In this article, we will take a look at some of the best dividend stocks.
There’s a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30.
Also read: Dividend Challengers 2025: Top 25
Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the “Magnificent Seven” tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today’s environment.
Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this:
“Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.”
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios.
For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct.
Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Given this, we will take a look at some of the best mid-cap dividend aristocrat stocks to buy.
Our Methodology:
For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey’s database. The stocks are ranked according to the number of hedge funds having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. 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).
12. Cullen/Frost Bankers, Inc. (NYSE:CFR)
Number of Hedge Fund Holders: 17
Cullen/Frost Bankers, Inc. (NYSE:CFR) is a Texas-based financial holding company that offers commercial and consumer banking services to its customers. As of March 31, the company has approximately $52 billion in assets. In its latest earnings report, it stated that it expects to open its 199th branch in the Fort Worth area within the next month, followed by the milestone 200th Frost location in Pflugerville, just north of Austin. With these additions, the company noted that it will have grown its total number of locations by over 50% since initiating its organic expansion strategy in December 2018. The stock has surged by over 17% in the past 12 months.
In the first quarter of 2025, Cullen/Frost Bankers, Inc. (NYSE:CFR) reported revenue of $560.4 million, which showed a 7.2% growth from the same period last year. The revenue also surpassed analysts’ consensus by $18.8 million. Its net interest income came in at $416.2 million, compared with $390 million in the prior-year period. The company’s total assets also grew to $41.6 billion, from $40.7 billion in Q1 2024.
On May 1, Cullen/Frost Bankers, Inc. (NYSE:CFR) declared a 5.3% hike in its quarterly dividend to $1.00 per share. This marked the company’s 32nd consecutive year of dividend growth, which makes CFR one of the best dividend stocks on our list. The stock has a dividend yield of 3.23%, as of May 5.
11. Silgan Holdings Inc. (NYSE:SLGN)
Number of Hedge Fund Holders: 21
Silgan Holdings Inc. (NYSE:SLGN) is an American manufacturing company that specializes in packaging for consumer goods. The stock is generating solid returns this year, surging by nearly 7% since the start of 2025, while its 12-month returns came in at nearly 17%. Over the years, the company has grown into a leading global supplier of sustainable rigid packaging for consumer products, operating 107 manufacturing facilities across four continents.
Silgan Holdings Inc. (NYSE:SLGN) reported $1.47 billion in revenue in the first quarter of 2025, up by over 11.3% from the same period last year. The company’s net income for the quarter came in at $68 million, up from $55.2 million in the prior-year period. Its adjusted earnings per share rose by 19%, a figure that came in near the upper end of its projected range for the first quarter. This performance was attributed to volume growth, strong operational execution across all segments, solid contributions from the Weener acquisition, and ongoing progress in its cost reduction efforts.
Silgan Holdings Inc. (NYSE:SLGN)’s cash position also remained strong as it ended the quarter with $353 million available in cash and cash equivalents. The company reaffirmed its projected free cash flow for 2025 at around $450 million, representing a 15% increase over the $391.3 million reported in 2024. Due to this cash position, the company managed to grow its dividend for 21 years in a row. Currently, it offers a quarterly dividend of $0.20 per share and has a dividend yield of 1.47%, as of May 5.
10. Lancaster Colony Corporation (NASDAQ:LANC)
Number of Hedge Fund Holders: 22
Lancaster Colony Corporation (NASDAQ:LANC) ranks tenth on our list of the best mid-cap dividend aristocrat stocks. The Ohio-based company specializes in the manufacture and sale of specialty food products. The company reported mixed earnings in fiscal Q3 2025. Its revenue came in at $$457.8 million, which not only fell by 3% on a YoY basis but also missed analysts’ estimates by $26 million. The EPS of $1.49 also fell short of the consensus by $0.09. However, the company’s consolidated gross profit rose by $1.5 million, reaching a third-quarter record of $106.0 million, driven by gains from cost-saving initiatives and a slight decrease in costs. In addition, consolidated operating income climbed by $14.7 million, also setting a third-quarter record at $49.9 million.
Despite facing challenges on some fronts, Lancaster Colony Corporation (NASDAQ:LANC) noted that its Retail segment continued to show growth during the quarter, supported by the expansion of its licensing program. This included the introduction of Chick-fil-A sauce into the club channel, strong ongoing performance of Texas Roadhouse dinner rolls, and additional sales generated by the Subway sauces launched in March. Sales of the leading New York Bakery frozen garlic bread products also saw improvement. On the other hand, net sales in the Foodservice segment declined by 3.2%, which the company attributed to a broader industry trend of reduced store traffic and menu changes, as some customers shifted toward more value-oriented options. Even so, increased demand from several key national restaurant chains provided some support to Foodservice segment sales.
Lancaster Colony Corporation (NASDAQ:LANC)’s cash situation also remained stable during the quarter. At the end of March 31, the company had $124.5 million available in cash and cash equivalents. Its quarterly dividend comes in at $0.95 per share for a dividend yield of 2.35%, as of May 5. The company holds one of the longest dividend growth streaks in the market, spanning 62 years.
