In this article, we will take a look at the 13 Best NASDAQ Dividend Stocks to Buy Now.
In recent years, technology markets, especially those tracked by the NASDAQ Composite Index, have drawn growing attention from investors around the world. Stock prices in this space have climbed sharply, reflecting stronger demand and rising confidence in technology-driven businesses.
This trend became even more visible during the COVID-19 pandemic. Market prices rose at an unusually fast pace and reached record levels. The NASDAQ Composite Index climbed from below 7,000 points shortly after the World Health Organization declared a global pandemic in March 2020 to more than 16,000 points by late 2021.
This surge was supported by stronger business fundamentals. As companies, governments, and consumers relied more on digital tools during the global health crisis, technology firms became more important to everyday operations. Their improved earnings outlook and expanding role in the economy helped justify much of the price growth seen during that period.
In 2025, the technology-heavy Nasdaq Composite index recorded a 21% gain. According to a recent CNBC report, the “Magnificent Seven” that propelled the broader market to record heights in recent years has been flipped on its head this year. The declines come amid a flurry of concerns about these companies’ soaring capital expenditures on artificial intelligence and their ability to meet increasingly high earnings growth expectations.
At the same time, rapid improvements in AI models and rising competition across the industry have added more uncertainty to the market. Investors have also begun to examine these stocks more closely after their strong run-up. This has led to a shift in capital away from high-growth technology names and toward cyclical sectors that many investors believe offer better value.
Although the NASDAQ is widely known for its concentration of technology companies, the index also includes many firms that pay dividends. It is not limited to technology alone, as companies from several other sectors are part of the index as well.
Given this, we will take a look at some of the best NASDAQ dividend stocks.
Photo by Pascal Bernardon on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of hedge funds as of the third quarter of 2025 and selected companies that are trading on the NASDAQ exchange and also pay dividends to shareholders. From that list, we identified stocks with dividend yields of at 1% as of February 22. Finally, we picked 15 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment toward them.
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. Thomson Reuters Corporation (NASDAQ:TRI)
Number of Hedge Fund Holders: 32
Dividend Yield as of February 22: 3.15%
On February 17, BofA analyst Curtis Nagle reinstated coverage of Thomson Reuters Corporation (NASDAQ:TRI) with a Neutral rating. The analyst set a $100 price target on the stock. The move came as part of the firm resuming coverage on 19 Information and Business Services companies. The analyst said the firm is “generally constructive” on the sector and expects average growth of 7% in revenue, 12% in EPS, and 11% in free cash flow in 2026.
Earlier, on February 5, Thomson Reuters reported higher fourth-quarter revenue, supported by strength across its legal, tax and accounting, and corporate segments. The results come as investors continue watching how artificial intelligence companies expand into markets that Thomson Reuters has long operated in.
The Toronto-based company also provided an encouraging outlook. It expects full-year 2026 revenue to grow between 7.5% and 8%, which is largely in line with Wall Street expectations. According to LSEG data, analysts are projecting revenue growth of 7.7% for the year. Thomson Reuters also announced a dividend increase, raising its annualized payout by 10% to $2.62 per common share. For the fourth quarter, revenue rose 5% to $2 billion, matching analyst estimates.
Thomson Reuters Corporation (NASDAQ:TRI) operates as a content and technology company. Its Legal Professionals segment serves law firms and government clients, offering research and workflow tools powered by advanced technologies, including generative artificial intelligence.
12. PACCAR Inc (NASDAQ:PCAR)
Number of Hedge Fund Holders: 34
Dividend Yield as of February 22: 1.03%
On February 3, Morgan Stanley raised its price recommendation on PACCAR Inc (NASDAQ:PCAR) to $109 from $102. It reiterated an Equal Weight rating on the shares. The change came as part of the firm’s latest model updates across its North American machinery and construction coverage.
Speaking during the Q4 2025 earnings call, CEO Preston Feight said PACCAR generated $6.8 billion in revenue and $557 million in net income for the quarter. For the full year, the company reported $28.4 billion in revenue and $2.64 billion in adjusted net income. He noted that this ranked as the fourth most profitable year in PACCAR’s history and extended its long track record to 87 consecutive years of profitability.
Feight also pointed to strong performance from the company’s support divisions. PACCAR Parts and PACCAR Financial Services both delivered record revenue, both for the quarter and the full year. He said this reflected steady demand and continued strength in those businesses. He added that PACCAR remained well-positioned despite recent tariff and emissions developments. The Section 232 truck tariff, which took effect on November 1, created an advantage because PACCAR manufactures trucks within the U.S., Canada, and Mexico to serve those markets locally. He said the company ended the year with greater clarity around tariff and emissions policies.
