In this article, we will take a look at the 14 Quality Stocks with Highest Dividends.
Fidelity portfolio managers said it is hard to predict which stocks will lead in the coming year. Even so, they have identified a group of companies they believe are positioned to perform across different market conditions. These tend to be established blue-chip firms across a range of industries. They have shown resilience during periods of volatility and have the ability to grow earnings steadily over time.
Sammy Simnegar, manager of Fidelity Magellan Fund, explained that uncertainty has become a constant feature of the market. He suggested that higher-quality companies often hold up better in this kind of environment. He noted that there is no single definition of quality investing, as different managers focus on different traits. In his view, some of the key characteristics include strong brands, high barriers to entry, and experienced management teams. He also pointed out that the most reliable signal of quality is consistent and predictable earnings. He added that the traditional line between blue-chip and growth stocks has changed over time.
In the past, blue-chip companies were usually consumer staples businesses, such as beverage or household product firms. They were known for steady but modest growth, reliable dividends, and slightly above-average earnings expansion. At the same time, investors looking for higher growth often turned to smaller companies, aiming to identify businesses that could eventually develop into larger market leaders.
Given this, we will take a look at some of the quality stocks with the highest dividends.
Image by Alexsander-777 from Pixabay
Our Methodology:
For this list, we screened for companies with a market cap above $2 billion and identified dividend companies with strong dividend histories. From the group, we picked stocks with dividend yields above 3%, as of March 17. 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
14. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of March 17: 3.07%
On March 12, JPMorgan raised its price recommendation on Consolidated Edison, Inc. (NYSE:ED) to $113 from $107. It reiterated an Underweight rating on the shares. The firm said it had updated its models across the North American utilities group.
On March 4, KeyBanc also raised its price objective on Consolidated Edison, moving it to $96 from $86, while maintaining an Underweight rating. The firm pointed to the company’s Q4 results and a detailed update that included 2026 guidance, a refreshed capital plan, long-term EPS CAGR expectations, and an updated financing plan. It noted that these were largely in line with what it had anticipated.
Earlier in February, the company announced a public offering of 7,000,000 common shares. As part of the forward sale agreement, the forward counterparty agreed to borrow shares from third parties and sell them to J.P. Morgan Securities LLC, which is acting as the underwriter for the offering. The underwriter may sell the shares through the New York Stock Exchange LLC, in the over-the-counter market, or through negotiated transactions, either at market prices or at agreed-upon prices.
Consolidated Edison, Inc. (NYSE:ED) is one of the largest investor-owned energy delivery companies in the United States. It offers a broad range of energy-related products and services through its subsidiaries.
13. Medtronic plc (NYSE:MDT)
Dividend Yield as of March 17: 3.22%
On March 10, Medtronic plc (NYSE:MDT) announced that it had agreed to acquire Scientia Vascular for about $550 million, with additional payments tied to future milestones.
Scientia is a private company based in Utah. It has developed specialized guidewires and catheters that help doctors move through complex brain blood vessels more easily. The technology is built to work alongside Medtronic’s existing neurovascular products. The deal is meant to strengthen Medtronic’s position in stroke and other neurovascular procedures. In these cases, doctors need fast and precise access to blocked or damaged vessels. That part is critical.
Linnea Burman, senior vice president and president of Medtronic’s Neurovascular business, which is part of the Neuroscience Portfolio at Medtronic, made the following comment:
“Medtronic is thrilled to acquire Scientia to accelerate meaningful innovation in neurovascular care. This acquisition positions Medtronic with a full suite of products. It builds a strong foundation for Medtronic and supports procedures across both hemorrhagic and acute ischemic stroke. Medtronic’s best-in-class therapies, combined with Scientia’s leading access portfolio, will be incredibly powerful. With 12 million people globally suffering from stroke each year, we look forward to contributing to better patient outcomes around the world.”
Brain vessels are complicated, and reaching the right spot can take time. Scientia’s tools are designed to improve navigation. This can make procedures faster and more efficient, which may help improve patient outcomes. The acquisition is expected to close in the first half of FY27, subject to regulatory approvals and other closing conditions. It is expected to be minimally dilutive to Medtronic adjusted EPS in FY27 and accretive thereafter.
