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.
Photo by nathan dumlao on Unsplash
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.
5. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 42
Dividend Yield as of January 31: 5.12%
Kimberly-Clark Corporation (NASDAQ:KMB) operates globally in personal care, with its business split between North America and international personal care markets.
On January 28, UBS analyst Peter Grom raised his price target on Kimberly-Clark Corporation (NASDAQ:KMB) to $110 from $107 and kept a Neutral rating. He said the core business remains steady, though the overhang tied to Kenvue is likely to linger, according to his research note.
A day earlier, on January 27, Kimberly-Clark Corporation posted quarterly profit that topped expectations. The results reflected tighter cost controls and consistent demand for everyday products like Huggies diapers and Kleenex tissues across North America, China, and other key markets.
In recent years, the Dallas-based company has made some tough choices. It reduced headcount and exited lower-margin businesses, including private-label diapers and personal protective equipment. Those steps helped defend margins. At the same time, management expanded its value-focused product lines, offering lower-priced options that still carry features shoppers associate with premium brands. The goal is straightforward: stay relevant for budget-conscious consumers without losing ground to competitors.
Kimberly-Clark is also in the middle of a larger shift. The company is repositioning itself as a global consumer health business following its $40 billion acquisition of Kenvue, the maker of Tylenol. The transaction is expected to close by year-end and represents a key piece of the company’s long-term strategy.
4. Prudential Financial, Inc. (NYSE:PRU)
Number of Hedge Fund Holders: 44
Dividend Yield as of January 31: 4.86%
Prudential Financial, Inc. (NYSE:PRU) operates as a diversified financial services firm and global investment manager, offering insurance, investment, and retirement products to customers around the world.
On January 28, TD Cowen analyst Andrew Kligerman lifted his price target on Prudential Financial, Inc. (NYSE:PRU) to $113 from $111 and kept a Hold rating. The change came as part of the firm’s Q4 preview for the life insurance group. TD Cowen said it sees a “slight headwind” from lower alternative investment returns heading into earnings, while maintaining a balanced view on the sector overall.
Separately, a January 16 Reuters report said the CEO of Prudential Financial’s Japan life insurance unit will step down after employee misconduct came to light. The company disclosed that about 100 employees were involved in improper activity totaling roughly 3.1 billion yen, or about $19.6 million. Some cases involved embezzlement.
The Japan unit said 498 customers were affected by the newly identified issues. The misconduct included employees improperly receiving money through investment solicitations and personally borrowing funds from customers. CEO and President Kan Mabara will resign effective February 1. He will be replaced by Hiromitsu Tokumaru, who currently serves as president and CEO of Prudential Gibraltar Financial Life Insurance. The situation was first reported earlier in the day by The Asahi Shimbun.
Prudential’s Japan unit first flagged misconduct in 2024 and has been running a broader internal review since August of that year. The company said the investigation expanded after uncovering multiple similar cases involving both current and former employees.
3. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 60
Dividend Yield as of January 31: 6.84%
Altria Group, Inc. (NYSE:MO) focuses on tobacco products for U.S. consumers aged 21 and older, with its business centered on smokeable and oral products and a long-standing emphasis on returning cash to shareholders.
On January 30, Stifel trimmed its price recommendation on Altria Group, Inc. (NYSE:MO) to $68 from $72. The firm, however, kept a Buy rating. The company reported fourth-quarter EPS of $1.30, flat from a year earlier and in line with expectations. The details told a softer story. Operating costs ran higher than expected across both the Smokable and Oral Products businesses, which weighed on underlying performance. Stifel also noted that Altria’s initial 2026 guidance lined up with consensus, with more of the earnings expected to come in the second half of the year.
On the earnings call, Altria Group, Inc. also shared its long-term goals through 2028. Management said it is targeting mid-single-digit adjusted diluted EPS growth, using a $4.871 base from 2022. From that starting point through 2025, Altria delivered a reported diluted EPS growth rate of 8.9% and an adjusted diluted EPS growth rate of 3.6%.
Dividends stayed front and center. The company said it plans to keep raising its payout at a mid-single-digit pace through 2028. Management highlighted, “In 2025, we increased our dividend by 3.9%, marking the 60th increase in the past 56 years. Future dividend payments remain subject to the discretion of our board.”
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 84
Dividend Yield as of January 31: 4.44%
Comcast Corporation (NASDAQ:CMCSA) operates as a global media and technology company, offering broadband, wireless, and video services across its portfolio of consumer and business brands.
On January 30, Scotiabank cut its price target on Comcast Corporation (NASDAQ:CMCSA) to $35.25 from $37.50 and kept a Sector Perform rating. The firm said broadband pressure continued through the fourth quarter, with competition likely to stay intense before any real improvement shows up in the second half of the year.
A January 29 Reuters report added more color. Comcast lost more broadband customers than expected in Q4 as rivals stepped up aggressive promotions. High-speed fiber providers and cheaper fixed-wireless internet plans are pulling customers away, adding pressure to a business long dominated by Comcast and Charter Communications.
Comcast Corporation (NASDAQ:CMCSA) said it lost 181,000 broadband customers during the quarter. That was worse than the roughly 174,000 decline analysts had expected, based on FactSet data. To stay competitive, the company decided not to raise prices this year. It is also reworking its packages, leaning into service bundles, and offering free mobile lines to attract and retain customers. Even with those moves, analysts do not see meaningful customer growth returning before 2027.
Management expects a portion of customers using free mobile lines to shift into paid plans later this year, with more traction anticipated in the second half. On the financial side, Comcast reported revenue of $32.31 billion for the quarter ended in December, closely matching LSEG estimates of $32.35 billion.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 140
Dividend Yield as of January 31: 3.08%
UnitedHealth Group Incorporated (NYSE:UNH) operates across multiple healthcare and services platforms. Its business includes Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, with coverage spanning employer plans, Medicare and retirement offerings, and government-sponsored programs.
On January 30, Wells Fargo analyst Stephen Baxter cut his price recommendation on UnitedHealth Group Incorporated (NYSE:UNH) to $370 from $400. The firm, however, kept an Overweight rating. Coming out of the Q4 2025 report, the firm pointed to several pressure points. Medicare Advantage rates disappointed, Optum Health results raised concerns, and visibility into 2026 guidance for that segment stayed limited. Wells Fargo said it is trimming estimates to better reflect its updated views on Medicare Advantage and Medicaid into 2027.
UnitedHealth Group Incorporated (NYSE:UNH)’s 2026 revenue outlook landed below Wall Street expectations, though that was only part of the story. The bigger issue came from Washington. The Centers for Medicare & Medicaid Services proposed a 0.09% increase in Medicare Advantage rates for 2027, roughly in line with 2026 levels. Many analysts had expected something closer to a 4% to 6% increase, so the gap was hard to ignore.
The CMS proposal sent a ripple through the health insurance space. Several stocks moved lower as investors recalibrated expectations. UnitedHealth stands out in this group. Its UnitedHealthcare division is the largest Medicare insurer in the U.S. by membership, which makes the company more sensitive to shifts in Medicare Advantage pricing.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 High Yield Utility Stocks to Buy in 2026 and 10 Best American Oil and Gas Stocks to Buy
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.
