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.
12. Badger Meter, Inc. (NYSE:BMI)
Number of Hedge Fund Holders: 28
Market Cap: $5.05 Billion
Badger Meter, Inc. (NYSE:BMI) is among the best dividend stocks to invest in.
On January 7, Barclays analyst William Grippin launched coverage of Badger Meter, Inc. (NYSE:BMI) with an Underweight rating and a $157 price target. In his view, Badger is a “solid company with a difficult setup.” He argued that the stock’s premium valuation compared with other water technology names makes the risk/reward less attractive. Barclays also expects growth to slow as the market matures and utility funding becomes more constrained.
Badger is an early leader in North America’s smart-water tech market, but only about 40% of its connection points have migrated to its AMI platform so far. The company expects adoption to rise as customers replace old equipment and as new platform features like real-time water quality and pressure monitoring increase the value of upgrading. Badger is also targeting growth through flow instrumentation opportunities in industrial and smart-building uses, while expanding internationally into regions like Europe and the Middle East.
In addition, acquisitions remain a key growth driver, highlighted by its $185 million purchase of SmartCover in early 2025, which strengthens Badger’s wastewater monitoring capabilities and creates new cross-selling opportunities across its customer base.
Badger Meter, Inc. (NYSE:BMI) manufactures and markets flow measurement, water quality, and control solutions, along with other system products that serve customers across global markets.
11. Harley-Davidson, Inc. (NYSE:HOG)
Number of Hedge Fund Holders: 30
Market Cap: $2.49 Billion
Harley-Davidson, Inc. (NYSE:HOG) is among the best dividend stocks to invest in.
On January 16, Morgan Stanley cut its price target on Harley-Davidson, Inc. (NYSE:HOG) to $18 from $21, while keeping an Underweight rating on the stock. In its 2026 outlook note, the firm said gaming, lodging, and leisure trends were “muted” in 2025, with the few pockets of stronger momentum mostly tied to companies serving older and wealthier customers. Looking into 2026, Morgan Stanley expects “more of the same fundamentally,” though it noted that interest rate dynamics could tilt spending back toward goods over services.
Back in November, Harley said it planned to tighten inventory levels and pivot toward more affordable motorcycles in order to counter the impact of tariffs at a time when demand had been cooling. The company has also continued to hold back its full-year forecast due to ongoing uncertainty around tariffs. Traditionally, the company has relied heavily on its higher-income customer base and the sale of higher-margin custom cruisers. Now, however, it is shifting focus toward lighter, more modern, and more affordable bikes aimed at younger riders.
A key part of that strategy is the new “Sprint” model, which is expected to launch in 2026 with a starting price below $6,000. Harley CEO Artie Starrs said younger buyers want something that’s fun and has some seriousness to it, but not as serious as how Harley has been positioning itself historically.
Tariffs remain a major pressure point. The company reported a $27 million tariff charge for the quarter, up from $13 million in the previous quarter, as it navigates US President Donald Trump’s broad tariff policies on parts and critical imports, including components like semiconductors. Even so, Harley narrowed its expected annual tariff impact to $55 million–$75 million, compared with its earlier range of $50 million–$85 million. Starrs added that retail demand has been difficult, and noted there is a “lot of work ahead.”
Harley-Davidson, Inc. (NYSE:HOG) designs, manufactures, and sells its iconic motorcycles, along with apparel, parts, and accessories, while continuing to build one of the most recognizable lifestyle brands tied to freedom, adventure, and classic American style.
10. Advance Auto Parts, Inc. (NYSE:AAP)
Number of Hedge Fund Holders: 32
Market Cap: $2.59 Billion
On January 15, Morgan Stanley analyst Simeon Gutman cut his price target on Advance Auto Parts, Inc. (NYSE:AAP) to $45 from $55, while keeping an Equal Weight rating on the stock. The update came as part of the firm’s 2026 outlook for hardline, broadline, and food retail names.
Advance Auto has been in the middle of a major reshaping effort under CEO Shane O’Kelly, who took the role in September 2023. As part of that turnaround, the company shut down more than 700 locations to streamline the business and concentrate on markets where it believes it holds a “No. 1 or No. 2 position based on store density,” according to management. Even with the closures, Advance still plans to expand in a more targeted way, aiming to open 100 new stores through 2027, on top of the 30 it already opened in 2025.
A big part of the refreshed strategy centers around what the company calls “market hub” stores. These locations are designed to carry 3 to 4 times more SKUs than a typical Advance store and support faster fulfillment. The company is also working to strengthen its same-day parts delivery capabilities, which is especially important for professional installers who depend on quick turnaround.