Looking ahead, Feight expects the U.S. and Canadian Class 8 truck market to fall between 230,000 and 270,000 units in 2026. He said economic growth, clearer regulatory conditions, and improving freight trends should support demand. He also highlighted DAF’s continued expansion and the recognition it has received across Europe and South America.
PACCAR Inc (NASDAQ:PCAR) is a global truck manufacturer. The company designs, builds, and supports premium light-, medium-, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF brands.
11. Fastenal Company (NASDAQ:FAST)
Number of Hedge Fund Holders: 47
Dividend Yield as of February 22: 2.08%
On February 6, Baird analyst David Manthey raised his price recommendation on Fastenal Company (NASDAQ:FAST) to $51 from $49 and maintained an Outperform rating on the shares.
During Fastenal’s Q4 2025 earnings call, President and Chief Sales Officer Jeffery Watts said the company finished the year on a strong note. He described the fourth quarter as the conclusion of what had been a steady recovery throughout 2025. Daily sales increased slightly above 11% during the quarter, delivering double-digit growth. He also said Fastenal continued gaining market share, even as overall industrial activity remained sluggish.
Watts pointed to continued progress in expanding national and global contracts and deepening relationships with key customers. He said the company has been deliberately focusing more on large, strategic accounts. The number of contract customers rose by 241, an increase of just over 7%, driven by both new customer additions and expanded business with existing clients.
He also highlighted the growing role of technology in Fastenal’s operations. Nearly half of the company’s fourth-quarter sales were completed through FMI Technology or other digital platforms, reflecting increased adoption of its automated and value-added services. Financially, the company delivered solid results. Net sales reached $2.03 billion in the quarter, up 11% from a year earlier. Net income increased 12.2% to $294.1 million, and earnings per share came in at $0.26. For the full year, Fastenal reported record sales of $8.2 billion, representing nearly 9% growth, while net income rose to $1.26 billion, up 9.4%.
Fastenal Company (NASDAQ:FAST) operates as a wholesale distributor of industrial and construction supplies. Its products include threaded fasteners such as bolts, nuts, screws, and studs, along with washers and a wide range of related hardware and industrial supplies.
10. Xcel Energy Inc. (NASDAQ:XEL)
Number of Hedge Fund Holders: 49
Dividend Yield as of February 22: 2.80%
On February 13, UBS analyst William Appicelli upgraded Xcel Energy Inc. (NASDAQ:XEL) to Buy from Neutral and raised his price target to $89 from $81. He said the stock offers an attractive risk/reward at current levels. The analyst noted that Xcel is trading at about a 4% discount to the broader utility group, even though it delivers fully regulated earnings growth of around 9% and is seeing rising demand tied to data center expansion. UBS believes this growth potential is not fully reflected in the current share price.
During the company’s Q4 2025 earnings call, President, CEO, and Chairman Robert Frenzel outlined plans for significant investment. He said Xcel Energy expects to invest more than $60 billion over the next five years to strengthen and expand its energy infrastructure. The plan includes upgrading transmission and distribution networks, adding new natural gas and renewable generation, and building a more modern grid designed to handle extreme weather conditions.
Frenzel also highlighted the company’s consistent financial performance. Xcel Energy delivered ongoing earnings of $3.80 per share in 2025, marking the 21st straight year that the company met or exceeded its original earnings guidance. He pointed to several major projects completed or underway. These included the launch of Phase 2 of the Sherco solar project, the conversion of the Harrington coal plant to natural gas, and wind repowering work at the Border and Pleasant Valley sites. He also noted the successful startup of the Rocky Mountain solar project in Colorado.
In addition, Frenzel said the company updated its capital plan to include an initial 7,000 megawatts of company-owned renewable energy, natural gas, and storage projects across its service areas. He said these investments will help transition the company’s generation mix while supporting future growth.
Xcel Energy Inc. (NASDAQ:XEL) delivers electricity and natural gas to customers across multiple states. Through its four utility subsidiaries, the company serves about 3.9 million electric customers and 2.2 million natural gas customers with a broad range of energy services.
9. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 56
Dividend Yield as of February 22: 2.34%
On February 12, Barclays analyst Tom O’Malley initiated coverage of Microchip Technology Incorporated (NASDAQ:MCHP) with an Equal Weight rating. The analyst set an $80 price target on the stock. He said the company has a “more moderate correlation” with the Purchasing Managers’ Index compared with ON Semiconductor (ON), meaning its business is somewhat less sensitive to swings in industrial demand.
