In our dividend challengers list, we will discuss the top 25 dividend stocks according to dividend yields.
Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income.
Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends.
According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns.
Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA’s quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market’s choppy period.
“In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends.”
As investor interest in dividend-paying stocks continues to climb, many companies have responded by steadily boosting their payouts. According to a report from Janus Henderson, global dividend distributions hit a record $1.75 trillion in 2024, marking a 6.6% increase on an underlying basis. The total headline growth stood at 5.2%, slightly tempered by a decline in special one-time dividends and the impact of a stronger US dollar. Of the 49 countries tracked in the report, 17—including key markets like the US, Canada, France, Japan, and China—achieved new highs in dividend payments. Overall, 88% of companies either raised or maintained their dividends during the year. Looking ahead, Janus Henderson expects global dividend payouts to grow by 5.0% on a headline basis in the coming year, reaching another record of $1.83 trillion. Despite ongoing currency pressures from a strong dollar, the firm projects underlying growth to edge slightly higher to about 5.1%. Given this, let’s take a look at our dividend challengers list.
Our Methodology
For this list, we looked at a group of dividend challengers, recognized for consistently increasing dividends for 5 consecutive years, but for less than 10 years. From this list, we chose companies with the highest dividend yields as of April 29 and arranged them in order from lowest to highest yield.
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25. GFL Environmental Inc. (NYSE:GFL)
Dividend Yield as of April 29: 0.12%
GFL Environmental Inc. (NYSE:GFL) is a Canadian waste management company that offers other environmental services to its consumers. The company’s operations remain in demand no matter how the economy is doing, which helps keep its revenue steady, even when households and businesses are cutting back on expenses. What sets GFL apart, though, is that while it operates in a traditionally defensive sector, it still presents strong long-term growth opportunities. Over the past several years, the company has expanded swiftly, both by acquiring other businesses and by growing on its own. The stock has surged by over 7% since the start of 2025.
In the fourth quarter of 2024, GFL Environmental Inc. (NYSE:GFL) reported revenue of $1.98 billion, which showed an 8.2% growth from the same period last year. The company’s Solid Waste revenue of $1.5 billion also grew by 6% on a YoY basis. Its cash generation also remained strong, with an adjusted operating cash flow of $605.2 million, up from $558.7 million in the prior-year period. The company’s adjusted free cash flow came in at $360 million.
On April 3, GFL Environmental Inc. (NYSE:GFL) declared a 10% hike in its quarterly dividend to $0.0154 per share. The company has raised its payouts every year since 2020, which makes it a prominent stock on our dividend challengers list. The stock has a dividend yield of 0.12%, as of April 29.
24. Curtiss-Wright Corporation (NYSE:CW)
Dividend Yield as of April 29: 0.25%
Curtiss-Wright Corporation (NYSE:CW) is a North Carolina-based company that produces specialized products, services, and solutions primarily for the aerospace and defense sectors, as well as for commercial energy, industrial, and process-related markets. Its operations are divided into three main segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. In the past 12 months, the stock has surged by over 32%.
In the fourth quarter of 2024, Curtiss-Wright Corporation (NYSE:CW) reported revenue of $824.3 million, which saw a 5% growth from the same period last year. The revenue also beat analysts’ estimates by $37.3 million. The company saw robust demand in both its Defense and Commercial Aerospace markets, which led to a record $3.7 billion in new orders. Looking ahead, management expects total sales to rise by 7% to 8% in 2025, supported by strong organic growth in the Aerospace & Defense and Commercial Nuclear segments, along with added contributions from the recent acquisition of Ultra Energy.
Curtiss-Wright Corporation (NYSE:CW)’s cash position remained strong during the quarter, with its operating cash flow coming in at $301 million, up 7% from the prior-year period. Its adjusted free cash flow of $278 million also showed a 3% growth on a YoY basis. The company’s quarterly dividend comes in at $0.21 per share for a dividend yield of 0.25%, as of April 29. With an 8-year streak of consistent dividend growth, CW is one of the best dividend stocks on our dividend challengers list.
23. Jacobs Solutions Inc. (NYSE:J)
Dividend Yield as of April 29: 1.03%
Jacobs Solutions Inc. (NYSE:J) is a Texas-based international technical professional services company. The company provides a range of services, including consulting, planning, architectural design, engineering, and infrastructure delivery, which encompasses project, program, and construction management.
In the first quarter of 2025, Jacobs Solutions Inc. (NYSE:J) reported revenue of $2.9 billion, which showed a 4.4% growth from the same period last year. The revenue surpassed analysts’ estimates by over $14 million. Although the company reported a negative net income margin in the first quarter due to mark-to-market losses tied to its investment in Amentum, its adjusted EBITDA margin improved significantly compared to the same period last year. In addition, the company notably boosted shareholder returns during the quarter by repurchasing $202 million worth of its shares.
