In this article, we will take a look at the 5 Best S&P 500 Stocks to Buy for Dividends. For a deeper discussion and analysis, please refer to the 12 Best S&P 500 Stocks to Buy for Dividends.
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5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 74
Dividend Yield as of June 23: 3.00%
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On June 22, Roth Capital upgraded ConocoPhillips (NYSE:COP) from ‘Neutral’ to ‘Buy’ and also raised its price objective on the stock from $124 to $130. The revised target implies an upside of over 18% from the current levels.
Roth Capital upgraded several exploration and production companies, noting that global oil prices appear close to a short-term bottom with a potential US-Iran ceasefire “seeming tenuous”. The analyst firm highlighted that many oil exploration and production stocks have fallen by 15%-25% from their YTD highs and are now trading at more compelling valuations.
Roth expects lasting damage to the key oil infrastructure in the Middle East and anticipates additional oil volumes to pass through the waterway of Hormuz, but it believes that these factors have already been reflected in share prices. The analyst firm expects the global crude prices to stabilize at the $75 per barrel mark in the near term.
4. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Dividend Yield as of June 23: 6.96%
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States and internationally. The company’s global portfolio includes medicines and vaccines, as well as many of the world’s best-known consumer health care products.
Pfizer Inc. (NYSE:PFE) announced on June 18 that its CFO, Dave Denton, will step down from his current role and leave the company on August 15 to pursue an opportunity in the consumer goods sector. He will be replaced by Cecile Guegan as Interim CFO, effective August 16, while the pharma giant conducts a comprehensive internal and external search.
At the same time, Pfizer Inc. (NYSE:PFE) also reaffirmed its outlook for FY 2026. It continues to target total company revenues in the range of $59.5 billion to $62.5 billion and adjusted diluted earnings in the range of $2.80 to $3 per share for the year. The guidance assumes adjusted gross margins in the mid-70s range, in addition to cost discipline and investment.
With a robust annual dividend yield of 6.96%, Pfizer Inc. (NYSE:PFE) was also recently included in our list of the 12 High Yield Fortune 500 Stocks to Buy Now.
3. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 84
Dividend Yield as of June 23: 4.14%
Blackstone Inc. (NYSE:BX) is the world’s largest alternative asset manager, with more than $1.3 trillion in AUM. The company serves institutional and individual investors by building strong businesses that deliver lasting value.
On June 16, Blackstone Inc. (NYSE:BX) announced the launch of SablePointe Credit Strategies, a new platform to support origination, underwriting, and portfolio management in asset-based lending. The strategic move reflects the company’s ambitions to push its way into the lending business, where banks traditionally dominate.
The Georgia-based SablePointe will initially support Blackstone Credit & Insurance (BXCI) asset-based and first-out direct lending credit strategies, with plans to expand into additional specialty asset classes down the line. The platform bolsters BXCI’s scale, capital resources, and global reach by contributing deep industry knowledge and specialized structuring capabilities.
The asset manager has hired James Garlick, former co-founder of Wingspire, as SablePoint’s president to lead its buildout and growth.
Aneek Mamik, Head of Financial Services for Asset-Based Finance for BXCI, commented:
“This is an important new platform for origination and strengthens our ability to be a one-stop capital solutions provider for companies. We look forward to working with James and his team to originate high-quality opportunities across the asset-based lending markets.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
Dividend Yield as of June 23: 2.95%
Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world.
It was reported on June 16 that Exxon Mobil Corporation (NYSE:XOM) has applied for environmental authorization for a 35-well exploration campaign in the Stabroek block off the coast of Guyana. According to the country’s Environmental Protection Agency, the campaign is expected to run from 2028 to 2033 and would occur simultaneously with other drilling programs.
While the EPA thinks that the project by itself will not significantly impact the marine environment and thus an environmental impact assessment is not required, it noted that a cumulative impact assessment needs to be filed.
The American oil and gas giant began oil production in Guyana in 2019 and reported $4.67 billion in profit from its operations in the South American country in 2025. Exxon currently produces more than 900,000 barrels per day from Guyana and remains on track to expand its installed capacity to 1.7 million bpd by 2030.
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 96
Dividend Yield as of June 23: 2.13%
Topping our list of the Best S&P 500 Dividend Stocks is Union Pacific Corporation (NYSE:UNP). The company connects 23 western US states, providing efficient railroad transportation, freight shipping, logistics, and rail safety services.
Union Pacific Corporation (NYSE:UNP) held an investor conference last week in which the company reiterated its key financial and operating assumptions for the year. The firm is expecting inflation, excluding fuel, for the year to be around 4% compared with 2025, while depreciation is forecasted to rise by 4% YoY. Moreover, it is projecting merger-related costs of about $25 million per quarter and a tax rate of approximately 24%.
Union Pacific Corporation (NYSE:UNP) also reaffirmed its capital expenditure target of about $3.3 billion for 2026. The investment will go toward infrastructure replacement, capacity and commercial facilities, technology investments, and locomotive and equipment upgrades.
Union Pacific management also outlined the company’s volume outlook across business segments for the year. The railroad operator remains optimistic in areas such as grain and grain products exports, supported by soybeans and renewable fuels policy clarity. Moreover, it is expecting growth in industrial chemicals and plastics tied to new business wins and plant expansions.
While we acknowledge the potential of UNP 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 UNP and that has 100x upside potential, check out our report about the cheapest AI stock.
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