In this article, we are going to discuss the best low-risk dividend stocks to invest in.
Rising market volatility has pushed dividend-paying stocks back into focus. Investors often turn to these names when markets get rough. They tend to hold up better during downturns, and over time, they have also delivered a mix of steady income and capital growth that adds up across full market cycles.
A report from Ridgeworth Investments pointed out that dividend-paying stocks offer more than just income. They also support long-term growth. Since the 1930s, reinvested dividends have made up close to 50% of total equity returns. When stock prices fall, dividends can soften the blow. Over longer periods, higher-yielding stocks have produced stronger returns with much less risk than lower-yielding names.
The report also looked at the long-term performance of the largest 1,000 stocks by market value, grouped by dividend yield. Stocks in the higher-yield categories, specifically quintiles one through three, showed better returns with lower risk compared with stocks that offered little or no yield.
Another takeaway stood out. Dividend-paying stocks beat non-dividend payers in four of the past five decades, a stretch that included both strong bull markets and difficult downturns. Even in the periods when dividend payers lagged, the gap was small. Their underperformance was limited, especially when compared with the deeper drawdowns seen in stocks that paid no dividends at all.
With that said, here are the Best Low-Risk Dividend Stocks to Buy Now.
Photo by Dan Dennis on Unsplash
Our Methodology
To collect data for this article, we looked for dividend companies with strong histories and sound financials, and then shortlisted the ones with a beta of less than 1.0 over the past years, using monthly price data. Beta lower than 1.0 shows that these stocks are less volatile than the overall market. We also considered the 5-year average revenue growth of these companies as well. The following are the Best Low-Risk Dividend Stocks to Buy. The stocks are ranked according to their beta value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here)
7. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Beta (5Y Monthly): 0.97
5-Year Average Revenue Growth: 14.26%
Huntington Bancshares Incorporated (NASDAQ:HBAN) operates as a regional bank holding company. Through its main banking unit, Huntington National Bank, and related affiliates, it serves consumers as well as small and mid-sized businesses, corporations, municipalities, and other organizations.
On January 26, Truist analyst Brian Foran lifted his price recommendation on Huntington Bancshares Incorporated (NASDAQ:HBAN) Bancshares Incorporated (NASDAQ:HBAN) to $21 from $20. The analyst also reiterated a Buy rating after the bank posted a stronger-than-expected Q4. That said, the firm trimmed its FY26 EPS forecast by 7% to $1.70, pointing to a higher expense outlook as the main reason for the adjustment, according to the research note.
Separately, a January 22 Reuters report said Huntington expects its interest income to reach a record level in 2026. The bank is seeing faster loan growth and wider margins, helped by improving industry conditions. Borrowing activity has picked up across the banking sector as the U.S. Federal Reserve has started cutting rates, while easing deposit costs are also improving the profitability outlook.
Huntington now expects net interest income to grow between 10% and 13% for the full year on a standalone basis. The bank generated $6.06 billion in NII in 2025. It also agreed in October to acquire smaller rival Cadence Bank in a $7.4 billion deal. Once completed, the transaction is expected to contribute an additional $1.85 billion to $1.90 billion to full-year NII. On a standalone basis, Huntington sees average loan growth of 11% to 12% this year, with average deposits projected to rise between 8% and 9%.
6. Badger Meter, Inc. (NYSE:BMI)
Beta (5Y Monthly): 0.91
5-Year Average Revenue Growth: 15.54%
Badger Meter, Inc. (NYSE:BMI) is a global manufacturer and marketer of flow measurement, water quality, control, and related system solutions serving a wide range of end markets worldwide.
On January 29, Seaport Research analyst Scott Graham cut Badger Meter, Inc. (NYSE:BMI)’s price objective to $220 from $255. The analyst maintained a Buy rating. The adjustment follows a slower pace of sales growth in the first half of the year, though the firm noted that visibility around a second-half pickup has improved, according to the research note.
