In this article, we will take a look at the 14 Best American Dividend Stocks to Invest In.
Investors may face periods of market volatility in 2026. Adding dividend growth stocks could help bring some stability to portfolios. In an article published by CNBC, Saira Malik said equity markets are likely to continue experiencing bouts of volatility. She pointed to several factors behind it, including macroeconomic trends, geopolitical tensions, policy uncertainty, and shifting sentiment around artificial intelligence.
Malik said there is no guaranteed way to avoid market disruptions. Still, historical patterns suggest that companies with growing dividends have often delivered stronger returns with lower risk compared with the broader market. She also noted that while dividends and their growth are not assured, their relative predictability can help reduce the impact of turbulent market conditions.
A report from S&P Global Market Intelligence shows that companies in the S&P 500 account for about 80% of total regular dividend payments in the US market. For 2026, the report estimates that companies in the index will increase dividend payouts by 6.5%. That would broadly maintain a five-year compound annual growth rate above 7%, with growth of 7.2% in 2025 and 7.3% expected in 2026.
As in 2025, all sectors in the index are expected to post dividend growth. At the same time, the underlying sector dynamics are beginning to shift. At the index level in 2025, financial services, energy, and software and services were the main drivers of dividend growth. Together, these sectors contributed to a 2.7% increase. On a year-over-year basis, the strongest sector-level growth came from media and entertainment, insurance, and financial services.
Given this, we will take a look at the best dividend stocks.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
For this list, we screened for popular US companies that have consistent dividend policies. These stocks are also popular among elite funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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).
14. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 49
On March 9, Evercore ISI analyst Michael Montani raised the firm’s price recommendation on The Kroger Co. (NYSE:KR) to $83 from $81. The firm reiterated an Outperform rating on the shares.
On March 5, Reuters reported that the company forecast muted annual sales and profit. New CEO Greg Foran is looking to expand market share by focusing on more affordable fresh food and a more responsive delivery service aimed at budget-conscious shoppers. Kroger said it plans to aggressively reinvest savings from tighter sourcing, streamlined processes, and lower costs. The goal is to fund sharper everyday pricing and better service. The approach helped lift the stock about 2% in early trading as investors reacted to the plan.”When you combine competitive prices with strong fresh (food offering) in a well-run store, you drive traffic, you grow baskets and you gain share,” Foran said on an earnings call.
Kroger expects 2026 identical sales, excluding fuel, to grow between 1% and 2%. The midpoint of that range falls short of expectations for 2% growth. The company also projected adjusted earnings per share between $5.10 and $5.30. That range sits slightly below market expectations of $5.29, based on estimates compiled by LSEG.
The Kroger Co. (NYSE:KR) operates supermarkets, multi-department stores, and fulfillment centers across the United States. The company runs about 2,731 supermarkets, 2,273 pharmacies, and 1,702 fuel centers in more than 35 states and the District of Columbia. It also operates online through a digital ecosystem designed to give customers an omnichannel shopping experience.
13. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 59
On March 9, Wolfe Research analyst Greg Badishkanian downgraded Starbucks Corporation (NASDAQ:SBUX) to Peer Perform from Outperform after assuming coverage of the stock. The analyst did not set a price target. While “green shoots” are emerging from the company’s turnaround, Wolfe wants to see evidence of sustained execution, the analyst told investors in a research note. The firm also pointed out that Starbucks is facing a more competitive coffee landscape.
Starbucks’ well-known brand gives the company pricing power over rivals. Its global scale also brings efficiency advantages. Because of that scale, the company can charge higher prices while still benefiting from lower costs tied to operating such a large business. The company’s “Back to Starbucks” plan, introduced by CEO Brian Niccol, has started to show early progress.
Starbucks remains a large and recognizable business, and some investors believe its strongest years could still lie ahead. The company continues to expand its footprint and grow revenue over time. The stock can move with market cycles, but Starbucks remains a widely recognized destination for higher-end coffee drinks.
Starbucks Corporation (NASDAQ:SBUX) roasts, markets, and sells specialty coffee around the world. Its North America segment covers the United States and Canada. The International segment includes China, Japan, Asia Pacific, Europe, the Middle East and Africa, Latin America, and the Caribbean.
12. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 59
On March 9, UBS analyst Faham Baig raised the firm’s price recommendation on Altria Group, Inc. (NYSE:MO) to $74 from $67. The firm reiterated a Buy rating on the shares. The analyst said US cigarette volume declines appear to be moderating. Industry volumes are expected to fall about 6% in Q1, which would mark the smallest drop since 2021. The slowdown partly reflects weaker growth in the vapor category and stabilizing nicotine penetration, Baig told investors in a research note. Price investment and strength in the deep-discount segment may also support Altria’s market share. If that trend holds, the company’s volume decline could track roughly in line with the broader market, the firm said.