Advance Auto Parts, Inc. (NYSE:AAP) is one of the largest automotive aftermarket parts retailers in North America, serving professional mechanics, DIY customers, and independently owned operators.
9. National Fuel Gas Company (NYSE:NFG)
Number of Hedge Fund Holders: 32
Market Cap: $7.71 Billion
National Fuel Gas Company (NYSE:NFG) is among the best dividend stocks to invest in.
On January 16, BofA trimmed its price target on National Fuel Gas Company (NYSE:NFG) to $99 from $102. It maintained an Underperform rating on the stock. The firm noted that optimism around natural gas has stayed strong for roughly the past 18 months, but it believes the market could start facing a higher risk of oversupply by 2027. That view, along with lower gas price forecasts, led BofA to cut its price targets across the gas-heavy E&P group by an average of about 12%.
On December 31, National Fuel Gas Distribution filed its annual Purchased Gas Cost update with the Pennsylvania PUC, projecting higher natural gas supply costs for Aug. 1, 2026, through July 31, 2027. If approved, overall gas supply charges would rise by about $71.49 per year, increasing a typical residential customer’s bill from $87.18 to $93.13 per month (a 6.83% increase) starting Aug. 1, 2026.
The company attributes the increase mainly to expected higher natural gas purchase and transmission costs, with NYMEX forecasting higher gas prices next winter compared with the prior 12-month average ending Nov. 30, 2025. National Fuel notes it is legally required to secure reasonably priced supply and pass market costs through to customers with no markup, subject to PUC review and approval. After approval, rates would be adjusted quarterly based on actual market conditions.
National Fuel Gas Company (NYSE:NFG) is a diversified, integrated energy business with a broad natural gas footprint. The company operates across the value chain, including production, gathering, transportation, storage, and distribution.
8. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 33
Market Cap: $9.22 Billion
APA Corporation (NASDAQ:APA) is among the best dividend stocks to invest in.
On January 5, Bernstein analyst Bob Brackett slightly lowered his price target on APA Corporation (NASDAQ:APA) to $25 from $26, while keeping a Market Perform rating. Bernstein said it’s entering 2026 with a fairly balanced view on oil prices, expecting some near-term volatility and choppy trading, but remaining more optimistic about the longer-term setup.
APA last posted its Q3 2025 earnings results in November, when CEO John Christmann said the macro environment continued to be challenging. He pointed to the unusually high level of volatility and uncertainty in commodity prices, driven largely by shifting trade policy and ongoing geopolitical tensions. Even so, Christmann said APA has made steady progress by cutting controllable spending, leading to lasting improvements in its cost structure. In his view, the company’s strategy is working, and the benefits are becoming more visible across both its day-to-day operations and its financial performance.
Looking ahead, Christmann noted that APA is raising its Permian oil production guidance for Q4, while holding capital spending steady. The company is also making a modest upward adjustment to its Q4 production outlook in Egypt. On the cost side, APA is targeting another $50 million to $100 million in run-rate savings by the end of 2026.
APA Corporation (NASDAQ:APA) is an independent energy company with oil and gas production in the United States, Egypt, and the United Kingdom, along with offshore exploration exposure in Suriname.
7. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 34
Market Cap: $8.11 Billion
On January 16, Morgan Stanley analyst Megan Alexander Clapp lowered her price target on Conagra Brands, Inc. (NYSE:CAG) to $18 from $19, while keeping an Equal Weight rating on the shares. She said the outlook remains tough, calling it “an already challenging backdrop” for US food stocks. Morgan Stanley also warned that competitive pressure is picking up again as value-driven pricing, heavier promotions, and renewed private-label momentum carry into 2026.
In early December, Conagra maintained its full-year sales and profit guidance even after a quieter second quarter. The company, known for brands like Slim Jim, has been dealing with uneven demand for pantry staples as consumers cut back spending and competition stays intense. Conagra also posted a quarterly loss, largely due to a $968 million non-cash impairment charge tied to a prolonged drop in its share price.
Over the past year, Conagra’s stock has taken a hit, with the company losing around 34% of its market value. The pressure has come from multiple angles, including supply chain disruptions, higher ingredient costs, and softer demand as budget-conscious shoppers trade down. Longer term, shifting consumer preferences toward healthier eating, boosted by the “Make America Healthy Again” movement, along with the growing use of GLP-1 weight-loss drugs, could add another layer of risk for packaged food companies.CEO Sean Connolly also made it clear the company is not currently focused on acquisitions. Instead, management wants to prioritize cash flow generation and use that to reduce debt.
