15 Best Dividend Paying Stocks to Buy Right Now

In this article, we will take a look at the 15 Best Dividend Paying Stocks to Buy Right Now. 

According to Trivariate Research, with markets turning choppy again, investors may want to pay closer attention to companies that consistently grow their dividends. Those stocks have historically offered a measure of stability when broader markets come under pressure.

In a recent report, Trivariate founder Adam Parker said investors have long sought out businesses with reliable revenue streams when positioning more defensively. He made the following comment:

“Historically, when investors wanted to get defensive within their equity portfolios, they looked for more predictable revenue streams.”

For years, that meant turning to sectors such as pharmaceuticals, telecoms, consumer staples, and utilities. These industries were often viewed as safer places to be when market conditions became more uncertain. That approach has become more difficult, Parker noted, because those traditional defensive sectors now make up a much smaller share of the market than they once did.

“One major challenge today is that this traditional defensive part of the market has never been smaller,” Parker added. About 25 years ago, those sectors represented nearly 30% of the S&P 500’s market capitalization. Today, they account for just over 10%, leaving investors with a smaller pool of traditional defensive stocks to choose from when volatility returns.

Given this, we will take a look at some of the best dividend-paying stocks to invest in.

Photo by Vitaly Taranov on Unsplash

Our Methodology:

For this list, we identified companies that have raised their dividends for at least 15 consecutive years. From that list, we picked companies that were most popular among hedge funds, as per Insider Monkey’s database of Q1 2026.

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).

15. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 32

Realty Income Corporation (NYSE:O) is a real estate investment trust that owns and manages freestanding commercial properties leased under long-term net lease agreements. Its tenant base is diversified and includes investment-grade, investment-grade-equivalent, and other operators.

The company has earned a reputation as one of the market’s most reliable dividend payers. Since listing on the New York Stock Exchange in 1994, Realty Income has increased its monthly dividend 134 times. It has also delivered 114 consecutive quarterly dividend increases and extended its annual dividend growth streak to 31 years. The business continued to generate solid results in the first quarter. Adjusted funds from operations (AFFO) came in at $1.13 per share, up 6.6% from a year earlier. That growth helped support another round of dividend increases. Over the past year, Realty Income raised its dividend by 1.8% while reducing its payout ratio to 71.7%.

The REIT’s property portfolio remained a source of stability. Occupancy stood at 98.9% during the quarter, matching the level recorded in the fourth quarter and improving from 98.5% in the first quarter of last year. Leasing activity was also healthy, with the company completing new and renewal leases on 243 properties. Those agreements were signed at average rental rates 3.4% higher than the previous leases for the same space.

Realty Income also continued to expand its portfolio. The company invested $2.8 billion in new properties during the quarter, including $200 million that came through its growing network of strategic partners. The combination of steady portfolio performance, disciplined growth, and a conservative payout ratio has helped support its long-standing record of dividend increases.

14. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 59

On May 26, Piper Sandler increased its price recommendation on Chubb Limited (NYSE:CB) to $340 from $328. It reiterated a Neutral rating on the stock. The firm pointed to recent share performance and the passage of time as factors behind the adjustment. Piper Sandler said it has generally raised price targets across most insurance carriers while lowering targets for some insurance brokers. Its analysis takes a bottom-up approach. Following first-quarter earnings, the firm believes insurance carriers may be better positioned than brokers, as underwriting performance provided a stronger-than-expected boost for carriers, while brokers delivered more modest organic growth results.

Earlier in April, Wells Fargo raised the firm’s price goal on CB to $333 from $321. It maintained an Equal Weight rating on the shares. Analyst Elyse Greenspan noted that Chubb’s stock moved lower after management’s comments about softening conditions in the property insurance market offset an earnings beat and the company’s reaffirmation of its high-level 2026 guidance.

Chubb Limited (NYSE:CB) is a Switzerland-based holding company that, through its subsidiaries, provides a wide range of insurance and reinsurance products and services to customers around the world.

13. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 59

On May 28, Reuters reported that International Business Machines Corporation (NYSE:IBM) plans to invest more than $10 billion in quantum computing over the next five years as it pursues an ambitious goal: building the first large-scale quantum computer by 2029 that can perform complex calculations reliably and without errors.

The announcement follows a decision by the Trump administration last week to take $2 billion in equity stakes in nine quantum computing companies. As part of that effort, IBM is expected to receive half of the funding for a new venture called Anderon, which is being developed as the first dedicated quantum chip manufacturing facility in the United States.

