In this article, we will take a look at some of the best American stocks to buy for the long term.
Investors around the world focus on long-term strategies, and for that, they are looking beyond traditional investment ideas. According to Charles Schwab’s 2025 Modern Wealth Survey, two-thirds of Americans are now taking diversification into account, and nearly 42% believe that a 60/40 portfolio is outdated.
That said, long-term investing still holds strong appeal, as the survey suggested that six in 10 participants said that today’s market requires discipline over the long run. In addition, seven out of 10 asserted that they have more patience to see their investments grow compared to when they first began. Not only Millennials, but Gen Z investors also said that they are not rushing their investments.
This long-term idea fits well with dividend investing, as these stocks are known for delivering steady returns over time. Finding dividend stocks is easy to navigate, considering that 407 companies, which represent 80.9% of the S&P 500, pay dividends to shareholders as of the third quarter of 2025, according to a report by S&P Dow Jones Indices. The report further revealed that 28 out of 30 constituents of the Dow Jones Industrial Average (DJIA) offer dividends, with their average yield coming in at 1.93%.
Given this, we will take a look at some of the best American dividend stocks to consider.
Our Methodology
For this article, we screened for US companies that offer regular dividends to shareholders. From that list, we identified companies with a 5-year revenue growth above 9% and positive analyst sentiment. From the resultant list, we picked 14 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 2025.
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. Atmos Energy Corporation (NYSE:ATO)
Number of Hedge Fund Holders: 32
5-Year Revenue Growth: 9.92%
Atmos Energy Corporation (NYSE:ATO) is among the best American stocks to buy now.
On December 2, Mizuho analyst Gabriel Moreen boosted the price target on Atmos Energy Corporation (NYSE:ATO) to $180 from $170 and maintained a Neutral rating on the stock. The update came after the company’s Q4 earnings last month. Moreen appreciated the company’s fundamentals and performance in the quarter and said that the stock’s current price already reflects these strengths.
In its Q4 2025 earnings, Atmos Energy Corporation (NYSE:ATO) declared that this was its 14th year in which the company implemented its proven strategy of operating safely and reliably while revamping its natural gas distribution, transmission, and storage systems. The company’s capital expenditures in FY25 amounted to $3.6 billion, with approximately 87% going toward safety and reliability. It also declared a 15% hike in its quarterly dividend, marking its 41st consecutive year of dividend growth.
Atmos Energy Corporation (NYSE:ATO) is a Texas-based natural gas distribution company that delivers natural gas to approximately 3.4 million customers in the South.
13. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 41
5-Year Revenue Growth: 15.96%
CF Industries Holdings, Inc. (NYSE:CF) is one of the best American stocks to invest in.
On December 2, CIBC analyst Hamir Patel initiated coverage on CF Industries Holdings, Inc. (NYSE:CF) with a Neutral rating and an $87 price target.
The company is investing heavily in decarbonizing production by developing low-carbon ammonia. These aspects have already helped it to gain a very high rate of return for shareholders. The company’s trailing twelve-month operating cash flow came in at $2.63 billion, with free cash flow amounting to $1.7 billion for the period. During the third quarter, CF Industries repurchased 4.3 million shares worth $364 million and also announced the completion of $3 billion share repurchase program authorized in 2022.
For the first nine months of the fiscal year, CF Industries Holdings, Inc. (NYSE:CF) reported its gross ammonia production of 7.6 million tons, compared with 7.2 million tons in the same period last year. For FY25, the company expects gross ammonia production to be approximately 10 million tons.
CF Industries Holdings, Inc. (NYSE:CF) is a manufacturer and distributor of hydrogen and nitrogen products for clean energy, fertilizers, and other industrial applications.
12. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 42
5-Year Revenue Growth: 36.06%
Diamondback Energy, Inc. (NASDAQ:FANG) is among the best American stocks to invest in.
On November 20, Morgan Stanley analyst Devin McDermott trimmed the firm’s price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $183 from $184, while maintaining an Overweight rating on the shares. The update is part of the firm’s coverage of Energy stocks in North America, based on new guidance for 2025 and the early 2026 outlook. Morgan Stanley still has a preference for gas over oil stocks.
Diamondback Energy, Inc. (NASDAQ:FANG) benefits a lot in comparison to its peers because of its low-cost production. The company’s oil production comes at a lower cost in the US, especially in the Permian Basin. This way, Diamondback steers clear of geopolitical risks that affect many other producers. This has enabled the company to generate free cash flow that was 15% higher per share, despite oil prices being down 14%. This also allows the company to have a low reinvestment rate, preserving more cash flow to return to shareholders.
In its recent earnings report, Diamondback Energy, Inc. (NASDAQ:FANG) highlighted that it is close to its $1.5 billion net debt target, and as a result, it expects to return nearly all of its available cash to shareholders. The major preference, however, is the consistent allocation of base and variable dividends, but the company also sees an opportunity in buying back shares, given the market conditions.