Altria’s dividend policy has remained consistent over the years. The company paid dividends of $1.8 billion in the fourth quarter and $7.0 billion for the full year. It has outlined a progressive dividend policy and expects dividend per share to grow at a mid-single-digit annual rate through 2028. In 2025, the company raised its dividend by 3.9%. That marked the 60th increase over the past 56 years. Any future dividend payments will still depend on approval from the company’s board of directors.
Altria Group, Inc. (NYSE:MO) operates a portfolio of tobacco products for US tobacco consumers aged 21+. Its business is organized into two segments: smokeable products and oral tobacco products. The smokeable products segment includes combustible cigarettes and machine-made large cigars.
11. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 70
On March 4, Bank of America raised the firm’s price recommendation on CSX Corporation (NASDAQ:CSX) to $48 from $41. It reiterated a Buy rating on the shares. The firm said it is updating price targets across transportation and railroad stocks under its coverage. Operating performance across the sector remains solid, and the analyst sees several indicators that suggest a possible inflection in the industrial economy.
During the company’s Q4 2025 earnings call, CEO Stephen Angel said the company expects low single-digit revenue growth this year. The outlook assumes flat industrial production, modest GDP growth, and fuel and benchmark coal prices staying close to current levels. Angel also said operating margins could expand by about 200 to 300 basis points in 2026.
He explained that the expected improvement would come from workforce optimization efforts, tighter cost control, and gains in network efficiency. The company also plans to keep capital expenditures below $2.4B in 2026. Angel described that level as a meaningful drop from the previous year. Most of the spending will go toward safety, reliability, and a limited number of growth projects. He also noted that free cash flow could increase by at least 50% compared with 2025. Angel said the company is moving away from multiyear targets and will provide guidance only for 2026. He explained that the decision reflects shifting macroeconomic conditions and changes across the industry.
CSX Corporation (NASDAQ:CSX) provides rail, intermodal, and rail-to-truck transload services. Its network supports customers in several industries, including energy, industrial, construction, agriculture, and consumer products.
10. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 71
On March 6, Deutsche Bank lowered its price recommendation on Accenture plc (NYSE:ACN) to $230 from $280. The firm reiterated a Hold rating on the shares.
On March 3, Accenture said it had agreed to acquire Ookla, a provider of network intelligence, competitive benchmarking, and customer experience analytics. The company plans to integrate Ookla’s data products, including Speedtest, Downdetector, Ekahau, and RootMetrics. The company said these tools will help Communications Service Providers, hyperscalers, and enterprises improve the Wi-Fi and 5G networks that support their digital infrastructure.
Network data is no longer limited to the telecom sector. It is now creating value across a wide range of industries. As AI expands, insights gathered from network, device, and application layers are becoming more important. These insights can help strengthen fraud prevention in banking, improve smart home analytics in utilities, and support traffic optimization in retail. Ookla’s platform captures more than 1,000 attributes in each test, creating a large dataset that supports these insights.
Accenture plc (NYSE:ACN) provides services and solutions across strategy and consulting, technology, operations, Industry X, and Song.
9. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 72
On March 5, UBS boosted its price recommendation on NextEra Energy, Inc. (NYSE:NEE) to $104 from $91. The firm reiterated a Buy rating on the shares. The analyst said the company is benefiting from strong demand for new power generation. That demand is especially visible in the competitive NEER segment, where the company’s scale and multi-technology capabilities position it to serve large-load customers such as data centers.
The analyst added that some investors remain skeptical about the company’s target of more than 8% EPS growth. The concern largely centers on execution risk tied to future gas plant contracts and data center development in Florida. At the same time, UBS said securing additional generation deals could improve confidence in the outlook and support further upside in the stock’s valuation.
NextEra Energy, Inc. (NYSE:NEE) operates through its wholly owned subsidiaries NextEra Energy Resources and NextEra Energy Transmission, which together form NEER, along with Florida Power & Light Company.
8. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 72
On March 6, Bank of America raised its price recommendation on McKesson Corporation (NYSE:MCK) to $1,040 from $970. It reiterated a Buy rating on the shares. The firm noted that McKesson recently received a new National Drug Code for a biosimilar version of Neulasta. The approval came a few weeks ago and did not attract much attention at first. Some investors remain skeptical about McKesson’s ambitions in this area. The firm said that the reaction may be premature.
In its view, the market may be overlooking the opportunity tied to several large biosimilars expected to launch over the next few years. Seven are anticipated to reach the market, including four that McKesson could address directly. The firm said this outlook supports the possibility that the company could benefit from co-manufacturing arrangements as the biosimilar market expands. It raised its McKesson price target to reflect that optionality. The firm also lifted its target on Cencora to account for similar opportunities.