Barclays added that it is “cautiously optimistic” about a recovery in the industrial sector as PMIs begin to improve. Even so, the firm advised investors to stay selective, noting that each company in the space “faces at least one unique challenge.” In Microchip’s case, Barclays believes the company could face pressure from potential market share losses in microcontrollers.
During the fiscal Q3 2026 earnings call, CEO Steve Sanghi said Microchip delivered solid growth. Net sales rose 4% sequentially and increased 15.6% compared with the same quarter last year. He said the gains were largely driven by strength in networking, data center, FPGA, and licensing. Sanghi also said inventory levels at distributors had mostly returned to normal. The gap between sell-in and sell-through narrowed significantly, signaling improved balance across the supply chain. He added that aerospace and defense were the strongest-performing segments during the quarter, while networking, data center, and licensing continued to show steady momentum.
He also highlighted new product traction. The company secured three design wins for its PCI Express Gen 6 switch. Sanghi noted that the second win was larger and is expected to move into production in the first calendar quarter of 2027. Based on current customer forecasts, he said this design win alone could generate more than $100 million in revenue during calendar year 2027.
Microchip Technology Incorporated (NASDAQ:MCHP) provides embedded control solutions used in a wide range of industries. Its semiconductor business designs and sells microcontrollers, development tools, analog and connectivity products, timing solutions, and memory devices.
8. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 56
Dividend Yield as of February 22: 2.94%
On February 20, TD Cowen analyst Shelby Tucker raised the price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $141 from $137. The analyst reiterated a Buy rating on the stock. The firm said AEP continues to show a strong pipeline of investment opportunities across its service areas. It also noted that the company’s execution has been improving, with steady progress in its ability to generate better returns on equity.
During the Q4 2025 earnings call, Chairman, President, and CEO William Fehrman said AEP remains one of the fastest-growing pure-play electric utilities. He said the company’s presence in high-growth regions, along with continued infrastructure investment, has played a major role in driving its performance. Fehrman also highlighted steps AEP has taken to support future growth. The company secured agreements with leading gas turbine manufacturers, locking in more than 10 gigawatts of capacity. He said AEP also formed a long-term partnership with Quanta Services to help expand and speed up development of its 765 kV transmission network.
Financially, the company delivered solid results. Fehrman said AEP reported operating earnings of $1.19 per share for the fourth quarter, bringing full-year 2025 operating earnings to $5.97 per share. That result came in above the high end of the company’s guidance. He also noted that AEP raised its quarterly dividend to $0.95 per share in October and delivered a total shareholder return of 29% for the year.
American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Its subsidiaries provide electricity generation, transmission, and distribution services to more than five million customers across several US states.
7. Automatic Data Processing, Inc. (NASDAQ:ADP)
Number of Hedge Fund Holders: 57
Dividend Yield as of February 22: 3.17%
On February 9, Stifel analyst David Grossman lowered his price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $270 from $280. The analyst maintained a Hold rating on the shares. He noted that the stock is currently trading at a 17% premium to the equal-weight S&P 500. Even so, he described the valuation as offering a “compelling risk/reward,” given ADP’s stable business model and its ability to deliver consistent high-single to low-double digit growth.
During ADP’s fiscal Q2 2026 earnings call, President and CEO Maria Black said the company delivered solid results. Revenue increased 6%, while adjusted EBIT margin expanded by 80 basis points. Adjusted earnings per share rose 11%. She said the performance was supported by strength across international markets, US enterprise clients, compliance services, and both the small business and mid-market segments. Black also addressed client retention and satisfaction. She said the Employer Services retention rate came in as expected, despite a slight decline. At the same time, client satisfaction reached a record high, with the company reporting the strongest quarterly satisfaction levels in its history.
She also pointed to continued progress with ADP’s newer platforms. Workforce Now Next Gen gained traction among mid-market clients and reached a key milestone with its first sale to a customer with more than 1,000 employees. In the enterprise segment, Lyric continued to perform well, with more than 70% of new bookings and pipeline activity tied to new client wins.
Black also highlighted the impact of ADP’s acquisition of WorkForce Software in October 2024. The deal helped support the rollout of the ADP WorkForce Suite, and she said the company is already seeing early benefits. Several deals completed during the quarter included the WorkForce Suite as part of the overall solution.
Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. Its services help businesses manage payroll, workforce administration, and compliance. The company serves a wide range of clients, from small businesses with a single employee to large global enterprises.
6. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 61
Dividend Yield as of February 22: 2.17%
On February 20, Barclays began coverage of Gilead Sciences, Inc. (NASDAQ:GILD) with an Equal Weight rating. The firm set a $155 price target on the stock. The firm said the company is returning its focus to what it has historically done well, developing treatments for infectious diseases. Still, Barclays believes the stock already reflects much of that strength and described its valuation as “rich” at current levels.