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company.
11. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 47
5-Year Revenue Growth: 13.33%
Phillips 66 (NYSE:PSX) is among the best American stocks to buy for the long term.
Piper Sandler increased the firm’s price target on Phillips 66 (NYSE:PSX) to $171 from $170 on December 5, and maintained a Neutral rating on the stock. The firm highlighted the company’s investors’ trip to the Permian Basin, in which it showcased the growth and potential of its Midstream business. The segment is usually overlooked by investors, despite contributing 40% of the expected 2025 EBITDA and $500 million in projected growth over the next two years.
In the third quarter of 2025, Phillips 66 (NYSE:PSX)’s Midstream results decreased due to lower margins. However, the company expects to achieve $4.5 billion in Midstream EBITDA by 2027. The company’s cash position and solid balance sheet make it stand out among its peers. With an operating cash flow of $1.2 billion in the recent quarter, it has been a strong dividend contender. Moreover, it had nearly $2 billion available in cash and cash equivalents at the end of the quarter.
Phillips 66 (NYSE:PSX) is an American multinational oil refining company that also operates in the US and Europe.
10. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 75
5-Year Revenue Growth: 10.29%
The Goldman Sachs Group, Inc. (NYSE:GS) is among the best American stocks to invest in.
On December 1, The Goldman Sachs Group, Inc. (NYSE:GS) announced the acquisition of Innovator Capital Management, a defined outcome ETFs provider, for roughly $2 billion. The deal is a part of Goldman’s ongoing effort to scale up its asset management business. The acquisition is expected to finalize in the second quarter of 2026.
This step will strengthen The Goldman Sachs Group, Inc. (NYSE:GS)’ ETF options in a fast-growing part of the market. Defined-outcome ETFs utilize tools like options to limit potential losses and target specific gains over a set time. Innovator managed over $28 billion in assets across 159 ETFs as of September 30.
Goldman CEO David Solomon made the following comment in a news release announcing the deal:
“Active ETFs are dynamic, transformative, and one of the fastest-growing segments in today’s public investment landscape. By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products.”
The rebound in the acquisitions activity at The Goldman Sachs Group, Inc. (NYSE:GS) reflects the leadership’s long-term goals to generate stable and recurring revenues and to break out of investment banking and trading. In October, the bank also acquired Industry Ventures for $1 billion and bought a stake in asset manager T. Rowe Price in September.
The Goldman Sachs Group, Inc. (NYSE:GS) is an American multinational investment bank and financial services company that offers a wide range of related products and services.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
5-Year Revenue Growth: 10.90%
Bristol-Myers Squibb Company (NYSE:BMY) is among the best American stocks to invest in for the long term.
On December 4, Leerink analyst David Risinger maintained an Outperform rating on Bristol-Myers Squibb Company (NYSE:BMY). The analyst highlighted that the company plans to enroll more patients in the ADEPT-2 study and sees this as a positive development. He noted that the Data Monitoring Committee also suggested expanding registration in Cobenfy’s ADEPT-2 trial in Alzheimer’s disease psychosis patients.
Bristol-Myers Squibb Company (NYSE:BMY) has been encountering some difficulties over the past few years due to patent cliffs. However, the company has a lot of products in the pipeline, especially in the oncology market. In the third quarter of 2025, BMY’s growth portfolio revenue grew by 18% to $6.9 billion, mainly driven by its immuno-oncology portfolio. Its total revenues for the quarter came in at $12.2 billion, up 3% from the same period last year.
Though Bristol-Myers Squibb Company (NYSE:BMY)’s outlook is very promising, the company might be struggling on the dividend front. Is payout ratio is around 80%, which isn’t encouraging news for income investors. However, the company’s trailing twelve-month free cash flow of $15.3 billion was sufficient to cover dividend payments worth $5 billion. BMY has also raised its payouts for 16 consecutive years.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company that discovers and manufactures medicines and treatments for serious illnesses.
8. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 78
5-Year Revenue Growth: 18.78%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is among the best American stocks to invest in.
On December 4, BMO Capital analyst Evan Seigerman boosted the firm’s price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $850 from $725 and maintained an Outperform rating on the stock. The analyst noted that the stock has surged by over 50% after its itepekimab setback in June, as the company’s efforts to clear regulatory issues start to pay off. BMO also expects stronger results from Dupixent and a slower decline in 2mg Eylea, which helped justify the higher price target.
In the third quarter of 2025, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s Eylea net sales in the US increased 10% to $431 million, but combined sales with the original version fell by 28% on a YoY basis to $1.11 billion. The company’s overall revenue for the quarter came in at $3.75 billion, which showed a modest growth of 1% compared to the same period last year.
