Top 12 Dividend Stocks to Buy According to Billionaire Cliff Asness

In this article, we will take a look at the Top 12 Dividend Stocks to Buy According to Billionaire Cliff Asness.

Cliff is the Founder, Managing Principal, and Chief Investment Officer at AQR Capital Management. He is an active researcher and has written extensively on financial topics. His work has appeared in publications including The Journal of Portfolio Management, Financial Analysts Journal, The Journal of Finance, and The Journal of Financial Economics.

In January, Reuters reported that billionaire investor Cliff Asness’s AQR Capital Management ended the year with double-digit gains across its funds. The firm’s multi-strategy Apex Strategy returned 19.6%, while its alternative trend-following Helix Strategy gained 18.6%. Its stock-focused AQR Delphi Long-Short Equity Strategy delivered a return of 16.8%.

The reported returns were net of fees. These results outperformed a broader group of systematic hedge funds that use algorithms to follow market trends until those trends lose momentum. According to Societe Generale’s indices, an index tracking such trend-following funds finished the year with a gain of just over 2.5%.

Last year, the Financial Times reported that AQR Capital Management was increasingly adopting artificial intelligence and machine learning tools in its trading process. The move marked a shift for a firm that had long been cautious about removing human involvement from investment decisions.

For years, AQR favored rules-based computer models created by people to identify market patterns that could be clearly explained and understood. Although the firm first invested in broad-based machine learning technology in 2018, it expanded the approach beyond equities only more recently. AQR now uses the technology across multiple asset classes and applies it to determine how different factors should be weighted within a portfolio at any given time.

Our Methodology

For this list, we scanned the AQR Capital Management 13F portfolio as of Q1 2026 and identified dividend stocks from there. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

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).

12. The Kroger Co. (NYSE:KR)

AQR Capital Management’s Stake Value: $344,748,513

Dividend Yield as of June 19: 2.47%

On June 19, BMO Capital lowered its price recommendation on The Kroger Co. (NYSE:KR) to $60 from $70. It reiterated a Market Perform rating following the company’s first-quarter results. The firm said grocery sales came in stronger than expected, but margins were weaker. BMO also noted that Kroger’s guidance is more heavily weighted toward the second half of the year than anticipated because of a softer second quarter. In a research note, the analyst said BMO expects “continued quarterly choppiness” and believes Kroger is still in the early stages of its turnaround efforts.

During the company’s Q1 2026 earnings call, CEO and Director Gregory Foran said Kroger delivered 1% identical sales growth, excluding fuel. The increase was driven by strong performance in e-commerce, Fresh, and the company’s private-label brands.

Foran also said that Kroger’s e-commerce business, including its media operations, became profitable during the quarter.

Executive Vice President and CFO David John Kennerley said the company continued to invest in competitive pricing in a disciplined way. He added that these investments were fully funded through cost-saving initiatives while Kroger maintained a strong focus on margin performance.

The Kroger Co. is a food and drug retailer that operates supermarkets, multi-department stores, and fulfillment centers across the United States.

11. The Goldman Sachs Group, Inc. (NYSE:GS)

AQR Capital Management’s Stake Value: $379,258,057

Dividend Yield as of June 19: 1.64%

On June 12, JPMorgan raised its price recommendation on The Goldman Sachs Group, Inc. (NYSE:GS) to $900 from $826. It reiterated a Neutral rating on the stock. The firm expects consensus estimates for global investment banks to move higher ahead of second-quarter results, supported by strong trading performance. JPMorgan believes Q2 could become the second-best revenue quarter on record, trailing only the record-setting first quarter. In a research note, the analyst said trading has evolved into a “best execution pre/post trade platform business with the key driver being volatility driving activity levels.” The firm expects Goldman Sachs and Morgan Stanley to outperform when they report earnings.

On June 16, Reuters reported that Goldman Sachs has managed more than $1 trillion in announced mergers and acquisitions so far in 2026. According to a LinkedIn post from the bank citing Dealogic data, the figure represents a record pace for any investment bank during the six months.

The milestone follows Goldman Sachs’ role as lead left underwriter for SpaceX’s landmark initial public offering. The bank also served as co-financial advisor to Dominion Energy in its $66.8 billion sale to NextEra Energy, a transaction announced last month.

The Goldman Sachs Group, Inc. is a global financial institution that provides a broad range of financial services to corporations, financial institutions, governments, and individual clients.

