvestor, said investors may benefit from focusing on companies whose management teams stay committed to their dividend strategies. He also pointed to the importance of businesses with competitive advantages, commonly known as economic moats. Harrell added that while a moat rating does not guarantee dividend payments, Morningstar has found a strong link between companies with economic moats and long-lasting dividends.
The firm suggested that investors looking for dividend opportunities may want to consider undervalued companies with strong economic moats as potential portfolio additions.
Given this, we will take a look at some of the best dividend stocks with rising payouts.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this list, we screened for companies with strong dividend histories and identified companies that have raised their dividends for at least a decade. We 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11. NNN REIT, Inc. (NYSE:NNN)
Number of Hedge Fund Holders: 28
On May 7, Citi raised its price target on NNN REIT, Inc. (NYSE:NNN) to $46 from $42 and maintained a Neutral rating on the stock.
During the company’s Q1 2026 earnings call, CEO Stephen Horn said NNN’s disciplined, efficient, and self-funded growth strategy continued to deliver solid results. He pointed to first-quarter investment activity that included 15 transactions across 41 properties, representing total investments of $145 million at an initial cash yield of 7.5%.
Horn also highlighted the company’s liquidity position, which stood at $1.2 billion, along with its weighted average debt maturity of nearly 11 years, one of the longest in the industry. The company also raised its 2026 AFFO per share guidance to a range of $3.53 to $3.59. Horn said NNN plans to take a more proactive approach to asset sales during 2026 as part of its long-term effort to improve portfolio quality.
On the operating side, Horn said NNN renewed 36 of 43 lease expirations at rental rates that were 2% higher than previous levels. He added that seven properties were leased to new tenants at rents roughly 10% above prior levels. Occupancy also improved by 30 basis points from the previous quarter to 98.6%.
NNN REIT, Inc. (NYSE:NNN) is a fully integrated real estate investment trust that acquires, owns, invests in, and develops properties. The company primarily leases its properties to retail tenants under long-term net lease agreements and mainly holds them for investment purposes.
10. A. O. Smith Corporation (NYSE:AOS)
Number of Hedge Fund Holders: 34
On May 4, DA Davidson lowered its price recommendation on A. O. Smith Corporation (NYSE:AOS) to $67 from $75. It reiterated a Neutral rating on the shares following the company’s Q1 earnings miss. The firm said demand in North America’s residential market remained sluggish as the housing environment continued to face pressure. It also pointed to weakness in the WT, or water technology, business. In China, the analyst noted that sell-through trends stayed weak, with sales declining in the high teens year over year due to the lack of stimulus measures and soft consumer confidence. The firm added that the company was working to rebalance inventory during Q2.
During the Q1 2026 earnings call, President, CEO, and Director Stephen Shafer said North America sales increased 1% to $753 million. Sales in the Rest of World segment fell 11% to $201 million. As a result, total company sales declined 2% year over year to $946 million in the first quarter.
Shafer also said earnings per share came in at $0.85, down 11% from the prior year. He attributed the decline mainly to lower sales volumes and transaction-related expenses connected to the Leonard Valve acquisition. Discussing China, Shafer said sales in the region declined 17% in local currency during the quarter. He noted that the performance was in line with the company’s expectations and broader market conditions. He also said the company expects softness in China to continue.
A. O. Smith Corporation (NYSE:AOS) develops technologies and solutions for products sold worldwide. The company operates through its North America and Rest of World segments, manufacturing and marketing residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products.
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