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.
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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.
9. Black Hills Corporation (NYSE:BKH)
Number of Hedge Fund Holders: 24
Black Hills Corporation (NYSE:BKH) is an American diversified energy company, headquartered in South Dakota. The company mainly offers electric and gas utility services to its consumers. It presents a strong opportunity for income-focused investors, with its customer base growing at nearly triple the pace of the US population. Backed by a $4.7 billion capital investment plan aimed at ensuring dependable power access for its expanding customer base, the utility is well-positioned for steady growth. Management anticipates annual earnings to rise by approximately 4% to 6% in the coming years. The stock has surged by over 5% since the start of 2025.
In the fourth quarter of 2024, Black Hills Corporation (NYSE:BKH) posted revenue of $597 million, reflecting a slight year-over-year increase of 1%. Operating income for the quarter rose sharply to $163.3 million, up from $136.5 million in the same period a year earlier. The company also revised its five-year capital investment forecast upward by 10%, now planning to invest $4.7 billion between 2025 and 2029, including $1.0 billion earmarked for 2025 alone.
Currently, Black Hills Corporation (NYSE:BKH) pays a quarterly dividend of $0.676 per share, following a 4% increase in January. This marked the 55th consecutive year of dividend growth, which makes BKH one of the best dividend stocks on our list. As of May 5, the stock supports an attractive dividend yield of 4.43%.
8. NNN REIT, Inc. (NYSE:NNN)
Number of Hedge Fund Holders: 24
NNN REIT, Inc. (NYSE:NNN) is an American real estate investment trust company focused mainly on restaurant properties, typically secured through long-term triple net leases, often arranged as leaseback agreements. As of March 31, 2025, the company’s portfolio included 3,641 properties spread across all 50 states, encompassing a total gross leasable area of roughly 37.3 million square feet, with an average remaining lease term of 10 years. The stock has surged by over 5% since the start of 2025.
NNN REIT, Inc. (NYSE:NNN) reported strong earnings in the first quarter of 2025, with its revenue coming in at $230.8 million, up by over 7% from the same period last year. The company’s revenue and EPS of $0.51 beat analysts’ estimates by $11.01 million and $0.03, respectively. It continued to demonstrate strong balance sheet flexibility, supported by a sector-leading weighted average debt maturity of 11.6 years, a fully unencumbered asset base, and minimal exposure to floating rate debt at just 2.5%. In addition, the company maintained robust liquidity, with $1.1 billion in total available resources. Occupancy levels remained high at 97.7%, closely aligned with NNN’s 20-year average of 98.2%, reflecting consistent portfolio stability.
In addition to its solid earnings this quarter, NNN REIT, Inc. (NYSE:NNN) is also a strong dividend payer. It is among just three publicly traded real estate investment trusts that have raised their annual dividend for at least 35 consecutive years. The company offers a quarterly dividend of $0.58 per share and has a dividend yield of 5.49%, as of May 5.
7. Graco Inc. (NYSE:GGG)
Number of Hedge Fund Holders: 26
Graco Inc. (NYSE:GGG) is a manufacturing firm that specializes in designing, producing, and selling equipment and systems for moving, measuring, controlling, dispensing, and spraying fluids and powder materials.
In the first quarter of 2025, Graco Inc. (NYSE:GGG) reported revenue of $528.2 million, marking a 7.3% increase compared to the same period a year earlier and surpassing analyst expectations by $5.32 million. The company also posted year-over-year growth in operating earnings and net income, up 8% and 2%, respectively. Strong organic growth was noted in both the Industrial and Expansion Markets segments, fueled by increased activity in the industrial and semiconductor sectors. Meanwhile, the Contractor segment benefited from a 6% contribution by Corob, which performed in line with expectations.
Graco Inc. (NYSE:GGG), one of the best dividend stocks, currently offers a quarterly dividend of $0.275 per share and has a dividend yield of 1.34%, as of May 5. The company has been rewarding shareholders with growing dividends for 24 consecutive years.
At the end of Q4 2024, 26 hedge funds tracked by Insider Monkey held stakes in Graco Inc. (NYSE:GGG), compared with 27 in the previous quarter. These stakes have a consolidated value of over $358 million. With over 1.1 million shares, Fundsmith LLP was the company’s leading stakeholder in Q4.
