In this article, we will take a look at the Dividend Stock Portfolio: Top 10 Stocks to Buy According to Reddit.
In May, Forbes reported that retail investors are continuing to put money into the market even as geopolitical tensions increase and market volatility edges higher. This contrast has helped support the AI-driven market rally.
Flows into US equities have remained resilient. Retail traders have continued to buy market dips rather than pull back, a pattern strategists highlighted at May’s NYSE Creator Economy Summit. The report also noted that retail investing accounts for about 20% of overall market activity. Despite broader economic uncertainty, retail investors appear to be leaning into the market rather than pulling away.
In February, Fortune also reported that retail investors accounted for $5.4 trillion in trading activity in 2025 across stocks and exchange-traded funds, or ETFs, according to Vanda, an independent data and research firm. That represents a nearly 47% increase from the previous year and the highest level recorded since at least 2014.
Many Americans have invested in the stock market for decades, though often in a hands-off way through managed retirement funds such as 401(k) plans. Over the last decade, mobile trading apps, zero-commission trading, stock market-focused communities on social media, and online research and education tools have helped create a new era of do-it-yourself investing. More individuals now trade stocks, cryptocurrencies, and other assets on their own.
Many retail investors have also moved beyond stocks and ETFs into other investment vehicles. Options trading, which can expose investors to higher levels of risk, accounted for about $650 billion of retail trading activity last year, according to Vanda. That figure has generally increased year after year since at least 2019.
Given this, we will take a look at some of the best stocks for a dividend stock portfolio.
Our Methodology:
For this list, we carefully examined popular Reddit trading forums such as r/dividends, r/WallStreetBets, r/stocks, and r/trading, where everyday investors discuss and exchange investment ideas. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 59
On June 17, Piper Sandler raised its price recommendation on Kimberly-Clark Corporation (NASDAQ:KMB) to $121 from $115. It reiterated an Overweight rating on the stock. The firm said that potential benefits from Kimberly-Clark’s deal with Kenvue (KVUE) are unlikely to be reflected in results until 2028. Even so, Piper Sandler believes the upside could be meaningful over time. For now, the firm continues to model only Kimberly-Clark’s legacy business because pro-forma segment details have not yet been provided.
During the company’s first-quarter 2026 earnings call, Chairman and CEO Michael Hsu said Kimberly-Clark continued to gain market share across its key categories, including Baby Care, Women’s Health, and Active Aging. He also noted that the company’s second-quarter product launch schedule would be one of the busiest in its history. Hsu added that Kimberly expects to integrate Kenvue’s brands and businesses into its existing operating model without major disruption.
Senior Vice President and CFO Nelson Urdaneta said the fire at the company’s California distribution center is expected to reduce second-quarter revenue by about $20 million. He also said second-quarter earnings are projected to face an estimated $50 million impact from inflationary pressures linked to the Middle East conflict, as well as costs related to the fire.
Looking to the second half of the year, Urdaneta stated that if oil prices average around $100 per barrel, Kimberly-Clark could see additional gross input cost pressures of roughly $150 million to $170 million.
Kimberly-Clark Corporation (NASDAQ:KMB) is a global consumer products company focused on delivering products and solutions that improve care. The company operates through its North America and International Personal Care segments.
9. Cintas Corporation (NASDAQ:CTAS)
Number of Hedge Fund Holders: 63
On June 15, Truist lowered its price recommendation on Cintas Corporation (NASDAQ:CTAS) to $225 from $255. It reiterated a Buy rating on the stock. In a research note, the analyst said Cintas reaffirmed its expectation that the UniFirst transaction will close in the second half of 2026. Even so, the shares edged lower on Friday. Truist noted that the lower price target reflects the continued overhang on the stock. The firm still sees strong strategic value in the proposed acquisition and remains positive on the deal.
During its fiscal third-quarter 2026 earnings call, Cintas said it expects fiscal 2026 revenue to be between $11.21 billion and $11.24 billion. That represents a total growth of 8.4% to 8.7%. The company also forecast adjusted diluted earnings per share of $4.86 to $4.90, which would reflect growth of 10.5% to 11.4%.