Jacobs Solutions Inc. (NYSE:J) ended the quarter with nearly $1.3 billion available in cash and cash equivalents, up from $1.14 billion three months ago. The company’s operating cash flow for the quarter amounted to over $107.4 million. This healthy cash position has enabled the company to maintain its dividend policy smoothly. It has been rewarding its shareholders with growing dividends for the past seven consecutive years. Currently, it offers a quarterly dividend of $0.32 per share for a dividend yield of 1.03%, as of April 29.
22. CRA International, Inc. (NASDAQ:CRAI)
Dividend Yield as of April 29: 1.20%
CRA International, Inc. (NASDAQ:CRAI) is a consulting firm that provides services in economics, finance, and management advisory. The company reported strong earnings in the fourth quarter of 2024, with revenues of $176.4 million, growing by 9.17% from the same period last year. Not only this, but the revenue also surpassed analysts’ estimates by $9.6 million. The company’s net income of $15 million also increased by 30.8% on a YoY basis.
CRA International, Inc. (NASDAQ:CRAI)’s solid performance was seen across the entire range of services, with both North American and international operations contributing to revenue growth, up 7.8% and 15.7%, respectively. In addition, the company’s cash position was also encouraging for investors. It ended the quarter with $26.7 million available in cash and cash equivalents and generated $49.7 million in operating cash flow. Due to this cash availability, the company returned $3.4 million to shareholders through dividends in Q4.
CRA International, Inc. (NASDAQ:CRAI) currently offers a quarterly dividend of $0.49 per share, having raised it by 16.7% in 2024. The company is one of the best dividend stocks on our dividend challengers list as it has been increasing its dividends consistently since 2017. As of April 29, the stock has a dividend yield of 1.20%.
At the end of Q4 2024, 17 hedge funds tracked by Insider Monkey held stakes in CRA International, Inc. (NASDAQ:CRAI), compared with 19 in the previous quarter. The total value of these stakes is over $118.8 million. Among these hedge funds, Pertento Partners was the company’s leading stakeholder in Q4.
21. Applied Materials, Inc. (NASDAQ:AMAT)
Dividend Yield as of April 29: 1.23%
Applied Materials, Inc. (NASDAQ:AMAT) ranks 21st on our dividend challengers list. The semiconductor equipment manufacturing company supplies critical tools for creating advanced chips used in AI, data centers, automotive technology, and other sectors. The company operates a highly diversified business that spans areas like etch and deposition, metrology, and ion implantation equipment, supporting a wide range of logic and memory chips. It is especially well-positioned in critical technologies required for manufacturing next-generation AI chips, including gate-all-around transistors and backside power delivery systems.
In the first quarter of 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported revenue of $7.17 billion, which grew by 7% from the same period last year. The revenue also beat analysts’ estimates by $7.02 million. It is playing a key role in advancing major shifts in device architecture that are essential for energy-efficient AI. The company’s emphasis on fast-paced co-innovation is also opening up distinctive opportunities for collaboration.
Though Applied Materials, Inc. (NASDAQ:AMAT) showed growth on various fronts, the company couldn’t meet its cash generation expectations. The company’s free cash flow for the quarter was $544 million, down 74% from the prior-year period. Its operating cash flow of $925 million also fell from $2.3 billion in Q1 2024. However, this cash position was sufficient to pay $326 million worth of dividends during the quarter.
On March 10, Applied Materials, Inc. (NASDAQ:AMAT) declared a 10% increase in its quarterly dividend to $0.46 per share. This was the company’s eighth consecutive year of dividend growth. The stock has a dividend yield of 1.23%, as of April 29.
20. KBR, Inc. (NYSE:KBR)
Dividend Yield as of April 29: 1.25%
KBR, Inc. (NYSE:KBR) is a Texas-based company that provides scientific, technological, and engineering solutions to both government agencies and private sector clients globally. With a workforce of around 38,000 employees, KBR serves customers in over 80 countries and maintains operations in more than 29 of them.
KBR, Inc. (NYSE:KBR) reported strong earnings in the fourth quarter of 2025. The company’s revenue came in at $2.12 billion, which grew significantly by 22.6% from the same period last year. The revenue also beat analysts’ estimates by over $123 million. Its net income attributable to the company came in at $76 million. Adjusted EBITDA of $228 million grew by 21% on a YoY basis.
