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.
13. Atmos Energy Corporation (NYSE:ATO)
Number of Hedge Fund Holders: 32
Atmos Energy Corporation (NYSE:ATO) is one of the best dividend stocks to invest in.
On November 20, Morgan Stanley increased its price target on Atmos Energy Corporation (NYSE:ATO) to $182 from $181 while maintaining an Overweight rating. The firm noted that it was adjusting its targets across the North American Regulated and Diversified Utilities/IPPs group and pointed out that utilities lagged the broader S&P’s performance in October.
Earlier in the month, on November 5, Atmos Energy Corporation (NYSE:ATO) announced a 15% increase in its quarterly dividend, raising it to $1.00 per share. This move marked the company’s 41st straight year of boosting its dividend and its 168th consecutive quarterly payout.
For fiscal 2025, Atmos Energy Corporation (NYSE:ATO) reported capital spending of $3.6 billion, with about 87% directed toward safety and reliability initiatives. The company also reported roughly $4.9 billion in available liquidity and about $1.8 billion in financing to support ongoing operations.
Atmos Energy Corporation (NYSE:ATO) is one of the major regulated natural gas utilities in the United States, with a focus on essential services and a stable customer base that supports its steady business profile in the regulated utilities space.
12. PPG Industries, Inc. (NYSE:PPG)
Number of Hedge Fund Holders: 34
PPG Industries, Inc. (NYSE:PPG) is among the best dividend stocks to invest in.
On November 21, JPMorgan analyst Jeffrey Zekauskas lifted his price target on PPG Industries, Inc. (NYSE:PPG) to $117 from $112 while maintaining an Overweight rating. In his note, he said the company “sticks out as a possible winner for 2026” within the industrials space. He pointed to PPG’s expanding aerospace business and its continued gains in the automotive coatings market.
During PPG Industries, Inc. (NYSE:PPG)’s third-quarter 2025 update, CEO Timothy Knavish highlighted that the aerospace segment delivered strong double-digit organic sales growth, hitting record quarterly sales and earnings. He added that customer order backlogs had reached $310 million. Knavish also detailed over $0.5 billion in planned investments, including a new aerospace manufacturing facility scheduled to come online in 2027, with more investments expected.
Organic sales rose 2% from the prior year, helped by growth in aerospace coatings, protective and marine coatings, and traffic solutions, though this was partly offset by lower volumes in automotive refinish coatings.
PPG Industries, Inc. (NYSE:PPG) is a global leader in paints, coatings, and specialty materials, supplying products to a broad set of industries.
11. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 34
Canadian National Railway Company (NYSE:CNI) is one of the best dividend stocks to invest in.
On November 28, CIBC analyst Kevin Chiang raised his rating on Canadian National Railway Company (NYSE:CNI) to Outperform from Neutral and lifted his price target to C$151 from C$146. He noted that Canadian National is showing steadier operational performance, with both volumes and car velocity improving together. He added that free cash flow in 2026 should strengthen and earnings per share could rise as capital spending starts to ease.
Canadian National Railway Company (NYSE:CNI) has been steadily expanding its profits, supported by production growth tied to strategic acquisitions and effective drilling programs. While the company is widely recognized for its oil operations, it is also a significant natural gas producer, which helps balance out swings in oil markets.
Canadian National Railway Company (NYSE:CNI) continues to benefit from its diversified freight mix, which keeps revenue stable across most economic environments. It also generates dependable free cash flow that supports dividend increases and long-term reinvestment. What makes the company particularly attractive at the moment is its long growth runway as Canada and the US continue to expand infrastructure, manufacturing, and trade networks.
Canadian National Railway Company (NYSE:CNI) is a major North American transportation company that moves goods across its wide-reaching rail network.
10. Graco Inc. (NYSE:GGG)
Number of Hedge Fund Holders: 36
Graco Inc. (NYSE:GGG) is among the best dividend stocks to invest in.
On November 17, Graco Inc. (NYSE:GGG) announced the acquisition of Red Devil Equipment Company, commonly known as Radia, in a deal valued at $69 million. Radia, which generates over $30 million in annual revenue, manufactures mixing, shaking, and automated material handling equipment for the expanding paints and coatings sector.
Mark Sheahan, Graco’s President and CEO, made the following comment:
“Radia brings complementary capabilities to Graco’s Contractor business portfolio, enhancing our position in the color solutions space. Our acquisition of Corob last year expanded our precision tinting and dispensing capabilities, while Radia strengthens our portfolio with advanced mixing and material handling equipment—creating a more complete solution for our customers.”