10. Best Buy Co., Inc. (NYSE:BBY)

AQR Capital Management’s Stake Value: $394,596,650

Dividend Yield as of June 19: 5.14%

On June 2, DA Davidson raised the firm’s price recommendation on Best Buy Co., Inc. (NYSE:BBY) to $90 from $78. It also reiterated a Buy rating on the stock after meeting with the company’s management team to discuss first-quarter results. According to analyst Michael Baker, several product categories are benefiting from both replacement and innovation cycles. These include computing and home theater, which DA Davidson estimates account for roughly 40% to 45% of Best Buy’s sales. The firm also sees strength in appliances, mobile phones, and emerging product categories. In a research note, Baker said these trends continue to support the broader consumer electronics retail space.

On May 29, Truist raised its price goal on Best Buy to $81 from $66. It maintained a Hold rating on the stock. The firm noted that Best Buy’s first-quarter comparable sales growth of 2% exceeded its 1% estimate. Analyst Scot Ciccarelli also pointed out that the company is approaching the anniversary of last year’s successful Switch 2 launch and sees additional opportunities for growth. In a research note, Ciccarelli said recent product introductions, including the launch of RGB TV technology, could provide further upside.

Best Buy Co., Inc. is a specialty consumer electronics retailer with Domestic and International operating segments.

9. S&P Global Inc. (NYSE:SPGI)

AQR Capital Management’s Stake Value: $528,451,073

Dividend Yield as of June 19: 0.94%

On June 18, Rothschild & Co Redburn lowered its price recommendation on S&P Global Inc. to $520 from $540. It reiterated a Buy rating on the shares. The firm said artificial intelligence is driving a “redistribution of value rather than wholesale disruption” across the information services industry. According to the analyst, proprietary and difficult-to-replicate datasets, such as ratings, risk data, and certain private-market datasets, are likely to maintain their pricing power and could see stronger demand. At the same time, the firm believes that workflow, aggregation, and interface-led business models may face gradual erosion. In a research note, Rothschild & Co Redburn said it adjusted ratings and price targets across the sector.

During S&P Global’s Q1 2026 earnings call, CFO and Executive Vice President Eric Aboaf said the company was reaffirming its guidance for organic constant-currency revenue growth of 6% to 8%. He also noted that adjusted earnings-per-share guidance remained unchanged.

Aboaf said the Energy segment is now expected to generate organic constant-currency revenue growth of 4.5% to 6%, reflecting a one-percentage-point reduction from the previous forecast. He also stated that Ratings revenue growth is not expected to accelerate in the second quarter. According to Aboaf, the company still expects Ratings growth to moderate in the third quarter and turn negative in the fourth quarter as it laps strong comparisons from the prior year.

S&P Global Inc. provides essential intelligence through five business segments: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, and S&P Dow Jones Indices.

8. Mueller Industries, Inc. (NYSE:MLI)

AQR Capital Management’s Stake Value: $536,038,434

Dividend Yield as of June 19: 1.02%

On May 28, Northcoast downgraded Mueller Industries, Inc. (NYSE:MLI) to Neutral from Buy and did not assign a price target. The analyst said the stock’s recent strength has made the risk-reward profile more balanced.

During Mueller Industries’ first-quarter 2026 earnings call, CEO Greg Christopher said the company delivered the highest first-quarter earnings in its history. He attributed the performance to strong operational execution, effective management of raw material costs and pricing, disciplined cost controls, and the company’s diversified exposure across end markets.

Christopher also noted that strong cash generation supported Mueller’s capital allocation strategy. This included share repurchases and a 40% increase in the quarterly dividend, marking the sixth straight year of double-digit dividend growth. He added that the company completed its acquisition of Bison Metals Technologies on March 30 and welcomed its experienced leadership team. According to Christopher, the acquisition is expected to generate immediate synergies across Mueller’s North American copper tube products platform while increasing overall copper tube manufacturing capacity. Christopher said the integration process has been smooth and successful since the transaction closed.

Mueller Industries, Inc. is an industrial company whose businesses manufacture essential products for key markets, including air, water, oil, and gas distribution.

