In this article, we will take a look at some of the best blue-chip dividend stocks to build a passive income portfolio.
The idea of generating passive income is gaining traction rapidly. According to a report by Hostinger, side hustles are seeing growing interest as a way to earn extra money alongside main jobs.
The web company conducted a survey to keep tabs on industry trends. The survey revealed that affiliate marketing is one of the most popular side hustles to generate passive income. The consumer interest could be seen from the industry’s current value of $18.5 billion. Moreover, affiliate marketing statistics reported that more than 80% of businesses integrate affiliate marketing into their digital strategy. Amazon’s affiliate program holds a 46.2% share, leading the market.
Affiliate marketing, however, requires some effort, but investing is one of the most proven ways to earn passive income while you sit back and relax. In this regard, investors often turn to dividend stocks. Akeiva Ellis, a financial planner and founder of The Bemused, made the following comment:
“Dividend income is definitely one major source of passive income that a lot of my clients have. Of course, there’s the appreciation and the capital gains that everybody is familiar with. But selecting companies that also give dividends to their shareholders on a regular basis is another part of the whole investment portfolio where you’re able to get income out of it as well.”
Given this, we will take a look at some of the best dividend stocks to build a passive income portfolio.
Our Methodology:
For this article, we screened for companies with a market capitalization of at least $10 billion. From that group, we identified dividend-paying companies that have raised their dividends for at least 10 consecutive years. The final list was arranged according to the number of hedge funds having stakes in the companies, according to 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).
15. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 12
MPLX LP (NYSE:MPLX) is among the best dividend stocks to build a passive income portfolio.
JPMorgan reduced its price target on MPLX LP (NYSE:MPLX) to Neutral from Overweight on December 1 and maintained a $57 price target. The firm mentioned that the stock has already surpassed its peers in 2025, leaving less room to grow. The analyst also highlighted a few near-term catalysts and said that risk/reward appears to be more balanced now, which led to the downgrade.
In addition to working on several growth projects, MPLX LP (NYSE:MPLX)’s major focus is on strengthening its Permian-to-Gulf Coast network. The company is actively investing in long-distance pipelines that would transfer natural gas and natural-gas liquids from the Permian Basin to export facilities along the Gulf Coast. Through these developments, the partnership is expected to boost its cash generation.
MPLX LP (NYSE:MPLX)’s energy asset base, which includes oil pipelines, gas processing plants, and storage terminals, contributes generously to the company’s already growing cash flow due to regulated rate structures and long-term contracts. In the first nine months of the year, the company reported a cash flow of $4.3 billion, which comfortably covered its dividend. The partnership has also rewarded shareholders with growing dividends for the past 12 consecutive years.
MPLX LP (NYSE:MPLX) is a master limited partnership that owns a range of midstream energy assets.
14. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Realty Income Corporation (NYSE:O) is one of the best dividend stocks to invest in.
On December 3, Barclays boosted its price target on Realty Income Corporation (NYSE:O) to $64 from $63 while keeping an Equal Weight rating. The firm updated its net lease forecasts following the company’s Q3 earnings and recent transaction announcements.
Realty Income Corporation (NYSE:O) has steadily transformed over the years. The company, which started off as a REIT focused on US retail properties under long-term net leases, has now grown into a more diversified platform. Its portfolio now consists of a wide range of investments, which has benefited its overall market opportunity.
Realty Income Corporation (NYSE:O) largely concentrated on retail and industrial properties in the US and the UK five years ago. Since then, it has entered seven additional European countries, added gaming assets, and data centers. In addition, the company also opened avenues in offering credit solutions such as real estate-backed loans and preferred equity.
These moves have brought diversification to its portfolio. Realty Income Corporation (NYSE:O) now owns over 15,500 properties leased to more than 1,600 clients across nine countries.
13. Essex Property Trust, Inc. (NYSE:ESS)
Number of Hedge Fund Holders: 29
Essex Property Trust, Inc. (NYSE:ESS) is one of the best dividend stocks to build a passive income portfolio.
