In this article, we will take a look at some of the best dividend stocks with consistent payouts.
Over the past two years, persistently high inflation has led to increased borrowing costs, creating a difficult landscape for both businesses and consumers. Adding to this challenge is the uncertainty surrounding potential interest rate cuts by central banks, regulatory shifts under the new US administration, and ongoing geopolitical instability—all of which have contributed to a slowdown in economic activity. Against this backdrop, competition for capital has intensified, prompting companies to refine their business strategies with both short-term and long-term objectives in mind as they seek to secure essential resources amid economic uncertainty.
According to a report by S&P Global, in 2024, global dividend growth surged by 8.5%, marking a significant acceleration. This increase was particularly notable in the Asia-Pacific region, where government policies encouraged a shift from annual to semiannual dividend distributions. Meanwhile, the U.S. market experienced a surge in dividend initiations and reinstatements, driven largely by the technology, media, and telecommunications (TMT) sector.
Investors have shown a growing preference for dividend stocks, particularly in the wake of recent market turbulence, which saw a sharp sell-off that also affected AI-related equities. The Dividend Aristocrat Index has surged by nearly 1.5% since the start of 2025, compared with a 3.4% decline of the broader market, as of the close of March 21. Analysts remain positive about the outlook for dividend stocks this year. The S&P Global report highlighted that with interest rates likely to stay high at least through the first half of 2025, dividends and a well-balanced capital return strategy will continue to play a crucial role. Companies are expected to focus on these factors as they work to maintain investor confidence and draw in new shareholders.
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Within dividend investing, stocks with a strong history of dividend growth, backed by stable cash flows, remain a preferred choice among investors. A report by J.P. Morgan suggested that global equities are on the verge of a significant phase of dividend expansion, driven not only by a cyclical increase in payouts but also by a structural shift toward sustained dividend momentum. Over the past two decades, global dividends per share have increased at an average annual rate of 5.6%. However, JPM’s analysts now anticipate this growth rate to accelerate to 7.6% in the coming years.
A key factor behind this expected acceleration is the historically low starting point for payout ratios, which measure dividends as a proportion of earnings. In 2020, during the COVID-19 pandemic, an unprecedented number of companies reduced their dividend payments, leading to a 12% decline in global dividends—an even sharper drop than that experienced during the Global Financial Crisis. Given the uncertainty at the time, this reaction was widely viewed as a prudent decision.
Since then, equity markets have staged a strong recovery, fueled by surging global earnings, particularly in sectors such as Big Tech and, more recently, artificial intelligence. However, as dividend policies are typically guided by cautious corporate boards and management teams, dividend payouts have lagged behind earnings growth during these boom periods. As a result, payout ratios have now fallen to their lowest levels in 25 years, suggesting that companies are distributing a smaller share of their earnings compared to historical norms. Simply reverting to more typical payout levels could contribute an additional 2% annual dividend growth over the next five years, according to J.P. Morgan. This trend is already underway, with global dividend growth outpacing earnings growth in seven of the last eight quarters. Given this, we will take a look at some of the best dividend stocks with consistent histories.
Source: unsplash
Our Methodology
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, and Business Insider. From their latest articles, we gathered the stocks they collectively favored. These companies demonstrate robust cash flow, maintain healthy balance sheets, and have a track record of steady dividend payments. In addition, we assessed the hedge fund sentiment for each stock using Insider Monkey’s Q4 2024 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies.
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).
12. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 36
Realty Income Corporation (NYSE:O) is an American real estate investment trust company that invests in single-tenant commercial properties in the country. The company owns a portfolio of 15,600 properties worldwide. Nearly 80% of its holdings are leased to retailers, primarily well-known, established retail chains. Its three largest tenants include 7-Eleven, Dollar Tree, and Walgreens. In addition, grocery and convenience stores account for over 20% of its total portfolio. While its primary emphasis remains on stable, necessity-based retailers, the company has broadened its reach into various sectors, benefiting from a diverse tenant base. Realty Income’s properties are leased to businesses across 89 industries, and it has expanded its presence to seven European countries.