Earlier, on February 10, Gilead provided its financial outlook for 2026, which came in toward the lower end of analyst expectations. The forecast included projections for Yeztugo, its twice-yearly HIV prevention injection, which has been closely watched since its US launch last year. In the fourth quarter, Yeztugo generated $96 million in sales, exceeding Wall Street estimates of $88 million, according to LSEG data. However, the company’s full-year outlook was more conservative. Gilead expects Yeztugo to generate $800 million in sales in 2026, compared with analyst projections of $907 million.
In an interview, CEO Daniel O’Day said the company reduced its 2026 sales growth outlook by about 2 percentage points. He said the change was tied to a pricing agreement with the Trump Administration and uncertainty around how many people will maintain insurance coverage under Affordable Care Act plans after certain subsidies expired.
O’Day also pointed to steady growth in the company’s HIV business. HIV sales rose 6% in 2025, and he expects another 6% increase in 2026. Gilead expects adjusted earnings per share between $8.45 and $8.85 in 2026. Analysts, on average, are projecting $8.75 per share, which is slightly above the midpoint of the company’s guidance.
Gilead Sciences, Inc. (NASDAQ:GILD) develops medicines to treat and prevent serious diseases. Its work spans HIV, viral hepatitis, cancer, COVID-19, and inflammatory conditions, making infectious disease treatment a core part of its business.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Dividend Yield as of February 22: 2.69%
On February 20, Barclays initiated coverage of Amgen Inc. (NASDAQ:AMGN) with an Equal Weight rating and a $185 price target. The analyst said there is still “plenty of time” before the Phase 3 MARITIME trial results are released, which means the “biggest source of debate” around Amgen will remain unresolved for now. The firm also noted it is “probably a bit more negatively inclined on this than the Street,” though it said Amgen’s “strong” guidance helps balance those concerns.
During Amgen’s Q4 2025 earnings call, Chairman and CEO Robert Bradway said the company delivered solid performance across its portfolio. He noted that 14 products generated more than $1 billion in annual sales, reaching blockbuster status. At the same time, 13 products posted double-digit growth, and 18 delivered record results. He said the strength and breadth of Amgen’s portfolio helped drive double-digit growth in both revenue and earnings per share during 2025.
Bradway also pointed to strong growth from key products, including Repatha, EVENITY, and TEZSPIRE, each of which increased more than 30% compared with the prior year. He said these therapies are expected to remain major contributors to the company’s long-term growth. He added that Amgen’s rare disease business generated more than $5 billion in revenue during the year. In oncology, growth was supported by the company’s BiTE platform, with IMDELLTRA playing a key role. Bradway said the treatment quickly became the standard of care for patients with second-line or later small cell lung cancer, driven by what he described as unprecedented survival outcomes.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company focused on developing medicines for serious diseases. It works across areas with high unmet medical needs and uses its research and manufacturing capabilities to deliver new treatment options.
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 64
Dividend Yield as of February 22: 2.54%
On February 1, Citi analyst Jon Tower lowered his price recommendation on Starbucks Corporation (NASDAQ:SBUX) to $92 from $94. The analyst reiterated a Neutral rating on the shares. The firm said questions still remain after the company’s recent earnings report and investor event, leaving some uncertainty around the pace of its recovery.
During Starbucks’ fiscal Q1 2026 earnings call, Chairman and CEO Brian Niccol said the company is making steady progress on its Back to Starbucks plan. He said momentum is building across the business, and the turnaround is unfolding as expected. The company’s priority has been stabilizing and growing revenue, with earnings improvement expected to follow. Niccol said global revenue rose 5% year-over-year to $9.9 billion. Comparable store sales increased 4%, reflecting stronger activity across locations. Starbucks also continued expanding its footprint, opening 128 net new coffeehouses worldwide during the quarter.
Operating margin came in at 10.1%, and earnings per share reached $0.56. In North America, revenue grew 3% to $7.3 billion. International markets delivered faster growth, with revenue increasing 10% to $2.1 billion. These results show that demand remains steady, though growth varies by region. Niccol said higher transaction volumes are helping the company identify areas to improve its supply chain. He noted that Starbucks is reviewing its menu and operations to make sure products are available while also reducing waste. This is part of a broader effort to improve efficiency.
He also highlighted continued investment in technology. Niccol pointed to the appointment of Anand Varadarajan as Chief Technology Officer, saying the role will support improvements across Starbucks’ technology platforms and help strengthen operations over time.
