In this article, we will take a look at stocks for a dividend stock portfolio.
As retirement nears, maintaining financial security becomes a top priority for investors. One appealing strategy involves investing in dividend-paying stocks, which offer dependable and steady income through regular payouts from a company’s earnings.
Dividend stocks are particularly suited for retirees, as they tend to provide a buffer during market downturns. Morningstar noted that dividend-focused funds were better positioned during the tech crash from 2000 to 2002, largely due to their limited exposure to the sector. While the Vanguard Total Stock Market Index dropped nearly 44% during that period, driven by heavy losses in growth stocks, dividend stock funds saw losses of only about a third of that amount.
David Giroux, a portfolio manager at T. Rowe Price who leads the firm’s capital appreciation strategy, discussed the value of dividend stocks in an interview with Barron’s. He made the following comment:
“To have a retirement portfolio that has a significant component of stocks with attractive dividends makes a tremendous amount of sense. If the average company in the market can grow its earnings at 7% to 8% a year, your dividends should be growing at a similar rate.”
Given this, we will take a look at some of the best stocks for a dividend stock portfolio.
Image by Alexsander-777 from Pixabay
Our Methodology
For this list, we used a screener to select dividend stocks that have shown strong and consistent dividend policies and are spread across various industries, making them suitable for a retirement stock portfolio. From the initial selection, we chose ten stocks, each from a different industry, that were famous among the hedge fund investors, as per Insider Monkey’s Q1 2025. The stocks are ranked according to hedge funds having stakes in them.
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).
10. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 32
Realty Income Corporation (NYSE:O) is one of the best stocks for a dividend stock portfolio. On June 10, the company announced a slight increase in its monthly cash dividend on common stock, raising it from $0.2685 to $0.2690 per share.
This dividend will be paid on July 15, 2025, to shareholders of record as of July 1, 2025. The adjustment brings the annualized dividend to $3.228 per share, up from $3.222.
Sumit Roy, Realty Income Corporation (NYSE:O)’s President and Chief Executive Officer, made the following comment:
“The quality and diversification of Realty Income’s portfolio allows us to provide investors reliable monthly dividends that increase over time. I’m pleased to share that today’s declaration marks the 131st dividend increase since our NYSE listing 30 years ago. During times of market uncertainty, Realty Income remains committed to delivering investors predictable income streams.”
A member of the S&P index and the S&P Dividend Aristocrats index, Realty Income Corporation (NYSE:O) was founded in 1969 and owns a diversified portfolio of over 15,600 commercial properties across all 50 US states, the U.K., and six additional European countries as of March 31, 2025. The company is recognized for its consistent monthly dividends, having declared 660 in a row, with annual increases for the past 30 years.
9. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Number of Hedge Fund Holders: 36
T. Rowe Price Group, Inc. (NASDAQ:TROW) is among the dividend stocks for a dividend stock portfolio. On June 11, the company reported that its preliminary assets under management (AUM) totaled $1.62 trillion as of May 31.
The firm also saw net outflows of $4.4 billion during May, offering a snapshot of recent investor activity and the company’s current market standing.
T. Rowe Price Group, Inc. (NASDAQ:TROW) is also known for its reliable dividend payments. It has been rewarding shareholders with growing dividends for the past 39 consecutive years. Currently, it pays a quarterly dividend of $1.27 per share and has a dividend yield of 5.34%, as of June 11.
Established in 1937, T. Rowe Price Group, Inc. (NASDAQ:TROW) supports individuals and institutions in reaching long-term financial goals. Recognized for its strong investment performance, retirement expertise, and in-house research, the company operates with a client-first approach rooted in a culture of integrity.
TROW has surged by over 1% in the past week.
8. Roper Technologies, Inc. (NASDAQ:ROP)
Number of Hedge Fund Holders: 46
Roper Technologies, Inc. (NASDAQ:ROP) is among the stocks for a dividend stock portfolio. On June 11, the company declared a quarterly dividend of $0.825 per share, which was in line with its previous dividend.
Although the latest dividend remained unchanged from the previous one, the company has maintained a 33-year track record of steady dividend increases. This consistent growth is largely supported by its strong cash position. In the most recent quarter, the company reported $529 million in operating cash flow and $507 million in free cash flow.
