In this article, we will take a look at the 12 Best Dividend Stocks to Invest In According to Jim Simons’ Renaissance Technologies.
The momentum in chip stocks is fading as focus in the equity market shifts to hyperscalers and cyclical plays that have lagged for the better part of the year. According to Morgan Stanley chief equity strategist Michael Wilson, the focus is slowly shifting to hyperscalers backed by strong core businesses.
JPMorgan strategist Mislav Matejka has echoed similar sentiments, insisting that AI is not the only story in town. The sentiment comes as the broader equity market remains under pressure after bouncing from the March implosion to record highs. The PHLX Semiconductor Index (SOX) is down nearly 14%, signaling a potential rotation from semiconductor plays.
Amid the heightened volatility in the equity market and uncertainty over monetary policy, dividend stocks are proving to be a popular choice for investors seeking income and higher portfolio returns. Dividend-paying stocks that combine a healthy balance sheet and hefty yields can provide a cushion against market downturns similar to the one in play at current record highs.
Renaissance Technologies is one of the most tracked hedge funds on Wall Street as it diversifies its portfolio and also invests in stocks with an impressive track record of dividend payments. Founded by Jim Simons, the hedge fund specializes in systematic trading and uses quantitative models to identify strong investment opportunities well-positioned to generate passive income.
With that in mind, let’s take a look at some of the best dividend stocks to invest in according to Jim Simons’ Renaissance Technologies.
Jim Simons of Renaissance Technologies
Our Methodology
We chose prominent dividend stocks from Renaissance Technologies’ 13F Q1 2026 portfolio. We specifically selected stocks with dividend yields of over 3% as of July 6, 2026. These companies not only offer high dividends but also have consistent track records of paying dividends. These stocks are also popular among elite hedge funds in Q1 2026. Finally, the stocks are ranked according to the value of Renaissance Technologies’ stake in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Dividend Stocks to Invest In According to Jim Simons’ Renaissance Technologies
12. Honeywell International Inc. (NASDAQ:HON)
Dividend Yield: 4.14%
Number of Hedge Fund Holders: 75
Renaissance Technologies Equity Stake: $84.83 Million
Honeywell International Inc. (NASDAQ:HON) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies. On July 7, JPMorgan’s Chigusa Katoku cut Honeywell International Inc. (NASDAQ:HON)’s price target to $250 from $260 while keeping an Overweight rating, citing the Aerospace spin and updated Technologies guidance, and noted upside to 2026 EPS with a credible path for shares to re‑rate to sector multiples if Honeywell delivers on its mid‑term plan.
On July 2, Honeywell International Inc. (NASDAQ:HON) received a boost following the completion of the 7.01 MW DC/5 MW AC ground-mount community solar project, SB-14. Developed in upstate New York, the project has reached commercial operation.
The project was developed and constructed as part of a $41 million engineering, procurement, and construction agreement by PowerBank Corporation. It is built on an industrial brownfield owned by Honeywell and regulated by the New York State Department of Environmental Conservation.
Honeywell is one of the top dividend stocks according to Jim Simons’ Renaissance Technologies, with a yield of 4.14%.
Honeywell International Inc. (NASDAQ:HON) is a multinational conglomerate that invents and manufactures technologies for aerospace, building control, and industrial automation. It operates mission-critical systems across data centers, hospitals, and energy grids to drive efficiency and autonomy.
11. Rio Tinto PLC ADR (NYSE:RIO)
Dividend Yield: 4.26%
Number of Hedge Fund Holders: 40
Renaissance Technologies Equity Stake: $90.09 Million
Rio Tinto plc ADR (NYSE: RIO) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies. On June 30, Rio Tinto plc ADR (NYSE: RIO) and the government of Mongolia reached an agreement to adjust the interest rate on the shareholder loan for the Oyu Tolgoi Project. They have also agreed to review the appropriateness of the rate.