On November 24, Mizuho raised its price target on Essex Property Trust, Inc. (NYSE:ESS) to $284 from $275 and reaffirmed its Outperform rating. The update came as the firm revised its REIT models following the company’s Q3 earnings.
As Essex Property Trust, Inc. (NYSE:ESS) operates as a REIT, it must distribute 90% of its taxable income to shareholders through dividends. The company’s payouts have climbed in recent years due to a steady growth in its earnings. Over the past decade, ESS has nearly doubled its dividend, and its 4.9% dividend hike in 2025 has comfortably surpassed inflation.
What mainly drives Essex Property Trust, Inc. (NYSE:ESS)’s performance is its inclination toward high-demand West Coast markets, where rent growth has been stronger than average. From a dividend point of view, the company maintains a conservative payout ratio and a strong balance sheet, which offer it more room to maintain its dividend and scale up its apartment portfolio. ESS has been growing its dividends for 31 years running.
Essex Property Trust, Inc. (NYSE:ESS) is a residential-focused REIT that develops, owns, and manages apartment communities across the West Coast.
12. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 32
Hormel Foods Corporation (NYSE:HRL) is among the best dividend stocks to build a passive income portfolio.
On December 5, Piper Sandler analyst Michael Lavery raised the firm’s price target on Hormel Foods Corporation (NYSE:HRL) to $26 from $25 and kept a Neutral rating. The analyst noted that the company’s early update helped clear up most of the Q4 cost and margin pressures, which removed surprises from the quarterly results. The firm also appreciated the company’s guidance, adding that it struck a good balance between achievability and targeting growth in line that fits the company’s long-term goals.
Before announcing its earnings, Hormel Foods Corporation (NYSE:HRL) declared a 0.9% hike in its quarterly dividend on November 24. This increase has taken the company’s quarterly dividend to $0.2925 per share. The recent hike marked the company’s 60th consecutive year of dividend growth. Moreover, it has paid uninterrupted quarterly dividends to shareholders since it went public in 1928.
As a result of its restructuring efforts, Hormel Foods Corporation (NYSE:HRL) has recently announced its plans to reduce its workforce. The goal is to align its resources with long-term priorities and strengthen overall operations. John Ghingo, Hormel Foods Corporation (NYSE:HRL)’s president, made the following statement:
“Hormel Foods remains focused on growth — and growth requires continued investment. We’re directing resources toward technology, innovation, food safety and quality, and the capabilities that will shape our future. We’re confident that our ongoing investments will strengthen our brands, improve efficiency and ensure Hormel Foods stays competitive and responsive to the needs of our consumers and customers.”
11. Mid-America Apartment Communities, Inc. (NYSE:MAA)
Number of Hedge Fund Holders: 32
Mid-America Apartment Communities, Inc. (NYSE:MAA) is among the best dividend stocks to invest in.
Wells Fargo reduced its price target on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $150 from $157 on November 26, but maintained an Overweight rating. The firm attributed this revision to the solid operating conditions highlighted in the REIT sector, considering the broader economic and labor-market concerns.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is actively working on expanding its portfolio. In the third quarter of 2025, the company announced the purchase of a newly-built, sully stabilized 318-unit apartment community in the Kansas City area. In addition, it unveiled plans for a new development in Scottsdale, Arizona, which is set to begin in the fourth quarter. With these developments, MAA now controls 15 development sites, approved for over 4,200 units. The company also intends to break ground on six to eight of them over the next six quarters.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is on a solid financial footing, which helps it to keep growing its apartment portfolio. By late 2025, the company had nearly $1 billion worth of projects in the pipeline. These investments are expected to fuel the FFO per-share growth in the years ahead, setting the stage for continued dividend increases. The company already holds a 15-year streak of dividend growth.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is a residential REIT that is focused on apartment properties.
10. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 42
Kimberly-Clark Corporation (NASDAQ:KMB) is among the best dividend stocks for passive income.
