In this article, we will take a look at some of the best dividend stocks according to billionaires.
Dividend-paying stocks have traditionally been seen as a solid foundation for investment portfolios, offering steady income and helping cushion the impact of market swings. However, despite these advantages, they occasionally trail the broader market—often overshadowed by more high-profile opportunities. Over the past couple of years, for example, dividend stocks underperformed as investors flocked to tech stocks. But following the recent market correction and the renewed pressure on tech shares due to tariffs introduced by Trump, dividend stocks have started to regain investor interest.
The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has fallen by nearly 2% since the start of 2025, compared with a nearly 8% decline in the broader market. This trend suggests that dividends are regaining momentum, with a growing number of companies initiating dividend policies while existing payers are steadily boosting their payouts to attract investors. According to a report by S&P Global, 408 constituents of the broader market are projected to pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next four quarters, contributing to an estimated 6% year-over-year growth in total dividends. In the broader US market, aggregate dividend growth is forecasted at 4.6% for 2025. Given that S&P companies account for approximately 85% of all dividends paid in the US, the index serves as a strong indicator of overall dividend trends in the market.
The long-term value of dividend-paying stocks remains strong, particularly for investors seeking to reduce risk without giving up on growth potential. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, tends to favor high-quality companies that offer solid dividends and are reasonably priced. She pointed out that falling interest rates can create a favorable environment for dividend stocks, as their yields become more attractive compared to bonds. Persaud also noted that lower rates could help broaden market gains, unlike the recent trend where performance was largely driven by a few mega-cap growth names.
Her investment approach centers on companies with strong balance sheets, consistent cash flows, and high return potential. She also emphasized the importance of valuation—looking for stocks that are well-priced relative to their peers and historical levels—while seeking dividend yields that stand out in the current market. This combination of quality, value, and income has, according to her, helped the fund perform well in both rising and falling markets. She made the following comment about dividend stocks and their appeal:
“Ideally, I look for a stock that has a combination of these factors. I can’t always get all 3, so I look for a good balance of them. If I can get higher quality at a cheaper price, and the company pays a compelling dividend, that’s when a stock is really interesting to me.”
Given this, we will take a look at some of the best long-term dividend stocks according to billionaires.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
To compile this list, we screened for dividend stocks that have strong financials and solid dividend policies. From that group, we picked 10 companies that were most popular among billionaire investors, as per Insider Monkey’s billionaire database of Q4 2024. The stocks are ranked according to the number of billionaires having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. 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. Ecolab Inc. (NYSE:ECL)
Number of Billionaire Holders: 15
Ecolab Inc. (NYSE:ECL) is a Minnesota-based water treatment and cleaning solutions company. It is mainly recognized for its focus on sustainability and innovation, and it supports clients in reducing their environmental footprint while enhancing operational performance. Its range of products spans water and energy management solutions, infection control systems, and other efficiency-driven offerings. The stock has surged by over 3% since the start of 2025.
In the fourth quarter of 2024, Ecolab Inc. (NYSE:ECL) reported revenue of $4 billion, which showed nearly 2% growth from the same period last year. The company also reported a 4% increase in organic sales, driven by faster growth in its Industrial and Healthcare & Life Sciences segments, along with continued solid performance in the Pest Elimination and Institutional & Specialty divisions. In terms of regional performance, the US led with particularly strong organic sales growth, while international markets also saw positive results, as new business gains outweighed the challenges posed by varying macroeconomic conditions. The company’s reported operating income margin stood at 14.6%.
Ecolab Inc. (NYSE:ECL) also demonstrated a strong cash position in FY24. The company’s operating cash flow and free cash flow for the year came in at $2.8 billion and $1.8 billion, respectively. Due to this cash position, the company was able to increase its payouts for 33 consecutive years, which makes it one of the best dividend stocks according to billionaires. The company offers a quarterly dividend of $0.65 per share and has a dividend yield of 1.09%, as of April 15.