The initiative reflects the administration’s broader push to strengthen the country’s position in quantum technology and compete more effectively with China. It also highlights the growing attention quantum computing is attracting across the industry.IBM said the planned investment will cover research and development, capital spending, ecosystem partnerships, manufacturing expansion, and mergers and acquisitions.

The company is contributing $1 billion to Anderon. The new venture plans to offer its chipmaking technology to external customers and has already begun discussions with potential clients. IBM has also committed intellectual property, assets, and employees to the venture. As Anderon grows, the company intends to bring in additional investors to support its expansion.

International Business Machines Corporation (NYSE:IBM) provides hybrid cloud, artificial intelligence (AI), and consulting services to customers around the world.

12. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 72

PepsiCo, Inc. (NASDAQ:PEP) is a global beverage and convenient food company. Its operations are organized into several segments, including 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.

One of the more notable developments at Pepsi right now is its effort to win back customers. The company recently reduced prices on many of its beverage and snack products by as much as 15% after facing pressure from activist investor Elliott Investment Management.

The move ran against the broader industry trend and carried some risk. Even so, the company’s most recent quarterly results suggest the strategy may be gaining traction.

PepsiCo, Inc. (NASDAQ:PEP) also stands out for its long history of rewarding shareholders. It is a Dividend King, a designation given to companies that have increased their dividends for more than 50 consecutive years. For investors focused on generating income, Pepsi remains a compelling portfolio consideration.

11. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 74

NextEra Energy is one of the world’s largest energy companies. The company owns Florida Power & Light Company, a utility that serves approximately 12 million people across Florida. It also owns NextEra Energy Resources, an energy infrastructure business with power generation and storage assets spanning natural gas, nuclear, and renewable energy sources. With 28 gigawatts of wind and solar capacity, NextEra ranks among the world’s largest producers of renewable energy.

Its proposed $67 billion all-stock merger with Dominion Energy would significantly expand that footprint. Dominion generates electricity from a mix of coal, nuclear, natural gas, and renewable sources. The company also operates utilities that provide electric service to 3.6 million customers across Virginia, North Carolina, and South Carolina, along with gas service to 500,000 customers in South Carolina. In addition, Dominion has a substantial backlog of 51 gigawatts of contracted capacity tied to data center demand.

If regulators approve the transaction, the merger is expected to close within 12 to 18 months. The combined company would have operations in 49 US states and provide utility services to millions of customers. It would manage 110 gigawatts of operating capacity and hold a large-load project pipeline totaling 130 gigawatts, supported by a base rate of $138 billion.

NextEra Energy, Inc. (NYSE:NEE) expects the combined business to deliver adjusted earnings per share growth of at least 9% annually through 2032.

10. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 75

Verizon Communications Inc. (NYSE:VZ) is a holding company that, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government customers.

A key strength of Verizon’s business is its recurring revenue model, as millions of customers rely on the company for wireless service, internet access, and connectivity solutions, generating a steady stream of monthly revenue. The stock currently offers a forward dividend yield of 5.82%, which translates to roughly $58 in annual income on a $1,000 investment. With a new leadership team focused on improving operations and growth, the stock could be well-positioned for investors looking ahead to 2026.

The company began the year on a solid footing. First-quarter revenue increased 2.9% from a year earlier, while free cash flow rose 4% to $3.8 billion. Despite intense competition across the wireless industry, Verizon continued to hold its position in the market. The company added 55,000 postpaid phone subscribers during the quarter and also reported growth in its broadband internet and fiber businesses.

Verizon has steadily expanded its revenue base over the past several years. It now serves 96 million postpaid connections, underscoring the scale of its customer network. That stability has translated into strong cash generation, with free cash flow reaching nearly $20 billion in 2025.

Verizon Communications Inc. (NYSE:VZ) used 58% of that amount to fund dividend payments, leaving meaningful flexibility to support the current payout and potentially increase the quarterly dividend over time.

9. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 76

The Coca-Cola Company (NYSE:KO) is an American beverage company that operates through five reporting segments: EMEA, Latin America, North America, Asia Pacific, and Bottling Investments.

The company has been working to ease pricing concerns by offering beverages in a range of package sizes and price points. That strategy appears to be gaining traction. One example is the rollout of single-serve mini cans in convenience stores, which helped lift mini-can volume across North America.

