In this article, we will take a look at the 5 Best S&P 500 Dividend Stocks to Buy Right Now. For deeper discussion and analysis, read 10 Best S&P 500 Dividend Stocks to Buy Right Now.
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5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 72
On June 12, TD Cowen lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $150 from $165. It reiterated a Hold rating on the shares. The firm reduced its forecast for second-quarter organic growth to below consensus expectations, citing weak retail trends in the U.S. TD Cowen also lowered its fiscal 2027 earnings-per-share growth estimate to 5%, pointing to the timing of commodity cost inflation as a key factor.
On the same day, Piper Sandler analyst Michael Lavery lowered his price goal on PepsiCo to $178 from $181. He maintained an Overweight rating on the stock. The firm said it remains positive on PepsiCo’s portfolio of brands and its ability to return to sustainable growth. At the same time, Piper acknowledged that the company’s recovery path may not be smooth and that cost pressures are increasing. In the near term, the firm sees slower-than-expected distribution momentum in PepsiCo’s salty snacks business. Even so, it expects conditions to improve as new product innovations reach the market and delayed shelf resets are completed.
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells a wide range of beverages and convenient foods worldwide.
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
On June 11, Reuters reported that Honeywell International Inc. (NASDAQ:HON) is targeting acquisitions valued between $2 billion and $4 billion and sees significant opportunities for deals within its industrial automation business.
“There is a ton of opportunity for M&A,” Peter Lau, president of Honeywell’s Industrial Automation unit, said during the company’s investor day in New York. He added that the business operates in a market worth roughly $35 billion. At the broader company level, Honeywell indicated that it plans to focus on bolt-on acquisitions within its preferred $2 billion to $4 billion range. This marks a narrower focus compared with its previous preferred deal size range of $1 billion to $7 billion.
Over the past several years, Honeywell has spent about $14 billion on roughly 10 acquisitions, primarily concentrating on bolt-on deals valued between $1 billion and $2 billion. The company has also combined those acquisitions with divestitures and planned spinoffs as part of an effort to simplify its business structure.
When asked whether larger acquisitions remain an option, Chief Executive Vimal Kapur told investors that, while circumstances can change, the company does not currently “see any necessity to go away from our fundamental strategy.”
Honeywell International Inc. (NASDAQ:HON) is an integrated operating company serving a wide range of industries and geographic markets. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 78
On June 12, Bernstein initiated coverage of The Procter & Gamble Company (NYSE:PG) with a Market Perform rating. It set a $156 price target on the stock. The firm said the company continues to face pressure from private-label products in “more commoditized categories” such as bathroom tissue, as well as from smaller competitors in the disposable diaper market. According to the analyst, these challenges are unlikely to disappear anytime soon. Bernstein also noted that its earnings growth estimates for Procter & Gamble are below broader market expectations.
During the company’s fiscal Q3 2026 earnings call, Chief Financial Officer Andre Schulten said Procter still expected organic sales growth of up to 4% for the fiscal year. He noted that fourth-quarter organic sales growth was expected to come in slightly below the level reported in the third quarter.
Schulten also said the company’s guidance called for core EPS growth of up to 4% year over year. This represents an earnings range of $6.83 to $7.09 per share. He added that Procter & Gamble now expects an after-tax headwind of about $150 million for the fiscal year. The impact is tied to commodity cost inflation, feedstock exposure, and logistics disruptions related to the conflict in the Middle East. Given those pressures, Schulten indicated that full-year EPS is now expected to fall toward the lower end of the company’s guidance range.
The Procter & Gamble Company (NYSE:PG) manufactures and sells branded consumer packaged goods around the world. Its operations are organized across five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
On June 12, Morgan Stanley raised its price recommendation on Cisco Systems, Inc. (NASDAQ:CSCO) to $130 from $120. It reiterated an Overweight rating on the shares. The firm said that growing inference workloads and increasing CPU intensity are driving a new wave of front-end infrastructure upgrades. Against that backdrop, Morgan Stanley views Cisco and Arista Networks (ANET) as its preferred ways to benefit from what it considers “an underappreciated front-end networking refresh cycle.”
Earlier, on June 8, BofA raised its price goal on Cisco to $150 from $135. It kept a Buy rating on the stock. The firm also increased price targets for Arista Networks and Extreme Networks (EXTR) following a series of networking-focused sessions held during its Global Technology Conference in San Francisco.
Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells a broad range of technologies that support the internet. The company is integrating its product portfolio across networking, security, collaboration, applications, and cloud services.
1. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 115
On June 11, Scotiabank lowered its price recommendation on Oracle Corporation (NYSE:ORCL) to $241 from $290. It reiterated an Outperform rating on the shares. The firm said it continues to like Oracle’s “rock solid core software business” and believes the stock’s risk-reward profile remains tilted to the upside.
Also on June 11, RBC Capital maintained a Sector Perform rating on Oracle with a $190 price target following what it described as mixed fourth-quarter results. The company reported total revenue that came in above estimates, while Cloud revenue fell short of consensus expectations. Oracle Cloud Infrastructure (OCI) revenue grew 93% year over year, matching consensus forecasts. Management also noted that the Bring Your Own Hardware (BYOH) portion of Oracle’s large AI contracts has now reached $75B. According to RBC Capital, this should help reduce Oracle’s financing requirements.
Oracle Corporation (NYSE:ORCL) provides integrated application suites along with secure, autonomous infrastructure through Oracle Cloud. The company operates across three business segments: cloud and license, hardware, and services.
While we acknowledge the potential of ORCL 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 ORCL and that has 100x upside potential, check out our report about the cheapest AI stock.
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