In this article, we will take a look at the 5 No-Brainer Dividend Stocks to Buy. For deeper discussion and analysis, 10 No-Brainer Dividend Stocks to Buy.
Image by Steve Buissinne from Pixabay
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
On June 3, Goldman Sachs analyst Joe Ritchie raised his price target on Honeywell International Inc. (NASDAQ:HON) to $276 from $258 and maintained a Buy rating on the shares. In a research note, Ritchie said Honeywell’s planned Aerospace separation remains on schedule for June 29. Following the spin-off, the automation business will operate as Honeywell Technologies, while the aerospace business will trade under the ticker HONA. The analyst also pointed to lower-than-expected stranded costs, several upcoming investor events, and Quantinuum’s IPO filing as positive developments. According to Ritchie, the IPO filing provides another valuation benchmark as Honeywell continues its broader restructuring efforts.
Earlier, on May 27, Barclays raised its price target on Honeywell to $251 from $243 and maintained an Overweight rating on the stock. The firm said Honeywell has “clear catalysts ahead,” including two capital markets days and two planned spin-offs in the coming weeks. Barclays believes the shares could have 10% to 15% upside potential before those transactions are completed.
Honeywell International Inc. (NASDAQ:HON) is an integrated operating company that serves customers across a wide range of industries and regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.
4. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 78
On June 3, Morgan Stanley raised its price recommendation on Philip Morris International Inc. (NYSE:PM) to $200 from $190. It reiterated an Overweight rating on the shares. The firm said its confidence improved following updates shared by Philip Morris at a recent investor conference. The company announced that Zyn Ultra will launch in the U.S. this month and also provided an update on IQOS in Japan. At the same time, Morgan Stanley lowered its Q2 and full-year 2026 estimates by $0.05 per share to reflect foreign exchange impacts, in line with the company’s updated outlook.
On June 2, Reuters reported that Philip Morris lowered its annual profit forecast because of currency fluctuations. Even so, CEO Jacek Olczak said other risks to achieving the company’s outlook, including rising energy prices, were manageable.
Speaking at the Deutsche Bank Global Consumer Conference, Olczak said recent U.S. FDA actions to ease enforcement on unauthorized vaping products and nicotine pouches were a “net positive.” He said the move reduces regulatory uncertainty around Zyn and should support growth across the category.
Philip Morris now expects 2026 adjusted earnings per share of $8.31 to $8.46, representing growth of 10.2% to 12.2% from 2025 levels. The updated range is lower than its previous forecast of $8.36 to $8.51. Analysts had been expecting earnings of $8.41 per share. Olczak also said the company has more flexibility than initially expected this year to offset certain headwinds.
Philip Morris International Inc. (NYSE:PM) is an international tobacco company. Its portfolio includes cigarettes and smoke-free products. The smoke-free business also includes wellness and healthcare products, along with consumer accessories such as lighters and matches.
3. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 83
On June 1, CNBC reported that McDonald’s Corporation (NYSE:MCD) unveiled a new global growth strategy aimed at helping the fast-food giant remain its customers’ top choice as it faces increasing competition and pressure from consumers dealing with high gas prices.
The strategy, called “McDonald’s > NEXT,” is built around four key areas: a new restaurant design, better-tasting food and beverages, consumer-led innovation, and improved customer service. Company executives introduced the plan during McDonald’s biennial Worldwide Convention for franchisees in Las Vegas. The company’s previous global strategy, “Accelerating the Arches,” was launched in November 2020 as sales recovered from the pandemic.
The new growth plan comes at a time when restaurants are competing for a smaller pool of customers. McDonald’s is also facing growing competition from newer chains such as Raising Cane’s and 7 Brew Drive-Thru Coffee. Even so, the company has maintained its leading position as the largest US restaurant chain by revenue, supported by four consecutive quarters of same-store sales growth.
As part of the strategy, McDonald’s plans to introduce a new restaurant design that gives locations a more recognizable look while making operations easier for employees. The company said its back-end systems will be more intuitive and better connected, helping improve kitchen efficiency.
McDonald’s is also testing automated order-taking technology at five US restaurants through a system called ARCHY. The goal is to allow employees to focus on other tasks. On a broader level, the company said it wants to “redefine hospitality” by improving customer service and encouraging employees to engage more with diners.
McDonald’s Corporation (NYSE:MCD) is a global foodservice retailer. Its operating segments include the US, International Operated Markets, and International Developmental Licensed Markets & Corporate.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 107
On June 1, DA Davidson maintained its Neutral rating on Costco Wholesale Corporation (NASDAQ:COST). It also set a $1,000 price target on the stock. At the same time, the firm added the stock to its “Best-of-Breed Bison List,” a group of companies it believes offer strong business opportunities, durable competitive advantages, solid financial performance, and attractive risk-reward profiles.
According to the analyst, Costco has positioned itself as a destination where consumers can stock up on goods every few weeks. The company stands out through its high-quality private-label products, a well-balanced general merchandise selection, and additional businesses such as pharmacy, optical, and gas services that help bring customers into its warehouses.
The analyst also noted that Costco’s warehouse model has one of the strongest competitive advantages in retail. The business benefits from low prices, efficient distribution, and a relatively limited number of SKUs, creating significant barriers to entry for competitors. Membership fee income further supports the model and adds another layer of stability to the business.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that offer a range of nationally branded and private-label products across multiple categories.
1. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 115
On June 2, Scotiabank raised its price recommendation on Oracle Corporation (NYSE:ORCL) to $290 from $215. It reiterated an Outperform rating on the stock. The firm said it continues to favor Oracle’s structural position in the AI-accelerated cloud market. While the analyst expects the shares to remain “choppy” over the next few weeks, Scotiabank believes the stock’s risk-reward profile still leans to the upside.
Earlier, on May 13, Wedbush raised its price goal on Oracle to $275 from $225. It maintained an Outperform rating. The firm said its confidence increased following additional checks on Oracle’s position within the AI infrastructure landscape. Wedbush argued that the market continues to misunderstand the Oracle story. According to the firm, investors are placing too much focus on the near-term appearance of the company’s heavy, contract-backed capital spending cycle and not enough on the demand visibility supporting those investments.
The firm also said it has become more comfortable with Oracle’s relationship with OpenAI and is more constructive on the broader data center opportunity. In Wedbush’s view, concerns surrounding Oracle remain overdone, while the company is becoming increasingly well-positioned to emerge as a global AI winner.
Oracle Corporation (NYSE:ORCL) provides integrated application suites and secure, autonomous infrastructure through Oracle Cloud. The company operates through 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.
READ NEXT: 15 Best Dividend Paying Stocks to Buy Right Now and 10 Best Long-Term Dividend Stocks to Invest In According to Billionaires
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