On December 1, Kimberly-Clark Corporation (NASDAQ:KMB)’s price target was reduced by BNP Paribas Exane to $110 from $127. The firm reaffirmed a Neutral rating on the stock. The adjustment followed the company’s planned acquisition of Kenvue, which is expected to close in the second half of 2026. The analyst further said that the valuation ‘appears undemanding’ but also noted significant integration risk.
Alongside the Kenvue deal, Kimberly-Clark Corporation (NASDAQ:KMB) is also making Vietnam a key manufacturing hub for Southeast Asia as part of its expansion plans. It has already taken a first step toward the plan, buying 1.2 hectares of land next to its factory, about an hour from Ho Chi Minh City, which will boost production by about 40%. This development is a part of a broader strategy aimed at increasing exports, considering that half of its production in Vietnam is shipped to 18 different markets.
Kimberly-Clark Corporation (NASDAQ:KMB)’s expansion plans are not confined geographically, as the company is also trying to stay competitive in a digital world by testing new approaches. This includes working with parenting communities and expanding e-commerce efforts.
Kimberly-Clark Corporation (NASDAQ:KMB) specializes in personal care products, such as Kleenex and Huggies, and also supplies products to professional and commercial customers.
9. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 52
Target Corporation (NYSE:TGT) is among the best dividend stocks to invest in.
On November 20, RBC Capital’s Steven Shemesh lowered the firm’s price target for Target Corporation (NYSE:TGT) to $99 from $107 while keeping an Outperform rating. The company’s results were largely in line with expectations. The firm noted that some of the initiatives discussed on the call could help Target return to growth, although the road ahead ‘seems long’ and the level of reinvestment required is still unclear.
Target Corporation (NYSE:TGT) has been dealing with several challenges over the past few years. More recently, the retailer has been affected by customers cutting back on discretionary purchases. Inflation remains elevated, and as a discount-oriented retailer, much of the company’s audience is focusing on essential items at a time when the company’s core categories, such as housewares and apparel, are not considered everyday necessities.
In October, the company also announced plans to eliminate 1,800 corporate jobs as it works to regain growth after roughly four years of stagnant sales.
There are still some positive developments. In the third quarter of 2025, digital sales continue to perform well, with digital comparable sales rising 2.4%, supported by a 35% increase in same-day services linked to Target’s membership program. Target Corporation (NYSE:TGT) also remains a reliable dividend payer. It has increased its dividends for 54 consecutive years.
Target Corporation (NYSE:TGT) is a large American retailer that sells a wide variety of items, including groceries, clothing, electronics, and household goods, through its physical stores and online platform.
8. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is among the best dividend stocks to invest in for a passive income portfolio.
On December 3, BMO Capital’s Evan Seigerman increased the firm’s price target on Amgen Inc. (NASDAQ:AMGN) to $372 from $335 and reiterated an Outperform rating. The analyst noted that the data from the Maritide Phase 2 Part 2 study could support further share gains beyond Amgen’s commercial performance in 2025. This update is considered the most important clinical milestone remaining for the company next year and may help clarify MariTide’s potential as a maintenance treatment.
BMO said the higher price target reflects a greater assumed profitability of success for MariTide and the benefits Amgen has gained from a more favorable macro environment.
Amgen Inc. (NASDAQ:AMGN) total revenue rose 12% YoY to $9.6 billion in the recent quarter. Several major medicines, including Repatha, which lowers harmful cholesterol levels, and the asthma therapy Tezspire, delivered strong results in the period. The company also continues to advance a robust pipeline that is expected to support new product approvals in the coming years.
Amgen Inc. (NASDAQ:AMGN)’s cash position also remained healthy. The company generated $4.2 billion in free cash flow during the third quarter of 2025, compared with $3.3 billion in the same quarter of 2024. The improvement was supported by working capital timing and lower interest expenses, partially offset by increased capital spending. The company has also raised its dividends for 14 years in a row.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and supplies innovative treatments for serious medical conditions.
7. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 66
Accenture plc (NYSE:ACN) is one of the best dividend stocks to invest in.
