In this article, we are going to discuss the best Fortune 500 dividend stocks to invest in now.
Global equities delivered a strong run in 2025, but the gap between winners and laggards widened as the year went on. Expectations climbed along the way, setting up a market where staying power may matter more than short bursts of momentum in the year ahead.
CNBC noted that the MSCI All Country World Index, which tracks more than 2,500 large- and mid-cap stocks across developed and emerging markets, rose more than 21% for the year. It reached a record level of 1,024 on December 26, according to LSEG data.
In the US, stock gains were largely driven by earnings growth tied to artificial intelligence and steady consumer demand. That support held even as concerns about a potential AI bubble circulated, a view echoed by several major financial firms. Morningstar data showed that while US markets posted a comparatively modest 16% gain and trailed some global peers, both the S&P 500 and NASDAQ still climbed to new highs. Mega-cap technology companies led the way in that move.
State Street noted that heavy capital spending, particularly by technology and infrastructure-related companies, played a significant role in driving US stocks higher. This came as valuations stretched to levels well above historical norms.
Looking ahead to 2026, the tone remains positive, but with more caution. Goldman expects earnings to keep growing, helped by continued AI investment and a more supportive monetary backdrop. At the same time, it warned that elevated valuations and market concentration could limit further gains. State Street struck a similar note, calling the US the main driver of global equity returns, while stressing the need for selectivity as markets react more sharply to earnings results, policy changes, and any cooling in AI-related spending.
With that said, here are the Best Fortune 500 Dividend Stocks to Buy Now.
Photo by Dan Dennis on Unsplash
Our Methodology:
For this list, we scanned the top companies among the Fortune Global Rankings and identified dividend stocks. From that group, we shortlisted dividend stocks with an annual dividend yield of over 2%, as of December 31. Lastly, we picked 7 companies that were most popular among hedge funds at the end of Q3 2025, as per Insider Monkey’s database, and ranked them accordingly. The following are the Best Fortune 500 Stocks to Buy for Dividends.
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).
7. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 47
Dividend Yield as of December 31: 3.70%
Phillips 66 (NYSE:PSX) operates as a diversified, integrated downstream energy provider, manufacturing, transporting, and marketing refined products across its network.
On December 12, Mizuho raised its price target on Phillips 66 (NYSE:PSX) to $150 from $145 and kept a Neutral rating on the shares. The move came as part of the firm’s 2026 outlook for the exploration and production group. Sentiment around US oil and gas stocks remains weak, driven by concerns over oil oversupply and elevated gas storage levels. Even so, the analyst pointed to ‘underappreciated value’ across the group. Longer-term fundamentals, especially in exploration and production, may start to show through in 2026. Mizuho suggested shifting risk toward oil-focused E&Ps, with a selective approach to gas stocks, while taking a more neutral stance on refining.
A few days later, on December 15, Phillips 66 (NYSE:PSX)approved a $2.4 billion capital budget for 2026. The figure comes in slightly above this year’s forecast and reflects a shift in growth spending toward its midstream natural gas liquids network and higher-return refining projects. The plan reinforces Phillips 66’s focus on shareholder returns as it invests in assets designed to lift margins and cash flow across the integrated business, CEO Mark Lashier said.
In September, the company completed its acquisition of full ownership of WRB Refining from Cenovus Energy, a move expected to expand its crude processing flexibility. For 2026, capital spending for the midstream and refining segments is set at $1.1 billion each, compared with estimated outlays of $975 million and $822 million in 2025. Midstream investments include the Iron Mesa gas processing plant, a 300-million-cubic-feet-per-day facility in the Permian Basin scheduled to start up in the first quarter of 2027. The plan also covers an expansion of the Coastal Bend NGL pipeline, which is expected to lift capacity to 350,000 barrels per day by the fourth quarter of 2026.
In addition, Phillips 66 is planning a new fractionator in Corpus Christi that would add 100,000 barrels per day of NGL fractionation capacity. A final investment decision is expected in early 2026, with completion targeted for 2028.
6. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 55
Dividend Yield as of December 31: 2.23%
The Kroger Co. (NYSE:KR) operates as a food and drug retailer, running supermarkets, multi-department stores, and fulfillment centers across the United States.
On December 10, Citi analyst Paul Lejuez cut his price target on The Kroger Co. (NYSE:KR) to $68 from $74 and kept a Neutral rating on the stock.
Less than two weeks later, on December 23, Kroger’s board approved an additional $2 billion for share repurchases. This adds to the $7.5 billion program announced in December 2024. After the latest approval, the company has about $2.9 billion remaining under its buyback authorizations as of December 23, 2025. Management expects to fund these repurchases through operating cash flow and existing liquidity, while preserving its investment-grade credit rating.
Earlier in December, The Kroger Co. (NYSE:KR) narrowed its full-year sales outlook. Shoppers have become more selective, especially when it comes to groceries and fresh produce, and are relying more on promotions. The company also missed third-quarter sales estimates. Interim CEO Ron Sargent said the pressure is no longer limited to lower-income households, with middle-income shoppers now feeling the same strain.
Competition has intensified across the sector as larger rivals like Walmart and Target have cut prices to attract customers. Kroger responded by stepping up price reductions late in the quarter to hold on to budget-conscious shoppers. Behind the scenes, the company has been moving to reduce costs and reset parts of the business. The Kroger Co. (NYSE:KR) has closed facilities and cut jobs while reshaping its e-commerce strategy following the removal of CEO Rodney McMullen in March. As part of that shift, it plans to close three of the eight automated fulfillment centers developed with British partner Ocado. The change will result in a $2.6 billion charge as Kroger transitions to a hybrid fulfillment model and deepens partnerships with Instacart, DoorDash, and Uber Eats.