The adjusted rate reflects an assertive forward-looking assessment of Oyu Tolgoi’s risk profile as the project matures. The company and the government have also agreed to work together to resolve matters relating to the Entrée mine lease areas.
Oyu Tolgoi is the company’s flagship project in Mongolia, known for significant copper and gold deposits. The government of Mongolia owns a 34% stake in the project, with Rio Tinto owning the remaining 66%. The project remains on track to deliver an average of 500ktpa2 of copper from 2028 to 2036.
Rio Tinto plc is one of the best dividend stocks in Jim Simon’s portfolio, yielding 4.26%.
Rio Tinto PLC ADR (NYSE:RIO) is a leading global mining and materials company that explores for, mines, and processes essential minerals and metals. Its core products include iron ore, aluminum, copper, and lithium, which are foundational materials for global infrastructure, manufacturing, and the energy transition.
10. Altria Group, Inc. (NYSE:MO)
Dividend Yield: 5.83%
Number of Hedge Fund Holders: 64
Renaissance Technologies Equity Stake: $110.63 Million
Altria Group, Inc. (NYSE:MO) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies. On June 26, Altria Group, Inc. (NYSE:MO) received a significant boost after the US Food and Drug Administration issued a proposal requiring foreign tobacco manufacturers to register their establishments and list the products they sell in the country.
The new rule, if approved, will close a regulatory gap that exempted foreign entities from registration and product listing requirements. Consequently, foreign domestic manufacturers will be at par with domestic manufacturers, while also making it easier to identify illegal foreign tobacco products.
Foreign tobacco manufacturers are also required to maintain records of product labeling, advertising, and consumer information as part of the proposed regulation. The FDA proposal is part of an effort to strengthen the agency’s ability to identify illegal foreign tobacco products. Additionally, the rule would lessen competition for Altria Group, especially from illegal foreign products that have proliferated in the market.
Altria Group is one of the top dividend stocks in the Renaissance Technology portfolio with a yield of 5.83%.
Altria Group, Inc. (NYSE:MO) is a leading Fortune 500 parent company that owns major U.S. tobacco, cigar, and smoke-free product subsidiaries. Primarily, the company manufactures and sells tobacco and nicotine products under iconic brands such as Marlboro, Black & Mild, Copenhagen, Skoal, and on!
9. Chunghwa Telecom Co., Ltd (NYSE:CHT)
Dividend Yield: 3.76%
Number of Hedge Fund Holders: 12
Renaissance Technologies Equity Stake: $116.81 Million
Chunghwa Telecom Co., Ltd (NYSE:CHT) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies. On June 10, Chunghwa Telecom Co., Ltd (NYSE:CHT) delivered impressive consolidated operating results for May. The results affirmed robust demand for high-quality network infrastructure and the company’s strong competitive positioning in infrastructure and digital transformation services.
Consolidated revenue was up 5.4% year over year to NT$ 19.52 billion, driven by growth engines of core telecom and ICT services. Additionally, the company benefited from strong iPhone sales and increased subsidiary revenue fueled by AI demand. ICT revenues rose on double-digit growth, driven by the completion of AI server-related construction projects and robust demand for enterprise-tailored private cloud solutions.
Net income attributable to stockholders came in at NT$3.36 billion, EBITDA at NT$7.77 billion, and EPS at NT$0.44. As of May, Chunghwa Telecom Co. accumulated unaudited consolidated revenue for the year totaling NT$100.01 billion, operating income totaling NT$ 22.28 billion, and income before tax totaling NT$22.46 billion.
Chunghwa Telecom Co., Ltd (NYSE:CHT) is Taiwan’s largest integrated telecommunications operator. It provides fixed-line, mobile, broadband internet, and enterprise ICT services. The company also operates internationally, delivering solutions for smart cities, cloud computing, artificial intelligence, and cybersecurity to businesses worldwide.