6. Polaris Inc. (NYSE:PII)
Number of Hedge Fund Holders: 26
Polaris Inc. (NYSE:PII) is a Minnesota-based automotive manufacturer that specializes in designing and producing powersports vehicles, which it groups into three main segments: off-road vehicles (including ATVs, side-by-sides, and snowmobiles), on-road vehicles (such as motorcycles and light-duty utility vehicles), and marine products (like pontoons and deck boats).
Polaris Inc. (NYSE:PII) currently holds either the top or second-largest market share in every category it serves. With a history spanning 70 years, the company has established a broad dealer network to distribute its vehicles and related accessories. This extensive reach allows the company to invest significantly in research and development, enabling it to create vehicles that are more powerful, safer, higher performing, and visually appealing, helping it retain its leadership in the market.
Polaris Inc. (NYSE:PII) reported mixed earnings in the first quarter of 2025. Its revenue came in at $1.5 billion, which fell by 12% from the same period last year. However, it beat analysts’ estimates by $10 million. North America sales for the quarter came in at nearly $1.3 billion, which represented 84% of the company’s total sales, though 11% down on a YoY basis. Total company sales declined due to reduced volume and lower net pricing, which was influenced by increased promotional activity. However, these impacts were partially offset by a more favorable product mix.
That said, Polaris Inc. (NYSE:PII)’s cash position remained stable despite facing declines on various fronts. The company ended the quarter with $291.7 million available in cash and cash equivalents. In addition, its operating cash flow came in at $83.2 million, compared with an outflow of $105 million in 2024. In January, the company achieved its 30th consecutive annual dividend hike, which makes PII one of the best dividend stocks on our list. It offers a quarterly dividend of $0.67 per share and has a dividend yield of 7.90%, as of May 5.
5. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 27
UGI Corporation (NYSE:UGI) is an American diversified energy company with operations spanning natural gas utilities, midstream and marketing, international LPG, and AmeriGas has seen its stock lag due to weakness in its propane business. The stock is outperforming the broader market this year by a wide margin, surging by over 18% since the start of 2025. In the past 12 months, it has delivered a 37.6% return to shareholders.
Since its acquisition, AmeriGas has seen a significant drop in performance, with EBITDA falling from $584 million in 2019 to $320 million in 2024, and profit margins narrowing from 21.8% to 14.1%. Retail gallon sales have declined by 30%, a trend attributed to operational setbacks, subpar customer service, and unusually warm weather. These ongoing issues have led UGI Corporation (NYSE:UGI) to record $850 million in goodwill impairments over the past two years, effectively eliminating nearly half of the original goodwill tied to the acquisition. Despite these setbacks, the stock has recovered, delivering a return of over 15% since the beginning of 2025.
In the first quarter of fiscal 2025, UGI Corporation (NYSE:UGI) reported revenue of $2.03 billion, representing a 4.29% decline from the same quarter the previous year and falling short of analyst expectations by $617 million. Nonetheless, the company maintained a solid financial position, ending December 2024 with $1.5 billion in available liquidity. It is one of the best dividend stocks on our list as the company has been making regular dividend payments to shareholders for the past 140 years. Currently, it offers a quarterly dividend of $0.375 per share for a dividend yield of 4.47%, as of May 5.
4. Ryder System Inc. (NYSE:R)
Number of Hedge Fund Holders: 27
Ryder System Inc. (NYSE:R) ranks fourth on our mid-cap dividend aristocrats list. The Florida-based transportation and logistics company focuses on truck rental and leasing, fleet management, and managing both supply chains and transportation operations. The stock has surged by nearly 14% in the past 12 months.
In the first quarter of 2025, Ryder System Inc. (NYSE:R) reported revenue of $3.1 billion, which showed a modest 1% growth from the same period last year. The company’s Dedicated Transportation Solutions (DTS) segment remained the winner, delivering a 7% YoY growth in revenue at $602 million. In addition, the revenue for Supply Chain Solutions (SCS) also grew by 2% on a YoY basis. This represents the eighth straight quarter of earnings growth for the SCS segment. The DTS segment’s increased earnings were supported by synergies from recent acquisitions and solid performance from its long-established dedicated operations.