Roper Technologies, Inc. (NASDAQ:ROP) will trade ex-dividend on July 8, and it offers a dividend yield of 0.58%, as of June 11. The stock has surged by nearly 11% since the start of 2025.
Roper Technologies, Inc. (NASDAQ:ROP) runs top-tier businesses that create specialized software and tech-enabled products for secure, niche markets. It follows a careful, data-driven strategy to reinvest its surplus capital into acquiring high-quality businesses.
7. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 67
BlackRock, Inc. (NYSE:BLK)’s iShares Bitcoin Trust (IBIT), the biggest Bitcoin ETF available, has reached $70 billion in assets faster than any ETF before it, marking another major achievement.
According to Bloomberg analyst Eric Balchunas, IBIT, the leading option among the 12 Bitcoin ETFs currently on the market, hit the milestone on June 9, 341 days after its launch. Balchunas noted on X that IBIT reached that level “5x faster than the old record held by GLD of 1,691 days,” referring to State Street’s well-known gold ETF.
Though firms like Fidelity and VanEck also offer Bitcoin ETFs, none match BlackRock’s in size. Fidelity’s FBTC holds $20 billion, while Grayscale’s GBTC trails slightly with just under $20 billion.
IBIT and ten other Bitcoin ETFs made their debut early last year following long-awaited approval from the Securities and Exchange Commission. Their launch highlighted strong investor interest in gaining exposure to Bitcoin’s price, with IBIT pulling in over $1 billion in assets during its first four days.
By November, BlackRock, Inc. (NYSE:BLK)’s Bitcoin ETF had outpaced its gold ETF in assets, becoming the largest among the firm’s 1,400 global funds.
6. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 68
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best stocks for a dividend stock portfolio. The company is planning to open between five and ten new stores in 2025, as part of a broader growth strategy that could lead to dozens of new locations in the coming years.
This updated outlook differs from the company’s December 2024 announcement, when it aimed to open 10 to 15 stores annually. A spokesperson explained that the revised figure reflects the time needed to “ramp up” expansion efforts.
So far in 2025, the North Carolina-based retailer has launched two new stores in Texas and reopened one in North Carolina that had been closed due to damage from Hurricane Helene, the spokesperson told USA TODAY. Additional openings are expected later this year in Texas and Arizona.
Beginning in 2026, Lowe’s Companies, Inc. (NYSE:LOW) plans to return to its original goal of opening 10 to 15 stores annually.
Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer that serves both individual customers and professionals, offering a broad selection of products and services. Its offerings include everything from tools and building materials to appliances, furniture, and home decor. In addition, the company provides services such as key cutting, recycling, and price matching.
LOW has surged by nearly 1.5% in the past 12 months.
5. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 69
Accenture plc (NYSE:ACN) is among the stocks for a dividend stock portfolio. The company recently announced that it has equipped 500,000 of its employees with skills in generative artificial intelligence, responding to rising demand for services in this space.
According to CEO Julie Sweet, the company’s generative AI-related revenue has jumped to $2.6 billion over the past six months, a sharp rise from $300 million in the initial half-year after ChatGPT’s 2022 launch.
Sweet made the following comment:
“When you think about the scale of that transformation in the last 2.5 years – you can see that we’ve really focused on rotating all of our offerings, rotating how we deliver for our clients and, of course, using it to operate ourselves.”
Globally, consulting and professional services firms have been adopting generative AI to cut down on repetitive and time-consuming tasks traditionally handled by junior staff. At Accenture, consultants are now using the technology to automate routine duties such as creating presentations, Sweet noted. She further stated:
“By being able to use some of the work that is pretty rote in terms of the presentation – we’re able to mentor our young leaders about the underlying content more. They’re actually able to focus and do more shadowing of senior leaders.”
Accenture plc (NYSE:ACN) is a global professional services firm that offers consulting, technology, and outsourcing solutions to both businesses and government entities. The company supports clients in areas such as system integration, strategic planning, and enhancing operational efficiency, all with the goal of helping them achieve greater success.