KBR, Inc. (NYSE:KBR) generated $462 million in operating cash flow in FY24 with an operating cash conversion of 103%. During the year, the company returned $297 million to shareholders through dividends and share repurchases. It currently offers a quarterly dividend of $0.165 per share, having raised it by 10% in February. Through this increase, the company stretched its dividend growth streak to six years, which makes KBR one of the best dividend stocks on our dividend challengers list. As of April 29, the stock has a dividend yield of 1.25%.
19. Genpact Limited (NYSE:G)
Dividend Yield as of April 29: 1.39%
Genpact Limited (NYSE:G) is a New York-based company that offers services in information technology, consulting, and outsourcing. In the fourth quarter of 2024, the company reported revenue of $1.25 billion, up 9% from the same period last year. The revenue also beat analysts’ consensus by $20.2 million. The company achieved record-breaking new bookings totaling $5.7 billion, marking a 15% increase and building on the strong momentum from 2023. Net revenue from its Data-Tech-AI segment reached $595 million, reflecting a year-over-year rise of 11.9% as reported, or 11.7% in constant currency, and accounted for 48% of total revenue. Meanwhile, Digital Operations generated $654 million in net revenue, representing a 6.4% increase compared to the previous year.
Genpact Limited (NYSE:G) also generated solid cash, which makes it a reliable stock for income investors. The company’s operating cash flow of $203 million grew from $192 million in the same quarter of 2023. In addition, it ended the quarter with $583.6 million, with total assets amounting to nearly $2 billion. The company currently offers a quarterly dividend of $0.1525 per share and has a dividend yield of 1.39%, as of April 29. It is a prominent stock on our dividend challengers list as the company has raised its dividends for seven years straight.
Genpact Limited (NYSE:G) was a part of 32 hedge fund portfolios at the end of Q4 2024, up from 31 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds are worth over $509 million in total. With over 2.2 million shares, Citadel Investment Group was the company’s leading stakeholder in Q4.
18. eBay Inc. (NASDAQ:EBAY)
Dividend Yield as of April 29: 1.73%
eBay Inc. (NASDAQ:EBAY) is an American multinational e-commerce company that links buyers and sellers around the world. As the platform continues to grow, it is placing greater emphasis on expanding its revenue sources beyond just product sales. This includes leveraging managed payments and advertising services. A central driver of eBay’s revenue is its Gross Merchandise Volume (GMV), which reflects the total value of transactions conducted through the site. GMV serves as a key indicator of user engagement, transaction activity, and overall revenue performance. The stock is generating solid returns this year, surging by nearly 8% since the start of 2025.
As part of its expansion plans, eBay Inc. (NASDAQ:EBAY) recently revealed a new collaboration with Checkout.com, a digital payments provider, as part of its effort to simplify transactions for its international users. Commenting on the development, eBay’s Vice President of Global Payments and Financial Services noted that bringing Checkout.com into its network of partners reflects the company’s ongoing focus on driving growth for both customers and businesses through its specialized payments and financial services.
eBay Inc. (NASDAQ:EBAY) is also a strong dividend payer. In February, the company declared a 7.4% hike in its quarterly dividend to $0.29 per share. This marked the company’s sixth consecutive year of dividend growth, which places it on our dividend challengers list. As of April 29, the stock has a dividend yield of 1.73%.
As of the close of Q4 2024, 45 hedge funds in Insider Monkey’s database held stakes in eBay Inc. (NASDAQ:EBAY), up from 43 a quarter earlier. The collective value of these stakes is nearly $934 million. With over 4 million shares, Lyrical Asset Management was the company’s leading stakeholder in Q4.
17. Equitable Holdings, Inc. (NYSE:EQH)
Dividend Yield as of April 29: 1.8%
Equitable Holdings, Inc. (NYSE:EQH) ranks 17th on our dividend challengers list. The American financial services and insurance company offers a wide range of related products and services to its consumers. The company is made up of a group of established, complementary businesses—Equitable, AllianceBernstein, and Equitable Advisors. As of March 31, 2025, the company manages and administers $1 trillion in assets and serves over 5 million clients worldwide. Since the start of 2025, the stock has surged by over 7%, and its 12-month returns came in at over 36%.
In the first quarter of 2025, Equitable Holdings, Inc. (NYSE:EQH) reported $304 million in premiums, which grew from $285 million in the same period last year. The company’s revenue of $4.5 billion showed a significant 105% growth from the prior-year period. It posted positive net inflows of $1.6 billion in its Retirement segment, $2.0 billion in Wealth Management, and $2.4 billion in Asset Management. Net income for the period reached $63 million, equivalent to $0.16 per share.
