In this article, we are going to discuss the 12 best NASDAQ stocks to buy for dividends.
Dividends offer investors a reliable source of income, but when it comes to building long-term wealth, capital appreciation has usually done most of the heavy lifting. That has especially been true for indexes like the NASDAQ-100, where companies have traditionally preferred to reinvest their earnings into research, innovation, and business expansion instead of paying sizeable dividends, according to Invesco.
That pattern has started to shift. More NASDAQ-listed companies now pay regular dividends as technology firms increasingly return a portion of their profits to shareholders. They are still investing aggressively in growth, but many have reached a stage where they can do both.
Since 2024, several leading tech companies have launched dividend programs, giving a meaningful boost to the overall dividend pool. For a long time, dividends were mostly associated with mature value companies, not the fast-growing businesses driving the AI boom. That distinction is becoming less obvious. Analysts say these dividend payments can attract a broader mix of investors while also putting excess cash to work. Growth companies have generally favored reinvesting their profits rather than distributing them, but experts such as Ted Mortonson of Baird do not see the recent shift as a concern. In his view, it reflects the strength of these businesses rather than a slowdown in their growth. He made the following statement:
“I don’t view it as a problem. I view it as they’ve won. They’ve won the technology side. They’ve won on the business-model side, and they’re going to win on the Gen AI cycle.”
Dividend-paying companies, including many on the Nasdaq, are often well-established businesses with a consistent record of generating earnings and cash flow. That kind of stability can make their shares less volatile than many growth stocks, which is one reason they continue to attract investors looking for steadier returns.
With that said, here are the Best NASDAQ Dividends Stocks to Buy Now.
Photo by Dan Dennis on Unsplash
Our Methodology
To collect data for this article, we referred to screeners to identify large-cap stocks trading on NASDAQ and then shortlisted the ones that had an annual dividend yield of over 2%, as of June 25. We then ranked these stocks by the number of hedge funds invested in them at the end of Q1 2026, as per the Insider Monkey database. We kept our final selection limited to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best NASDAQ Dividend Stocks According to 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. Insider Monkey’s quarterly newsletter 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).
12. Vodafone Group Public Limited Company (NASDAQ:VOD)
Number of Hedge Fund Holders: 26
Dividend Yield as of June 25: 3.93%
Vodafone Group Public Limited Company (NASDAQ:VOD) is a leading technology communications company in Europe and Africa, keeping society connected and building a digital future.
On June 15, Deutsche Bank lowered its price target on Vodafone Group Public Limited Company (NASDAQ:VOD) from £155 to £150, but kept its ‘Buy’ rating on the shares. The revised price objective still implies an upside of over 42% from the current levels.
Similarly, earlier on June 11, Barclays analyst Maurice Patrick also trimmed the firm’s price target on Vodafone Group Public Limited Company (NASDAQ:VOD) from £120 to £110, in addition to downgrading the stock from ‘Overweight’ to ‘Equal Weight’.
According to the analyst firm, while much of the European telecom sector is benefiting from a recovery in revenue and EBITDA growth, Vodafone continues to struggle in its important German market, where competition remains high.
Vodafone reported core earnings of €11.4 billion ($13.4 billion) in its FY 2026 report last month, up 4.5% YoY on an organic basis, supported by service revenue growth across markets. That said, the company witnessed a decline in both service revenue and adjusted EBITDA in Germany, its biggest market.
Vodafone is targeting core earnings of €11.9 billion to €12.2 billion for the current year.
11. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 32
Dividend Yield as of June 25: 5.79%
Sanofi (NASDAQ:SNY) is a healthcare biopharmaceutical company that engages in the research, development, manufacture, and marketing of therapeutic solutions.
Sanofi (NASDAQ:SNY) announced on June 22 that it was appointing Dr Paulo Fontoura as its new Executive Vice President, Global Head of Research & Development Pharma. Dr. Fontoura will replace Dr. Houman Ashrafian and will take charge of his new role on September 1. As head of R&D pharma, he will oversee the company’s research, translational medicine, clinical development, and regulatory affairs arms, driving innovation while focusing on advancing a differentiated pipeline and accelerating the delivery of medicines.
Following the announcement, BofA analyst Sachin Jain stated that the leadership change is likely to be viewed favorably by investors, given Sanofi’s recent series of setbacks in R&D. However, the analyst highlighted Dr. Fontoura’s “mixed track record” from his time at Roche and noted that his new role will likely be a multi-year project to revitalize Sanofi’s R&D organization.
Bofa maintains a ‘Neutral’ rating and €92 price target on Sanofi (NASDAQ:SNY), implying an upside of almost 25% from the current levels.
10. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 43
Dividend Yield as of June 25: 2.83%
Keurig Dr Pepper (NASDAQ:KDP) is a leading beverage company in North America. The company has a portfolio of more than 150 owned, licensed, and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere.
Keurig Dr Pepper (NASDAQ:KDP) announced an important leadership update on June 23, as the company plans to split its vast portfolio into two new US-listed companies – Beverage Co. and Global Coffee Co. It was revealed that Rafa Oliveira, head of KDP’s Coffee Operating Unit, has informed the beverage giant of his intention to depart the business at the end of July 2026. Mr. Oliveira will join Heineken as its new CEO starting 1 October, while KDP has opened a search process to find his replacement.