On December 3, Accenture plc (NYSE:ACN) and Snowflake, the AI data cloud company, announced an expanded partnership aimed at accelerating generative AI adoption and improving business outcomes for clients like Caterpillar. With the creation of the Accenture Snowflake Business Group, the two companies plan to help more enterprises transform their business models by using cloud, AI, and data capabilities supported by Accenture AI Refinery and Snowflake’s recent developments, including Snowflake Intelligence and Snowflake Cortex AI.
Separately, on December 1, Accenture plc (NYSE:ACN) said it will provide tens of thousands of its IT staff with access to ChatGPT Enterprise through a new partnership with OpenAI as it works to meet growing demand for AI-focused services.
The two companies also announced plans to introduce a new AI initiative designed to help clients across industries, such as financial services, healthcare, and retail, adopt AI-driven workflows.
Accenture plc (NYSE:ACN) is a global professional services provider that offers strategy, consulting, digital, technology, and operations services to organizations in both the public and private sectors.
6. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 68
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best dividend stocks to invest in.
On December 1, Stifel raised its price target on Lowe’s Companies, Inc. (NYSE:LOW) from $230 to $250, while maintaining a Hold rating on the stock. The update came after the firm revised its estimates following the company’s earnings, guidance, recent filings, and FBM acquisition. Stifel highlighted that the quarter pointed to softer demand that did not meet expectations, but noted a ‘clear bifurcation in the two reports’ as Home Depot’s weakness was much harsher, whereas Lowe’s commentary and results showed resilience.
Lowe’s Companies, Inc. (NYSE:LOW) announced its earnings for the third quarter of 2025 on November 19, posting revenue of $20.8 billion, which showed a little over 3% growth from the same period last year. The company’s commitment to shareholders remained in place, as it returned $673 million to investors through dividends. Moreover, it also invested $8.8 billion for the acquisition of FBM. For FY25, the company expects sales of $86 billion, up from its previous guidance of between $84.5 billion and $85.5 billion.
Lowe’s Companies, Inc. (NYSE:LOW)’s dividend policy makes it an appealing option because not only has the company been consistent with paying dividends, but it has also raised its payouts for 60 consecutive years, which makes it a Dividend King. The payout ratio of just 38% signals dividend safety and also supports its five-year average annual dividend growth of 16%.
5. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 72
Stryker Corporation (NYSE:SYK) is one of the best dividend stocks to invest in.
On November 14, Truist’s analyst Richard Newitter boosted the price target on Stryker Corporation (NYSE:SYK) to $400 from $392 and maintained a Hold rating on the stock. The analyst noted that the company’s Investor Day stressed its position as one of the stronger large-cap MedTech names with ‘muscle’, with the ability to deliver steady operating leverage each year. That said, the firm is maintaining a neutral stance for now, highlighting its preference for companies with steady revenue growth and faster earnings.
In its earnings for the third quarter of 2025, Stryker Corporation (NYSE:SYK)’s management noted the company’s commitment to margin expansion and strong performance despite tariff headwinds. The company’s revenue for the quarter was $6.1 billion, which grew by over 10% from the same period last year. Its organic sales rose by 9.5%, which included 9.1% from increased unit volume and 0.4% from higher prices. The company now expects organic net sales growth of 9.8% to 10.2%.
In addition to strong earnings growth, Stryker Corporation (NYSE:SYK)’s 32-year dividend growth streak is also appealing to income investors. Moreover, the payout ratio of around 43% indicated future dividend growth.
Stryker Corporation (NYSE:SYK) is a medical technology company that manufactures and markets a wide range of products and services.
4. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 75
On December 1, Barclays analyst Brendan Lynch trimmed the firm’s rating on American Tower Corporation (NYSE:AMT) to Equal Weight and also lowered the price target to $200 from $203. The analyst highlighted that the tower companies might have difficulties collecting rent from EchoStar. In addition, issues like reserves and churn could also hurt growth in 2026. Barclays expects that negatives would outweigh the positives ahead, so it’s taking a more cautious stance for now.
