In this article, we will take a look at the 5 Best NASDAQ Stocks to Buy for Dividends. For a deeper discussion and analysis, please refer to the 12 Best NASDAQ Stocks to Buy for Dividends.
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5. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Number of Hedge Fund Holders: 50
Dividend Yield as of June 25: 3.37%
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is an AI Builder and technology services provider, bridging the gap between AI investment and enterprise value.
On June 23, Morgan Stanley cut its price target on Cognizant Technology Solutions Corporation (NASDAQ:CTSH) from $63 to $44, but reaffirmed its ‘Equal Weight’ rating on the shares. The lowered target still implies an upside of almost 4% from the current price level.
Morgan Stanley believes that demand trends are “stable-to-slightly worse”, especially when it comes to securing larger managed services deals. According to the firm, the lack of any demand acceleration through mid-June raises concerns about the market’s expectations for a strong second half of the year, creating potential downside risks to the current Wall Street forecasts.
On the other hand, Wedbush analyst Steven Wahrhaftig turned bullish on Cognizant Technology Solutions Corporation (NASDAQ:CTSH) earlier on June 8, upgrading the stock from ‘Neutral’ to ‘Outperform’ and lifting its price objective by $14 (read more details here).
Pzena Investment Management stated the following regarding Cognizant Technology Solutions Corporation (NASDAQ:CTSH) in its Q1 2026 investor letter:
“The health care, financials, and technology sectors were the largest detractors from performance during the quarter. Leading IT services provider Cognizant Technology Solutions Corporation (NASDAQ:CTSH) was weak, despite reporting robust 4Q earnings with peer leading organic growth, due to fears around AI disruption to the services industry more broadly. We continue to see these fears as overblown and added to our position on weakness.”
4. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 52
Dividend Yield as of June 25: 2.27%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
On June 22, Roth Capital upgraded Diamondback Energy, Inc. (NASDAQ:FANG) from ‘Neutral’ to ‘Buy’, while also boosting its price objective on the stock from $205 to $212. The revised target represents an upside of over 15% from the current share price.
The analyst firm upgraded several exploration and production companies, arguing that crude oil prices are nearing a short-term bottom with a potential Middle East war ceasefire “seeming tenuous”. Roth noted that many oil-focused E&P companies have seen their share prices fall b 15%-25% from their YTD peaks, creating more attractive entry points for investors.
The firm expects the damage to key Middle East oil infrastructure to have a lasting impact and anticipates more oil volumes to flow through the waterway of Hormuz, but it believes that these factors have already been largely incorporated into energy stock valuation. Roth expects oil prices to stabilize around the $75 per barrel mark in the near-term.
3. Xcel Energy Inc. (NASDAQ:XEL)
Number of Hedge Fund Holders: 55
Dividend Yield as of June 25: 2.90%
Xcel Energy Inc. (NASDAQ:XEL) is a major US electricity and natural gas company with operations in 8 Western and Midwestern states.
On June 24, Morgan Stanley upped its price target on Xcel Energy Inc. (NASDAQ:XEL) from $87 to $89, while reaffirming an ‘Equal Weight’ rating on the shares. The target boost indicates an upside potential of almost 9% from the current share price.
The move comes after Morgan Stanley revised its price objectives for Regulated & Diversified Utilities / IPPs in North America for the month of May. The analyst firm noted that the utilities sector fell by 5.5% last month, significantly underperforming the gains of around 5.1% posted by the overall S&P during the period.
Xcel Energy Inc. (NASDAQ:XEL) has grown its dividends for 23 consecutive years, and intends to carry on this momentum by targeting annual dividend increases of 4-6% and a payout ratio of 45-55%. The stock currently boasts a robust annual dividend yield of 2.90%.
The Mairs & Power, an investment firm, stated the following regarding Xcel Energy Inc. (NASDAQ:XEL) in its Q1 2026 investor letter:
“Our build-up in exposure to Utilities in the last year aided relative performance in the quarter as the generally defensive sector overweight helped in a market that proved relatively choppy. The Fund owns Xcel Energy (NASDAQ:XEL) which we believe should benefit from stable and visible earnings growth from attractive service areas with favorable regulatory oversight.”
2. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 60
Dividend Yield as of June 25: 6.82%
The Kraft Heinz Company (NASDAQ:KHC) is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world.
On June 18, The Kraft Heinz Company (NASDAQ:KHC) announced that it would reorganize its global operating structure into three regions effective July 1, to help drive growth, sharpen focus, and more effectively deploy resources across its portfolio of iconic brands. The three regions will be North America (NA), Europe and Pacific Developed Markets (EPDM), and Emerging Markets (EM). Under the new structure, the company will combine Asia Emerging Markets and West and East Emerging Markets into one Emerging Markets Region.
Kraft Heinz announced that the appointment of Marcel Regis will lead the new Emerging Markets region, while Willem Brandt will continue to serve as Regional President of EPDM, and Nico Amaya will continue to lead North America. Moreover, the company will combine Procurement and Supply Chain into one central function under Janelle Aydin.
Steve Cahillane, CEO of The Kraft Heinz Company (NASDAQ:KHC) commented:
“We are building momentum across many areas of the business, and this regional structure will help us meaningfully accelerate and scale our progress. Additionally, combining Procurement and Supply Chain into one central function allows us to more effectively manage our end-to-end value chain and strengthen supply chain resilience. As a company, we are proving that iconic brands can evolve, scale and win. This new structure positions Kraft Heinz to unlock the full potential of our portfolio and drive sustainable, volume-led growth across our global business.”
1. CME Group Inc. (NASDAQ:CME)
Number of Hedge Fund Holders: 70
Dividend Yield as of June 25: 2.31%
Topping our list of the Best Dividend Stocks on NASDAQ is CME Group Inc. (NASDAQ:CME). It is the world’s leading and most diverse derivatives marketplace offering the widest range of futures and options products for risk management.
On June 22, TD Cowen lowered its price target on CME Group Inc. (NASDAQ:CME) from $332 to $273, but maintained a ‘Buy’ rating on the shares. Despite the cut, the revised price objective reflects an upside of over 21% from the current levels.
TD Cowen reduced its price targets across most of its exchange coverage. According to the analyst firm, the growing popularity of perpetual futures is likely to sustain concerns about “terminal value” and limit stock multiples, even as trading volumes continue to trend positively.
On the other hand, Keefe Bruyette upgraded CME Group Inc. (NASDAQ:CME) from ‘Market Perform’ to ‘Outperform’ on June 18, while keeping its price target on the stock unchanged at $305.
CME is down by over 20% over the last month, and KBW believes that the selloff has created an “extremely attractive” risk/reward opportunity. The analyst firm attributed the decline to concerns surrounding perpetual futures, but noted that these fears are largely overblown for exchanges in general and for CME in particular, due to the company’s limited retail exposure and its index licensing business in equity products.
Keefe also expects the trading volumes to improve for CME and believes that this momentum will continue into the second half of the year, given its favorable outlook on rate activity.
While we acknowledge the potential of CME 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 CME and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 12 Best S&P 500 Stocks to Buy for Dividends and 12 High Yield Fortune 500 Stocks to Buy Now
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