In addition to posting growth on various fronts, Equitable Holdings, Inc. (NYSE:EQH) also remained stable in terms of its cash position and shareholder return. The company had $2.2 billion available in cash and liquid assets. During the quarter, it returned $335 million to shareholders, including $74 million in dividends. Currently, it offers a quarterly dividend of $0.24 per share and has a dividend yield of 1.8%, as of April 29. The company maintains a 5-year streak of consistent dividend growth.
16. Essent Group Ltd. (NYSE:ESNT)
Dividend Yield as of April 29: 2.20%
Essent Group Ltd. (NYSE:ESNT) is a Bermuda-based insurance company that offers private mortgage insurance, reinsurance, and title insurance and settlement services to serve the housing finance industry. The company reported strong earnings in the fourth quarter of 2024, with revenue of over $315 million, up 6% from the same period last year. Its net investment income for FY24 came in at $222.1 million, up 19% on a YoY basis. New insurance written for Q4 amounted to $12.2 billion, growing from $8.8 billion in Q4 2023.
In its quarterly earnings report, the CEO emphasized that Essent Group Ltd. (NYSE:ESNT) is well-positioned to sustain strong returns and continue increasing its book value per share. The recent dividend hike and newly approved share repurchase program reflect management’s confidence in the reliability of the company’s cash flows and its commitment to maintaining a balanced capital management strategy going forward.
In February, Essent Group Ltd. (NYSE:ESNT) declared a 10.7% increase in its quarterly dividend to $0.31 per share. This was the company’s fifth consecutive year of dividend growth. Moreover, it has raised its dividends multiple times since 2020, which makes it one of the best dividend stocks on our dividend challengers list. As of April 29, the stock has a dividend yield of 2.20%.
15. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC)
Dividend Yield as of April 29: 2.51%
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is a semiconductor manufacturing company, headquartered in Singapore. The company specializes in cutting-edge semiconductors and electronics assembly solutions. Its expanding portfolio of products and services continues to drive growth and support technological advancements across major global markets, including advanced displays, automotive, communications, computing, consumer electronics, data and energy storage, and industrial sectors.
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) posted strong fourth-quarter earnings for 2024. While revenue declined by 3% year-over-year to $166.1 million, it still surpassed analysts’ expectations by $1.1 million. Operating income surged to $86.6 million, marking a remarkable 5,081% increase from the same period last year. Net income also saw a substantial rise, reaching $81.6 million—up $778.5 million from the prior year.
With growing demand for advanced semiconductor packaging driven by next-generation memory and logic applications—powered by AI, cloud computing, and connected devices—the company’s solutions, including FTC and VFO, are well-positioned to support these industry shifts over the long term.
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) also reported a healthy financial position, ending the quarter with $538.3 million in cash and cash equivalents. Operating cash flow stood at $18.9 million, while free cash flow totaled $8.7 million. It currently offers a quarterly dividend of $0.205 per share and has a dividend yield of 2.51%, as recorded on April 29. The company has raised its payouts for six consecutive years.
14. Bank7 Corp. (NASDAQ:BSVN)
Dividend Yield as of April 29: 2.61%
Bank7 Corp. (NASDAQ:BSVN) is an Oklahoma-based bank holding company. With branches across Oklahoma, Kansas, and Texas, Bank7 has broadened its presence to better serve the communities it operates in. Drawing on extensive experience in sectors such as energy, real estate, construction, and agriculture, the bank is well-positioned to tailor its products and services to meet the specific needs of its clients. In the past 12 months, the stock has surged by over 23%.
In the first quarter of 2025, Bank7 Corp. (NASDAQ:BSVN) reported revenue of $22.6 million, which showed a 6% decline from the same period last year. However, the revenue surpassed analysts’ estimates by $42,000. Its EPS of $1.08 also beat analysts’ consensus by $0.09. The company posted a net income of $10.3 million, down 8.43% from the prior-year period. Its total assets amounted to $1.8 billion, and total loans came in at $1.4 billion.
Bank7 Corp. (NASDAQ:BSVN) ended the quarter with cash and due from the banks of $240.5 million, up from $234 million at the end of December 31, 2024. On March 6, the company declared a quarterly dividend of $0.24 per share, which was in line with its previous dividend. Overall, it has raised its payouts for five consecutive years, which makes BSVN a part of our dividend challengers list. The stock has a dividend yield of 2.61%, as of April 29.
13. Entergy Corporation (NYSE:ETR)
Dividend Yield as of April 29: 2.87%
Entergy Corporation (NYSE:ETR) is an American integrated energy company that specializes in electric power production and retail distribution operations in the Deep South of the US. The company recently reported its Q1 2025 earnings and posted revenue of $2.85 billion, which grew by nearly 2% from the same period last year. However, the revenue missed analysts’ estimates by $202.3 million. Its EPS of 0.82% beat the consensus by $0.13. The Utility segment posted earnings of $490 million attributable to Entergy Corporation, translating to $1.11 per share on both a reported and adjusted basis.