In its third-quarter 2025 results, Graco Inc. (NYSE:GGG) reported a 5% rise in sales, with recent acquisitions contributing 6% of that growth. The company also continued executing its expansion strategy with the August purchase of Color Service.
Graco Inc. (NYSE:GGG) provides technology and expertise for managing fluids and coatings across both industrial and commercial applications.
9. Expeditors International of Washington, Inc. (NYSE:EXPD)
Number of Hedge Fund Holders: 36
Expeditors International of Washington, Inc. (NYSE:EXPD) is one of the best dividend stocks to invest in.
On November 24, BofA raised its price target on Expeditors International of Washington, Inc. (NYSE:EXPD) to $150 from $142 while maintaining a Neutral rating on the stock. After hosting a conference call with Expeditors’ CEO and CFO, the firm maintained its “above-Street” Q4 EPS estimate at $1.49 and increased its FY26 EPS forecast by 3% to $6.50, citing stronger-than-expected demand in Customs and Airfreight.
In the third quarter of 2025, Expeditors International of Washington, Inc. (NYSE:EXPD) grew airfreight tonnage on exports, especially from North and South Asia. The company expanded its presence in strategic verticals, including technology, pharmaceuticals, and aviation, and continued to benefit from significant investments by technology customers in artificial intelligence infrastructure.
In its earnings report, Expeditors International of Washington, Inc. (NYSE:EXPD) announced that it repurchased $212 million of common stock and returned $725 million to shareholders year-to-date through share buybacks and dividends.
Expeditors International of Washington, Inc. (NYSE:EXPD) is a global logistics firm that manages supply chains for businesses, offering freight forwarding, logistics, and supply chain management services.
8. Illinois Tool Works Inc. (NYSE:ITW)
Number of Hedge Fund Holders: 39
Illinois Tool Works Inc. (NYSE:ITW) is among the best dividend stocks to invest in.
On November 18, BofA analyst Andrew Obin upgraded Illinois Tool Works Inc. (NYSE:ITW) to Neutral from Underperform, raising the price target to $255 from $220. The analyst noted that strong year-over-year margin expansion is expected in 2026, which should help EPS growth keep pace with industry peers through 2026–2027.
In its third-quarter 2025 results, Illinois Tool Works Inc. (NYSE:ITW) reported a record operating margin of 27.4%, up 90 basis points, with enterprise initiatives contributing 140 basis points. Operating cash flow reached $1.0 billion, while free cash flow rose 15% to $904 million, translating to a 110% conversion rate relative to net income. The company highlighted progress on its strategic growth priorities and reaffirmed its commitment to above-market organic growth driven by customer-backed innovation. Management indicated that the strategy remains on track to meet 2030 performance goals, including a customer-backed innovation yield exceeding 3%.
For FY25, Illinois Tool Works Inc. (NYSE:ITW) maintained its operating margin guidance of 26% to 27%, with enterprise initiatives expected to contribute 125 basis points for the year. Management reiterated confidence in achieving the $10.45 midpoint EPS target.
Illinois Tool Works Inc. (NYSE:ITW) is a global industrial manufacturer that produces a wide range of value-added products, including engineered fasteners, equipment, and specialty items.
7. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 41
Emerson Electric Co. (NYSE:EMR) is one of the best dividend stocks to invest in.
On November 20, Emerson Electric Co. (NYSE:EMR) unveiled its financial targets through 2028 along with a shareholder return plan, while highlighting its strategic focus on “engineering the autonomous future.”
Emerson Electric Co. (NYSE:EMR) intends to return $10 billion to shareholders via share repurchases and dividend increases through 2028. The company also outlined a through-the-cycle framework targeting 4%-7% organic sales growth, 40% incremental margins, 10% adjusted EPS growth, and an 18%-20% free cash flow margin.
Earlier, on November 5, Emerson Electric Co. (NYSE:EMR) announced a 5.2% increase in its quarterly dividend to $0.555 per share, marking the company’s 69th consecutive year of dividend growth. The company also disclosed that its Board authorized the repurchase of up to 50 million shares of common stock, in addition to the remaining roughly 20 million shares from a March 2020 authorization of 60 million shares.
Emerson Electric Co. (NYSE:EMR) is a global industrial technology company specializing in advanced automation solutions.
6. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 44
Nucor Corporation (NYSE:NUE) is among the best dividend stocks to invest in.