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 70
Starbucks Corporation (NASDAQ:SBUX) is one of the best stocks for a dividend stock portfolio. The company recently announced it will reduce the prices of several iced beverages in China by an average of 5 yuan (about $0.70) nationwide, starting June 10.
The US coffee company shared on its Weixin account that the move aims to make a wide range of drinks, including non-coffee options and Frappuccinos, more affordable as market competition grows and consumers become more cautious with their spending.
Although China is Starbucks Corporation (NASDAQ:SBUX)’s second-largest market after the US, the coffee industry there is fiercely competitive, and many consumers are cutting back due to economic uncertainty and job concerns. According to a recent update, some Starbucks beverages will now be available for as little as 23 yuan.
A source familiar with the matter said the price adjustment isn’t meant to match competitors, but rather to draw more afternoon traffic. While Starbucks Corporation (NASDAQ:SBUX) has previously stated it would avoid price wars, it has introduced smaller drink sizes and offered coupons that effectively bring down costs for consumers. The company is also exploring ways to revitalize its operations in China, including selling stakes in the business.
3. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 86
AbbVie Inc. (NYSE:ABBV) is included among the stocks for a dividend stock portfolio. The company announced that the US FDA has expanded the approved use of its oral antiviral drug Mavyret, developed in partnership with Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA), for treating Hepatitis C.
The updated approval allows Mavyret—made from the antiviral agents glecaprevir and pibrentasvir—to be used in the US for both adults and children aged three and older with acute or chronic Hepatitis C, provided they do not have cirrhosis or have compensated cirrhosis. Eligible patients can complete treatment in eight weeks.
This decision is based on results from a Phase 3 study, which showed the therapy to be safe and effective for acute cases. Mavyret was initially approved in 2017 for newly diagnosed adult Hepatitis C patients.
AbbVie Inc. (NYSE:ABBV) is an international biopharmaceutical firm dedicated to creating and providing advanced treatments for challenging health conditions. The company concentrates on key areas such as immunology, cancer, neuroscience, eye care, and aesthetics. Its goal is to improve lives by researching, developing, and offering new therapies that address serious medical needs that currently lack effective solutions.
2. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the best stocks for a dividend stock portfolio. The Turkish Competition Board announced on Tuesday that it has launched a formal investigation into Coca-Cola to assess whether the company breached the country’s competition laws.
According to the board’s statement, the probe follows preliminary findings suggesting The Coca-Cola Company (NYSE:KO) may have engaged in practices that restricted or hindered rival brands from selling their products at retail locations.
The investigation will also review whether The Coca-Cola Company (NYSE:KO) has adhered to the commitments it made to the board in 2021.
Following the announcement, shares of Coca-Cola Icecek — Coca-Cola’s bottling partner in Turkey and a subsidiary of Anadolu Group — declined on Wednesday.
Coca-Cola Icecek is one of the largest bottlers in the system and operates in multiple countries across the region.
1. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC) is one of the best stocks for a dividend stock portfolio. Recently, the company has tapped Satish Arcot from JPMorgan Chase to lead its capital markets division in India, as part of efforts to strengthen its local investment banking presence, according to sources familiar with the matter.
Arcot, who brings two decades of experience in financial services, is expected to join later this year as a managing director based in Mumbai. His appointment follows a series of leadership changes in India, including the naming of Vikram Sahu as country head earlier this year and the promotion of longtime executive Mandar Donde to head investment banking operations in April.
Bank of America Corporation (NYSE: BAC) is aiming to reestablish its position in India after the departure of three senior investment bankers last November amid allegations of misconduct related to stock offerings.
Satish Arcot, currently an executive director at JPMorgan and with the firm for the past four years per his LinkedIn profile, has been selected to help lead the bank’s efforts. He did not respond to a request for comment via LinkedIn, and both Bank of America and JPMorgan declined to comment.
Bank of America Corporation (NYSE:BAC) has maintained a presence in India since 1964, providing investment banking services to large corporates, financial institutions, and government entities, typically those with annual revenues exceeding $2 billion, according to its website.
While we acknowledge the potential of BAC 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 BAC and that has 100x upside potential, check out our report about this cheapest AI stock.
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