Medtronic plc (NYSE:MDT) is based in Ireland and provides healthcare technology solutions.
12. Tyson Foods, Inc. (NYSE:TSN)
Dividend Yield as of March 17: 3.30%
On March 13, BTG Pactual initiated coverage of Tyson Foods, Inc. (NYSE:TSN) with a Sell rating. The firm also set a $58 price target on the stock.
During the fiscal Q1 2026 earnings call, CEO Donnie King said first-quarter results showed progress, with sales rising above $14 billion. He said this reflected that the company’s strategy and ongoing initiatives were starting to deliver. He also shared that Tyson decided to shut down its Lexington, Nebraska, beef facility and scale back operations at its Amarillo, Texas, plant to a single shift. He explained that these steps were meant to improve beef capacity utilization and make the segment more competitive over time.
King pointed to the strength in retail-branded products. Volumes increased 2.5%, while sales rose 3.6%, ahead of the broader market. He highlighted growth across several brands, including Tyson fresh chicken, Hillshire Farm lunchmeats, Hillshire Snacking, and Aidells sausage.CFO Curt Calaway said total company sales grew 6.2% year over year to $14.3 billion. He attributed this mainly to the beef segment, with additional support from Prepared Foods, chicken, and pork. He added that segment operating income was $811 million, down 12% from the prior year. The decline came largely from weaker beef performance, though other segments helped offset part of the pressure. Adjusted earnings per share came in at $0.97, down 15% from last year.
Tyson Foods, Inc. (NYSE:TSN) operates as a food company with a portfolio of well-known brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and ibp. The company runs across four segments: Beef, Pork, Chicken, and Prepared Foods.
11. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield as of March 17: 3.50%
On March 16, Morgan Stanley raised its price recommendation on Mondelez International, Inc. (NASDAQ:MDLZ) to $70 from $66. It reiterated an Overweight rating on the shares. The firm said the market appears too focused on pricing rollback risk, while not fully recognizing the potential earnings recovery as cocoa costs begin to normalize in the second half of 2026 and pick up into 2027. The analyst also elevated the stock to a Top Pick.
During the earnings call, management said its 2026 guidance was built with caution in mind. It pointed to continued volatility in cocoa prices and weaker performance in the US biscuit category. COO and CFO Luca Zaramella explained that the guidance range reflects uncertainty tied to recent swings in cocoa prices. He said this could require adjustments and a more flexible approach as the year moves forward. He also noted that the company remains focused on strengthening its position with consumers and improving execution in the market. This focus is leading to increased investment across its brands.
On chocolate, Zaramella said pricing is expected to remain stable in terms of volume in 2026. He added that the first half may face cost pressures due to inventory accounting, with profitability expected to improve gradually in the latter part of the year. CEO Dirk Van de Put pointed to a strong innovation pipeline for 2026. He highlighted Biscoff as a key driver and said the company plans to expand in-store brand activations to support growth.
Mondelez International, Inc. (NASDAQ:MDLZ) operates as a snack company. Its core business centers on chocolate, biscuits, and baked snacks, along with additional categories such as gum and candy, cheese and grocery, and powdered beverages.
10. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of March 17: 3.61%
On March 12, Piper Sandler raised its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $181 from $172. It kept an Overweight rating on the shares. The firm said it continues to favor PepsiCo and sees its targeted price adjustments as a driver of volume improvement. It pointed to selected SKUs in the second half of 2025, noting that those changes showed clear consumer responsiveness.
Piper also said it is bullish on the company’s 2026 innovation slate. It noted that new products are meeting demand for healthier options while still maintaining taste.
PepsiCo, Inc. (NASDAQ:PEP) operates as a global beverage and convenient food company. Its segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods.
9. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of March 17: 3.92%
On March 12, Siebert Williams analyst Christopher Ellinghaus upgraded Black Hills Corporation (NYSE:BKH) to Buy from Hold. The firm set a price target of $82 on the stock.
