In this dividend champions list, we will take a look at some of the best stocks to invest in.
Dividend Aristocrats are firms within the S&P 500 Index that have consistently raised their dividend payments for a minimum of 25 straight years. On the other hand, Dividend Champions are companies that have also maintained at least 25 years of dividend increases but may not be part of the S&P 500.
Despite the difference in classifications, stocks with a history of growing dividends have long remained a favorite among investors. After facing nearly two years of sluggish performance, these stocks are regaining popularity in 2025. Global funds focused on dividend-paying equities are now seeing renewed investor interest, as many look for reliable income sources amid ongoing economic and geopolitical uncertainty. According to LSEG’s Lipper data, dividend-focused exchange-traded funds worldwide attracted $23.7 billion in inflows during the first half of 2025 — marking their strongest showing in three years.
Steve Watson, an equity portfolio manager at Capital Group, made the following comment:
“Consistent dividend growth signals a company’s managers are disciplined at capital allocation and confident about future business prospects. With tariff negotiations likely to linger for months, dividend growers could provide portfolios with a measure of stability when markets become volatile.”
Given this, we will take a look at some of the best stocks in our dividend champions list.
Our Methodology
For this article, we scanned the list of Dividend Champions, companies that have raised their dividends for 25 years or more, and picked companies that are comparatively lesser known to investors but are reliable investment options. Next, the hedge fund sentiment was measured using data from 1,000 hedge funds tracked by Insider Monkey in Q1 2025. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Norwood Financial Corp. (NASDAQ:NWFL)
Number of Hedge Fund Holders: 3
Norwood Financial Corp. (NASDAQ:NWFL) is among the best stocks on our dividend champions list. In July, the company, along with PB Bankshares, announced that their boards have approved a merger agreement under which PB Bankshares will be merged into Norwood. The merger will create a combined institution with around $3.0 billion in assets, positioning it as a leading community bank serving Northeastern, Central, and Southeastern Pennsylvania.
This move significantly broadens Norwood Financial Corp. (NASDAQ:NWFL)’s presence, extending its reach into faster-growing markets across Central and Southeastern Pennsylvania. The company recently announced earnings for its Q2 2025 and reported strong results. Its return on assets improved by 31 basis points to reach 1.06% compared to Q2 2024. Net interest margin rose 13 basis points from the previous quarter and 63 basis points year-over-year. Loan growth was strong, with annualized increases of 4.4% for the quarter and 8.2% year-to-date. Meanwhile, deposits expanded at a 15% annualized pace year-to-date, while the cost of deposits declined by 20 basis points since Q4 2024.
Norwood Financial Corp. (NASDAQ:NWFL) ended the quarter with over $53 million available in cash and cash equivalents. On June 18, the company declared a quarterly dividend of $0.31 per share, which was in line with its previous dividend. Overall, it raised its payouts for 33 years in a row. The stock has a dividend yield of 5.05%, as of July 23.
11. California Water Service Group (NYSE:CWT)
Number of Hedge Fund Holders: 15
California Water Service Group (NYSE:CWT) is a California-based public utility company that offers drinking water and wastewater services. The company remains committed to securing a timely and positive outcome in its 2024 California General Rate Case, recognizing its importance in supporting infrastructure investment and maintaining long-term service reliability. On a broader economic level, management believes that the company’s steady performance, reliable results driven by rate base growth, and solid dividend program present a compelling opportunity to deliver long-term value to shareholders.
In the first quarter of 2025, California Water Service Group (NYSE:CWT) reported revenue of $204 million, down 25% from the same period last year. As of March 31, 2025, the Group held $90.1 million in cash and cash equivalents, including $45.7 million in restricted funds. In addition, the Group had access to $315 million in short-term borrowing through its credit lines, available upon satisfying the borrowing requirements for both the Group and its subsidiary, California Water Service (Cal Water).
California Water Service Group (NYSE:CWT) currently offers a quarterly dividend of $0.30 per share, having raised it by 7.1% in January this year. This was the company’s 58th consecutive year of dividend growth, which makes CWT one of the best dividend stocks on our dividend champions list. The stock has a dividend yield of 2.66%, as of July 23.
10. Community Financial System, Inc. (NYSE:CBU)
Number of Hedge Fund Holders: 17
Community Financial System, Inc. (NYSE:CBU) is a financial services firm with operations across four key areas: banking, employee benefits, insurance, and wealth management. Its banking arm, Community Bank, N.A., ranks among the top 100 banks in the US by asset size, managing over $16 billion. The bank serves customers through roughly 200 branches located in Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts.
Community Financial System, Inc. (NYSE:CBU) recently announced earnings for the second quarter of 2025. The company posted revenue of $199.3 million, which saw an 8.4% growth from the same period last year. It reported net interest income of $124.7 million for the second quarter, marking a new quarterly record and reflecting a 14% increase, or $15.3 million, compared to the same period last year. During the quarter, the company also announced an agreement with Santander Bank, N.A. to acquire seven branch locations in the Allentown, Pennsylvania area. The acquisition includes select branch-related loans, deposits, and wealth management relationships, and is expected to advance the company’s previously outlined retail growth strategy.
Community Financial System, Inc. (NYSE:CBU) ended the quarter with $237.2 million available in cash and cash equivalents. On July 16, the company declared a 2.2% hike in its quarterly dividend to $0.47 per share. Through this increase, the company stretched its dividend growth streak to 33 years, which places it on the dividend champions list. The stock has a dividend yield of 2.66%, as of July 23.