McKesson Corporation (NYSE:MCK) is a diversified healthcare services company focused on advancing health outcomes for patients. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, along with other healthcare-related products across the United States.
7. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 77
On March 9, Scotiabank raised its price recommendation on AT&T Inc. (NYSE:T) to $31 from $29.50. The firm reiterated a Sector Perform rating on the shares. After hosting its annual TMT conference, the firm said AT&T offered some encouraging signals about the condition of the U.S. telecom industry. The analyst noted that the company’s comments pointed to stable demand trends across the sector.
During the earnings call, AT&T said it expects total wireless service revenue to grow between 2% and 3% annually over the next three years. The company also expects organic revenue from its advanced home internet services to rise by more than 20% a year through 2028. Once the acquisition of Lumen Technologies is completed, the reported advanced home internet revenue growth in 2026 is projected to exceed 30%.
Chief Financial Officer Pascal Desroches said the company expects adjusted EPS to come in between $2.25 and $2.35 in 2026. He added that AT&T is targeting a double-digit three-year CAGR through 2028. Desroches also said free cash flow should exceed $18 billion in 2026. The company expects that figure to increase by more than $1B in 2027 and by roughly $2 billion in 2028. AT&T also said it plans to return more than $45 billion to shareholders between 2026 and 2028. That plan includes about $8 billion in share buybacks scheduled for 2026.
AT&T Inc. (NYSE:T) operates as a holding company that provides telecommunications and technology services worldwide. Its operations are organized into two segments: Communications and Latin America.
6. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 79
On March 4, Deutsche Bank raised its price recommendation on Honeywell International Inc. (NASDAQ:HON) to $292 from $273. It reiterated a Buy rating on the stock. The firm said the change reflects an updated sum-of-the-parts valuation for the company.
That same day, Jefferies also adjusted its view on the stock. The firm lifted its price objective on Honeywell to $245 from $240. The firm maintained a Hold rating. The update followed the company’s Form 10 filing, which provides financial details related to the planned Honeywell Aerospace (HONA) spin-off expected in Q3.
A day earlier, on March 3, Honeywell said it had filed its Form 10 registration statement with the U.S. Securities and Exchange Commission for the spin-off of Honeywell Aerospace. The new entity is expected to trade on the Nasdaq under the ticker “HONA.” A copy of the filing is available on the SEC website and on Honeywell’s Investor Relations page.
In the filing, the company laid out its expectations for the future aerospace business. Honeywell said Honeywell Aerospace could generate about $17.4 billion in net sales, $1.5 billion in net income, and $4.3 billion in adjusted EBIT in 2025. The aerospace unit plans to lean on innovation to drive growth. Management said the focus will be on improving efficiency, safety, and connectivity across aircraft fleets. The business is also looking to expand retrofit and upgrade programs, support next-generation aircraft platforms, and capture more opportunities in the aftermarket.
The company expects the aerospace business to operate through three segments: Electronic Solutions, Engines & Power Systems, and Control Systems.
Honeywell International Inc. (NASDAQ:HON) is an integrated company serving industries across multiple regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.
5. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 80
On March 2, Morgan Stanley analyst Robert Kad raised the firm’s price recommendation on The Williams Companies, Inc. (NYSE:WMB) to $90 from $83. The firm reiterated an Overweight rating on the shares. The analyst told investors that further positive growth capex and EBITDA estimate revisions should support continued near-year multiple expansion.
Earlier in February, the company said it is exploring the purchase of natural gas production assets in the United States. The move would be unusual for an energy infrastructure operator. Three people familiar with the matter said the effort is aimed at securing natural gas supplies to support its one-stop-shop offering to hyperscalers and data center clients. The company has spent the past year positioning itself as a provider of energy for firms building artificial intelligence infrastructure. Alongside its traditional pipeline operations, it has been expanding into power generation capabilities.
Williams is now looking for upstream assets that could allow it to present itself as a single energy partner to hyperscalers, the sources said. The approach could give the company an edge when working with digital infrastructure operators that might otherwise need to negotiate with several providers. The sources also cautioned that there is no guarantee the company will move forward with the plan. They spoke on condition of anonymity to discuss confidential deliberations.
The Williams Companies, Inc. (NYSE:WMB) owns and operates energy infrastructure that delivers natural gas. The company’s segments include Transmission, Power & Gulf; Northeast G&P; West; and Gas & NGL Marketing Services.
4. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 83
On March 9, BofA lowered its price recommendation on American Express Company (NYSE:AXP) to $382 from $420. It reiterated a Buy rating on the shares. The firm said the change reflects adjustments across several consumer finance stocks as it factors in a more uncertain macro outlook and lower market multiples.