The US Energy Information Administration projects that national electricity demand will hit all-time highs in 2025 and 2026, fueled by the fast growth of AI and cryptocurrency-focused data centers, along with increased electricity use in homes and businesses for heating and transportation. During the first quarter, Entergy Corporation (NYSE:ETR) saw its residential electricity sales jump 13.2% to 8,784 gigawatt-hours, while industrial sales grew by 9% to 13,833 GWh.
Entergy Corporation (NYSE:ETR)’s cash position came in strong during the quarter. At the end of Q1, it had over $1.5 billion available in cash and cash equivalents. Its operating cash flow came in at $4.5 billion, up from $2.8 billion in the prior-year period. The company is a solid dividend payer due to its cash position. It has been rewarding shareholders with growing dividends for the past 9 consecutive years. Currently, it offers a quarterly dividend of $0.60 per share and has a dividend yield of 2.87%, as of April 29.
12. Colony Bankcorp, Inc. (NYSE:CBAN)
Dividend Yield as of April 29: 2.95%
Colony Bankcorp, Inc. (NYSE:CBAN) ranks twelfth on our dividend challengers list. It is the parent company of the Colony Bank. The bank operates branches across Georgia and has extended its reach to include Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. The company offers a variety of financial services tailored to both personal and business clients. Beyond traditional banking, the institution provides specialized offerings such as mortgage services, government-guaranteed lending, consumer insurance, wealth management, and merchant services. The stock has surged by nearly 38% in the past 12 months.
Colony Bankcorp, Inc. (NYSE:CBAN) reported strong earnings in the first quarter of 2025. The company’s revenue of $30 million grew by 6.5% on a YoY basis and also beat analysts’ estimates by $96,000. Total deposits stood at $2.62 billion as of March 31, 2025, up from $2.57 billion at the end of 2024, reflecting a growth of $54.6 million. During the period, mortgage originations reached $72.0 million, while mortgage sales amounted to $55.9 million.
Colony Bankcorp, Inc. (NYSE:CBAN) total assets reached $3.17 billion, marking a $62.0 million increase since December 31, 2024. The company ended the quarter with $221.2 million in cash and cash equivalents. Its quarterly dividend comes in at $0.115 per share, following a 2.2% hike in January. This marked the company’s eighth consecutive year of dividend growth. As of April 29, the stock has a dividend yield of 2.95%.
11. M&T Bank Corporation (NYSE:MTB)
Dividend Yield as of April 29: 3.18%
M&T Bank Corporation (NYSE:MTB) is a New York-based bank holding company that offers services in commercial banking, consumer banking, institutional banking, and wealth management. The company has consistently delivered strong business results, even in tough economic times, thanks to its outstanding risk management and high-quality asset base. Throughout the Great Recession that followed the 2008 financial crisis, the bank remained profitable every single quarter, extending a profitability streak that began in the 1970s. Remarkably, M&T stood out as the only bank among many in the broader market that maintained its dividend without any cuts during the crisis, a time that was particularly challenging for the banking industry.
In the first quarter of 2025, M&T Bank Corporation (NYSE:MTB) reported revenue of $2.3 billion, which saw a 2.04% growth from the same period last year. However, the revenue missed analysts’ estimates by $40.7 million. The company’s net operating income came in at $594 million, up 9% on a YoY basis. Its net income available to common shareholders was $547 million, compared with $505 million in the prior-year period.
M&T Bank Corporation (NYSE:MTB) is a solid dividend payer. For the quarter ending March 31, 2025, the company declared cash dividends of $223 million on its common stock and $36 million on its preferred stock. In addition, it has been raising its payouts for eight consecutive years. Currently, it offers a quarterly dividend of $1.35 per share and has a dividend yield of 3.18%, as of April 29.
10. The Williams Companies, Inc. (NYSE:WMB)
Dividend Yield as of April 29: 3.35%
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. The company owns what is widely considered the most valuable natural gas pipeline system in the U.S.—Transco—which runs from the gas-rich Appalachian region through the Southeastern states down to the Gulf Coast. This pipeline supplies natural gas to major cities across the rapidly growing region.
In addition, The Williams Companies, Inc. (NYSE:WMB) is advancing several organic expansion projects aimed at driving earnings growth from 2027 onward. One key initiative is the Southeast Supply Enhancement project, a nearly $1.5 billion expansion of Transco’s capacity, expected to go into service by late 2027. The company has also approved the Transco Dalton Lateral Expansion II project, with completion targeted by the end of 2029. These developments position the company to steadily increase its earnings and cash flow through the rest of the decade.