Growth has also extended beyond the flagship Coca-Cola brand. Sports drink volume increased 3%, while water sales rose 5%. Tea delivered even stronger performance, with volume up 8%. Among its major brands, Coca-Cola Zero Sugar stood out, posting a 13% increase in volume. The weakest category was juice, value-added dairy, and plant-based beverages, where sales slipped 1%.

Overall, Coca-Cola turned in a solid first quarter for 2026. Net revenue climbed 12%, while operating income rose 19%. Management maintained its full-year outlook and continues to expect organic revenue growth of 4% to 5% for 2026. The company has entered the year with strong momentum, reinforcing its reputation as a dependable consumer staples business. Its broad product lineup and range of price points appear to be helping it adapt to shifting consumer preferences while appealing to a wide customer base.

The Coca-Cola Company (NYSE:KO)’s steady cash flow generated by that business has also supported one of Coca-Cola’s most notable achievements: increasing its dividend for 64 consecutive years.

8. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 78

The Procter & Gamble Company (NYSE:PG) is the company behind well-known brands such as Tide laundry detergent, Gillette razors, Dawn dishwashing liquid, Crest toothpaste, Pampers diapers, and Bounty paper towels. Many of its products hold leading positions in their categories, helped by decades of brand recognition and consumer loyalty. That long-standing presence has made Procter & Gamble the largest player in the consumer goods industry, generating $84.3 billion in sales and $16.1 billion in net income during its last fiscal year.

That does not mean the company is immune to challenges. Like many businesses, it has faced difficult periods. Since inflation began accelerating in 2022, Procter & Gamble has reported several quarters of weaker-than-expected revenue as a result of price increases it was forced to pass on to consumers. The company responded with measures such as workforce reductions and a stronger focus on innovation. Still, some obstacles remain beyond its control. Higher oil prices, for example, could reduce this year’s profit by as much as $1 billion.

Even so, The Procter & Gamble Company (NYSE:PG) benefits from an advantage few competitors can match: its scale. The company’s dividend track record reflects that strength. P&G has increased its dividend for 70 consecutive years, and the streak continues. The increase announced in April raised the payout by 3% from the previous level. It also extended a 10-year period during which the dividend grew at an average annual rate of 4.8%.

7. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 87

Caterpillar Inc. (NYSE:CAT) has been grabbing analysts’ attention. On May 5, Argus raised its price recommendation on CAT to $990 from $820. It reiterated a Buy rating on the shares. The firm said Caterpillar has been benefiting from rapid growth in the data center market, which is driving demand for its power generation products, including reciprocating engines, gas turbines, and solar microgrid systems. The analyst also pointed to strong performance in the company’s oil and gas business, as well as growing demand for construction equipment used in data center projects. Argus expects those trends to continue, with demand across these areas remaining strong through 2026 and in the years ahead.

On May 4, DA Davidson also lifted its price goal on Caterpillar, raising it to $845 from $650. It maintained a Neutral rating after the company’s stronger-than-expected first-quarter results. According to the firm, Caterpillar delivered results that comfortably exceeded expectations across most key metrics. Management also raised its outlook, reflecting growing confidence in the business. The analyst noted that data center-related demand is becoming an increasingly important driver for Caterpillar, with the company now aiming to triple its large-engine capacity by 2028, up from its previous target of doubling capacity.

Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

6. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 97

On May 26, BofA raised its price recommendation on Cisco Systems, Inc. (NASDAQ:CSCO) to $135 from $114. It reiterated a Buy rating on the stock. The firm said Cisco’s fiscal third-quarter results, along with management’s comments about continued strong demand for Acacia products, reinforced its positive view of the optical networking market. According to the analyst, underlying demand in the sector remains healthy.

Cisco delivered a strong quarter. Revenue increased 12% year over year to $15.8 billion, while adjusted earnings rose 10% to $1.06 per diluted share. Those results came in ahead of Wall Street expectations, which had called for earnings of about $1.04 per share on revenue of roughly $15.5 billion.

The company’s outlook also impressed investors. Cisco issued full-year and next-quarter guidance that exceeded current analyst estimates by a wide margin. Revenue guidance came in about $1 billion above consensus forecasts, while earnings targets were roughly 10% higher than existing expectations. Management pointed to robust demand for AI data center infrastructure as a key growth driver. That demand more than offset uncertainty surrounding tariffs and relatively flat sales in the security business.

Product orders climbed 35% from the same period last year, giving Cisco a sizable backlog that could support revenue growth over the next several years.

Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells technologies that power the internet. The company is bringing together its networking, security, collaboration, applications, and cloud offerings into a more integrated platform.

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