7. Citigroup Inc. (NYSE:C)

AQR Capital Management’s Stake Value: $604,260,476

Dividend Yield as of June 19: 1.68%

On June 18, Wells Fargo raised its price recommendation on Citigroup Inc. (NYSE:C) to $165 from $162. It reiterated an Overweight rating on the shares. The firm believes Citi is positioned to exceed its 2026 return on tangible common equity (ROTCE) target. According to the analyst, strong performance in capital markets, payments, and net interest income, supported by higher interest rates, should help the company surpass both its long-term target and Wells Fargo’s expectations for the second quarter.

On June 11, The Wall Street Journal reported that Citigroup is creating a platform that will allow wealthy and institutional clients to trade shares of private companies using blockchain technology. The bank hopes the platform will gain adoption among other major Wall Street firms.

Citigroup said it is already in discussions with some of the largest private companies about participating in the initiative. The platform is designed to expand access to private-company investments at a time when many businesses are waiting longer before going public.

The service is initially available only to foreign investors and will generate revenue through transaction and maintenance fees. Citi plans to extend access to US investors at a later stage. The bank also said the infrastructure can be used by other financial institutions.

Citigroup Inc. is a global diversified financial services holding company. Its operating segments include Services, Markets, Banking, Wealth, and U.S. Personal Banking (USPB).

6. Dollar General Corporation (NYSE:DG)

AQR Capital Management’s Stake Value: $610,053,047

Dividend Yield as of June 19: 2.08%

On June 3, Telsey Advisory lowered its price recommendation on Dollar General Corporation (NYSE:DG) to $125 from $140. It reiterated a Market Perform rating on the shares. Analyst Joseph Feldman said the company delivered “better-than-expected” first-quarter results and raised its fiscal 2026 guidance. He noted that Dollar General continues to invest in long-term growth through new store openings, store remodels, and operational improvements. At the same time, Feldman said the firm remains concerned about spending trends among the retailer’s core lower-income customers. It also sees growing competition as a challenge in the current macroeconomic environment.

The same day, Loop Capital raised its price goal on DG to $115 from $110. It maintained a Hold rating following the company’s first-quarter earnings beat. The firm said it was impressed by Dollar General’s performance, pointing to solid same-store sales growth, year-over-year operating margin expansion, and earnings that came in well above consensus expectations. According to the analyst, the results were especially notable given the impact of severe weather early in the quarter, higher gasoline prices, and reduced SNAP benefits.

Dollar General Corporation is a discount retailer that sells a range of products, including consumables, seasonal merchandise, home goods, and apparel.

5. Vertiv Holdings Co (NYSE:VRT)

AQR Capital Management’s Stake Value: $655,147,055

Dividend Yield as of June 19: 0.075%

On June 18, GLJ Research analyst Austin Wang upgraded Vertiv Holdings Co (NYSE:VRT) to Hold from Sell. The analyst pointed to a recent breakthrough by CoolIt, which introduced a 15kW cold plate. According to Wang, the development extends the viability of Vertiv’s single-phase data center cooling solutions well into the 2030s.

Earlier, on June 10, Bernstein initiated coverage of Vertiv with an Outperform rating and a $416 price target. The firm noted that Vertiv manufactures power and cooling equipment for data centers and is “arguably the only pure-play with scale” in the sector. In a research note, the analyst said Bernstein’s fiscal 2028 estimates are materially above broader Wall Street expectations. The firm also cited Vertiv’s “robust earnings power” as a key reason for its Outperform rating.

Vertiv Holdings Co provides mission-critical digital infrastructure technologies and lifecycle services, primarily serving data centers, communication networks, and commercial and industrial customers.

4. The Travelers Companies, Inc. (NYSE:TRV)

AQR Capital Management’s Stake Value: $717,093,080

Dividend Yield as of June 19: 1.62%

On June 12, Barclays analyst Alex Scott downgraded The Travelers Companies, Inc. (NYSE:TRV) to Underweight from Equal Weight. He also lowered the price target to $295 from $331. The analyst said that earnings upside in the property and casualty insurance sector is “becoming harder to find” as pricing softens, growth slows, and margin pressure increases. In a research note, Scott said Travelers’ earnings are likely to flatten and that downside risks are growing. Barclays believes the company’s slower rate and exposure growth, along with pressure on personal insurance margins, will lead to a gradual decline in underwriting margins.