Speaking on the Q4 2025 earnings call, Chairman, President, and CEO Kenneth Bockhorst said the company finished the year with strong momentum. He pointed to a solid fourth quarter and another full year of record sales, profits, and cash generation. Demand for the cellular AMI offering remained healthy, while the integration of SmartCover into the BlueEdge smart water management platform continued to progress well. He also highlighted the PRASA AMI project win in Puerto Rico as an important step that strengthens the company’s competitive position and supports longer-term growth.
CFO and Treasurer Daniel Weltzien said fourth-quarter sales came in at $221 million, up 8% from the prior year, with base sales rising 2%. Operating margins edged up to 19.5% from 19.1%, while base operating earnings increased 9% year over year, pushing base operating margins to 20.5%. Gross margins also improved, climbing to 42.1% from 40.3% in the same quarter last year.
5. HF Sinclair Corporation (NYSE:DINO)
Beta (5Y Monthly): 0.83
5-Year Average Revenue Growth: 21.66%
HF Sinclair Corporation (NYSE:DINO) is a U.S.-based petroleum refiner with a focus on products such as gasoline, diesel, jet fuel, and related offerings.
On January 27, Morgan Stanley analyst Joe Laetsch raised his price target on HF Sinclair Corporation (NYSE:DINO) to $61 from $60 and kept an Overweight rating. He pointed out that refining stocks are up about 10% year-to-date, helped by wider light and heavy crude differentials tied to recent events in Venezuela.
After updating for current forward crack spreads, the firm’s Q1 EPS estimates for large-cap refiners sit roughly 5% to 10% below consensus on average. That view came as part of Morgan Stanley’s Q4 preview for the sector. Over the longer term, the firm still sees reasons to stay positive on refining, though it continues to rate the industry In-Line, largely due to valuations.
Earlier, on December 8, HF Sinclair Corporation said one of its subsidiaries had signed a definitive agreement to acquire Industrial Oils Unlimited for $38 million, including around $15 million of working capital. Based on expectations for 2027, the deal implies an EBITDA multiple of about 3.5x once synergies are included.
The addition of IOU, a business known for its value-added service model, customized solutions, and the well-established DX brand, is expected to strengthen HF Sinclair’s standing in lubricants and specialty fluids. Management sees the transaction as a practical step toward expanding its role as an innovator in that market.
4. Brown & Brown, Inc. (NYSE:BRO)
Beta (5Y Monthly): 0.81
5-Year Average Revenue Growth: 15.04%
Brown & Brown, Inc. (NYSE:BRO) operates as an insurance broker, linking clients with insurers across a broad range of coverage. The business centers on risk management, with a focus on property, casualty, and employee benefits insurance products.
On January 29, BMO Capital cut its price objective on Brown & Brown, Inc. (NYSE:BRO) to $81 from $88. The firm kept a Market Perform rating following the company’s Q4 results. The analyst noted that the stock is starting to look discounted versus its historical P/E relationship with the S&P 500. Even so, the firm does not see a clear near-term catalyst that would help the shares gain traction right away.
A few days earlier, on January 26, Brown & Brown reported higher adjusted profit for the fourth quarter, driven by stronger commission and fee income. The market reaction was less supportive. Shares dropped close to 6% as investors focused on signs of slowing organic growth. Organic revenue came in at $1.08 billion for the quarter ended December 31, down from $1.11 billion a year earlier.
Commissions and fees told a different story. Those rose 36% year over year to $1.58 billion. As a result, total revenue climbed to $1.61 billion, compared with $1.18 billion in the same quarter last year. Investment and other income also moved higher, reaching $27 million versus $23 million a year ago. Adjusted earnings increased to $0.93 per share, up from $0.86 in the prior-year period.
3. Arthur J. Gallagher & Co. (NYSE:AJG)
Beta (5Y Monthly): 0.68
5-Year Average Revenue Growth: 11.09%
Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage and consulting firm, operating across brokerage services, risk management, and corporate solutions.
On January 30, Truist trimmed its price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $271 from $280. The firm also kept a Hold rating after reviewing the company’s Q4 results. The analyst said the move reflects valuation pressure across the P&C brokerage space. Even so, Truist views the stock as fairly valued at its current multiple, which already sits near the top of the range for large peers.
