In this article, we will take a look at some of the best dividend stocks with consistent payouts.
Investors have been rushing into high-dividend stocks, attracted by the promise of strong payouts as interest-rate cuts are anticipated later this year.
According to Purpose Investments Inc., the five largest dividend-focused exchange-traded funds saw inflows of $17.5 billion by mid-July, almost ten times higher than at the beginning of 2024. However, the challenge for income seekers is that fewer US companies are raising their dividends, which could limit opportunities for dividend growth in the stock market.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, noted that uncertainty surrounding US trade policies and the broader economy caused dividend growth to slow in the second quarter, leaving many companies in a “wait-and-see” approach to dividend increases.
Given this, we will take a look at some of the best dividend stocks with consistent payouts.
Our Methodology
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, and Business Insider. From their latest articles, we gathered the stocks they collectively favored. These companies demonstrate robust cash flow, maintain healthy balance sheets, and have a track record of steady dividend payments. In addition, we assessed the hedge fund sentiment for each stock using Insider Monkey’s Q2 2025 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies.
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. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 88
Exxon Mobil Corporation (NYSE:XOM), an American oil giant, has gained only about 5% so far this year. Even so, its solid growth strategy and commitment to rewarding shareholders make it stand out as an appealing long-term bet in today’s market.
Exxon Mobil Corporation (NYSE:XOM) has laid out an ambitious roadmap for the years ahead. Its investment approach could potentially boost earnings by $20 billion and cash flow by $30 billion by 2030. That translates into a targeted compound annual growth rate of around 10% for earnings and 8% for cash flow over the coming years.
At the core of this strategy is a plan to commit roughly $140 billion toward large-scale capital projects and expansion in the Permian Basin. Exxon Mobil Corporation (NYSE:XOM) expects these efforts could generate lifetime returns of more than 30%. The focus remains on directing capital toward advantaged resources with lower costs and stronger margins, including major projects in Guyana, LNG, and the Permian Basin.
On August 13, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.99 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 42 consecutive years, which makes it one of the best dividend stocks with consistent payouts. The stock has a dividend yield of 3.52%, as of September 12.
12. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The Procter & Gamble Company (NYSE:PG) isn’t usually a top pick for growth-focused investors, but it has long been a favorite among those looking for steady income. The company is best recognized for household staples like Tide detergent, Bounty paper towels, and Gillette razors.
Founded in 1837, The Procter & Gamble Company (NYSE:PG) has grown into a mature business centered on everyday consumer products. Its revenue growth typically comes from adding new brands, adjusting prices upward, or benefiting from population growth. However, shoppers can easily find alternatives— often at lower prices— so the company’s main edge lies in the power and recognition of its brands. These dynamics naturally put a cap on how quickly it can expand.
The Procter & Gamble Company (NYSE:PG) is a solid dividend payer, having raised its payouts for 69 consecutive years and currently offers a quarterly dividend of $1.0568 per share. With a dividend yield of 2.67%, as of September 12, PG is among the best dividend stocks with consistent payouts.
11. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) is an Illinois-based pharmaceutical company. It has delivered strong results in 2025, easily beating the broader market. Much of this momentum comes from solid growth in sales and adjusted earnings, driven largely by its autoimmune treatments Rinvoq and Skyrizi. The stock has surged by nearly 22% since the start of 2025.
The strong performance of these two drugs has eased concerns about AbbVie Inc. (NYSE:ABBV)’s reliance on Humira, which lost US exclusivity in 2023. The company has managed that transition remarkably well and has shifted away from depending on Humira as its main growth engine.
In addition, AbbVie Inc. (NYSE:ABBV) is popular among income investors because of its dividend growth streak spanning 53 years. Currently, the company offers a quarterly dividend of $1.64 per share and has a dividend yield of 3%, as recorded on September 12.
10. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 89
Union Pacific Corporation (NYSE:UNP) is a railroad holding company. It stands as a logistics powerhouse, though its business looks quite different from traditional real estate. Instead of warehouses, its assets consist of 32,693 miles of track, and its revenue comes from hauling freight such as coal, grain, and automobiles.