9. Starbucks Corporation (NASDAQ:SBUX)
Number of Billionaire Holders: 15
Starbucks Corporation (NASDAQ:SBUX) is a Washington-based chain of coffeehouses and roastery reserves. The company’s brand remains its strongest competitive advantage, giving the leadership team a reliable platform to build on. Since taking over in September, CEO Brian Niccol has launched a “Back to Starbucks” strategy aimed at steering the company back on course.
In the first quarter of fiscal 2025, Starbucks Corporation (NASDAQ:SBUX) posted a consolidated net revenue of $9.4 billion, which remained steady compared to the previous year when adjusting for currency effects. During the quarter, the company added 377 new stores, bringing its global total to 40,576. Of these, 53% are company-operated, while the remaining 47% operate under licensing agreements. By the end of the quarter, the US and China together made up 61% of Starbucks’ global store network, with 17,049 stores in the US and 7,685 in China.
Starbucks Corporation (NASDAQ:SBUX) is one of the best dividend stocks as the company has been paying regular dividends for the past 59 quarters. During this period, the company’s payouts have grown at a CAGR of 20%. Moreover, it has raised its payouts for 14 years in a row. The company pays a quarterly dividend of $0.61 per share and has a dividend yield of 2.91%, as of April 15.
8. The Coca-Cola Company (NYSE:KO)
Number of Billionaire Holders: 16
The Coca-Cola Company (NYSE:KO) is one of the best long term dividend stocks because of its strong cash position and long dividend growth streak. The stock has the support of Warren Buffett, a widely followed figure among global investors. The company is behind some of the world’s most recognized beverages, offering not just its flagship Coca-Cola products but also a wide range of nearly 200 non-alcoholic, ready-to-drink brands. This lineup features familiar favorites such as Sprite, Fresca, Minute Maid, and Fairlife.
The Coca-Cola Company (NYSE:KO) reported strong results in FY24. The company’s revenue for the year came in at $91.8 billion, up from $91.4 billion in 2023. Its operating profit also rose to $12.8 billion, from $11.9 billion the year before. The company’s net income sat at $9.6 billion. Looking ahead to fiscal 2025, the company expects organic revenue to grow at a low single-digit rate, while core earnings per share are projected to rise by a mid-single-digit percentage, assuming constant currency conditions.
The Coca-Cola Company (NYSE:KO)’s cash generation also remained strong in FY24, with its operating cash flow coming in at $12.5 billion. The company plans to return $7.6 billion to shareholders via dividends. In February this year, KO achieved its 53rd consecutive annual dividend hike, which makes it a strong dividend payer for long term growth. It currently pays a quarterly dividend of $1.355 per share and has a dividend yield of 2.84%, as of April 15.
7. NextEra Energy, Inc. (NYSE:NEE)
Number of Billionaire Holders: 17
NextEra Energy, Inc. (NYSE:NEE) ranks seventh on our list of the best dividend stocks according to billionaires. The company runs one of the largest electric utilities in the US, Florida Power & Light, which benefits from stable, government-regulated rates and consistent electricity demand—resulting in dependable cash flow. Alongside that, the company owns a significant portfolio of energy infrastructure through NextEra Energy Resources, supported by long-term, fixed-rate contracts. Together, these operations generate resilient cash flow that holds up well even during economic slowdowns.
In the fourth quarter of 2024, NextEra Energy, Inc. (NYSE:NEE) delivered mixed results. Adjusted earnings per share came in at $0.53, in line with expectations, but revenue fell short—dropping 21.7% year-over-year to $5.39 billion, missing forecasts by $2.53 billion. Despite this, NextEra still managed to grow its full-year 2024 adjusted EPS by over 8% compared to the previous year. Since 2021, the company has maintained a compound annual EPS growth rate of over 10%, leading among the top 10 power producers.
With $13.2 billion in operating cash flow for fiscal 2024, NextEra Energy, Inc. (NYSE:NEE) remains a strong option for income-focused investors. It also plans to increase its dividend per share by roughly 10% each year through 2026. In February, the company raised its quarterly dividend by 10% to $0.5665 per share, marking its 29th straight year of dividend growth. As of April 15, the stock has a dividend yield of 3.35%.
6. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Holders: 18
Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services company, headquartered in North Carolina. The bank provides a comprehensive suite of financial services and products to a wide range of clients, including individual consumers, small and mid-sized businesses, as well as large corporations. These offerings cover banking, investing, asset management, and various financial and risk management solutions. In the past 12 months, the stock has surged by nearly 6%.
Bank of America Corporation (NYSE:BAC) reported strong earnings in the first quarter of 2025. The company posted a revenue of $27.4 billion, which showed a 6% growth from the same period last year. The revenue growth was driven by noninterest income growth across all segments. The company’s net interest income came in at $14.4 billion, which also grew by 3% on a YoY basis.
Bank of America Corporation (NYSE:BAC)’s balance sheet was also stable, with average deposit balances of $1.96 trillion, up 3% from the prior-year period. This was the bank’s seventh consecutive quarter of growth in this area. The company reported a CET1 ratio of 11.8% under the standardized approach, comfortably exceeding the regulatory minimum of 10.7%. During the period, it returned a total of $6.5 billion to shareholders—$2.0 billion through common stock dividends and $4.5 billion via share buybacks.
Bank of America Corporation (NYSE:BAC) is a solid dividend payer, having raised its payouts for 11 consecutive years. Moreover, it has paid regular dividends for the past 27 years. The company offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.74%, as of April 15.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Billionaire Holders: 19
QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor manufacturing company. The rollout of 5G networks gave the company a significant boost, reinvigorating its business. With its chips found in nearly every smartphone worldwide, the initial wave of 5G device upgrades drove a noticeable increase in the company’s revenue over the past few years. But Qualcomm’s reach extends beyond smartphones—it has steadily diversified into other areas, including components for mobile network infrastructure, industrial equipment, smart home devices, virtual reality gear, and a rapidly expanding automotive technology segment. Each of these areas is also poised to benefit from the widespread adoption of 5G.
In the first quarter of fiscal 2025, QUALCOMM Incorporated (NASDAQ:QCOM) delivered a strong performance, reporting $11.7 billion in revenue—up 17.6% year-over-year—marking its third straight quarter of double-digit revenue growth and setting a new quarterly record. The chip business (QCT) led the way with $10.1 billion in revenue, a 20% increase from the prior year. Notable contributors included a 13% rise in smartphone chip sales to $7.6 billion, a 61% jump in automotive revenue to $961 million, and a 36% increase in revenue from the Internet of Things (IoT) segment, which reached $1.5 billion.
QUALCOMM Incorporated (NASDAQ:QCOM) ended the quarter with a strong balance sheet, holding more than $3.1 billion in cash and cash equivalents. It generated nearly $4.6 billion in operating cash flow and returned $942 million to shareholders through dividend payments. The company pays a quarterly dividend of $0.89 per share and has a dividend yield of 2.45%, as of April 15. QCOM has been growing its payouts for 21 consecutive years, which makes it one of the best dividend stocks.
4. Walmart Inc. (NYSE:WMT)
Number of Billionaire Holders: 20
Walmart Inc. (NYSE:WMT) is an Arkansas-based retail corporation that operates a chain of hypermarkets, discount stores, and grocery stores across the country. The company managed to remain a dominant player in the retail space while many other big-box chains faded over the past 20 years. It kept itself in the game by modernizing its stores, enhancing its online shopping platform, using its physical locations to help fulfill digital orders, and staying competitive with Amazon on pricing. It also broadened its international presence and boosted its warehouse club footprint by opening more Sam’s Club stores.
In the fourth quarter of 2024, Walmart Inc. (NYSE:WMT) reported a 4.1% year-over-year revenue increase, bringing in $180.6 billion, with growth in constant currency terms hitting 5.3%. Operating income rose 8.3%, supported by better gross margins, higher income from memberships, and improved performance in the e-commerce business. For the full year, Walmart generated $36.4 billion in operating cash flow and ended with $9 billion in cash and equivalents. It also returned $4.5 billion to shareholders via stock repurchases and raised its quarterly dividend by 13% to $0.235 per share—the largest dividend boost the company has made in more than a decade.