On April 29, The Williams Companies, Inc. (NYSE:WMB) declared a quarterly dividend of $0.29 per share, which was consistent with its previous dividend. The company announced a 5.3% hike in its quarterly dividend in January, which marked its ninth consecutive annual dividend growth. With a dividend yield of 3.35%, as of April 29, WMB is one of the best dividend stocks on our dividend challengers list.
9. EOG Resources, Inc. (NYSE:EOG)
Dividend Yield as of April 29: 3.45%
EOG Resources, Inc. (NYSE:EOG) is a Texas-based energy company that is engaged in the exploration of hydrocarbons. While the company does hold assets in Australia and the Caribbean, the bulk of EOG’s oil production comes from its US operations, particularly in the Rocky Mountains, the Permian Basin, and South Texas. Its significant inventory of undeveloped resources is expected to support ongoing production in the future.
One of the most attractive features of EOG Resources, Inc. (NYSE:EOG) is its strong and well-managed balance sheet. In the first quarter of 2025, the company posted an operating cash flow of $2.2 billion. It ended the quarter with $6.6 billion available in cash and cash equivalents, compared with $5.3 billion in the prior-year period. In addition, it generated $1.3 billion in free cash flow, which also showed growth from $1.2 billion in Q1 2024.
EOG Resources, Inc. (NYSE:EOG) reported cash operating costs of $10.31 per barrel of oil equivalent per day (boe/d) and total production of 1,090 thousand boe/d. In the first quarter of 2025, the company spent approximately $800 million on share buybacks, returning 98% of its available free cash flow to shareholders. For the year, management trimmed its capital spending budget by $200 million, bringing it down to $6 billion.
On May 1, EOG Resources, Inc. (NYSE:EOG) declared a quarterly dividend of $0.975 per share, which was in line with its previous dividend. Overall, the company has been raising its payouts for nine consecutive years. In addition, it also has a history of paying special dividends to shareholders, which makes EOG one of the best dividend stocks on our dividend challengers list. The stock supports a dividend yield of 3.45%, as of April 29.
8. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of April 29: 4.30%
Kinder Morgan, Inc. (NYSE:KMI) is an energy infrastructure company in North America that owns oil and gas pipelines and terminals. The company moves roughly 40% of the nation’s natural gas production through its extensive network of 66,000 miles of pipelines. Natural gas makes up about 65% of its overall business. It maintains a strong outlook on the long-term demand for natural gas. It pointed out that US natural gas consumption has climbed by 80% over the past two decades, increasing from 60 billion cubic feet per day in 2005 to 109 billion cubic feet per day in 2024. In the past 12 months, the stock has delivered an over 44% return to shareholders.
Kinder Morgan, Inc. (NYSE:KMI) reported solid earnings in the first quarter of 2025. The company posted revenue of $4.24 billion, up 10% from the same period last year. The revenue also beat analysts’ estimates by $215 million. Its adjusted EBITDA came in at $2.1 billion, up 1% on a YoY basis. The company delivered strong operational results, with higher financial contributions from its Natural Gas Pipelines, CO₂, and Terminals segments compared to the first quarter of 2024. However, performance in the Products Pipelines segment declined, primarily due to a scheduled turnaround at the condensate processing facility—an event that occurs once every ten years.
Kinder Morgan, Inc. (NYSE:KMI) continued to self-fund high-quality capital projects, generating $1.2 billion in operating cash flow and $400 million in free cash flow after capital expenditures. The company maintained a solid financial position, ending the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times. In addition, it expanded its footprint in the Bakken region through the $640 million acquisition of Outrigger Energy II’s gathering and processing system, supported by long-term agreements with key customers in the area.
On April 16, Kinder Morgan, Inc. (NYSE:KMI) announced a 1.7% increase in its quarterly dividend to $0.2925 per share. Through this increase, the company stretched its dividend growth streak to eight years, which makes it one of the best stocks on our dividend challengers list. The stock has a dividend yield of 4.3%, as of April 29.
7. Four Corners Property Trust, Inc. (NYSE:FCPT)
Dividend Yield as of April 29: 5.10%
Four Corners Property Trust, Inc. (NYSE:FCPT) is a California-based real estate investment trust company that specializes in owning and leasing restaurant and retail properties. The company regularly expands its portfolio through new acquisitions. Recent purchases include a Chuy’s property from Darden for $2.9 million, an Outback Steakhouse for $1.6 million, and an auto service property for $5.3 million. These additions help diversify its holdings and support Four Corners’ ability to raise its dividend. The stock has surged by over 4% since the start of 2025.