During the Q4 2025 earnings call, President, CEO, and Director Linden Evans said the company had raised its dividend for the 55th consecutive year. He added that the streak extended to 56 years in January 2026. He also voiced strong support for the planned merger with NorthWestern Energy. He described the combination as a logical step, one that is expected to benefit stakeholders. In his view, the deal should create a stronger and more competitive utility platform and deliver long-term value.
Evans pointed to progress on the regulatory side. He mentioned the completion of three rate reviews and said key project approvals continue to move forward. He also noted that the company expanded its data center pipeline to more than 3 gigawatts. At the same time, it completed the 260-mile Ready Wyoming transmission project on schedule.
Black Hills Corporation (NYSE:BKH) operates as a customer-focused, growth-oriented utility company. It serves 1.35 million natural gas and electric customers across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Its operations are organized into Electric Utilities and Gas Utilities segments.
8. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of March 17: 4.22%
On March 16, Federal Realty Investment Trust (NYSE:FRT) announced the acquisition of the Congressional North Shopping Center in Montgomery County, Maryland, for $72.3 million.
The property sits immediately next to Federal’s Congressional Plaza. It is a grocery-anchored center with about 176,000 square feet of retail space spread across 13 acres. Key tenants include Aldi, RH Outlet, Petco, and Staples. The acquisition adds to Federal’s presence along Rockville Pike (Route 355), one of the Washington DC Metro region’s most established commercial corridors.
Congressional North is located in a dense and affluent submarket. Federal already owns several assets there, including Congressional Plaza, Federal Plaza, Montrose Crossing, and Pike & Rose. These are some of the most dominant retail properties in the area, with tenant sales that rank among the strongest in the US.
Federal Realty Investment Trust (NYSE:FRT) operates as an equity real estate investment trust. It focuses on owning, operating, and redeveloping retail-based properties. Its portfolio is mainly concentrated in major coastal markets, along with select underserved regions that show strong economic and demographic fundamentals.
7. Eversource Energy (NYSE:ES)
Dividend Yield as of March 17: 4.30%
On March 12, JPMorgan raised its price recommendation on Eversource Energy (NYSE:ES) to $75 from $72. The firm reiterated an Underweight rating on the shares. The update followed changes to its models for the North American utilities group.
During the Q4 2025 earnings call, President, CEO, and Chairman Joseph Nolan said that 2025 reflected another year of solid execution across the organization. He reported that the company generated full-year non-GAAP EPS of $4.76 and paid dividends of $3.01 per share, a 5.2% increase. He also pointed to steady operational performance, with capital investments exceeding $4 billion. Progress continued in Massachusetts, where more than 100,000 smart meters had been installed.
Nolan added that the company stayed engaged with regulators and policymakers, especially on affordability measures and rate outcomes. He also mentioned the completion of the onshore substation linked to the Revolution Wind project. He further outlined a new five-year capital plan of $26.5 billion. The plan includes an additional $2.3 billion in infrastructure spending, focused mainly on electric and natural gas distribution.
Eversource Energy (NYSE:ES) operates as a utility holding company. It delivers energy through its utility subsidiaries across electric distribution, electric transmission, natural gas distribution, and water distribution segments.
6. Mid-America Apartment Communities, Inc. (NYSE:MAA)
Dividend Yield as of March 17: 4.81%
On March 16, Morgan Stanley lowered its price recommendation on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $156 from $164. It reiterated an Overweight rating on the shares. The revision followed updates to its models based on Q4 earnings and FY26 guidance.
On March 17, the company announced that its board of directors had approved a quarterly dividend of $1.53 per share of common stock. The dividend will be paid on April 30, 2026, to shareholders of record as of April 15, 2026. This marks the 129th consecutive quarterly cash dividend declared by the company. Over more than 30 years as a public company, MAA has not reduced or suspended its quarterly common dividend.
Mid-America Apartment Communities, Inc. (NYSE:MAA) operates as a multifamily-focused, self-administered and self-managed real estate investment trust. The company owns, operates, acquires, and selectively develops apartment communities, mainly across the Southeast, Southwest, and Mid-Atlantic regions of the United States.
While we acknowledge the potential of MAA 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 MAA and that has 100x upside potential, check out our report about the cheapest AI stock.
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