In other news, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and Tessera Therapeutics are collaborating to develop TSRA-196, a gene therapy aimed at treating alpha-1 antitrypsin deficiency (AATD), which affects the lungs and liver. The main aim of the therapy is to treat the underlying gene mutation, and Tessera also has plans to seek regulatory approvals from clinical trials by year-end.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is an American biotech company that specializes in innovative medicines and treatments.
7. The Cigna Group (NYSE:CI)
Number of Hedge Fund Holders: 78
5-Year Revenue Growth: 11.03%
The Cigna Group (NYSE:CI) is among the best American stocks to invest in.
On December 2, Guggenheim lifted the firm’s price target on The Cigna Group (NYSE:CI) to $318 from $309 and maintained a Buy rating on the stock.
In its earnings for the third quarter of 2025, The Cigna Group (NYSE:CI) announced that it is addressing some of the biggest challenges in the healthcare industry, and for that, the company unveiled a new pharmacy benefit model that eliminates rebates, with cost reductions and increased transparency, while helping local pharmacies. Overall, Cigna Group reported a 10% YoY growth in its revenues at $69.7 billion in Q3. The revenue also beat analysts’ estimates by $3 billion.
The Cigna Group (NYSE:CI)’s Evernorth Health Services, which includes Pharmacy Benefit Services and Specialty and Care Services operating segments, was the main contributor to the revenue growth. The segment’s adjusted revenue and adjusted income from operations grew by 15% and 1%, respectively.
The Cigna Group (NYSE:CI) is an American multinational managed healthcare and insurance company that offers a wide range of related services and products.
6. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 84
5-Year Revenue Growth: 15.15%
Analog Devices, Inc. (NASDAQ:ADI) is one of the best American stocks to invest in for the long term.
On November 26, Truist analyst William Stein increased the price target for Analog Devices, Inc. (NASDAQ:ADI) from $249 to $258 and kept a Hold rating on the stock. The analyst noted in the research note that the company has beaten expectations in the third quarter due to its auto business and has also provided a stronger outlook for Q4, with much of its growth driven by AI. Truist also highlighted Analog’s growing market share in the auto industry with premium products.
In fiscal Q4 2025, Analog Devices, Inc. (NASDAQ:ADI)’s management highlighted healthy booking trends, with growth and strength in the Industrial and Communications markets, respectively. The company’s revenue of $3.08 billion showed a significant 26% growth on a YoY basis, mainly driven by the Industrial and Communications segments. In addition, the company’s cash position also remained stable, with operating cash flow of $4.8 billion and free cash flow of $4.3 billion, which represented 44% and 39% of its overall revenue, respectively.
This cash generation enabled the company to return 96% of its free cash flow to shareholders in FY25, including $1.9 billion in dividends.
Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor company that manufactures analog, mixed-signal, and DSP integrated circuits.
5. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 102
5-Year Revenue Growth: 14.7%
Vertiv Holdings Co (NYSE:VRT) is one of the best American stocks to invest in.
On December 4, Barclays raised its price target on Vertiv Holdings Co (NYSE:VRT) from $170 to $181 and maintained an Equal Weight rating on the stock. The update came as part of the firm’s 2026 outlook for the company. Barclays supported the neutral view of the sector for the next year, as growth is expected in markets beyond data centers, electric utilities, and aerospace.
In 2024, Vertiv Holdings Co (NYSE:VRT) announced its partnership with Nvidia for creating a range of power system solutions for the upcoming 800V high-voltage direct current (HVDC) data centers, which are expected to launch in 2027. This establishes the company as a major player in the already growing data center market, driven by AI demand.
Vertiv Holdings Co (NYSE:VRT) is performing exceptionally well in 2025, surging by nearly 60% since the start of the year. The main reason for this could be the company’s practice of raising its full-year guidance in every earnings call this year. In fact, due to the strong backlog and pipelines, Vertive has raised its FY25 guidance and now expects adjusted diluted EPS of $4.10, up from $3.80, and adjusted operating profit of $2.06 billion, up from $1.9 billion.
In addition, Vertiv Holdings Co (NYSE:VRT) also boosted investors’ confidence by announcing a 66.7% hike in its quarterly dividend on November 14. The company’s quarterly dividend now sits at $0.0625 per share.
Vertiv Holdings Co (NYSE:VRT) is an American multinational company that provides critical infrastructure and services for data centers and communication networks.
4. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 112
5-Year Revenue Growth: 9.7%
Vistra Corp. (NYSE:VST) is one of the best American stocks to invest in.
On November 25, KeyBanc initiated its coverage on Vistra Corp. (NYSE:VST) with an Overweight rating and a $217 price target. The firm appreciated the company’s scale, “diversified” generation mix, and “strong” cash flow. According to the analyst, these aspects offer resilience and growth “optionality in a tightening U.S. power market.” The firm further said that Vistra is expected to benefit from increasing electrification and demand from hyperscale data centers, with supportive policies offering additional upside.