Conagra Brands, Inc. (NYSE:CAG) is a major branded food company with operations across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
6. Vail Resorts, Inc. (NYSE:MTN)
Number of Hedge Fund Holders: 37
Market Cap: $5.08 Billion
Vail Resorts, Inc. (NYSE:MTN) is among the best dividend stocks to invest in.
On January 16, Morgan Stanley trimmed its price target on Vail Resorts, Inc. (NYSE:MTN) to $150 from $151, while keeping an Equal Weight rating on the stock. In its 2026 outlook for gaming, lodging, and leisure names, the firm said industry fundamentals were “muted” in 2025, with the few stronger spots mostly coming from businesses catering to older and wealthier customers. Looking ahead, Morgan Stanley expects “more of the same fundamentally” in 2026, though it noted that interest-rate trends could push consumer spending more toward goods rather than services.
Meanwhile, Bloomberg reported on January 15 that Vail Resorts cut its earnings outlook for 2026 after the western U.S. experienced one of the weakest early snowfall periods in more than 30 years. The company said it now expects full-year earnings to come in below the low end of the guidance it issued in September, even if conditions in the Rocky Mountains improve and return to normal by President’s Day weekend in mid-February. CEO Rob Katz said the lack of snow “limited our ability to open terrain and negatively impacted visitation and ancillary spending for both local and destination guests during the period.”
Back in September, Vail had forecast fiscal 2026 EBITDA of $842 million to $898 million. But early-season trends have been soft. Through January 4, skier visits across Vail’s North American resorts, including properties in Colorado, Utah, and British Columbia, were down 20% compared to the same period last year. Lift revenue also dipped 1.8%, according to the company.
To reduce how much results swing with the weather, ski operators, including Vail, have increasingly leaned into a subscription-style model, encouraging customers to buy multi-region passes valid across different resorts.
Vail Resorts, Inc. (NYSE:MTN) runs a large network of destination and local ski resorts. The company also owns and manages premium hotels under its RockResorts brand, along with vacation rentals, condos, and branded lodging properties located near its major mountain destinations.
5. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 37
Market Cap: $8.6 Billion
Levi Strauss & Co. (NYSE:LEVI) is among the best dividend stocks to invest in.
On January 12, UBS lifted its price target on Levi Strauss & Co. (NYSE:LEVI) to $33 from $32, while sticking with a Buy rating on the stock.
A few weeks earlier, on December 23, Raymond James launched coverage of Levi Strauss with an Outperform rating and a $26 price target. The firm sees Levi as a steady mid-single-digit revenue grower, supported by multiple drivers across its business. Raymond James described Levi as a growth story “with levers across channels, geographies, customers, and categories.” The firm also expects Levi’s EBIT margin to improve over time, which should support earnings growth of at least the high-single-digit range. Analysts added that Levi’s direct-to-consumer segment could be a key upside driver, helped by new store openings, better productivity, and continued digital expansion. Raymond James also argued that current consensus forecasts look conservative and leave room for upside surprises.
In November, Levi said it plans to expand its premium denim rollout next year by offering its new $300 jeans line in more stores. CFO and Chief Growth Officer Harmit Singh told Reuters the company is leaning into strong demand for higher-end denim as it looks to accelerate growth. The premium Blue Tab collection, which features higher-quality jeans and shirts, was first launched in Asia earlier this year and has been introduced in roughly two dozen stores across Europe and the US since September. The move is part of Levi’s broader effort to elevate the brand and attract a wider customer base, especially more women shoppers.
Levi Strauss & Co. (NYSE:LEVI) designs and sells jeans, casual clothing, and related accessories for men, women, and children.
4. First American Financial Corporation (NYSE:FAF)
Number of Hedge Fund Holders: 40
Market Cap: $6.24 Billion
First American Financial Corporation (NYSE:FAF) is one of the best dividend stocks to invest in.
On January 6, Barclays slightly lowered its price target on First American Financial Corporation (NYSE:FAF) to $68 from $71, while keeping an Equal Weight rating on the stock. The firm’s broader 2026 outlook suggests it still sees opportunity in certain consumer finance names. Barclays pointed to a “benign” credit environment as a supportive setup for loan growth, and it also expects the mortgage origination market to look healthier in 2026. The price target change was part of a wider refresh across its coverage heading into the new year.
Outside of the analyst update, First American has been spending the past few years trying to modernize its business and rely more on technology to drive performance. The company has been investing in digital transformation and automation, including rolling out newer title and escrow platforms like Endpoint and Sequoia. Those platforms are still early in rollout, but the goal is clear: streamline the workflow, bring costs down, and make the overall process faster and smoother for both homebuyers and sellers.