However, the growth potential for Union Pacific Corporation (NYSE:UNP) is naturally limited. The railroad business comes with constraints, as most of its capital goes toward maintaining and upgrading existing tracks rather than investing in the expensive process of laying down new ones. With limited opportunities to expand its physical network, Union Pacific must rely on efficiency gains, such as improving pricing power and increasing volumes on its current system, to drive future growth.
That said, Union Pacific Corporation (NYSE:UNP) is a solid dividend company. It has paid consistent dividends for 125 years and has raised its payouts for 19 years in a row. Currently, it offers a quarterly dividend of $1.38 per share and has a dividend yield of 2.57%, as of September 12.
9. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK), one of the largest pharmaceutical firms, faces investor concerns as key patents near expiration and much of its revenue depends on its cancer drug Keytruda. While such challenges are common in the industry, the company’s strong R&D and ability to acquire smaller firms provide stability. These strengths have supported its long-term growth and a steadily rising dividend.
In its Q2 2025 earnings update, Merck & Co., Inc. (NYSE:MRK) revealed its planned acquisition of Verona Pharma, noting that the move would strengthen its portfolio and pipeline while reflecting its strategy of acting decisively when science and value align. The company also announced a multiyear optimization program aimed at shifting resources from mature segments toward emerging growth areas, supporting portfolio transformation, and fueling the next phase of innovation-led expansion.
Merck & Co., Inc. (NYSE:MRK) is among the best dividend stocks with consistent payouts as the company has been growing its dividends for the past 16 years. It pays a quarterly dividend of $0.81 per share and has a dividend yield of 3.88%, as of September 12.
8. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 93
The Home Depot, Inc. (NYSE:HD) is an American multinational home improvement retail company. The main reason to hold on to the stock is the potential for its dividend to keep growing over time. The company has consistently raised its payouts, with the quarterly dividend climbing to $2.30, up 53% from $1.50 in 2020.
Despite these steady increases, its payout ratio is about 62%, leaving room for further growth. Although consumer spending has slowed in tough economic conditions, Home Depot still expects 1% comparable sales growth for the fiscal year ending in January. With its strong brand, solid financials, and reliable dividend, the stock remains a compelling long-term investment.
On August 21, The Home Depot, Inc. (NYSE:HD) declared a quarterly dividend of $2.30 per share, which was consistent with its previous dividend. The company has been rewarding shareholders with growing dividends for the past 16 years, which makes it one of the best dividend stocks. The stock supports a dividend yield of 2.18%, as of September 12.
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical, biotech, and medical technologies company. It has a highly diversified business with a wide range of medicines in its pharmaceutical division. Key growth drivers include cancer treatments Darzalex and Erleada, along with Remicade, which is used for various immunology conditions. The company has also introduced new products, such as Imaavy for myasthenia gravis, which received approval earlier this year, and it is awaiting regulatory feedback on TAR-200, a promising investigational treatment for bladder cancer.
In addition, Johnson & Johnson (NYSE:JNJ) is a major player in the medical device sector. A potential long-term growth opportunity lies in its robotic-assisted surgery system, Ottava, which is currently in clinical trials in the US.
Johnson & Johnson (NYSE:JNJ) is popular among income investors as the company is a Dividend King with 63 years of dividend growth. The company currently pays a quarterly dividend of $1.30 per share and has a dividend yield of 2.92%, as of September 12.
6. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 105
Walmart Inc. (NYSE:WMT) is not only the world’s largest retailer but also the biggest company by sales, and it continues to grow through areas like e-commerce and a stronger product selection.
Its strategy, in place since the first discount store opened over 60 years ago, has been straightforward: keep costs low and pass the savings on to customers through affordable prices. Walmart Inc. (NYSE:WMT) generates significant operating cash flow, which it reinvests in capital projects to stay competitive. These include technology upgrades that enhance the shopping experience by enabling smoother online orders and quicker delivery.
Earlier this year, Walmart Inc. (NYSE:WMT)’s board of directors raised the quarterly dividend by 13%, marking 52 consecutive years of increases. This achievement places WMT among the ranks of Dividend Kings. Currently, it pays a quarterly dividend of $0.235 per share and has a dividend yield of 0.91%, as of September 12.
5. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 106
S&P Global Inc. (NYSE:SPGI) is a New York-based financial information and analytics company. What makes it a lasting investment is its collection of irreplaceable assets, including the S&P 500 index, credit ratings required for companies to access capital markets, and commodity benchmarks that help set prices for global trade. These businesses produce steady, subscription-like revenues while requiring little capital. In times of market volatility, demand for S&P’s data and analytics often rises.