On November 24, BofA raised its price target on Nucor Corporation (NYSE:NUE) to $180 from $165 and kept a Buy rating on the stock. The firm is updating its price forecasts for North American Metals & Mining companies under coverage. The analyst noted that while the macro environment remains challenging due to slowing commodity demand in China, this may be partially offset by a recovery in US and European demand.
Nucor Corporation (NYSE:NUE) exceeded expectations in the third quarter as production increased from recent growth investments. Shipments from both its steel mills and steel products divisions were higher than estimated. Net income reached $603 million, roughly 140% above the same period last year.
Nucor Corporation (NYSE:NUE)’s data systems business provides materials for the production of AI server cabinets and support structures. With several growth projects close to completion and others scheduled to begin production late next year, Nucor’s long-term growth outlook remains positive.
The company has a long-standing focus on growth, investing in internal projects such as new mills as well as acquisitions in specialty products that expand its operations into new markets.
As North America’s largest and most diversified steel producer, Nucor Corporation (NYSE:NUE) manufactures a wide range of steel and steel products using electric arc furnaces and a high proportion of recycled materials.
5. Brown & Brown, Inc. (NYSE:BRO)
Number of Hedge Fund Holders: 44
Brown & Brown, Inc. (NYSE:BRO) is one of the best dividend stocks to invest in.
On November 20, Barclays lowered its price target on Brown & Brown, Inc. (NYSE:BRO) to $84 from $102 while maintaining an Equal Weight rating on the shares.
In the third quarter of 2025, Brown & Brown, Inc. (NYSE:BRO) reported revenue of $1.6 billion, representing more than 35% growth compared to the same period last year. The company’s EBITDAC margin rose to 36.6%, an expansion of 170 basis points from the prior-year quarter.
Earlier in October, Brown & Brown, Inc. (NYSE:BRO) announced a 10% increase in its quarterly dividend to $0.165 per share, marking 32 consecutive years of dividend growth. CEO J. Powell Brown noted that the board had approved an expansion of the share repurchase program to $1.5 billion, underscoring the company’s commitment to shareholder value. The CEO also explained that the Programs and Wholesale segments were combined into a new Specialty Distribution segment, branded as Arrowhead Intermediaries, which now handles roughly $20 billion in written premium.
Brown & Brown, Inc. (NYSE:BRO) is a global insurance intermediary offering a broad range of insurance products and services.
4. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 46
Tractor Supply Company (NASDAQ:TSCO) is among the best dividend stocks to invest in.
On November 24, Jefferies analyst Jonathan Matuszewski upgraded Tractor Supply Company (NASDAQ:TSCO) to Buy from Hold, raising the price target to $64 from $58. The analyst noted that the shares could serve as a “hedge” to the ongoing consumer uncertainty. He also highlighted that Tractor’s customer base is resilient and its “needle-moving growth initiatives” are gaining traction. Jefferies added that the stock’s current valuation discount to its historical average is “confounding.”
In the third quarter of 2025, Tractor Supply Company (NASDAQ:TSCO)’s comparable store sales rose 3.9% year over year, driven by increases in both transactions and average ticket size. Transaction count grew 2.7% while the average ticket increased 1.2%. Combined with new store openings and a recent acquisition, these factors pushed net sales up 7.2% to $3.72 billion.
For the fourth quarter, Tractor Supply Company (NASDAQ:TSCO) is expecting comparable sales growth between 1% and 5%. The midpoint of this range aligns with the company’s long-term same-store sales algorithm and suggests that sequential momentum could continue if seasonal categories perform as expected.
Tractor Supply Company (NASDAQ:TSCO)’s dividend represents about 44% of earnings, leaving room for continued growth even if earnings slow. The company has a strong track record as a dividend payer, with 16 consecutive years of dividend increases.
Tractor Supply Company (NASDAQ:TSCO) offers a wide range of products and services for recreational farmers, ranchers, and pet owners, including animal feed and supplies, power equipment, lawn and garden tools, and clothing.
3. Williams-Sonoma, Inc. (NYSE:WSM)
Number of Hedge Fund Holders: 49
Williams-Sonoma, Inc. (NYSE:WSM) is among the best dividend stocks to invest in.
On November 21, RBC Capital lowered its price target on Williams-Sonoma, Inc. (NYSE:WSM) to $206 from $213 while maintaining an Outperform rating following the company’s Q3 results. The analyst noted that Williams-Sonoma continued to gain market share and delivered better-than-expected flow-through, though much of this was due to tariff costs taking longer than expected to materialize. RBC also highlighted that the current category momentum appears largely price-driven amid a weakening consumer environment, and rising tariff costs remain a concern.