Earlier, on May 26, Piper Sandler raised its price recommendation on Travelers to $340 from $329. It reiterated an Overweight rating on the shares. The firm cited recent stock performance and the passage of time as reasons for the target increase. Piper noted that it raised price targets for most insurance carriers while lowering targets for some insurance brokers. Following first-quarter results, the firm said it favors insurance carriers over brokers. According to Piper, underwriting performance provided more support than expected for carriers, while brokers delivered weaker organic growth results.

The Travelers Companies, Inc. provides property and casualty insurance products for automobiles, homes, and businesses. Its operating segments include Business Insurance, Bond & Specialty Insurance, and Personal Insurance.

3. PepsiCo, Inc. (NASDAQ:PEP)

AQR Capital Management’s Stake Value: $909,344,328

Dividend Yield as of June 19: 4.17%

On July 18, Deutsche Bank lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $168 from $173. It reiterated a Buy rating on the shares. The move came ahead of the company’s fiscal second-quarter earnings report. The firm said it is “more cautious” heading into the results, noting that the recovery thesis for PepsiCo Foods North America following the first quarter “appears to be stagnating.” According to the analyst, early-quarter trends pointed to “encouraging momentum” after the business returned to positive volume growth in the first quarter. Still, consumption trends slowed through late April and May, the analyst said in a research note.

Earlier, on June 12, TD Cowen lowered its price goal on PepsiCo to $150 from $165. It maintained a Hold rating on the stock. The firm reduced its second-quarter organic growth forecast to below consensus expectations, citing weak retail trends in the U.S. TD Cowen also lowered its fiscal 2027 earnings-per-share growth estimate to 5%, pointing to the timing of commodity cost inflation as a factor.

PepsiCo, Inc. manufactures, markets, distributes, and sells a wide range of beverages and convenience foods worldwide.

2. Micron Technology, Inc. (NASDAQ:MU)

AQR Capital Management’s Stake Value: $1,473,231,285

Dividend Yield as of June 19: 0.053%

On June 18, Rosenblatt raised its price recommendation on Micron Technology, Inc. (NASDAQ:MU) to $1,200 from $600. It reiterated a Buy rating on the shares ahead of the company’s fiscal third-quarter earnings report scheduled for June 24. The firm said it is increasing its estimates as average selling prices continue to rise. According to the analyst, higher prices have not weakened demand in the data center and server markets. Demand for DRAM and NAND Flash remains strong, while additional wafer supply is still about 12 months away.

The same day, Wedbush raised its price goal on Micron to $1,300 from $550. It maintained an Outperform rating on the stock. The firm significantly increased its revenue and earnings-per-share estimates for both the third quarter and future periods. Wedbush said pricing for NAND and DRAM rose by high double-digit to even triple-digit percentages during the second quarter, prompting the firm to raise its third-quarter forecasts. According to its channel checks, DRAM and NAND pricing are likely to increase by about 20% in the third quarter. Wedbush expects a similar trend to continue into Micron’s fourth quarter and has updated its financial model accordingly.

Micron Technology, Inc. develops memory and storage solutions. The company offers a range of high-performance DRAM, NAND, and NOR memory and storage products under its Micron and Crucial brands.

1. Apple Inc. (NASDAQ:AAPL)

AQR Capital Management’s Stake Value: $3,631,268,306

Dividend Yield as of June 19: 0.36%

On June 17, Bloomberg reported that Apple Inc. (NASDAQ:AAPL) is preparing a second-generation iPhone Air for release in spring 2027 as it looks to strengthen the appeal of its slim smartphone lineup, according to people familiar with the matter.

Current prototypes of the new model, code-named V62, include a second rear camera designed for ultrawide-angle photography. The sources, who requested anonymity because the product has not been announced, said the device is now in advanced testing within Apple.

The iPhone Air, first introduced in September 2025, is part of Apple’s effort to expand its $210 billion iPhone business through new designs. The company is also planning to launch its first foldable smartphone later this year. Bloomberg News previously reported that Apple is developing a special 20th anniversary iPhone for 2027, featuring a curved display that wraps around the edges of the device.

If the new Air model launches in spring 2027, about a year and a half will have passed between the first and second generations. Even so, the product timeline and specifications could still change. A spokesperson for Apple, based in Cupertino, California, declined to comment.

Apple is also adjusting its product release strategy. The company has traditionally unveiled its main iPhone lineup each September. This year, though, the fall release is expected to focus only on higher-end devices, including the iPhone 18 Pro, iPhone 18 Pro Max, and a new foldable model.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The company also offers a range of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home, and Accessories.

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