In the first quarter of 2025, Four Corners Property Trust, Inc. (NYSE:FCPT) reported revenue of $71.4 million, which showed a 7.5% YoY growth and also beat analysts’ estimates by $3.54 million. However, the company’s EPS of $0.26 missed the consensus marginally by $0.01. Rental revenue rose 8.4% year-over-year to $63.5 million, which included $63.2 million in cash rents and $0.2 million from straight-line and other non-cash rent adjustments.
As of March 31, 2025, Four Corners Property Trust, Inc. (NYSE:FCPT)’s rental portfolio comprised 1,221 properties spread across 47 states. The portfolio was 99.4% occupied based on square footage, with tenants under long-term net leases averaging about 7.3 years remaining. The company maintained a solid cash position. FCPT had around $617 million in available liquidity, which included $22 million in cash and cash equivalents, expected net proceeds of about $245 million from existing forward sale agreements, and $350 million in available capacity under its revolving credit facility.
Four Corners Property Trust, Inc. (NYSE:FCPT) currently pays a quarterly dividend of $0.355 per share and has a dividend yield of 5.10%, as of April 29. The company has been rewarding shareholders with growing dividends for the past eight consecutive years.
6. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of April 29: 5.36%
VICI Properties Inc. (NYSE:VICI) ranks sixth on our dividend challengers list. The American real estate investment trust company recently announced its Q1 2025 earnings. Its revenue came in at $984.2 million, which saw a 3.4% growth from the same period last year. AFFO attributable to common stockholders rose 5.6% year-over-year to $616.0 million, with per-share AFFO increasing 4.3% to $0.58. Additionally, the company announced the formation of a strategic partnership with Cain International and Eldridge Industries, which includes a $300.0 million investment in a mezzanine loan tied to the development of the One Beverly Hills project.
Although VICI Properties Inc. (NYSE:VICI) is heavily concentrated in the gaming industry—a factor that might appear risky—casinos have historically shown strong resilience during economic downturns. The company enhances its stability by securing tenants through long-term leases, and the highly regulated nature of the gaming sector makes it challenging for tenants to relocate, adding another layer of security. This approach has helped the company maintain full occupancy since its IPO in 2018, even during periods of major disruption like the COVID-19 pandemic, which significantly impacted travel, hospitality, and casinos. Additionally, many of its leases are linked to the consumer price index (CPI), allowing for rent increases that help protect against inflation.
VICI Properties Inc. (NYSE:VICI) demonstrated a solid cash position in the most recent quarter, with cash and cash equivalents of $334.3 million. In addition, it also returned approximately $457 million to shareholders through dividends. The company’s quarterly dividend comes in at $0.4325 per share and has a dividend yield of 5.36%, as of April 29. VICI initiated its dividend policy in 2018 and has raised its payouts every year since then.
5. Clearway Energy, Inc. (NYSE:CWEN)
Dividend Yield as of April 29: 5.81%
Clearway Energy, Inc. (NYSE:CWEN) is a prominent integrated clean energy provider. The company holds one of the nation’s largest clean energy power generation portfolios, which includes assets in solar, wind, energy storage, and natural gas. It sells the electricity it generates through long-term, fixed-rate power purchase agreements (PPAs). The stock is generating strong returns this year, surging by over 9% since the start of 2025.
Clearway Energy, Inc. (NYSE:CWEN) reported revenue of $298 million in the first quarter of 2025, which grew by 13.3% on a YoY basis. However, the revenue fell short of analysts’ consensus by $8.03 million. The EPS of $0.02 beat estimates by $0.16. The Flexible Generation segment saw improved availability compared to the same period in 2024, largely due to differences in the timing and length of spring outages. Meanwhile, output from the Renewables & Storage segment rose by 13% year-over-year, driven mainly by the impact of recent growth-focused investments.
Clearway Energy, Inc. (NYSE:CWEN) reported a solid cash position, with $95 million in cash generated from operating activities and $77 million in cash available for distribution (CAFD). Recently, the company declared a 1.7% hike in its quarterly dividend to $0.4384 per share. It is one of the best dividend stocks on our dividend challengers list as the company has raised its payouts every quarter since 2020. The stock has a dividend yield of 5.81%, as recorded on April 29.
4. National Storage Affiliates Trust (NYSE:NSA)
Dividend Yield as of April 29: 6.29%
National Storage Affiliates Trust (NYSE:NSA) is a Colorado-based integrated and self-managed real estate investment trust company. As of 2025, the company operates over 1,070 self-storage facilities in 40 states and Puerto Rico, covering approximately 70 million rentable square feet. The company targets ownership in the top 100 metropolitan areas across the US. What sets National Storage Affiliates apart is its strategy of not consolidating its properties under a single national brand. Instead, it owns, operates, and manages well-established regional brands.