In the third quarter of 2025, Williams-Sonoma, Inc. (NYSE:WSM) reported revenue of $1.88 billion, up more than 4.5% from the prior year. Operating margin came in at 17.0%, up 10 basis points, while earnings per share reached $1.96, a 4.8% increase year-over-year.
CEO Laura Alber emphasized positive comparable sales across all brands, a 17% operating margin, and $1.96 earnings per share, representing 5% growth from the prior year. The company reaffirmed full-year comparable brand revenue growth guidance of 2% to 5% and raised operating margin guidance by 40 basis points to a range of 17.8% to 18.1%.
Williams-Sonoma, Inc. (NYSE:WSM) has a strong history of dividend growth, marking 16 consecutive years of increase. Over the past five years, the company has returned more than $4.1 billion to shareholders through dividends and share repurchases. Management noted that continued profitability and strong cash flow allow the company to provide these enhanced returns.
Williams-Sonoma, Inc. (NYSE:WSM) is a retailer of high-quality home goods, cookware, and gourmet foods, selling products through its namesake brand as well as other brands such as Pottery Barn and West Elm.
2. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 55
Dover Corporation (NYSE:DOV) is among the best dividend stocks to invest in.
On November 14, Oppenheimer raised its price target on Dover Corporation (NYSE:DOV) to $228 from $225 while maintaining an Outperform rating following an investor meeting with VP of IR Jack Dickens. During the session, questions focused on the company’s near-term positioning, outlook for 2026, and the potential for continued value-added portfolio transformation. Oppenheimer noted that Dover’s strong year-to-date performance and supportive order trends make it likely the company will achieve the high end of its 2025 EPS guidance and enter 2026 with solid prospects for similar earnings and cash flow growth.
On November 6, Dover Corporation (NYSE:DOV) announced a quarterly dividend of $0.52 per share, consistent with the previous payout. The company has one of the longest dividend streaks in the market, spanning 70 years.
In the third quarter of 2025, Dover Corporation (NYSE:DOV) reported revenue of $2.08 billion, up 4.75% from the same period last year. Growth was driven by broad-based shipments in short-cycle components, continued strength in secular-growth end markets, and contributions from recently completed acquisitions.
Despite some macroeconomic uncertainty, demand across much of Dover Corporation (NYSE:DOV)’s portfolio remains healthy, supported by sustained order growth. As a result, the company raised its full-year adjusted EPS guidance from a range of $9.35-$9.55 to $9.50-$9.60.
Dover Corporation (NYSE:DOV) is a diversified global manufacturer and solutions provider, offering innovative equipment, components, software, and services.
1. 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 November 20, Telsey Advisory trimmed its price target on Lowe’s Companies, Inc. (NYSE:LOW) to $285 from $305 but maintained an Outperform rating. After reviewing the third-quarter results, the firm said it still expects Lowe’s to outperform the broader industry thanks to the continued execution of its Total Home strategy. The analysts added that they believe the company is well equipped to manage ongoing challenges and keep building its market share.
In the third-quarter 2025 update, Marvin Ellison, the company’s President, CEO, and Chairman, pointed to steady progress under the Total Home Strategy. He highlighted that the small to mid-sized Pro segment improved during the quarter, online sales climbed 11.4%, and home services delivered strong double-digit growth.
Ellison also confirmed that the Foundation Building Materials (FBM) acquisition closed in October. He said the deal strengthens Lowe’s Companies, Inc. (NYSE:LOW) overall product lineup, broadens its revenue opportunities, and further improves its offering for Pro customers.
Lowe’s Companies, Inc. (NYSE:LOW) reiterated its commitment to disciplined capital allocation aimed at sustaining long-term shareholder value. During the quarter, the company spent $8.8 billion on the FBM acquisition and distributed $673 million in dividends. The company remains a dependable dividend payer, backed by 60 straight years of dividend growth.
Lowe’s Companies, Inc. (NYSE:LOW) is a major home improvement retailer that provides a wide assortment of construction, maintenance, and home decor products, including appliances, lumber, paint, and tools.
While we acknowledge the potential of LOW 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 LOW and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 15 Best Boring Dividend Stocks to Buy and 14 Best Up and Coming Dividend Stocks to Buy
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
