In this article, we will take a look at some of the best dividend kings to invest in.
Dividend Kings are the rare companies that have increased their dividends for 50 straight years or more. Stocks like these have stayed popular with investors for a simple reason. Over many market cycles, dividend-paying companies have often delivered better long-term results than businesses that do not pay dividends. They also tend to carry a lower risk profile, since dividend payouts are usually backed by steady cash flow and financially disciplined operations.
Looking at long-term stock performance makes the role of dividends even clearer. A report from Anchor Capital Advisors noted that dividends were a major driver of total returns up until the late 1980s, but their importance faded during the late 1990s as investors became more focused on growth stocks. Then the market environment flipped. During the “lost decade” of the 2000s, dividends became one of the main reasons investors were still able to generate returns. After the dot-com bubble burst, many investors shifted their attention back toward dividend income and stability.
Industry research also suggests dividend stocks do not just offer stronger returns. They often come with meaningfully lower volatility compared to non-dividend payers. Some investors still assume dividend stocks are slow-moving, outdated businesses with limited growth. In reality, dividend-paying companies exist across a wide range of sectors and industries. Dividends can also create discipline at the management level, since regular payouts reduce the temptation to spend excess cash on aggressive deals that could end up diluting shareholder value.
Given this, we will take a look at some of the best dividend kings to invest in.
Our Methodology:
For this list, we reviewed the Dividend Kings companies and selected the 13 stocks that were most favored by hedge funds in the third quarter of 2025, using data from Insider Monkey’s database. The stocks are ranked by the number of hedge fund investments, starting with the lowest.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holders: 25
Consecutive Years of Dividend Growth: 65
On January 6, Keefe Bruyette raised its price target on Cincinnati Financial Corporation (NASDAQ:CINF) to $191 from $180 and kept an Outperform rating on the stock.
A day earlier, on January 5, BofA went the other way. The bank cut its price target to $180 from $186, while maintaining a Buy rating. In its note, the analyst said pricing trends across most P&C insurance products still look weak, similar to what played out in 2025. Liability lines are one bright spot, but the analyst warned that loss costs appear to be rising faster than prices. They also noted that personal auto rates have been largely flat, even though some investors had been expecting declines given how profitable the segment has been. Even so, BofA said insurer valuations “hardly look expensive,” even as fundamentals have moved in the “wrong direction.”
Cincinnati Financial Corporation (NASDAQ:CINF)’s underwriting record has stayed strong. Over the past five years, the company has posted an average combined ratio of 94.6%. Put simply, for every $100 in premiums it wrote, it kept around $5 as underwriting profit. In an industry where combined ratios often hover near 100%, staying consistently below that level signals disciplined underwriting and supports long-term growth.
Cincinnati Financial Corporation (NASDAQ:CINF) mainly sells business, home, and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty insurance subsidiaries.
12. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 31
Consecutive Years of Dividend Growth: 58
On January 14, Scotiabank trimmed its price target on Federal Realty Investment Trust (NYSE:FRT) to $113 from $114 and maintained an Outperform rating on the stock. The analyst said the firm is refreshing price targets across the US Real Estate and REIT names it covers ahead of the Q4 earnings season. Scotiabank also pointed to Self Storage and Multifamily as two areas where buy-side sentiment has been improving, with the view that both sectors are less likely to disappoint when companies issue FY26 guidance.
Federal Realty has also been showing up more often in bullish conversations on Wall Street. In a CNBC report published on December 31, analysts noted that while real estate struggled through much of 2025, Federal Realty stood out as a name that may be overlooked going into 2026. Jefferies analyst Linda Tsai reportedly called the company a top idea for 2026 and upgraded the stock to Buy.
A big part of the optimism centers on Federal Realty’s capital recycling strategy. The company has been selling mature, long-held retail assets and redeploying that capital into higher-quality growth opportunities. On December 17, Federal Realty announced it had sold a residential building in North Bethesda, Maryland, along with a grocery-anchored shopping center in Bristol, Connecticut, for roughly $170 million combined. On the reinvestment side, the trust has also been active, including a $153.3 million acquisition of Village Pointe in Omaha, Nebraska. That property is home to well-known tenants such as Apple, Coach, and Sephora.
Federal Realty Investment Trust (NYSE:FRT) is an equity REIT that focuses on owning, operating, and redeveloping retail-based real estate. Its portfolio is concentrated in major coastal markets, along with select underserved regions where economic conditions and demographic trends remain supportive.
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