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 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 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. 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. 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’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 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 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. 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. 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.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 98
Merck & Co., Inc. is one of the world’s largest healthcare companies, with a portfolio that spans prescription medicines, biologic therapies, vaccines, and animal health products.
Yet much of the investment story continues to revolve around Keytruda, the company’s blockbuster cancer treatment. The drug generated $32 billion in sales in 2025, accounting for nearly half of Merck’s total revenue. With US patent protection set to expire in 2028 and European patents following in 2030, investors have become increasingly focused on what comes next.
That looming patent cliff has weighed on the stock since 2024, as the market looks ahead to the eventual loss of exclusivity for Merck’s biggest product. The company has been moving to strengthen its pipeline before that happens. Earlier this month, Merck acquired Terns Pharmaceuticals, adding TERN-701, an experimental treatment for chronic myeloid leukemia. The drug remains in early-stage clinical testing, but its FDA breakthrough therapy designation highlights the potential management sees in the program.
Merck & Co., Inc. is not relying on a single successor to Keytruda. Its development pipeline includes more than 50 clinical trials, with over 30 programs already in Phase 3 studies and five candidates currently under FDA review. Management has repeatedly pointed to a pipeline capable of generating as much as $70 billion in annual revenue over time, helping offset the eventual decline in Keytruda sales. The challenge is timing, as those replacement products are not expected to reach that level of commercial scale until the middle of the next decade.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 103
Chevron Corporation (NYSE:CVX) ranks among the world’s largest energy companies, with operations that span the full energy value chain. The company produces oil and natural gas, operates pipeline networks, and runs refining and chemical businesses across multiple markets.
Managing a business of that scale involves many moving parts, including hedging activities designed to reduce exposure to swings in commodity prices. Those strategies can help over the long term, but their impact does not always line up neatly with quarterly earnings results. That was the case in the first quarter, when Chevron’s hedging activities reduced earnings by $2.9 billion. While the company expects that impact to reverse in future periods, the short-term effect was that first-quarter results may have appeared weaker than the underlying business performance suggested.
Beneath the earnings figures, production trends painted a more encouraging picture. Chevron increased output during the quarter, supported in part by its acquisition of Hess. Another notable highlight came from the Permian Basin, where production exceeded one million barrels per day for the fifth consecutive quarter. Management’s primary focus in the region remains generating strong cash flow, though the company has indicated it could increase production if needed.
With the Hess integration still underway and already contributing to higher output, expanding Permian production was not a major priority. Even so, Chevron Corporation delivered strong growth. Global production rose 15% from a year earlier, while U.S. production climbed 24%. The gains came despite ongoing conflict in the Middle East, demonstrating the resilience of the company’s operations. As Hess becomes fully integrated into Chevron’s portfolio, the company could still have additional opportunities to grow production in the years ahead.
3. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders: 104
Analysts grew more optimistic on Linde plc (NASDAQ:LIN) following the company’s first-quarter results and updated outlook. On May 5, BMO Capital raised its price recommendation on Linde to $560 from $545. It reiterated an Outperform rating on the shares after the company delivered an earnings beat. The firm views Linde as one of the stronger performers in the sector, supported by favorable pricing trends, healthy demand growth in the US, and improving conditions in the helium market. According to the analyst, those factors could help the company exceed its expectations for 2026.
The same day, RBC Capital also lifted its price goal on Linde, raising it to $570 from $552. It kept an Outperform rating on the stock.RBC described the quarter as largely in line with expectations but pointed to the company’s higher full-year 2026 guidance as an encouraging sign. The analyst said the updated outlook reflects expectations for low single-digit volume growth and high single-digit earnings-per-share growth. The firm noted that foreign exchange tailwinds are likely to fade during the second half of the year. Even so, Linde’s guidance does not appear to include any meaningful benefit from improving helium market conditions. If those trends continue, the company could move toward the upper end of its FY26 earnings guidance range of $17.60 to $17.90 per share.
Linde plc (NASDAQ:LIN) is a global industrial gases and engineering company headquartered in the United Kingdom. The company operates through four segments: Americas, EMEA, APAC, and Engineering.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 113
Johnson & Johnson and its subsidiaries develop, manufacture, and sell a broad range of healthcare products, giving the company a presence across multiple areas of the healthcare industry. The company’s dividend remains one of its biggest attractions for income-focused investors.
One way to assess the strength of a dividend is to compare it with the cash a company generates. Last year, Johnson & Johnson produced $20.4 billion in free cash flow and paid out $12.4 billion in dividends. That translates to a payout ratio of about 61%, a level that suggests the dividend remains well supported by the business.
The healthcare giant also maintains a strong balance sheet. As of the end of the first quarter, J&J held $21.7 billion in cash and cash equivalents, providing ample financial flexibility and supporting its ability to continue returning capital to shareholders.
Over the past decade, the company has delivered an average dividend yield of 2.7%, comfortably above the broader market average.
Investors are also keeping an eye on the company’s legal challenges tied to talcum powder products it previously sold. Those issues have created uncertainty and remain a concern for some shareholders. At the same time, Johnson & Johnson has continued to operate from a position of strength. Its ability to manage those legal headwinds while continuing to execute across its diversified healthcare businesses highlights the resilience of the company and the durability of its underlying operations.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) specializes in designing application-specific integrated circuits, or ASICs. Unlike general-purpose processors that are built to handle a wide range of computing tasks, ASICs are engineered for a single purpose. That specialization gives them a key advantage. Because they are designed to perform one specific function, ASICs can process workloads more efficiently, deliver higher performance, and consume less power than many traditional computing chips.
The growing demand for AI infrastructure has been a major tailwind for Broadcom. In the company’s latest quarter, AI-related revenue surged 106% from a year earlier to $8.4 billion, significantly outpacing its overall growth rate. The result underscored the strong demand for Broadcom’s custom AI processors, which have become an increasingly important part of its business.
Looking ahead, Broadcom has forecast fiscal second-quarter revenue of $22 billion. That guidance implies year-over-year revenue growth of about 47%, marking a notable acceleration from the pace recorded in the first quarter. Much of that growth is expected to come from continued demand for the company’s custom AI chips, which remain at the center of the ongoing buildout of AI infrastructure.
Broadcom CEO Hock Tan said in March that the company’s AI chip revenue is expected to reach $10.7 billion in the fiscal second quarter. If achieved, that would represent a 143% increase from the same period last year. The forecast highlights just how quickly demand has accelerated. For comparison, Broadcom’s AI chip revenue grew 46% in the prior-year quarter, a much slower pace than what the company is now projecting.
The rapid growth is being driven by a shift in how AI systems are being used. Inference, the process of running AI models and generating responses, is becoming the dominant workload in AI data centers. According to Deloitte, inference workloads are expected to account for about two-thirds of AI data center computing power in 2026, up from roughly 50% last year.
That trend is creating a growing need for custom AI processors, an area where Broadcom Inc. has established a strong position. As more computing resources are directed toward inference tasks, demand for the company’s specialized AI chips continues to rise, providing another catalyst for growth.
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