Even with the tech push, First American still operates in a heavily regulated industry, so staying on top of compliance is an everyday requirement. Ultimately, the company’s results still come down to a familiar set of factors: real estate transaction volumes, tight cost control, continued innovation, and the ability to operate efficiently through shifting housing and mortgage cycles.
First American Financial Corporation (NYSE:FAF) provides title insurance, settlement services, and other financial and risk-related solutions through its subsidiaries.
3. Cognex Corporation (NASDAQ:CGNX)
Number of Hedge Fund Holders: 43
Market Cap: $6.8 Billion
On January 12, Barclays trimmed its price target on Cognex Corporation (NASDAQ:CGNX) to $54 from $56, while keeping an Overweight rating on the stock. The move came as part of the firm’s broader 2026 outlook for industrial technology and distribution names. Even with the small cut, Barclays said it remains constructive on the group overall, pointing to strong demand trends in key end markets such as data centers, factory and warehouse automation, electronics, test and measurement, and semiconductors.
Separately, back in October, Cognex announced it was rolling out its first lineup of Solutions Experience (SLX™) devices. These are application-specific tools designed to make it easier for customers to solve common, high-priority challenges across major industrial verticals.
The first batch of SLX devices is focused on logistics. Cognex positioned them as a practical entry point for facilities just beginning to automate, while also serving as a simple add-on option for companies that already have automated systems in place. The logistics portfolio is designed to be easy to deploy, with dependable barcode reading and AI-powered item detection built in.
Going forward, Cognex plans to broaden its SLX lineup with more AI-driven and user-friendly devices aimed at specific automation needs across multiple industries. The goal is to help customers lower the total cost of ownership (TCO) while improving overall equipment effectiveness (OEE).
Cognex Corporation (NASDAQ:CGNX) develops and sells machine vision products and solutions used to improve quality and efficiency in manufacturing and distribution environments worldwide.
2. Bath & Body Works, Inc. (NYSE:BBWI)
Number of Hedge Fund Holders: 49
Market Cap: $4.7 Billion
Bath & Body Works, Inc. (NYSE:BBWI) is among the best dividend stocks to invest in.
On January 14, Jefferies restarted coverage of Bath & Body Works, Inc. (NYSE:BBWI) with a Hold rating and raised its price target to $24 from $16 as it took over coverage of specialty softlines. In its updated 2026 view, the firm said it’s looking more closely at how a K-shaped consumer environment is influencing beauty spending, and noted that it still has conviction in a broader makeup cycle.
Bath & Body Works has a strong lineup of new products in the pipeline, and that should do more than just lift sales. It could also help the brand reach new customers. There are some easy, natural extensions it can build on as well, like expanding further into shaving and facial care. At the same time, the company has room to branch out into newer categories that are still developing, including haircare and men’s grooming.
The growth story isn’t limited to adding more products. BBW also has a lot of untapped potential outside the U.S. In fiscal 2024, the company generated most of its revenue from North America, while international markets made up only about 5% of sales. That imbalance gives BBW a clear runway to expand globally, and it’s something the company appears focused on improving.
Bath & Body Works, Inc. (NYSE:BBWI) is a global omnichannel retailer known for personal care products and home fragrance.
1. Chord Energy Corporation (NASDAQ:CHRD)
Number of Hedge Fund Holders: 49
Market Cap: $5.28 Billion
On January 14, Citi downgraded Chord Energy Corporation (NASDAQ:CHRD) to Neutral from Buy and lowered its price target to $97 from $105. The firm said the market’s attention has started to shift away from Chord’s execution-driven story, particularly its progress on longer laterals, and more toward broader macro worries across the entire oil and gas space. Citi added that it still sees the best risk/reward in small- to mid-cap oil E&Ps, especially those that can offer double-digit yields even at around $60 WTI, with additional catalysts still ahead.
Separately, earlier in 2025, Chord announced a $550 million deal to buy Williston Basin assets from Exxon Mobil’s XTO Energy unit. The Williston Basin spans parts of North Dakota, Montana, and Canada and remains one of the most important shale oil and gas regions in the U.S., anchored by the Bakken formation.
Chord said the purchase includes 48,000 net acres in the core of the Williston. The company expects near-term output from the assets to run around 9 million barrels of oil equivalent per day, with production heavily weighted toward oil. It also highlighted that the assets have a low decline profile and meaningful upside potential, including opportunities to improve margins on existing wells. Management expects the deal to be accretive to cash flow, free cash flow, and net asset value, and said it plans to fund the purchase using a mix of cash on hand and borrowings.
Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company focused primarily on crude oil, NGLs, and natural gas production in the Williston Basin.
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