At the same time, while much attention is on chatbots and image generators, S&P Global Inc. (NYSE:SPGI) is applying AI to reshape the economics of financial data. Its Kensho division, purchased for $550 million in 2018, has become central to this strategy, delivering strong productivity gains and greater workflow efficiency across the company’s operations.
In addition, S&P Global Inc. (NYSE:SPGI) is a strong dividend company. It has been growing its payouts for 53 consecutive years, which makes it one of the best dividend stocks for consistent income. As of September 12, the stock has a dividend yield of 0.71%.
4. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 115
Bank of America Corporation (NYSE:BAC) stands out as a leading financial services company, largely due to the diversity of its operations. It serves consumers, small businesses, corporations, and investors through banking, capital markets, and wealth management. This broad reach helps balance performance, as strength in one area can offset weakness in another.
In the second quarter, Bank of America Corporation (NYSE:BAC) posted $7.1 billion in net income, reflecting consistent profitability. This strong position enables it to return significant capital to shareholders. In Q2 alone, it repurchased $5.3 billion of its own stock and distributed $2 billion in dividends. With a dividend yield of 2.21%, well above the broader market average of 1.25%, investors benefit from a steady income stream.
Looking ahead, capital returns are likely to continue, as Bank of America Corporation (NYSE:BAC) has authorized up to $40 billion in share buybacks. Over the past ten years, its dividend has surged by 460%. The company has been growing its payouts for 11 consecutive years and currently offers a quarterly dividend of $0.28 per share.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is an Indiana-based multinational pharmaceutical company. Analysts expect the company to remain a leader in the rapidly expanding weight-loss market at least through the end of the decade. Its drug tirzepatide, marketed as Mounjaro and Zepbound for diabetes and obesity, is projected to generate nearly $62 billion in sales by 2030, a remarkable milestone for any pharmaceutical product.
Eli Lilly and Company (NYSE:LLY) also boasts one of the strongest pipelines in this space. Orforglipron has already delivered outstanding results by helping diabetes patients lower their A1C levels and lose weight, supporting future revenue growth. In addition, the company has several other promising candidates in development within this field.
Apart from its drug pipeline, Eli Lilly and Company (NYSE:LLY) also gains traction among investors because of its dividend history. The company’s dividend growth spans 11 years, which makes it one of the best dividend stocks on our list. Currently, it offers a quarterly dividend of $1.50 per share and has a dividend yield of 0.79%, as of September 12.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO), best known for its networking chips, has steadily expanded into corporate infrastructure software over the years. The company also plays an important role in artificial intelligence, as its networking chips allow large AI clusters in data centers to communicate efficiently and handle massive data workloads.
This strong growth has enabled Broadcom Inc. (NASDAQ:AVGO) to raise its dividend by an average of 14% annually over the past five years. With significant opportunities in AI and a relatively low payout ratio of 36%, the company is well-positioned to deliver continued dividend growth for years to come.
On September 4, Broadcom Inc. (NASDAQ:AVGO) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. Overall, the company has been growing its payouts for 14 consecutive years, which places it among the best dividend stocks to consider. The stock has a dividend yield of 0.66%, as of September 12.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational health insurance and healthcare company. The stock is down by over 30% since the start of 2025; however, it surged by nearly 30% in August only.
UnitedHealth Group Incorporated (NYSE:UNH) is the leading health insurer in the US, with operations spanning its insurance arm, UnitedHealthcare, and Optum, which provides services such as pharmacy benefits. Together, these businesses create a powerful ecosystem that would be extremely difficult for competitors to replicate, giving the company a strong competitive edge.
Over the years, UnitedHealth Group Incorporated (NYSE:UNH) has consistently grown both revenue and net income. Although it encountered some challenges earlier this year, the company has the resources and strategies in place to tackle current issues. Combined with its dominant market position and strong moat, these factors reinforce its long-term strength.
In addition, UnitedHealth Group Incorporated (NYSE:UNH) is a solid dividend payer, having raised its payouts for 14 consecutive years. The company offers a quarterly dividend of $2.21 per share and has a dividend yield of 2.51%, as of September 12.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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