National Storage Affiliates Trust (NYSE:NSA) was implementing a consolidation strategy aimed at reducing its portfolio from a dozen brands to seven market-specific ones. This approach is designed to reinforce its core brands, lower costs, and improve returns. By strengthening these brands, the company plans to expand within their markets through acquisitions of smaller competitors, which would then be integrated into the more focused regional brands.
National Storage Affiliates Trust (NYSE:NSA) is a strong dividend payer, having raised its payouts for seven consecutive years. The company currently offers a quarterly dividend of $0.57 per share and has a dividend yield of 6.29%, as of April 29.
3. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Dividend Yield as of April 29: 6.60%
HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is a real estate investment trust company that specializes in leasing space and providing financing for renewable energy and sustainable infrastructure projects.
HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) niche focus gives it a competitive edge, often referred to as a “green moat,” setting it apart from others in the green infrastructure space. While the company carries more debt than ideal, management expects adjusted earnings per share to grow annually by 8% to 10% through 2027, driven by strong growth in both managed assets and its own portfolio. As these investments mature, the debt burden is anticipated to decline.
At the end of December 2024, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) had $130 million available in cash and cash equivalents, up from $62.6 million in December 2023. The company generated over $5.8 million in operating cash flow. It currently offers a quarterly dividend of $0.420 per share, having raised it by 1.2% in February this year. This marked the company’s fifth consecutive year of dividend growth. As of April 29, the stock has a dividend yield of 6.60%.
2. Community Healthcare Trust Incorporated (NYSE:CHCT)
Dividend Yield as of April 29: 11.47%
Community Healthcare Trust Incorporated (NYSE:CHCT) is a self-managed and fully integrated real estate company focused on the healthcare sector. It acquires, owns, or finances properties that are leased to hospitals, physicians, healthcare systems, and other medical service providers, mainly in regions outside major urban areas.
In the first quarter of 2025, Community Healthcare Trust Incorporated (NYSE:CHCT) reported revenue of $30.08 million, which showed a nearly 3% growth from the same period last year. The company’s net income came in at $1.6 million, and its EPS was $0.03. During the quarter, the company acquired a property through a sale-leaseback transaction for about $9.7 million in cash, with the lease set to begin after roughly $1.4 million in tenant improvements are completed and run through 2040. This purchase was financed using funds from its Revolving Credit Facility. In addition, in April 2025, the company sold a building in Ohio, generating net proceeds of approximately $0.6 million from the transaction.
In addition to generating strong earnings, Community Healthcare Trust Incorporated (NYSE:CHCT) is also a solid dividend payer. On April 25, the company declared a quarterly dividend of $0.47 per share, growing it by 0.5%. The company has been growing its dividends every quarter since 2015, which makes it one of the best stocks on our dividend challengers list. The stock offers an attractive dividend yield of 11.47%, as of April 29.
1. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Dividend Yield as of April 29: 14.41%
Innovative Industrial Properties, Inc. (NYSE:IIPR), headquartered in California, supports the growth of the legal medical cannabis sector by offering investors a real estate-driven opportunity to tap into the cannabis industry. The company mainly supplies funding to the cannabis industry by carrying out sale-leaseback deals. It purchases properties such as dispensaries, cultivation sites, processing and manufacturing facilities, then leases them back to licensed operators, providing these businesses with the capital they need to grow and expand.
In the fourth quarter of 2024, Innovative Industrial Properties, Inc. (NYSE:IIPR) delivered results in line with expectations, posting adjusted diluted earnings per share of $1.36, matching analysts’ forecasts. Revenue came in slightly above projections at $76.7 million, compared to the anticipated $76 million. Adjusted funds from operations (AFFO), the key profitability measure for REITs, totaled $2.22 per share. Management expressed confidence in the cannabis industry’s growth outlook and plans to strengthen its tenant portfolio and strategically expand its real estate footprint. This approach is aimed at capturing upside from projected growth in state-legal cannabis sales, which are expected to reach $43.4 billion by 2027. Possible legislative developments could further support market expansion.
Innovative Industrial Properties, Inc. (NYSE:IIPR) currently pays a quarterly dividend of $1.40 per share for a dividend yield of 14.41%, as of April 29. The company has raised its dividends every year since its inception in 2016.
Overall, Innovative Industrial Properties, Inc. (NYSE:IIPR) ranks first on our dividend challengers list. While we acknowledge the potential of dividend stocks as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than IIPR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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