Management said the adjusted EPS guidance excludes one-time transaction-related costs tied to the UniFirst acquisition. These expenses are expected to reduce fiscal 2026 diluted EPS by about $0.03 to $0.04. Chief Financial Officer Garula stated that the transaction-related expenses are expected to occur in the fourth quarter and are not expected to materially affect third-quarter results.
The company said its guidance is based on constant foreign exchange rates. It also assumes net interest expense of roughly $101 million and an effective tax rate of 20%.
Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms through rental and direct sales programs. The company also offers a range of related business services, serving organizations of all sizes across the United States, Canada, and Latin America.
8. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 65
On June 15, Reuters reported that Starbucks Corporation (NASDAQ:SBUX) Korea will close all of its stores across the country at 3 p.m. on June 22. This step is taken to conduct staff training focused on historical awareness and social sensitivity. The announcement was made by operator Shinsegae Group on Monday following public backlash over a recent marketing campaign.
The company faced widespread criticism after a campaign launched last month was seen as evoking the 1980 military crackdown on pro-democracy protesters. According to the company, the controversy led to a “very significant” decline in sales.
As part of the training, a history professor from Sungkyunkwan University will deliver a lecture on historical awareness. The session will cover major events in South Korea’s modern and contemporary history since the 1950s and examine how those events should be understood.
The company said this will be the first time Starbucks Korea has implemented a nationwide early closure since opening in the country in 1999. Starbucks Korea also plans to strengthen its marketing review process. Shinsegae said the company will introduce a social-sensitivity checklist that covers areas such as history, commemorative dates, politics, disasters, military issues, gender, violence, and hate expressions.
According to Starbucks Korea’s annual impact report, the company operated more than 2,000 stores in the country at the end of 2024. Data firm WISEAPP identified it as South Korea’s leading coffee chain based on customer payments.
Starbucks Corporation (NASDAQ:SBUX) is a global roaster, marketer, and retailer of specialty coffee. Its North America segment includes operations in the United States and Canada. Its International segment covers China, Japan, Asia Pacific, Europe, the Middle East and Africa, Latin America, and the Caribbean.
7. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 71
On June 10, UBS lowered its price recommendation on NIKE, Inc. (NYSE:NKE) to $50 from $54. It reiterated a Neutral rating on the stock. Analyst Jay Sole said he sees a “slightly negative upside/downside skew” heading into Nike’s fourth-quarter earnings report. He believes the company’s price-to-earnings multiple could be affected by a potentially weak first-quarter outlook. At the same time, he noted in the firm’s preview that “this is not a high conviction view.”
Also on June 10, Citi reduced its price goal on Nike to $47 from $53. It kept a Neutral rating on the shares. Citi expects Nike to post a modest earnings beat for fiscal fourth-quarter results scheduled for June 30. The analyst added in a research note that the company’s trends in China are expected to remain “sluggish” for the foreseeable future.
NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, accessories, and services for sports and fitness activities.
6. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 73
On June 17, Citi reiterated its Buy rating on Abbott Laboratories (NYSE:ABT). It said that the company’s individual businesses may be worth more than the market currently values the company as a whole. According to the firm’s sum-of-the-parts analysis, Abbott’s shares could be worth between $99 and $104, compared with the current share price of about $89. The analyst said in a research note that easing headwinds and the company’s pipeline of new products could help reverse the recent pressure on the stock.
On June 12, BofA lowered its price recommendation on Abbott to $102 from $120. It reiterated a Buy rating on the stock. Analyst Travis Steed noted that the firm’s services team continues to see a lower utilization environment. As a result, he is taking a more conservative approach to 2027 estimates for medtech companies, particularly since current valuations already reflect utilization-related risks. The analyst also assumes inflation will create more challenges in 2027, leading to less margin expansion across the medtech sector. Based on those assumptions, BofA reduced its 2027 estimates for several large-cap companies in its coverage universe that have exposure to utilization trends and inflation.
Abbott Laboratories (NYSE:ABT) is a global healthcare company focused on the discovery, development, manufacture, and sale of a broad range of healthcare products.
While we acknowledge the potential of ABT as an investment, 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 ABT and that has 100x upside potential, check out our report about the cheapest AI stock.
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