The day before, on January 29, the company reported a 24.5% increase in adjusted fourth-quarter profit. Stronger commissions and fees drove the upside as demand held firm. Insurance spending has stayed resilient, with businesses and individuals continuing to prioritize coverage against financial risks, natural disasters, and other potential losses, even while cutting back elsewhere.
Commissions climbed to $2.06 billion in the quarter, up from $1.50 billion a year earlier. Total fees rose nearly 34.8% to $1.2 billion. Insurance brokers work between clients and insurers, helping customers find coverage that fits their needs rather than selling policies directly. Their revenue is largely tied to commissions on premiums, which links performance closely to overall insurance activity.
Adjusted net profit came in at $620 million, or $2.38 per share, for the three months ended December 31. That compares with $498 million, or $2.16 per share, in the same period last year.
2. Diamondback Energy, Inc. (NASDAQ:FANG)
Beta (5Y Monthly): 0.58
5-Year Average Revenue Growth: 38.16%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and gas producer focused on unconventional onshore assets, with its core operations centered in the Permian Basin of West Texas.
On January 28, Piper Sandler nudged its price target on Diamondback Energy, Inc. (NASDAQ:FANG) up to $218 from $215 and kept an Overweight rating. In its sector view, the firm said it expects gas-focused names to deliver solid Q4 results. Oil producers had a tougher setup, weighed down by WAHA pricing and softer oil and NGL prices. Looking into FY26, Piper expects most oil companies to stick to maintenance-style programs, while several gas producers are pushing for growth as LNG demand picks up.
Earlier in the month, on January 13, Diamondback Energy, Inc. said it received lower prices for its oil in the fourth quarter compared with the prior three months. Crude prices fell 9.2% in the period ended December 31, with markets more focused on oversupply and tariff concerns than geopolitical risks. In that environment, Diamondback’s average realized oil price dropped to $58.00 per barrel, down from $64.60 in the third quarter.
The update echoed comments from Exxon Mobil, which warned that weaker crude prices could cut quarterly upstream earnings by roughly $800 million to $1.2 billion.
Looking ahead, analysts expect Diamondback to report adjusted earnings of $2.64 per share for the fourth quarter and $12.98 per share for the full year, according to LSEG estimates.
1. Eli Lilly and Company (NYSE:LLY)
Beta (5Y Monthly): 0.35
5-Year Average Revenue Growth: 18.78%
Topping our list of the Best Low-Risk Dividend Stocks is Eli Lilly and Company (NYSE:LLY). The company discovers, develops, and markets human pharmaceuticals in the United States, Europe, China, Japan, and internationally.
According to a January 29 report by Reuters, Eli Lilly and Company (NYSE:LLY) is teaming up with Repertoire Immune Medicines in a partnership that could be worth as much as $1.93 billion. The focus is on developing new treatments for multiple autoimmune diseases.
Under the deal, Repertoire will receive $85 million upfront, with the potential for another $1.84 billion tied to development and commercial milestones. The agreement also includes tiered royalties on future net sales. The goal is to create therapies that restore the immune system and deliver lasting disease remission, without relying on the broad immune suppression seen in many current treatments.
As part of the collaboration, Lilly will gain access to Repertoire’s Decode platform, which studies how T cells recognize and bind to specific targets on diseased cells. Repertoire will run the work through early discovery, after which Lilly will take over clinical development, manufacturing, regulatory activities, and commercialization.
Repertoire CEO Torben Nissen said the company is also advancing programs aimed at identifying and developing treatments for several solid tumors, including lung, breast, and head and neck cancers.
Lilly has been steadily building out its immunology business through deals and acquisitions. That push includes the $3.2 billion purchase of Morphic Holding in 2024, a move designed to strengthen its inflammatory bowel disease pipeline.
Today, Eli Lilly and Company (NYSE:LLY)’s immunology portfolio includes medicines such as Olumiant, Taltz, and Omvoh. These treatments are used across conditions ranging from arthritis and immune-related hair loss to inflammatory skin diseases like psoriasis and chronic bowel disorders such as ulcerative colitis.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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