In this article, we will be taking a look at the 14 Best Mid-Cap Dividend Stocks to Buy Now.
Many investors still focus on dividends only in large-cap stocks and miss what’s happening in smaller areas of the market.
For investors trying to capture size and value factor premiums, mid- and small-cap dividend stocks can be a practical option. They can also help boost income at a time when bonds have been difficult to rely on in an inflation-heavy environment.
A 2025 Wall Street Journal report pointed out that midcap dividend stocks can generate income that helps soften the impact of share-price declines. In many cases, these companies also produce strong free cash flow, which gives them more breathing room during economic slowdowns. In practice, steady dividend income often makes it easier for investors to stay disciplined when markets turn volatile instead of reacting to short-term declines.
Midcaps also tend to earn a bigger share of their revenue from the domestic market compared to large-cap firms. That matters, especially when global trade disruptions create uncertainty and pressure on international supply chains.
One example is the S&P MidCap 400 Dividend Aristocrats index. This group includes 51 midcap companies that have raised dividends for at least 15 straight years, and the index is up by nearly 6% over the last 12 months.
Simeon Hyman, global investment strategist at ProShares, said these stocks can provide some downside protection during market volatility. He added that this is especially relevant for investors whose portfolios have become too concentrated in megacap growth names like the “Magnificent Seven” tech titans. Given this, we will take a look at some of the best mid-cap dividend stocks to invest in.
Our Methodology
For this list, we screened for companies with market caps between $2 billion and $10 billion and identified dividend stocks with strong dividend histories and sound financials, indicating their potential for future growth. From that group, we picked 14 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 2025. The stocks are ranked according to the number of hedge fund investors.
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. California Water Service Group (NYSE:CWT)
Number of Hedge Fund Holders: 16
Market Cap: $2.72 Billion
On January 8, California Water Service Group (NYSE:CWT), which already owns a majority stake in BVRT Utility Holding Company LLC (BVRT) through its subsidiary TWSC, Inc. (Texas Water), said it has agreed to buy the remaining ownership interests in BVRT. If completed, the deal would make the company the sole owner of BVRT’s seven water and wastewater utility subsidiaries serving the Austin–San Antonio corridor.
At the same time, BVRT has continued pushing further into Texas by pursuing new projects aimed at building and upgrading water and wastewater infrastructure across the region. Martin A. Kropelnicki, Group Chairman and CEO, made the following comment:
“The BVRT team has been an excellent partner as, together, we’ve brought safe, reliable utility service to these dynamic, growing communities over the past five years. As we expand and enhance our investment, operations, and service in the region, we look forward to more fully integrating the BVRT team into Group and Texas Water while pursuing additional, strategic opportunities that enable Texas Water Service to provide the best-in-class utility service our customers have come to expect.”
The Group said it expects to file a change-of-control application with the Public Utilities Commission of Texas (PUCT) in the near future as part of the process to acquire the rest of BVRT. The transaction still needs to meet standard closing conditions, along with approval from the PUCT and the Group’s board.
California Water Service Group (NYSE:CWT) operates as a holding company, providing water utility and related services across California, Washington, New Mexico, Hawaii, and Texas through its subsidiaries.
13. H.B. Fuller Company (NYSE:FUL)
Number of Hedge Fund Holders: 24
Market Cap: $3.28 Billion
On January 16, Seaport Research analyst Michael Harrison nudged up his price target on H.B. Fuller Company (NYSE:FUL) to $84 from $80, while sticking with a Buy rating. He said margins are still trending in the right direction, but he’s not quite as confident about how much organic growth the company can deliver from here.
H.B. Fuller’s Q4 FY2025 results, released on January 14, reflected that mixed picture. Revenue slipped 3.1% from last year to $895 million, and net income came in at $30 million. The brighter part of the report was profitability. Adjusted EBITDA jumped 14.6% to $170 million, and margins expanded meaningfully, with the adjusted EBITDA margin rising to 19.0%, up 290 basis points year-over-year.
The company also continued to keep a lid on costs. SG&A spending was $184 million in the quarter, while adjusted SG&A was slightly lower at $174 million, helped by ongoing cost-saving initiatives and lower variable compensation.
For FY2026, H.B. Fuller expects revenue to hold steady or rise slightly, projecting flat to 2% growth compared to FY2025. Organic revenue is expected to be roughly unchanged, while currency translation could add around 1%. Cash generation is also expected to remain healthy, with operating cash flow projected at $275 million–$300 million. Capital spending is expected to run around $160 million, including $50 million tied to Project Quantum Leap.
H.B. Fuller Company (NYSE:FUL) is a pure-play adhesives business, focused on developing and selling adhesives, sealants, and other specialty chemical products across a wide range of markets.
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