Ryder System Inc. (NYSE:R)’s cash position also remained strong during the quarter. The company generated $651 million in operating cash flow, and its free cash flow came in at $259 million, up from just $13 million in Q1 2024. On May 2, it declared a quarterly dividend of $0.81 per share. This marked Ryder’s 195th straight quarterly cash dividend, extending a streak of uninterrupted dividend payments that has lasted for over 48 years. In addition, it has been growing its payouts for 20 consecutive years, which makes R one of the best dividend stocks on our list. The stock has a dividend yield of 2.26%, as of May 5.
3. National Fuel Gas Company (NYSE:NFG)
Number of Hedge Fund Holders: 29
National Fuel Gas Company (NYSE:NFG) is a New York-based diversified energy company that is active in natural gas exploration and production, runs pipeline and storage operations, and delivers natural gas utility services to its customers. It expects its adjusted earnings per share to grow at a compound annual rate of over 10% through 2027. With the rapid rise of artificial intelligence, National Fuel Gas sees strong growth potential in meeting the increasing natural gas demand from data centers supporting AI technologies. The stock has soared by over 34.3% since the start of 2025.
In fiscal Q2 2025, National Fuel Gas Company (NYSE:NFG) reported nearly $730 million in revenues, up 16% from the same period last year. The revenue missed analysts’ estimates by $44.6 million. Its EPS of $2.39 beat the consensus by $0.18. The company’s GAAP net income of $216 million, or $2.37 per share, reflected a 32% increase in earnings per share from the previous year. On an adjusted basis, operating income totaled $218 million, or $2.39 per share, representing a 34% year-over-year increase.
National Fuel Gas Company (NYSE:NFG) generated $473.8 million in operating cash flow in the first six months of fiscal 2025. The company has a strong dividend history with 121 consecutive years of dividend payment and 54 years of dividend growth in a row. Its quarterly dividend comes in at $0.515 per share for a dividend yield of 2.5%, as of May 5.
2. Perrigo Company plc (NYSE:PRGO)
Number of Hedge Fund Holders: 31
Perrigo Company plc (NYSE:PRGO) is an Ireland-based company that focuses on providing self-care products and over-the-counter (OTC) health and wellness solutions. The company aims to improve personal well-being by enabling consumers to take an active role in preventing or managing treatable health conditions on their own.
In the fourth quarter of 2024, Perrigo Company plc (NYSE:PRGO) reported revenue of $1.3 billion, which showed a significant growth of 15.4% from the same period last year. However, it still missed analysts’ estimates by $1.83 million. The company reported average daily crude oil production of 171.3 thousand barrels and total average production of 368.4 thousand barrels of oil equivalent. For 2025, the company plans to increase annual production by 8% while maintaining its capital budget at around $2 billion, the same level as in 2024. This improved capital efficiency compared to the previous year is attributed to its disciplined development strategy and a significantly reduced cost structure.
During the quarter, Perrigo Company plc (NYSE:PRGO) generated $872 million in operating cash flow, and its free cash flow amounted to $400 million, which highlights the company’s strong cash position. The company’s 22-year dividend growth streak is attributed to its cash generation, which makes PRGO one of the best dividend stocks on our list. Currently, it pays a quarterly dividend of $0.29 per share and has a dividend yield of 4.6%, as of May 5.
1. Evercore Inc. (NYSE:EVR)
Number of Hedge Fund Holders: 44
Evercore Inc. (NYSE:EVR) is a New York-based investment banking advisory firm, with operations divided into two main segments: Investment Banking and Investment Management. The company also supports clients in securing both public and private capital, offers equity research, handles equity sales, and provides agency trading services. In addition, the firm delivers wealth and investment management solutions tailored to high-net-worth individuals and institutional clients.
Evercore Inc. (NYSE:EVR) delivered strong earnings in the first quarter of 2025, with revenues of $699.9 million, up 19% from the same period last year. The revenue surpassed analysts’ estimates by $99 million. The company’s operating income came in at $116.3 million, compared with $90.6 million in the prior-year period. As of March 31, it had $553 million available in cash and cash equivalents, demonstrating the company’s strong cash position.
Evercore Inc. (NYSE:EVR) has always remained committed to its shareholder value. In the most recent quarter, the company returned $454.3 million to investors through dividends and share repurchases. In addition, it has been growing its dividends for 18 consecutive years. It pays a quarterly dividend of $0.84 per share and has a dividend yield of 1.59%, as of May 5.
Overall, Evercore Inc. (NYSE:EVR) ranks first on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of EVR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than EVR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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