A few days earlier, on March 2, the Board of Directors of American Express approved an increase in the quarterly dividend on the company’s common shares. The increase amounts to $0.13, or 16%, and aligns with the planned dividend raise outlined in the company’s fourth-quarter 2025 earnings release. The quarterly dividend now stands at $0.95 per common share, up from $0.82.
American Express Company (NYSE:AXP) operates as a global payments and premium lifestyle brand supported by technology. Its card-issuing, merchant-acquiring, and card network businesses provide products and services to a wide range of customers, including consumers, small businesses, mid-sized companies, and large corporations around the world.
3. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 86
On March 9, Citi raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $785 from $760. It reiterated a Buy rating on the shares. The firm said the ConExpo construction trade show pointed to healthy demand trends, with a “significant pipeline of mega projects.” Citi also noted a positive outlook for the equipment rental space. The firm upgraded Terex and moved Alliance Laundry to its top sector pick. Analysts said they continue to see strong prospects for U.S. construction activity.
On March 10, Reuters reported that Atlas Energy had signed a deal with Caterpillar to secure about $840 million worth of power-generation equipment through 2029. The move is aimed at locking in manufacturing capacity as electricity demand in the US continues to rise. Power consumption in the U.S. is expected to increase sharply this year and next. The growth is tied to the rapid expansion of artificial intelligence and cryptocurrency data centers, along with the rising electrification of heating and transportation.
Atlas said the agreement covers roughly 1.4 gigawatts (GW) of incremental natural gas power generation assets scheduled for delivery between 2027 and 2029. The new capacity will come from large-load reciprocating generator sets. These include CG260-16 units designed for behind-the-meter (BTM) installations and G3520 series units that can support both BTM and bridge-power applications. Atlas expects to own and operate about 2 GW of power generation assets by 2030, following the deployment of equipment secured under the agreement.
Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its business is organized into three main segments: Construction Industries, Resource Industries, and Power & Energy. The company also offers financing and related services through its Financial Products segment.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 111
On March 9, Scotiabank lowered its price recommendation on Oracle Corporation (NYSE:ORCL) to $215 from $220. The firm reiterated an Outperform rating on the shares. The analyst said the firm likes Oracle’s “tidy” fourth-place position in the AI-accelerated cloud market. It also believes the company’s traditional businesses remain well insulated from “vibe-coded” competition.
On March 10, Reuters reported that Oracle predicted the boom in AI data centers would push its revenue above Wall Street estimates well into 2027. The outlook sent the company’s shares up 8% in extended trading. The results helped ease investor concerns that Oracle’s multi-billion-dollar push into AI computing might take longer to generate profits. Remaining performance obligations (RPO), a key measure of future contracted revenue, rose 325% from a year earlier to $553 billion. That figure came in ahead of the $540.37 billion estimate from four Visible Alpha analysts.
The company said most of the increase in RPO during the quarter is tied to large-scale AI contracts. Oracle added that it “does not expect to have to raise any incremental funds” related to these deals. Oracle also raised its revenue forecast for fiscal 2027 to $90 billion. That outlook is above analyst estimates of $86.6 billion, according to data compiled by LSEG.
Oracle Corporation (NYSE:ORCL) provides integrated suites of applications along with secure, autonomous infrastructure through Oracle Cloud. The company operates through three businesses: cloud and license, hardware, and service.
1. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 136
On March 9, BofA lowered its price objective on Capital One Financial Corporation (NYSE:COF) to $254 from $280 and kept a Buy rating on the shares. The firm said it is adjusting price targets across several consumer finance stocks as it accounts for a more uncertain macro outlook and lower market multiples.
During the company’s Q4 2025 earnings call, management said it plans to keep investing in growth areas such as technology, AI, and the premium credit card segment. The company noted that these investments are likely to create “some upward pressure on efficiency ratio in the near term.” Richard Fairbank said the company still expects its long-term earnings potential after the Discover integration to remain consistent with the outlook shared when the Discover deal was first announced.
He also said the company intends to accelerate Brex’s growth “almost from day 1” once the transaction closes. At the same time, Capital One plans to continue supporting initiatives such as Capital One Travel, Capital One Shopping, and Auto Navigator.
Capital One Financial Corporation (NYSE:COF) is a diversified financial services holding company with both banking and non-banking subsidiaries. The company provides a range of financial products and services to consumers, small businesses, and commercial clients through different channels. Its operations are organized into three segments: Credit Card, Consumer Banking, and Commercial Banking.
While we acknowledge the potential of COF 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 COF and that has 100x upside potential, check out our report about the cheapest AI stock.
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