In this article, we will take a look at the Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.
Dividend Champions are companies that have raised their dividends for at least 25 consecutive years and may not be part of the S&P 500. Dividend challengers sit in the next tier, with dividend growth lasting between 10 and 24 years. Dividend contenders round out the group, having increased payouts for 5 to 9 years. Investors are often drawn to these companies because long dividend streaks usually reflect financial strength and a business that can produce dependable income.
In many periods, dividend-paying equities have done better than companies that don’t have dividend policies. Dividends make up a meaningful share of long-term equity returns and help smooth results along the way. Over time, that income component has played a major role in delivering steadier, more balanced outcomes.
Data from Morningstar shows just how important dividends have been across different market environments. In the 1940s, the S&P 500 generated average annual returns of about 9%, with roughly two-thirds of those returns coming from dividends rather than price gains. Dividends accounted for 29% of total returns in the 1950s and 44% in the 1960s. During the inflation-heavy 1970s, their contribution jumped to 73%. Their influence eased in later decades as dividends made up 28% of returns in the 1980s, 16% in the 1990s, and 17% in the 2010s. In the 2000s, dividends effectively carried the market, as stock prices declined overall. Looking at the full period from 1940 through 2019, dividends represented about 35% of total market returns. Ignoring them means leaving a meaningful share of long-term performance behind.
A report from Eagle Global Advisors highlights that some investors only focus on the highest dividend yield. That approach misses two critical qualities: stability and growth. In many cases, the stocks with the biggest yields are under pressure and struggling to sustain their payouts. The report further mentioned that dividend cutters and eliminators have delivered the weakest performance since 1972. Companies that simply maintain a steady dividend have outperformed the equal-weighted S&P 500. Even so, those returns fall short of what investors have earned from portfolios built around dividend growers and initiators.
Finding dividends that are both reliable and growing places a real value on active portfolio management and a deep understanding of dividend policies and long-term trends.
Given this, we will take a look at some of the best dividend stocks to invest in.
Our Methodology:
For this article, we scanned the lists of Dividend Champions, Contenders, and Challengers and picked stocks with the highest dividend yields, as of February 9. We have also mentioned the number of consecutive years each company has grown its dividend. The stocks are ranked according to their dividend yields.
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).
15. Murphy Oil Corporation (NYSE:MUR)
Dividend Yield as of February 9: 4.30%
Consecutive Years of Dividend Growth: 6 Years
Category: Dividend Challengers
On February 3, BMO Capital trimmed its price recommendation on Murphy Oil Corporation (NYSE:MUR) to $35 from $37. It maintained a Market Perform rating on the stock. The firm said it lowered its estimates after Murphy posted Q4 results that largely matched expectations. Looking further out, BMO flagged a softer 2026 production outlook, pointing to pressure from Montney royalties and the Gulf of America. Even so, the analyst noted that Murphy still ranks well on free cash flow breakeven metrics and is expected to keep leverage at modest levels.
Speaking on the Q4 2025 earnings call, President and CEO Eric Hambly said production topped guidance for both the quarter and the full year. He credited the beat to some of the strongest onshore wells the company has drilled to date, along with consistently high uptime at its core offshore assets.
Hambly also highlighted clear progress on costs. Lease operating expenses were down roughly 20% from last year, and capital spending came in below guidance. He said a portion of those savings reflected efficiency gains in the Eagle Ford Shale program.
On the exploration front, Hambly characterized the quarter as uneven but overall positive. He said the appraisal at Hai Su Vang in the Golden Sea Lion field delivered strong results, while both exploration wells in the Gulf of America led to oil discoveries. That said, the Civette well offshore Côte d’Ivoire did not find commercial hydrocarbons.
Digging deeper into Vietnam, Hambly noted that the appraisal well intersected about 429 feet of net oil pay and did not reach the oil-water contact. Based on that outcome, he suggested the resource potential could end up well above the company’s initial midpoint estimate of 170 million barrels of oil equivalent.
Murphy Oil Corporation (NYSE:MUR) is a global exploration and production company with a mix of onshore and offshore assets. Its output includes crude oil, natural gas, and natural gas liquids, primarily from the U.S. and Canada, while its exploration efforts are focused on select regions around the world.
14. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of February 9: 4.76%
Consecutive Years of Dividend Growth: 50 Years
Category: Dividend Champions
On February 3, Morgan Stanley raised its price recommendation on Franklin Resources, Inc. (NYSE:BEN) to $22 from $21. It kept an Underweight rating on the stock and trimmed its calendar Q4 adjusted EPS estimate by 14%, pointing to higher operating costs. At the same time, the firm took a more optimistic view further out, lifting its 2026 adjusted EPS forecast by 6.3% and nudging its 2027 estimate up 0.7%, supported by expectations for stronger fee income and better non-operating investment returns.
On February 4, Franklin reported preliminary month-end assets under management of $1.71 trillion as of January 31, 2026, up from $1.68 trillion at the end of December. The increase reflected favorable market conditions along with about $1.5 billion in long-term net inflows. That total included roughly $1.5 billion of long-term net outflows at Western Asset Management. Excluding Western Asset, long-term net inflows were closer to $3 billion.
Western Asset’s preliminary AUM came in at $216 billion at the end of January, slightly down from $217 billion a month earlier. Market gains helped, but those were partly offset by the long-term outflows recorded during the month.
Franklin Resources, Inc. (NYSE:BEN) operates globally under the Franklin Templeton name, offering investment strategies across equities, fixed income, alternatives, and multi-asset solutions to clients in more than 150 countries.
