In this article, we will take a look at some of the best dividend stocks that outperform the S&P 500.
Dividend stocks are typically considered for long-term investing, but they often lag behind the S&P 500, which today is largely driven by high-profile tech companies. The S&P 500 Dividend Aristocrats Index, which tracks companies with at least 25 consecutive years of dividend growth, has returned more than 5.4% so far this year, compared with a 16.2% return for the broader market. In 2025, the broader market is once again taking the lead, leaving dividend stocks behind.
According to Trivariate Research, there has not been much for dividend investors to celebrate recently. The yield on the S&P 500, currently around 1.15%, is approaching its lowest level in 50 years, founder Adam Parker noted in a November research note. The only time it fell lower was to 1.09% during the tech bubble. Parker attributed this primarily to the dominance of megacap tech companies in the index.
Despite this, some dividend-paying companies, including those in the tech sector, are outperforming the market. Investors recognize the long-term appeal of these equities and use them to maintain stable earnings. Analysts suggest that investors focus on companies with consistent dividend growth rather than simply high yields, as these dividends are more likely to be supported by strong cash flow and may increase steadily over time, creating a compounding effect for income streams.
Given this, we will take a look at some of the best dividend stocks that outperform the S&P 500.
Our Methodology:
For this list, we scanned companies delivering substantial returns this year, and outperforming the S&P 500, which has returned 16% YTD. From that group, we selected companies with strong dividend histories and solid balance sheets. We then ranked the stocks based on their YTD returns.
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. Marathon Petroleum Corporation (NYSE:MPC)
Year-to-Date Returns as of December 3: 36.19%
Marathon Petroleum Corporation (NYSE:MPC) is among the best dividend stocks that outperform the S&P 500.
Barclays lifted its price target on Marathon Petroleum Corporation (NYSE:MPC) to $202 from $194 on November 17 while reiterating an Overweight stance. The firm updated its estimates after incorporating the latest commodities data.
Marathon Petroleum Corporation (NYSE:MPC) had released its third-quarter 2025 results earlier in November, reporting $1.4 billion in net income attributable to the company, which worked out to $4.51 per diluted share. Management noted that the Refining and Marketing segment generated solid cash flow during the quarter. They also pointed out that actions taken in the Midstream business were aimed at strengthening the portfolio and supporting a steady pace of mid-single-digit adjusted EBITDA growth.
According to the company, MPLX is set to deliver about $2.8 billion in annualized distributions to Marathon Petroleum, a level they expect will cover dividends and standalone capital spending while also supporting broader capital allocation priorities, something they viewed as a competitive advantage. In addition, the company’s integrated value chains and broad geographic footprint continue to shape its capital deployment strategy.
For 2025, the Refining and Marketing unit’s capital spending plan calls for ongoing high-return projects at the Los Angeles, Galveston Bay, and Robinson refineries. Alongside these longer-term programs, the company is moving ahead with shorter-cycle initiatives aimed at improving margins and lowering costs.
Marathon Petroleum Corporation (NYSE:MPC) is an American company involved in petroleum refining, marketing, and transportation and is based in Findlay, Ohio.
14. Expedia Group, Inc. (NASDAQ:EXPE)
Year-to-Date Returns as of December 3: 42.29%
Expedia Group, Inc. (NASDAQ:EXPE) is one of the best dividend stocks to beat the S&P 500.
On November 24, BNP Paribas Exane’s Nick Jones began covering Expedia Group, Inc. (NASDAQ:EXPE), assigning the stock a Neutral rating.
Expedia Group, Inc. (NASDAQ:EXPE) has already reported solid momentum for the third quarter of 2025. Revenue increased 9% from a year earlier to $4.4 billion, and total gross bookings climbed 12% to $30.7 billion. The company attributed the gains to strong growth in international room nights and a renewed pickup in its US business. Its B2B segment stood out once again, with B2B revenue rising 18% on the back of a 26% increase in gross bookings.
Given these results and the travel industry’s ongoing strength, Expedia Group, Inc. (NASDAQ:EXPE) raised its full-year sales guidance. Management now expects revenue to grow between 6% and 7%, above the earlier projection of 3% to 5%. The company also announced a quarterly dividend of $0.40 per share on November 7, continuing the expansion it introduced with a 17.6% dividend increase earlier in the year.
Expedia Group, Inc. (NASDAQ:EXPE) is a global travel technology company that operates well-known online travel brands, including Expedia.com, Hotels.com and Vrbo, helping customers arrange flights, lodging, car rentals, and travel activities.
13. Johnson & Johnson (NYSE:JNJ)
Year-to-Date Returns as of December 3: 42.6%
Johnson & Johnson (NYSE:JNJ) is among the best dividend stocks that beat the S&P 500.
Barclays lifted its price target on Johnson & Johnson (NYSE:JNJ) to $197 from $176 on December 2 while maintaining an Equal Weight rating. The firm also refreshed its estimates for the company.
Johnson & Johnson (NYSE:JNJ) continues to benefit from a strong balance sheet, a foundation that has long supported consistent stability and allowed the company to make substantial investments in research and development as well as targeted acquisitions. Its latest move was the purchase of Halda Therapeutics in a $3.05 billion deal aimed at expanding its oncology pipeline. The acquisition gives J&J access to Halda’s platform for developing oral cancer treatments, aligning with its broader focus on cutting-edge therapeutics.
Johnson & Johnson (NYSE:JNJ) remains strategically centered on high-margin, innovation-driven categories within its Innovative Medicine unit, including oncology, immunology, and neuroscience. Its MedTech arm is concentrated on faster-growing markets such as surgical robotics and digital surgery. For the third quarter, J&J posted net sales of $24 billion, a year-over-year increase of 6.8%, while net income surged 91% to $5.2 billion.
Johnson & Johnson (NYSE:JNJ) is a global healthcare company operating across two core segments: Innovative Medicine and MedTech.
