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.
9. Eastman Chemical Company (NYSE:EMN)
Number of Hedge Fund Holders: 37
On May 5, Morgan Stanley raised its price recommendation on Eastman Chemical Company (NYSE:EMN) to $83 from $73. It reiterated an Overweight rating on the shares. The firm updated its targets as part of a weekly review of the North American polyethylene market.
The same day, RBC Capital also raised its price goal on Eastman to $82 from $79. It maintained a Sector Perform rating after the company posted a Q1 earnings beat. The firm said Eastman expects a meaningful improvement in both its Chemical Intermediates and Advanced Materials segments during Q2. At the same time, the analyst noted that volatility in energy and raw material costs continues to create uncertainty. Volumes also remain under pressure, particularly in the Fibers segment, where destocking has become a double-digit headwind.
Eastman Chemical Company (NYSE:EMN) is a specialty materials company that manufactures products used in everyday consumer and industrial applications. The company operates through four business segments: Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers.
8. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 39
On May 7, UBS raised its price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $90 from $70. It reiterated a Buy rating on the shares.
During the company’s Q1 2026 earnings call, Chairman, CEO, and President Juan Luciano said ADM reported adjusted EPS of $0.71 and total segment operating profit of $764 million for the quarter. He also said the company’s trailing four-quarter adjusted return on invested capital stood at 6.4%. Cash flow from operations before working capital changes totaled $442 million.
Luciano noted that market conditions improved for ADM’s biofuels-related businesses during the quarter. He said the crushing and ethanol segments benefited from a more favorable commodity and margin environment. According to Luciano, soybean crush and ethanol margins improved significantly as markets anticipated the finalization of renewable volume obligations for 2026 and 2027.
He also announced a higher outlook for 2026. ADM raised its full-year adjusted EPS guidance range to between $4.15 and $4.70, up from the prior range of $3.60 to $4.25.
Archer-Daniels-Midland Company (NYSE:ADM) manages and processes agricultural supply chains worldwide. The company provides food security services and also operates as a provider of human and animal nutrition products.
7. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 45
On May 15, Evercore ISI initiated coverage of The J. M. Smucker Company (NYSE:SJM) with an Outperform rating. It set a $117 price target on the stock. The firm said Smucker offers “a compelling valuation with superior growth prospects relative to peers.” The analyst expects a “robust” EPS compound annual growth rate of around 9% through FY28, driven mainly by a recovery in the coffee segment and gains from operational efficiencies.
Earlier, on May 4, Bernstein lowered its price recommendation on Smucker to $134 from $145. It reiterated an Outperform rating on the shares. The firm said the company remains its top pick, though it is reducing its FY27 earnings estimates. Based on discussions with management, Bernstein now expects the company’s FY27 guidance, which is expected in June, to come in only modestly above its long-term target of high-single-digit adjusted EPS growth.
The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide. Its portfolio includes a range of consumer brands that are primarily sold through retail outlets across North America.
6. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 45
On May 11, Barclays raised its price recommendation on Becton, Dickinson and Company (NYSE:BDX) to $204 from $202. It reiterated an Overweight rating on the shares following the company’s fiscal Q2 results. The firm said Becton delivered solid operational growth and exceeded consensus expectations. The analyst also noted that the company appears well-positioned in the current macro environment.
During the fiscal Q2 2026 earnings call, President, CEO, and Chairman Thomas Polen said revenue increased 2.6% to $4.7 billion. He pointed to double-digit growth in biologic drug delivery, Advanced Patient Monitoring, PureWick, and Advanced Tissue Regeneration. At the same time, Polen said results were partly offset by continued pressure in Alaris, vaccines, and China, which together represented less than 10% of total revenue.
Polen also said the company gained around 50 basis points of market share during the quarter and roughly 150 basis points year-to-date in the Alaris business. In the BioPharma Systems segment, he noted that BD secured several large long-term customer agreements, including two next-generation GLP-1 programs. He added that biologics are now expected to account for about 55% of segment revenue.
Discussing regulatory matters, Polen said the company voluntarily placed its ChloraPrep and PurPrep products on ship hold in the U.S. after the FDA issued a warning letter related to the El Paso facility. He added that the testing process tied to the issue was expected to take about three weeks and said no patient safety signals had been identified.
Becton, Dickinson and Company (NYSE:BDX) develops, manufactures, and sells a wide range of medical supplies, devices, laboratory equipment, and diagnostic products used by healthcare institutions, physicians, researchers, and clinical laboratories worldwide.
While we acknowledge the potential of BDX 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 BDX and that has 100x upside potential, check out our report about the cheapest AI stock.
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