In this article, we will take a look at the 5 Best Rising Dividend Stocks to Buy Right Now. For deeper discussion and analysis, read 11 Best Rising Dividend Stocks to Buy Right Now.
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5. Illinois Tool Works Inc. (NYSE:ITW)
Number of Hedge Fund Holders: 54
On May 4, Wells Fargo analyst Joseph O’Dea raised the firm’s price recommendation on Illinois Tool Works Inc. (NYSE:ITW) to $255 from $245. It reiterated an Underweight rating on the shares. The firm said sentiment around short-cycle capital expenditure demand remained positive. It also noted that Food Equipment and Specialty Products weighed on Q1 organic growth, while attention has shifted toward a recovery in Q2 and expectations for solid margin expansion.
During the company’s Q1 2026 earnings call, President, CEO, and Director Christopher O’Herlihy said ITW delivered a solid start to the year, with results largely in line with expectations. He said revenue increased 5% during the quarter, while GAAP EPS rose 12% to $2.66. Operating margin also improved by 60 basis points to 25.4%.
O’Herlihy added that the company raised its full-year GAAP EPS guidance by $0.10 while keeping its organic growth outlook unchanged at 1% to 3%. He also said ITW still expects operating margin expansion of about 100 basis points and anticipates all seven business segments to deliver positive organic growth and margin expansion in 2026.
Senior Vice President and CFO Michael Larsen said total revenue growth came in at 4.6%. The increase included 0.4% organic growth, a 3.9% benefit from foreign currency translation, and a 0.3% contribution from an acquisition. Larsen added that product line simplification initiatives, PLS efforts, and delayed sales to the Middle East reduced the company’s organic growth rate by roughly one percentage point.
Illinois Tool Works Inc. (NYSE:ITW) manufactures a wide range of industrial products and equipment worldwide. The company operates through segments including Automotive OEM, Food Equipment, Test & Measurement, Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products.
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 59
On May 15, CNBC reported that Starbucks Corporation (NASDAQ:SBUX) is making another round of corporate job cuts as the company pushes ahead with its turnaround strategy under CEO Brian Niccol. The coffee chain said it will eliminate 300 US corporate positions and has also started reviewing its international support workforce. The layoffs will not affect employees working in Starbucks stores.
The company said the latest restructuring steps, which also include closing some regional support offices and reevaluating office space needs, are expected to result in about $400 million in charges. Starbucks expects around $280 million of that to come from noncash asset impairment charges, while another $120 million will be tied to severance and other cash-related restructuring costs.
This is the third round of layoffs since Niccol took over as CEO. Back in February 2025, Starbucks announced plans to cut 1,100 jobs and leave several hundred open positions unfilled. About seven months later, the company revealed another 900 nonretail job cuts as part of a broader $1 billion restructuring effort.
As of September 28, 2025, Starbucks had roughly 9,000 non-retail employees in the US and another 5,000 workers in international regional support roles, according to a regulatory filing.
Starbucks Corporation (NASDAQ:SBUX) is one of the world’s largest specialty coffee retailers, with operations spanning North America, China, Japan, Asia Pacific, Europe, the Middle East, Africa, Latin America, and the Caribbean.
3. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 62
On May 5, Barclays raised its price recommendation on Colgate-Palmolive Company (NYSE:CL) to $80 from $79. It reiterated an Equal Weight rating on the shares. The firm said it believes the company is focusing on achieving a better balance between pricing and volume growth in 2026.
A few days earlier, on May 2, Goldman Sachs raised its price goal on Colgate-Palmolive to $100 from $98. It maintained a Buy rating on the stock. The firm pointed to the company’s stronger-than-expected Q1 results, with both revenue and earnings coming in ahead of expectations. According to the analyst, organic sales growth was higher than anticipated, while broad-based strength across the business also supported slightly better-than-expected gross margins. Goldman Sachs added that EBIT margins remained in line with expectations even as advertising spending increased 10% during the quarter.
Colgate-Palmolive Company (NYSE:CL) focuses on oral care, personal care, home care, and pet nutrition products.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 86
On May 11, Bernstein lowered its price recommendation on Chevron Corporation (NYSE:CVX) to $204 from $216. It reiterated a Market Perform rating on the shares. The firm said oil markets could still move in several directions from here, including the extreme possibility of the Strait of Hormuz remaining closed for years. Even so, Bernstein updated its models based on the assumption that conditions would return to normal by mid-year.
On May 7, Goldman Sachs raised its price goal on CVX to $216 from $211. It maintained a Buy rating on the stock. The analyst said the company continues to show a strong free cash flow outlook, supported by its upstream assets and possible upside tied to Venezuela. The note also pointed to Chevron’s disciplined capital allocation, structural cost reductions, solid balance sheet, and its exploration and production strategy across international markets, US operations, and efficiency efforts.
Chevron Corporation (NYSE:CVX) is an integrated energy company that produces crude oil and natural gas. It also manufactures transportation fuels, lubricants, petrochemicals, and additives, while developing technologies aimed at supporting its operations and the broader energy industry. The company operates through its Upstream and Downstream segments.
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 98
On May 14, Wells Fargo lowered its price recommendation on The Home Depot, Inc. (NYSE:HD) to $375 from $420. It reiterated an Overweight rating on the shares. The firm said discretionary spending remains out of favor, recent industry checks came in soft, and companies guiding toward a stronger second half of the year are facing skepticism from investors. Wells Fargo added that nearly every company in its Hardlines coverage has declined year-to-date as hopes for stimulus faded, oil prices climbed, and broader demand trends weakened.
On May 14, Bernstein lowered its price goal on Home Depot to $365 from $390. It maintained a Market Perform rating on the shares. Ahead of Q1 home improvement earnings, the firm said expectations remain muted for both Home Depot (HD) and Lowe’s (LOW). Bernstein expects Home Depot to post stronger comparable sales, partly because the SRS acquisition increased its exposure to repair and maintenance demand tied to snowstorm activity. For the full year, the firm does not expect either Home Depot or Lowe’s to revise guidance yet, as both companies are still considering a wide range of possible market conditions.
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that sells building materials, lawn and garden products, home decor items, and maintenance, repair, and operations (MRO) products through its stores and online platform.
While we acknowledge the potential of HD 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 HD and that has 100x upside potential, check out our report about the cheapest AI stock.
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