8. United Parcel Service Inc. (NYSE:UPS)
Dividend Yield: 5.93%
Number of Hedge Fund Holders: 59
Renaissance Technologies Equity Stake: $121.46 Million
United Parcel Service Inc. (NYSE:UPS) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies, with a 5.93% yield. On July 6, Morgan Stanley reiterated an Underweight rating on United Parcel Service Inc. (NYSE:UPS) and raised the price target to $76 from $75.
The research firm raised its price target amid expectations of a constructive freight-cycle outlook. Morgan Stanley expects a record up cycle driven by continued supply chain constraints and a recovering demand backdrop. Earlier on June 23, Goldman Sachs raised its earnings estimates and price targets for the truckload transportation sector, buoyed by improving freight fundamentals and a stronger-than-expected recovery.
Meanwhile, United Parcel Service has detailed AI-powered solutions that combine the expertise of about 460,000 employees. The company is increasingly investing in AI solutions to improve end-to-end visibility, making its global logistics network faster, more predictable, and more resilient. It’s also leveraging the technology to improve customer support.
United Parcel Service Inc. (NYSE:UPS) is the world’s largest package delivery and supply chain management company. Operating in over 200 countries, the company handles global logistics, freight transportation, and e-commerce fulfillment, delivering an average of 20.8 million packages daily.
7. Kimberly-Clark Corp (NASDAQ:KMB)
Dividend Yield: 4.46%
Number of Hedge Fund Holders: 59
Renaissance Technologies Equity Stake: $127.10 Million
Kimberly-Clark Corp (NASDAQ:KMB) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies. On July 1, Arbex, the joint venture formed by Kimberly-Clark Corp (NASDAQ:KMB) and Suzano, started operating as an independent company.
The $3.4 billion joint venture is positioned to pursue opportunities as an international tissue and hygiene company with operations in more than 70 markets. The company is to produce and sell leading global and regional brands, including Kleenex, Scott, Cottonelle, Andrex, and Viva. It has also assumed ownership of assets previously run by Kimberly-Clark’s International Family Care & Professional (IFP) business unit, which includes 22 manufacturing sites in 14 countries.
Earlier on June 17, Piper Sandler reiterated a Buy rating on Kimberly-Clark Corp and raised the price target to $121 from $115. The price target hike underlines the research firm’s confidence that the company is benefiting from an incrementally favorable cost outlook that appears manageable, supported by strong productivity momentum
Kimberly-Clark Corp (NASDAQ:KMB) is a global consumer goods leader that manufactures and markets essential personal care, health, and hygiene products. Its core offerings include baby and child care items (such as Huggies diapers), feminine care products (such as Kotex), and adult care products (such as Depend incontinence products).
6. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Dividend Yield 5.65%
Number of Hedge Fund Holders: 35
Renaissance Technologies Equity Stake: $140.77 Million
Cal-Maine Foods Inc. (NASDAQ: CALM) is one of the best dividend stocks to invest in, according to Jim Simons’ Renaissance Technologies, with a yield of 5.65%. On June 29, Cal-Maine Foods Inc. (NASDAQ:CALM) confirmed it has reached a $1.5 million settlement to resolve claims with the US Department of Justice and a coalition of state Attorney Generals in 17 States.
The settlement is part of a broader resolution involving multiple major egg producers over claims they organized through a cooperative to supply cage-free eggs in certain markets. The 15-month-long investigation alleged that the egg producers attempted to manipulate an industry price index by sharing bidding information. Cal-Maine was a member of the cooperative but exited before the investigation commenced.
In addition to the $1.5 million settlement, Cal-Mine Foods also agreed to donate 30 million eggs to food banks and nonprofits after denying all wrongdoing, insisting the claims are baseless and that its conduct was lawful.
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest producer and distributor of fresh shell eggs in the United States. The company is involved in the production, grading, packaging, marketing, and distribution of conventional, cage-free, organic, and specialty eggs, as well as value-added prepared egg products.
While we acknowledge the potential of CALM 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 CALM and that has 100x upside potential, check out our report about the cheapest AI stock.
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