Walmart Inc. (NYSE:WMT) dividend growth streak spans 52 years, which makes it one of the best dividend stocks according to billionaires. It currently pays a quarterly dividend of $0.235 per share for a dividend yield of 1.00%, as of April 15.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Billionaire Holders: 23
An American health insurance company, UnitedHealth Group Incorporated (NYSE:UNH) ranks third on our list of the best long term dividend stocks according to billionaires. The company continues to be an excellent option for those seeking protection from tariffs, strong cost-passing abilities, and reliable growth. Its essential services, solid financials, and strategic integration position it as a standout performer for long-term success, unaffected by market fluctuations. Since the start of 2025, the stock has surged by over 15%.
In fiscal 2024, UnitedHealth Group Incorporated (NYSE:UNH) exceeded investor expectations, posting an 8% revenue increase to $400 billion, driven by strong results across all its service areas. Operating income reached $32.3 billion, and after factoring in costs from a cyberattack and issues in South America, adjusted earnings were $34.4 billion.
UnitedHealth Group Incorporated (NYSE:UNH) also generated impressive cash flow, with $24.2 billion in operating cash flow, 1.6 times its net income. The company returned over $16 billion to shareholders through dividends and stock buybacks. In addition, its return on equity hit 23.7% in the fourth quarter, reflecting solid earnings and efficient capital management. Currently, it offers a quarterly dividend of $2.10 per share for a dividend yield of 1.44%, as of April 15. The company has paid its dividends consistently since 2010.
2. Eli Lilly and Company (NYSE:LLY)
Number of Billionaire Holders: 23
Eli Lilly and Company (NYSE:LLY) is an Indiana-based multinational pharmaceutical company that offers a wide range of related services and products. The company has become a highly sought-after stock in recent years due to its work with GLP-1-related treatments. The company has two GLP-1-approved drugs, Zepbound (for weight loss) and Mounjaro (for diabetes), and the potential billions in revenue these drugs could bring in the future has led investors to be optimistic about its growth prospects.
In addition to its success with GLP-1 drugs, there’s also excitement around Kisunla, an Alzheimer’s treatment approved by regulators last year, which could become another major revenue driver for the company. Eli Lilly and Company (NYSE:LLY) is also exploring further growth opportunities. For example, last year, the company partnered with Aktis Oncology to develop radiopharmaceuticals, a cutting-edge cancer treatment that targets specific cancer cells. This is just one example of the company’s diverse and promising pipeline.
Eli Lilly and Company (NYSE:LLY) holds a strong dividend policy and currently pays a quarterly dividend of $1.50 per share. The company maintains an 11-year streak of consistent dividend growth. The stock supports a dividend yield of 0.79%, as of April 15.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Billionaire Holders: 26
Broadcom Inc. (NASDAQ:AVGO) is a US-based semiconductor company that provides a broad range of services to its customers. In fiscal Q1 2025, the company reported $14.9 billion in revenue, marking a 24.7% increase compared to the same period last year, surpassing analyst expectations by $325.2 million. The growth was driven by strong demand for its AI-related chips and infrastructure software. AI revenue surged 77% year-over-year to $4.1 billion, while infrastructure software sales grew 47% to $6.7 billion.
Broadcom Inc. (NASDAQ:AVGO) also maintained a strong financial position, generating over $6.1 billion in operating cash flow and more than $6 billion in free cash flow, which accounts for around 40% of its total revenue. During the quarter, Broadcom returned $2.77 billion to shareholders through dividends and currently pays a quarterly dividend of $0.59 per share. The stock has a dividend yield of 1.32%, as of April 15.
According to Insider Monkey’s Q4 2024 database, 26 billionaires held stakes in Broadcom Inc. (NASDAQ:AVGO), worth over $14.4 billion. In addition, 161 hedge funds invested in the company in Q4, with a collective stake value of more than $22 billion. With nearly 24 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
Overall, Broadcom Inc. (NASDAQ:AVGO) ranks first on our list of the best long term dividend stocks according to billionaires. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than AVGO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