American Tower Corporation (NYSE:AMT)’s earnings for the third quarter of 2025 came in strong, with revenues of $2.7 billion, which not only grew by 7.7% YoY but also beat analysts’ estimates by $61.4 million. The company’s property revenue jumped by 5.9% to $2.6 billion. Net income was the real winner, which grew by a staggering 217% to $913 million. The company mentioned that leasing also remained strong in its US and international towers due to spending on better coverage and capacity.
American Tower Corporation (NYSE:AMT) also raised its performance targets for the year. The company’s property revenue is now expected to be between $10.21 billion and $10.29 billion, which represents an increase of $40 million at the midpoint of the guidance range.
American Tower Corporation (NYSE:AMT) is an American infrastructure-focused real estate investment trust company.
3. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders: 76
Linde plc (NASDAQ:LIN) is one of the best dividend stocks for a passive income portfolio.
On December 3, CICC initiated coverage on Linde plc (NASDAQ:LIN) with an Outperform rating and a $510 price target.
The company posted strong earnings for the third quarter of 2025, with revenues coming in at $8.6 billion, which showed a 3% growth from the same period last year. Acquisitions also contributed to a 1% growth in its revenue. The company’s EPS of $4.21 was at an all-time high, which it managed while maintaining industry-leading margins and not compromising on shareholder returns. Linde plc (NASDAQ:LIN)’s management highlighted stagnant industrial activity in its earnings report; however, this did not have any impact on the company’s cash generation.
Linde plc (NASDAQ:LIN) reported an 8% YoY growth in its operating cash flow, which came in at $2.9 billion. Its free cash flow, after capital expenditures, sat at $1.6 billion. This cash was sufficient to cover the company’s dividends and share repurchases worth $1.68 billion. Due to this stable cash position, LIN was able to achieve its 32nd consecutive year of dividend growth in 2025.
Linde plc (NASDAQ:LIN) is a global multinational chemical company and one of the world’s largest industrial gas suppliers.
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is one of the best dividend stocks to invest in.
According to a recent update, Comcast Corporation (NASDAQ:CMCSA) is planning to merge its NBCUniversal division with Warner Bros. Discovery. On December 1, the company made a new offer for part of Warner Bros. that would give it control of the combined entity, according to the sources. Warner Bros. shareholders would receive a mix of cash and stock in the new company.
The main aim of this step is to create a bigger entertainment company by joining NBC’s TV network, film and TV studios, and theme park with Warner Bros. In addition, Warner Bros.’ HBO Max would also shore up NBC’s Peacock streaming service.
In the third quarter of 2025, Comcast Corporation (NASDAQ:CMCSA)’s Content & Experiences segment is gaining momentum on NBC and Peacock as the company enters a busy period of live sports, including strong NBA coverage. In addition, the early success of Epic Universe contributed to a 19% revenue growth at its Theme Parks. The company’s cash position also remained well, with operating cash flow and free cash flow of $8.7 billion and $4.9 billion, respectively.
Comcast Corporation (NASDAQ:CMCSA) is a major American media, tech, and telecom conglomerate.
1. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 110
S&P Global Inc. (NYSE:SPGI) is among the best dividend stocks to invest in.
On December 1, S&P Global Inc. (NYSE:SPGI) announced its new partnership with Amazon Web Services (AWS) that would allow customers to use AI agents to ask complex questions related to finance, markets, and energy, and get reliable answers directly from SPGI within their AWS setup.
The new development will help achieve the combination of the company’s data with the customers’ own information and AI workflows, giving them real-time insights and helping improve decision-making.
S&P Global Inc. (NYSE:SPGI) delivered strong earnings for the third quarter of 2025, with revenues of $3.89 billion, up 8.7% from the same period last year. The company’s adjusted net income also rose by 19% to $1.442 billion. SPGI’s acquisition strategy also remained intact as the company closed the agreement to acquire With Intelligence for $1.8 billion.
S&P Global Inc. (NYSE:SPGI) is a New York-based company that provides financial intelligence and data analytics to organizations to make better decisions.
While we acknowledge the potential of SPGI 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 SPGI and that has 100x upside potential, check out our report about this cheapest AI stock.
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