In this article, we will take a look at 15 high-quality dividend stocks to invest in.
Wolfe Research noted that investors who want steady income might want to look at companies with strong dividend growth and a solid track record of raising their payouts over time. Dividend stocks not only offer a dependable income stream, but they can also help calm portfolios when markets become volatile.
The Federal Reserve has already cut rates twice this year, with the most recent move in October, although there is uncertainty about whether policymakers will ease again in December. Wolfe pointed out that dividend investing can take different forms, but the firm prefers companies that consistently lift their payouts in a meaningful way. These stocks may start with lower yields, but reinvesting the income can build compounding returns and support long-term capital gains.
Bank of America added that with equities trading near record levels, dividend stocks can play a useful role in helping portfolios stay resilient during market swings and periods of economic uncertainty. Lower rates and declining bond yields also make dividend payers more appealing to investors who depend on income. The firm, however, advised investors to be cautious about chasing the highest yields. When a dividend looks far above the market norm, it can signal underlying problems. If a company faces pressure, it might be forced to cut its payout, and a high yield can also mean the stock price is already trending down.
Given this, we will take a look at some of the best dividend stocks to invest in.
Our Methodology
For this list, we began by screening companies with a market capitalization of at least $10 billion and identified the dividend-paying stocks among them. We then filtered for stocks that have increased their dividends for at least 10 consecutive years and maintain payout ratios under 50%, demonstrating the safety of their dividends. From this refined list, we selected 15 companies that hedge funds favored the most, according to Insider Monkey’s Q3 2025 database.
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. Old Republic International Corporation (NYSE:ORI)
Number of Hedge Fund Holders: 24
Old Republic International Corporation (NYSE:ORI) is one of the best dividend stocks to invest in.
On November 25, Old Republic International Corporation (NYSE:ORI) announced that it would pay a quarterly dividend of $0.29 per share, matching its previous payout. The dividend is scheduled for December 15, 2025, for shareholders on record as of December 5. With this payment, the company’s total cash dividends for the year rise to $1.16 per share, up from $1.06 in 2024, reflecting an increase of about 9.4%.
This year was Old Republic International Corporation (NYSE:ORI)’s 44th straight year of boosting its regular cash dividend and its 84th year without missing a payment. The company also continued to prioritize shareholder returns during the third quarter of 2025, distributing $71 million in dividends.
Old Republic International Corporation (NYSE:ORI) provides insurance coverage primarily to businesses, government entities, and various institutions across the US. Its policies span a wide range of sectors, including trucking, aviation, construction, healthcare, energy, and several others.
14. Donaldson Company, Inc. (NYSE:DCI)
Number of Hedge Fund Holders: 25
Donaldson Company, Inc. (NYSE:DCI) is among the best dividend stocks to invest in.
On November 24, Morgan Stanley raised its rating on Donaldson Company, Inc. (NYSE:DCI), moving it to Equal Weight from Underweight and lifting its price target to $84 from $72. The firm noted that Donaldson’s filters play a key role in gas turbine air intake systems, and ongoing momentum in data center and AI infrastructure spending could continue to support earnings. The analyst suggested that the stock’s risk and reward profile looks more balanced now, helped by potential AI-driven upside, steady after-market performance, and earlier concerns in Life Sciences largely settling.
On the same day, Donaldson Company, Inc. (NYSE:DCI) announced a quarterly dividend of $0.30 per share, maintaining its previous payout. The company remains part of the S&P High-Yield Dividend Aristocrats Index, and 2025 was its 30th straight year of lifting its annual dividend. The company has issued a cash dividend every quarter for seven decades.
Donaldson Company, Inc. (NYSE:DCI) is recognized as a global leader in filtration technology, offering products and solutions across a wide range of industries and advanced markets.
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