Starbucks Corporation (NASDAQ:SBUX) is a global roaster, marketer, and retailer of specialty coffee. Its North America segment includes its operations in the United States and Canada.
3. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 72
Dividend Yield as of February 22: 2.58%
On February 4, Texas Instruments Incorporated (NASDAQ:TXN) announced that it has agreed to acquire Silicon Laboratories in a $7.5 billion deal. This marks its largest acquisition since it bought National Semiconductor in 2011. The goal is to expand its presence in wireless connectivity chips, which are widely used in industrial equipment and consumer devices.
Texas Instruments has long focused on analog chips that support everyday electronics. These chips are used in smartphones, vehicles, medical equipment, and many other systems. With the addition of Silicon Labs, the company is strengthening its position in connected technologies, including smart home devices and industrial applications. Under the terms of the agreement, Texas Instruments will pay $231 per share. That represents about a 69% premium to Silicon Labs’ previous closing price. Silicon Labs’ shares moved sharply higher after the announcement, reflecting investor reaction to the premium. Texas Instruments’ stock declined following the news. The deal is expected to close in the first half of 2027 and will be financed through a mix of cash and debt.
Texas Instruments said it expects the acquisition to generate about $450 million in annual cost savings within three years. These savings are expected to come mainly from manufacturing efficiencies and streamlined operations.
Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, tests, and sells analog and embedded processing chips. Its products are used across industrial systems, vehicles, consumer electronics, communications equipment, and enterprise technology.
2. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 75
Dividend Yield as of February 22: 1.23%
On February 19, BMO Capital raised its price recommendation on CSX Corporation (NASDAQ:CSX) to $41 from $38. The firm reiterated a Market Perform rating on the shares. The update came as part of a broader research note on the transportation sector. The firm said the strong rally in transportation stocks since late November 2025 still looks reasonable when viewed in the context of the full freight cycle, which peaked in 2022. According to BMO, the recovery phase appears to be ongoing. As long as freight demand continues improving, transportation stocks like CSX could still have room to move higher.
Earlier, on February 9, CSX announced a $670 million agreement with Wabtec Corporation to upgrade its locomotive fleet. The deal includes 100 new Evolution Series locomotives, 50 modernized locomotives, and a range of digital solutions and services. The new Evolution Series locomotives are expected to improve fuel efficiency, pulling power, and reliability. These upgrades are designed to help CSX handle long-haul and heavy freight more efficiently while reducing fuel consumption.CSX also plans to modernize its older D9 locomotives by converting them from DC to AC traction. This change will extend their service life and bring them closer in line with the rest of the fleet. The upgraded locomotives will also support advanced control systems and diagnostics, which should improve performance and operating efficiency.
Both the new and upgraded locomotives will include Trip Optimizer with Smart Horsepower per Ton. This EPA-certified system helps improve fuel efficiency by automatically adjusting locomotive performance based on operating conditions.CSX expects deliveries of the new Evolution Series locomotives to begin this year. Deliveries of the modernized locomotives are scheduled to begin in 2027.
CSX Corporation (NASDAQ:CSX) provides rail transportation, intermodal services, and rail-to-truck transfer solutions. The company serves a wide range of industries, including energy, industrial, construction, agriculture, and consumer goods.
1. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 84
Dividend Yield as of February 22: 1.24%
On February 19, Baird raised its price recommendation on Analog Devices (ADI) to $365 from $275. It reiterated an Outperform rating on the shares. The firm updated its outlook after reviewing the company’s latest results, which pointed to several tailwinds and signs that the semiconductor cycle is moving into recovery.
During the fiscal Q1 2026 earnings call, CEO Vincent Roche said the company continued to show strong momentum. Revenue, profitability, and earnings per share all came in above the midpoint of guidance. He said growth was broad across multiple end markets, with the industrial and communications segments standing out. Roche said these segments remain the company’s top priority when it comes to capital allocation. He also noted that investment levels reached record highs, reflecting the company’s focus on supporting future growth.
He also announced an 11% increase in the company’s dividend. Roche said the increase continues Analog Devices’ long track record of annual dividend growth and reflects its commitment to providing steady returns to shareholders. Looking ahead, Roche said the company is directing its investments toward several long-term technology trends. He identified autonomy, proactive healthcare, sustainable energy, immersive sensory technologies, and AI-driven computing and connectivity as key areas of focus. He said these trends are expected to create meaningful growth opportunities over time.
Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor company. It designs, manufactures, tests, and markets integrated circuits, software, and subsystems that rely on high-performance analog, mixed-signal, and digital signal processing technologies.
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