7. Dolby Laboratories, Inc. (NYSE:DLB)
Number of Hedge Fund Holders: 28
Dividend Yield as of November 2: 2.28%
Total Cash (mrq): $670.05 Million
Total Debt (mrq): $47.4 Million
Dolby Laboratories, Inc. (NYSE:DLB) is a developer of audio, imaging, and entertainment technologies for cinema, TV, smartphones, and streaming. The bulk of its revenue comes from its licensing business, where companies pay to incorporate its technologies, such as Atmos and Vision, into their own products and services.
Dolby pays a $0.36 per share quarterly dividend, which works out at $1.44 per share on an annualized basis. At a 2.28% dividend yield as of November 2, the stock provides both a steady stream of income and exposure to the entertainment technology sector. The company has a history of increasing its dividend, having raised it from $0.33 to $0.36 in 2025. The dividend has been in place since 2015. The cash generation is clearly sufficient to support the dividend.
In the first nine months of fiscal 2026, the company generated $314.8 million in operating cash flow; this is down from the $349.4 million generated in the same period last year. The annualized dividend is a very manageable level in relation to the cash generation. Dolby’s balance sheet is another key component of its dividend profile. The company had $670.05 million in cash and only $47.4 million in total debt in the most recent quarter, giving it a net cash position of around $622.65 million.
Its debt-to-equity ratio was a very low 1.83%, so it doesn’t rely heavily on debt. In addition to its cash position, it had around $87.1 million in short- and long-term investments. The company also returned capital through share repurchases, buying back approximately $65 million worth of shares in the third quarter of fiscal 2026.
The combination of net cash, recurring licensing revenue, and operating cash flow gives it a very good amount of flexibility to fund R&D, to invest in new technology, and to maintain its dividend. While the level of operating cash flow is somewhat lower than would be ideal, the low level of debt and the significant amount of liquidity provide a very solid platform for the dividend.
Aristotle/Saul Global Equity Fund mentioned DLB in its Q2 2026 investor letter. Read here.
6. Erie Indemnity Company (NASDAQ:ERIE)
Number of Hedge Fund Holders: 29
Dividend Yield as of November 2: 2.14%
Total Cash (mrq): $383.8 Million
Total Debt (mrq): $54.3 Million
Erie Indemnity Company (NASDAQ:ERIE) provides management services to the Erie Insurance Exchange, a policyholder-owned property and casualty insurer. The services provided include policy issuance and renewals, underwriting support, and administration. The company’s primary source of revenue is management fees, which are based on the premiums written by the Exchange.
Erie Indemnity pays a quarterly dividend of $1.4625 per Class A share, giving an annualized dividend of $5.85 per share. As of November 2, the yield on the share is 2.14%. The company has paid regular dividends to shareholders since 1942 and increased its quarterly dividend by 7.1% in December 2025. The dividend is funded by cash generated from operations. For the first 9 months of 2026, Erie generated $520.2 million in operating cash flow, up from $515.1 million in the same period last year, and paid out approximately $204.3 million in dividends to shareholders during that time.
The company also has a very solid liquidity position. Erie has $383.8 million in cash and $54.3 million in total debt, which is $329.5 million in net cash. That’s not all, though, as it has a very large investment portfolio. As of September 30, it had approximately $1.52 billion in available-for-sale and equity securities. The combination of positive net cash, recurring management fee income, and strong operating cash flow gives Erie a great deal of flexibility to maintain its dividend and to fund its business. The long track record of dividend payments and the level of cash flow coverage makes it an attractive proposition for the income investor looking for a company with a stable financial footing. ERIE is also included in our list of 13 High-Quality S&P 500 Financial Stocks According to Hedge Funds.
5. Janus Living, Inc. (NYSE:JAN)
Number of Hedge Fund Holders: 34
Dividend Yield as of November 2: 2.01%
Total Cash (mrq): $1.56 Billion
Total Debt (mrq): $54.3 Million
Janus Living, Inc. (NYSE:JAN) is a real estate investment trust (REIT) dedicated to creating vibrant senior housing communities across the United States. The company owns and operates properties that offer both comfortable living environments and essential care services for seniors, generating revenue through resident fees and a range of supportive offerings.
Janus Living offers shareholders a steady stream of income, paying a monthly dividend of $0.0475 per share, amounting to $0.57 annually. As of November 2, this translates to a 2.01% yield, providing investors with consistent returns. The company has already declared its monthly dividend for October, November, and December 2026, underscoring its commitment to regular payouts.
Notably, dividend coverage has improved alongside operational performance: in Q3 2026, Janus reported adjusted FFO of $0.25 per share, a 46% year-over-year increase, while the quarterly dividend totaled $0.1425 per share, resulting in a payout ratio of about 57%. This conservative approach leaves room to sustain the distribution while also investing in property growth.
Janus Living’s strong cash position is another highlight. In the most recent quarter, the company reported $1.56 billion in cash and just $54.3 million in total debt, resulting in a robust net cash balance of around $1.51 billion. After a period of significant acquisitions, the September 2026 results showed $338 million in unrestricted cash and no debt, while by October 30, total liquidity stood at approximately $1.2 billion, including available credit.
Operating cash flow for the first nine months of 2026 reached $224.7 million, more than doubling the $94 million recorded in the same period of 2025. The scale of Janus’s portfolio and growing cash flows both strengthen the outlook for its dividend. Of course, as the company continues to expand its senior housing business, it will be important to keep an eye on acquisition spending, occupancy rates, and integration costs.
WestEnd Capital Management mentioned JAN in its Q2 2026 investor letter. Here is what it said.
4. Garmin Ltd. (NYSE:GRMN)
Number of Hedge Fund Holders: 37
Dividend Yield as of November 2: 1.53%
Total Cash (mrq): $2.34 Billion
Total Debt (mrq): $224.4 Million
Garmin Ltd. (NYSE:GRMN) is a developer of GPS-enabled devices and technologies for the fitness, outdoor recreation, aviation, marine, and automotive markets. Products include smartwatches, fitness trackers, navigation systems, and aviation equipment.
Garmin pays an annual dividend of $4.20 per share, which is $1.05 quarterly. At a yield of 1.53% as of November 2, this is a fairly modest income stream, although it is clearly underpinned by strong cash generation rather than any kind of borrowing. For the first 9 months of 2026, the company produced $1.33 billion in operating cash flow and $1.04 billion in free cash flow, compared to $933.3 million in free cash flow for the same period in 2025. It paid out approximately $578.5 million in dividends during this period, so there is a very substantial amount of cash left on the table. That’s a very clear signal that the dividend is well funded and the company can comfortably pay it whilst still having plenty of cash to reinvest in the business.
Garmin also has a very strong balance sheet. In the most recent quarter, it reported $2.34 billion in cash and just $224.4 million in total debt, so around $2.12 billion of net cash. When you look at its broader liquidity position and include marketable securities, it’s even better. As of September 2026, the company had around $4.1 billion in cash and marketable securities. It also generated $293.3 million in free cash flow in Q3 and paid out $202 million in dividends. The combination of its strong liquidity, very low debt, and growing free cash flow gives it a huge amount of flexibility to continue to pay out dividends without having to compromise on its business.
For income investors, the 1.53% yield may not be the highest, but with the level of dividend coverage and the strength of the balance sheet, it is a very attractive proposition for those who are looking at dividend sustainability and long-term growth. Read GRMN’s full analysis here.
