In this article, we will take a look at the best non-REIT dividend stocks to invest in.

Within dividend-paying sectors, real estate investment trusts tend to draw extra attention. Many income-focused investors come back to REITs for a simple reason. Their structure is built around cash flow. By law, REITs must distribute at least 90% of their taxable income to shareholders, which naturally supports regular dividend payments.

A report from Nareit shows how that model held up in 2025. REITs delivered solid operating results despite trade frictions and higher interest rates. Fundamentals stayed intact, balance sheets remained healthy, and access to capital stayed disciplined, according to Nareit’s REIT Industry Tracker. Comparing the first three quarters of 2025 with the same period in 2024, aggregate funds from operations rose 6.2%. Net operating income increased 4.7%, and total dividends paid climbed 6.3%. Those gains reflect steady execution rather than a one-off rebound.

Dividends are not limited to REITs. Other sectors across the market also provide meaningful income to shareholders. As Morningstar Indexes strategist Dan Lefkowitz put it, dividends remain a major priority for investors. He commented:

“By my count, there’s over $1 trillion in funds and ETFs that screen for dividends or dividend-weighted on a global basis.”

That demand explains why dividend strategies continue to grow. Investors are not just looking for yield today. Many are also looking for consistency, resilience, and a return stream they can rely on across different market cycles.

With that said, here are the Best Non-REIT Dividend Stocks to Buy.

Our Methodology:

To collect data for this article, we identified dividend-paying stocks in sectors distinct from REITs, with a dividend yield above 3% as of January 31. Then we shortlisted the companies with the highest number of hedge fund investors at the end of Q3 2025, as per the Insider Monkey database. The following are the Best Non-REIT Dividend Stocks to Buy Now.

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. Open Text Corporation (NASDAQ:OTEX)

Number of Hedge Fund Holders: 14

Dividend Yield as of January 31: 4.31%

Open Text Corporation (NASDAQ:OTEX) develops software that helps large organizations manage information securely and put it to work across cloud, security, and AI workflows. The business leans heavily on recurring revenue from subscriptions and support, which can help smooth results when customer spending becomes uneven.

On January 16, CIBC analyst Stephanie Price cut her price target on Open Text Corporation (NASDAQ:OTEX) to $37 from $40 and kept a Neutral rating. She said the stock is likely to stay in focus this quarter after the company issued weaker-than-expected Q2 guidance in the prior period. Attention now shifts to Q3, where the Street is looking for about 2% growth. CIBC also expects investors to watch closely for updates on potential non-core asset sales.

OpenText continues to push deeper into cloud services and secure information management tied to AI. Enterprise customers still need better governance, stronger security, and more automation as data volumes grow. At the same time, spending on enterprise software can slow, competition remains intense, and integrating past acquisitions requires ongoing discipline.

Tom Jenkins, Executive Chair at OpenText, has laid out a plan to divest non-core business units, potentially trimming up to 20% of company revenue. The aim is to sharpen the company’s focus on content that can help train agentic AI systems. Jenkins has said the decision is not driven by short-term demand, but by a more cautious approach to operations.

6. NorthWestern Energy Group, Inc. (NASDAQ:NWE)

Number of Hedge Fund Holders: 24

Dividend Yield as of January 31: 3.89%

NorthWestern Energy Group, Inc. (NASDAQ:NWE) provides electricity and natural gas services across Montana, South Dakota, Nebraska, and Yellowstone National Park. As a regulated utility, it generates most of its revenue through approved rates tied to delivering power and gas to customers.

On January 22, Barclays raised its price objective on NorthWestern Energy Group, Inc. (NASDAQ:NWE) to $62 from $61. The firm kept an Overweight rating. The change came as part of the firm’s broader Q4 review of the power and utilities sector, where several names saw updated targets.

NorthWestern turned in a solid third quarter. GAAP earnings were $0.62 per share, while adjusted EPS reached $0.79, up from $0.65 a year earlier. Utility margins improved at a double-digit rate compared with last year. Management stuck with its 2025 earnings guidance of $3.53 to $3.65 per share and reiterated its long-term growth target of 4% to 6%. The company also continues to invest heavily, with a $2.7 billion capital plan aimed at expanding its rate base over time.

Alongside the operating results, NorthWestern is managing some meaningful strategic changes. The most notable is its pending all-stock merger with Black Hills Corporation, which was outlined in the Q3 release. If the deal closes next year as expected, it would give the company a larger footprint and more scale.