In this article, we will take a look at some of the best dividend stocks according to analysts.

Dividend-paying stocks have long benefited investors by delivering consistent and solid returns. During periods of economic uncertainty, they’ve generally performed more reliably than many other types of investments. Because of these qualities, more investors are turning to dividend stocks to take advantage of their compounding potential. This growing optimism has also encouraged several companies to join the dividend club, which was evident in the way tech firms eagerly began issuing dividends in 2024.

According to a report by S&P Dow Jones Indices, dividends paid by the S&P companies reached a new high of $167.6 billion in the fourth quarter of 2024, marking a 6.7% increase from the previous quarter’s $157.0 billion—which itself had set a record. This also represented an 8.7% rise compared to the $154.1 billion paid out in Q4 2023. For the full year, total dividend payments hit an all-time high of $629.6 billion in 2024, up 7.0% from the $588.2 billion distributed in 2023. The report further mentioned that the indicated dividends for the top 20 companies in the S&P index amounted to over $141 billion.

Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, made the following comment about dividends:

“Under an increased tax, some of the expenditures may shift from buybacks to dividends. However, any shift was not seen as being on a dollar-for-dollar basis as dividends remain a long-term pure cash-flow item which must be incorporated into corporate budgets.”

Dividends have played a key role in driving overall returns from equity investments over the long haul. This was emphasized in a study by London-based Guinness Global Investors, which examined the broader market’s performance dating back to 1940. According to their analysis, dividends and reinvested payouts made up about 94% of the index’s total return during that time. To put it in perspective, a $100 investment made at the end of 1940 would have grown to roughly $525,000 by the end of 2019 if dividends were reinvested, compared to just $30,000 if the dividends had simply been taken as cash.

The report also pointed out that dividends become a more significant part of total returns the longer an investment is held. Since 1940, for the broader market, dividends have made up about 27% of total returns over a typical one-year holding period. Stretching that to three years, their contribution rises to 36%. Over five years, it climbs to 40%, and over ten years, it reaches 47%. For investors who hold their positions for twenty years, dividends end up accounting for around 57% of the total returns. Due to this performance, analysts also recommend investing in dividend stocks. In this article, we will take a look at some of the best dividend stocks according to analysts.

Our Methodology

We created this list by scanning Insider Monkey’s Q4 2024 database for US companies that have strong dividend policies and are traded on American stock exchanges. From that group, we further refined our selection criteria by identifying stocks with a projected upside potential of over 5% based on analyst price targets, as of April 20. The stocks are ranked according to their upside potential.

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).

13. The Coca-Cola Company (NYSE:KO)

Upside Potential as of April 20: 5.19%

The Coca-Cola Company (NYSE:KO) is one of the most popular beverage manufacturers in the world. The company boasts a vast lineup of beverages designed to suit a wide range of tastes and preferences, backed by more than a century of operations. It’s also recognized as a powerhouse in marketing, and perhaps more importantly, enjoys a strong base of loyal customers who feel a deep connection to the brand.

Thanks to its strong competitive edge, The Coca-Cola Company (NYSE:KO) is in a position to raise prices when needed. In 2024, the company reported a 9% gain tied to favorable pricing and product mix. This pricing power offers some protection against rising costs, especially in an inflationary environment or in the face of potential tariffs.

Due to these traits, The Coca-Cola Company (NYSE:KO)’s cash position has always remained strong. In FY24, the company generated $6.8 billion in operating cash flow, and its free cash flow came in at $4.7 billion. Notably, in February, it marked its 63rd straight year of increasing its dividend, which makes it one of the best dividend stocks according to analysts. The company offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.79%, as of April 20.

12. The Procter & Gamble Company (NYSE:PG)

Upside Potential as of April 20: 5.42%

The Procter & Gamble Company (NYSE:PG) is an Ohio-based multinational consumer goods company that offers a wide range of related products and services to its consumers. The company’s biggest strengths are its massive scale and dominance across numerous product categories and brands, which help offset potential risks. As one of the world’s largest players in everyday personal and household goods, the company offers a wide range of top-selling brands spanning beauty, grooming, health, home care, fabric care, baby products, and more.

What sets The Procter & Gamble Company (NYSE:PG) apart is that it isn’t dependent on any one brand, product line, or region. Its broad diversification works in its favor. The company also has a strong history of managing expenses efficiently and, when needed, passing on higher costs to consumers. The stock has surged by nearly 3% since the start of 2025, and its 12-month return came in at over 6%.

The Procter & Gamble Company (NYSE:PG) is a strong dividend payer, which has been grabbing investors’ attention for quite a while now. On April 8, the company declared a 5% hike in its quarterly dividend to $1.0568 per share. Through this increase, the company stretched its dividend growth streak to 69 years, which makes it one of the best dividend stocks. Supported by strong financial performance, the company produced $4.8 billion in operating cash flow for the quarter, with a free cash flow productivity rate of 84%. It also returned $2.4 billion to shareholders through dividend payments, further cementing its status as a leading choice for long-term investors. As of April 20, the stock has a dividend yield of 2.48%.

11. Johnson & Johnson (NYSE:JNJ)

Upside Potential as of April 20: 7.53%

Johnson & Johnson (NYSE:JNJ) ranks eleventh on our list of the best dividend stocks according to analysts, with an upside potential of over 7%. The American multinational healthcare company recently reported earnings for Q1 2025. The company posted revenue of $21.9 billion, which showed a 2.4% growth from the same period last year. The revenue also beat analysts’ estimates by $315.6 million. Its net earnings of $11 billion showed a significant growth of 238% on a YoY basis.

During the quarter, Johnson & Johnson (NYSE:JNJ) strengthened its reputation as a leader in innovation by making significant progress across its development pipeline. This included advancements with TREMFYA in inflammatory bowel disease, the combination of RYBREVANT and LAZCLUZE for non-small-cell lung cancer, and OTTAVA, its robotic system for soft tissue surgery. Additionally, the firm bolstered its neuroscience portfolio through the completed acquisition of Intra-Cellular Therapies.

Johnson & Johnson (NYSE:JNJ) also reported a strong cash position. In the most recent quarter, the company’s free cash flow came in at $3.4 billion, up from $2.8 billion in the prior-year period. On April 15, it declared a 4.8% hike in its quarterly dividend to $1.30 per share. This marked the company’s 63rd consecutive year of dividend growth. The stock supports a dividend yield of 3.30%, as of April 20.