Vistra Corp. (NYSE:VST) is currently expanding its energy footprint. In its earnings for the third quarter of 2025, the company announced that it has completed the purchase of seven natural gas plants from Lotus Infrastructure Partners. In addition, it also unveiled plans to build two new natural gas power units, adding up to 860 MW of capacity in West Texas.
In other news, on December 2, S&P Global upgraded its long-term credit rating on Vistra Corp. (NYSE:VST) to BBB- from BB+. The agency highlighted the improvement in the company’s risk profile due to a nuclear power sales deal, its acquisition of natural gas assets, and strong hedging of future output.
Vistra Corp. (NYSE:VST) is a Texas-based integrated retail electricity and power generation company.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
5-Year Revenue Growth: 17.06%
Eli Lilly and Company (NYSE:LLY) is one of the best American stocks to invest in.
On December 3, Guggenheim raised its price target on Eli Lilly and Company (NYSE:LLY) to $1,163 from $1,036 and kept a Buy rating on the stock. The firm updated its models for LLY based on prescription trends and GLP-1 pricing news. While highlighting that the company “delivered another impressive year of stock performance in 2025,” the firm “simply cannot argue with the company’s superior overall execution capitalizing fully on the Pharma mega cycle of our lifetime,” the analyst tells investors.
Eli Lilly and Company (NYSE:LLY) has performed exceptionally well over the past few years, gaining over 580% in the past five years. One of the reasons for this growth is the company’s strengths in the weight loss drug market. Its potential weight loss pill, orforglipron, could be the company’s new growth driver. In its recent earnings news, LLY declared that orforglipron showed encouraging results in late-stage trials. The company also plans to seek regulatory approval for its use in obesity before the year ends.
Overall, Eli Lilly and Company (NYSE:LLY) delivered revenue of $17.6 billion in the third quarter of 2025, which showed a staggering growth of 53.8% from the same period last year. The revenue surpassed analysts’ estimates by $1.53 billion. The revenue growth drivers were mainly Mounjaro and Zepbound. These drugs also performed remarkably well, with Mounjaro’s worldwide revenue surging by 10% and Zepbound’s by 184%.
Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company that discovers and markets a wide range of pharmaceuticals.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
5-Year Revenue Growth: 19.82%
Broadcom Inc. (NASDAQ:AVGO) is one of the best American stocks to buy for the long term.
On December 4, Susquehanna analyst Christopher Rolland raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) to $450 from $400 and maintained a Positive rating on the shares. The update came ahead of the company’s earnings, which are expected on December 11. According to the firm, the new Google TPUv7 (GOOG) and growing AI networking demand should drive growth in Q3 and Q4. Looking ahead, a wider ASIC customer base is expected to fuel stronger performance in the second half of 2026.
Broadcom Inc. (NASDAQ:AVGO)’s key significant growth opportunity now lies in its ASIC business. These custom-made chips, which are designed to handle specific tasks, are more efficient in running those tasks than general chips like GPUs. Since AI systems in this process take up a lot of power, a lot of companies are recruiting Broadcom to design custom AI chips with reduced costs.
Broadcom Inc. (NASDAQ:AVGO) came into focus by designing Alphabet’s tensor processing units (TPUs), which resulted in other companies considering its ASIC solutions. The company has been working with OpenAI on custom AI chips and plans to supply OpenAI with these chips in the second half of next year and finally complete the order by the end of 2029. That would translate to $100 billion worth of chips a year.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company that also specializes in infrastructure software products.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
5-Year Revenue Growth: 14.46%
Microsoft Corporation (NASDAQ:MSFT) is among the best American stocks to invest in.
In its research note on December 4, Jefferies highlighted that Microsoft Corporation (NASDAQ:MSFT) pushed back against the report from The Information, debating that the data tells a very different story. Microsoft highlighted a 51% RPO growth and strong demand that causes capacity shortages. Jefferies added that Copilot adoption is still strong, saying The Information ” completely missed the point.” The firm maintained a Buy rating and $490 price target on MSFT.
Microsoft Corporation (NASDAQ:MSFT) is up by over 15% since the start of 2025. These strong returns exhibit the company’s growing involvement in the AI market and its role as one of the largest cloud providers. In its fiscal Q1 2026, the company’s Cloud revenue came in at $49.1 billion, which jumped 26% from the same period last year. Azure and other cloud service revenue rose by 40% driven by customers’ preference for the platform.
In its earnings report, Satya Nadella, Chairman & CEO, highlighted that the company is experiencing consistent demand for its AI platform, which is steering the company’s investments in both capital and talent. He further announced plans to increase the company’s AI capacity by over 80% this year and said that the company is on track to double its total data center footprint in the next two years.
While we acknowledge the potential of MSFT to grow, 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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