At the same time, Keurig Dr Pepper (NASDAQ:KDP) reaffirmed its guidance for net sales in the range of $25.9 billion to $26.4 billion for full-year 2026, in addition to targeting a low double-digit EPS growth in constant currency.
Tim Cofer, CEO of Keurig Dr Pepper (NASDAQ:KDP), stated:
“Our business has strong momentum, and we remain focused on executing our 2026 priorities: delivering our full year guidance, successfully integrating JDE Peet’s and achieving separation milestones. We have highly capable and experienced leadership teams for our Beverage Operating Unit, Coffee Operating Unit and Transformation Management Office, and I will work closely with each group to deliver on our commitments while standing up two advantaged companies.”
9. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 43
Dividend Yield as of June 25: 3.97%
JD.com, Inc. (NASDAQ:JD) is a leading technology-driven e-commerce company transforming to become the leading supply chain-based technology and service provider.
On June 24, Daiwa downgraded JD.com, Inc. (NASDAQ:JD) from ‘Buy’ to ‘Hold’ and assigned the stock a price objective of $27, indicating an upside of 6% from the current levels.
JD.com, Inc. (NASDAQ:JD) remains financially resilient, supported by its substantial cash reserves, ongoing buybacks, and dividends. The company delivered robust shareholder returns in 2025. with a total return rate of approximately 10%. The company continued this momentum in FY 2026, repurchasing $631 million worth of its shares in Q1 and completing its annual cash dividend payment of approximately $1.4 billion in April. The stock currently boasts an impressive annual dividend yield of 3.87%.
JD.com, Inc. (NASDAQ:JD) was also recently included in our list of the 10 Best Asian Stocks with Huge Upside Potential.
8. Paychex, Inc. (NASDAQ:PAYX)
Number of Hedge Fund Holders: 43
Dividend Yield as of June 25: 4.92%
Next on our list of the Best Dividend Stocks on NASDAQ is Paychex, Inc. (NASDAQ:PAYX). It is a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services.
Paychex, Inc. (NASDAQ:PAYX) announced its Q4 2026 results on June 24. The company reported adjusted earnings of $1.32 per share, narrowly beating expectations by $0.01. Revenue also grew by 12.5% YoY to $1.61 billion and was roughly in line with estimates
Meanwhile, Paychex delivered a 17% YoY growth in revenue to $6.5 billion in full-year 2026, while operating cash flow increased 35% to $2.6 billion and free cash flow surged by 36% to $2.3 billion.
Paychex, Inc. (NASDAQ:PAYX) is now targeting a revenue growth of 5% to 6% in FY 2027, implying revenue of $6.84 billion – $6.90 billion. At the same time, the company expects its adjusted EPS to grow in the range of 7% to 9%, while adjusted operating margin is projected to be around 44%, up from 43.2% in the prior year.
7. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 46
Dividend Yield as of June 25: 3.12%
Tractor Supply Company (NASDAQ:TSCO) is the largest rural lifestyle retailer in the United States. The company is the source for farm supplies, pet and animal feed and supplies, clothing, tools, fencing, and so much more.
On June 22, DA Davidson analyst Michael Baker trimmed the firm’s price target on Tractor Supply Company (NASDAQ:TSCO) from $50 to $40, but maintained a ‘Buy’ rating on the shares. The lowered target still indicates an upside of 33% from the current levels.
The firm lowered its estimates after the recovery that it expected following Tractor Supply’s Q1 earnings miss failed to materialize, as per its leading indicator analysis. Even with the reduced estimates, TSCO is currently trading at its lowest valuation in a decade on a price-to-earnings basis.
Tractor Supply Company (NASDAQ:TSCO) fell behind estimates in its first-quarter report in April, hurt by weak discretionary spending and softer demand in animal-care categories amid the uncertain macroeconomic environment. That said, the company’s sales increased 3.6% during the quarter, driven by robust new store openings and, to a lesser extent, growth in comparable store sales.
Moreover, the ruler lifestyle retailer reaffirmed its guidance for full-year 2026 and continues to target comparable sales growth in the range of 1% to 3% for each of the remaining quarters.
6. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 49
Dividend Yield as of June 25: 2.99%
APA Corporation (NASDAQ:APA) is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids.
On June 22, Roth Capital analyst Leo Mariani upgraded APA Corporation (NASDAQ:APA) from ‘Neutral’ to ‘Buy’, while also raising the firm’s price objective on the stock from $37 to $38. The target boost implies an upside of over 14% from the current levels.
Roth Capital upgraded several companies in the exploration and production sector, noting that global crude prices appear to be nearing a short-term bottom with a potential US-Iran ceasefire “seeming tenuous”. The firm highlighted that many oil exploration and production stocks have declined by 15%-25% from their YTD highs and are now trading at more attractive valuations.
Roth expects lasting damage to the key oil infrastructure in the Middle East and anticipates additional oil volumes to pass through the Strait of Hormuz, although it believes that these factors have been priced in energy stocks already. The analyst firm is projecting the global oil prices to stabilize around the $75 per barrel mark in the near term.
While we acknowledge the potential of APA 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 APA and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best NASDAQ Stocks to Buy for Dividends.
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