In the fourth quarter of 2024, Realty Income Corporation (NYSE:O) reported revenue of $1.34 billion, which showed a 24.4% growth from the same period last year. The company’s Adjusted Fund from Operations (AFFO) per share also increased by 4% to $1.05 per share, which marked its 14th consecutive year of AFFO per share growth.
Realty Income Corporation (NYSE:O) is one of the best dividend stocks as the company pays monthly dividends to shareholders. On March 12, the company declared a 0.2% hike in its monthly dividend to $0.2685 per share. This was its 130th dividend increase since its listing on the NYSE in 1994. With the latest adjustment, the monthly dividend now translates to an annualized payout of $3.222 per share, slightly up from the previous rate of $3.216 per share. The stock has a dividend yield of 5.77%, as of March 22.
11. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 44
Dover Corporation (NYSE:DOV) is an American manufacturer of industrial products, based in Illinois. The company offers a diverse range of advanced equipment and components, continuously adapting to shifts in the industrial sector amid evolving market conditions and strategic adjustments. As the company focuses on long-term expansion, investors and analysts keep a close eye on its financial performance and key strategic moves. Examining its latest earnings, initiatives, and market presence provides valuable insights into its current position and future growth potential.
In the fourth quarter of 2024, Dover Corporation (NYSE:DOV) reported revenue of $1.9 billion, reflecting a 1% increase compared to the previous year. However, GAAP earnings from continuing operations declined by 8% to $238 million, while GAAP diluted EPS from continuing operations dropped 7% to $1.72. On an adjusted basis, earnings from continuing operations remained steady at $305 million, with adjusted diluted EPS rising 1% to $2.20.
Dover Corporation (NYSE:DOV) maintained a strong cash position, ending the quarter with over $1.8 billion in cash and cash equivalents—a significant jump from the $400 million reported a year earlier. For the full year 2024, the company generated more than $1 billion in operating cash flow. Currently, Dover pays a quarterly dividend of $0.515 per share, offering a yield of 1.15% as of March 22. With a history of consistent dividend growth spanning more than 68 years, DOV is one of the best dividend stocks on our list.
10. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 46
LyondellBasell Industries N.V. (NYSE:LYB) is a Netherlands-based global chemical manufacturer that specializes in plastics, chemicals, and refining. In the fourth quarter of 2024, the company reported revenue of $9.5 billion, marking a 4.3% decline from the same period the previous year. However, it exceeded analysts’ estimates by $241.3 million. During the quarter, rising costs for NGL feedstocks and natural gas led to margin compression across most business segments, while product prices came under pressure due to weaker seasonal demand. Despite these challenges, strong export demand for North American polyethylene helped offset the seasonal slowdown in domestic volumes.
LyondellBasell Industries N.V. (NYSE:LYB) maintained a solid financial standing in fiscal year 2024, generating $3.8 billion in operating cash flow with a 90% cash conversion rate. The company remained committed to shareholder returns, distributing $1.9 billion in dividends throughout the year. In addition, it upheld its strong investment-grade balance sheet, closing the year with $8.0 billion in available liquidity, including $3.4 billion in cash and cash equivalents.
LyondellBasell Industries N.V. (NYSE:LYB) stands out as one of the most reliable dividend payers. In fiscal year 2024, the company maintained a solid financial position, generating $3.8 billion in operating cash flow with a 90% cash conversion rate. It remained committed to rewarding shareholders, distributing $1.9 billion in dividends over the year. In addition, the company preserved its strong investment-grade balance sheet, closing the year with $8.0 billion in available liquidity, including $3.4 billion in cash and cash equivalents. It currently pays a quarterly dividend of $1.34 per share and has a dividend yield of 7.49%, as of March 22. The company has been rewarding shareholders with growing dividends for the past 14 consecutive years, which makes it one of the best dividend stocks.
9. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) ranks ninth on our list of the best dividend stocks for consistent payments. The Virginia-based tobacco company manufactures a wide range of related products including cigarettes and other nicotine products. Cigarette consumers are typically highly loyal to their preferred brands, giving Altria a significant advantage over competitors due to Marlboro’s dominant market share. However, Altria’s operations are limited to North America, as it separated its international business into Philip Morris International several years ago. As a result, the company’s long-term success depends entirely on its ability to perform well within this single market. In the past 12 months, the stock has surged by over 34%, outperforming the broader market.
In the fourth quarter of 2024, Altria Group, Inc. (NYSE:MO) reported revenue of $5.11 billion, reflecting a 1.63% increase from the prior year and exceeding analyst estimates by $59.6 million. Strong brand performance contributed to higher earnings and improved margins in its core tobacco business, while the company continued making strategic investments to support long-term growth. Looking ahead to 2025, Altria expects adjusted diluted EPS to range between $5.22 and $5.37, representing a projected increase of 2% to 5% compared to its 2024 EPS of $5.12.
Altria Group, Inc. (NYSE:MO) currently pays a quarterly dividend of $1.02 per share and has a dividend yield of 7.08%, as of March 22. The company has a long history of delivering value to shareholders through consistent dividend payments. In fiscal 2024, the company distributed $6.8 billion in dividends. With 55 consecutive years of dividend growth, it remains one of the top-performing dividend stocks.
8. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 49
General Mills, Inc. (NYSE:GIS) is a Minnesota-based multinational company that specializes in branded processed consumer foods that are sold through retail stores. The company reported mixed earnings in fiscal Q3 2025. It reported revenue of $4.8 billion, down 5% from the same period last year. Organic net sales declined by 5%, with approximately four percentage points attributed to retailer inventory reductions and the anticipated reversal of certain favorable timing factors from the second quarter. Despite these challenges, the company continued to gain market share in the Pet, Foodservice, and International segments. In addition, performance improved in the Pillsbury refrigerated dough and Totino’s hot snacks categories, where increased investments in the previous quarter yielded positive returns.
General Mills, Inc. (NYSE:GIS) is a prominent name in the food industry, known for its diverse portfolio of brands such as Cheerios, Häagen-Dazs, and Betty Crocker. With a presence in over 100 countries, it strengthens its market position through a broad brand lineup and ongoing innovation. Recently, the company has focused on increasing sales volume and expanding market share, both of which play a key role in its growth strategy.
General Mills, Inc. (NYSE:GIS)’s cash position also came in strong. In the first nine months of fiscal 2025, the company posted an operating cash flow of $2.3 billion and its capital investments came in at $405 million. During this period, it paid $1 billion to shareholders through dividends. Its quarterly dividend comes in at $0.60 per share and has a dividend yield of 4.09%, as of March 22. GIS is one of the best dividend stocks on our list as the company has been paying regular dividends to shareholders for the past 125 years.
7. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 55
Mondelez International, Inc. (NASDAQ:MDLZ) is an American food, confectionery, and beverage company with a workforce of around 80,000 employees worldwide. In the fourth quarter of 2024, the company reported revenue of $9.6 billion, marking a 3.11% increase from the previous year. However, this fell short of market expectations by over $51 million. For the full year, revenue grew by 4.3%, with gains recorded in both developed and emerging markets. The chocolate segment performed particularly well, expanding by 7.4%, driven by strong sales from global brands such as Cadbury Dairy Milk and Milka.
Mondelez International, Inc. (NASDAQ:MDLZ) further strengthened its portfolio by acquiring a majority stake in Evirth, a leading player in China’s fast-growing frozen-to-chilled baked snacks market. This acquisition aligns with Mondelez’s strategy to expand its presence in the cakes and pastries segment, complementing its core chocolate and biscuit businesses. Since the start of 2025, the stock has surged by over 8%.
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the best dividend stocks with 11 consecutive years of dividend growth under its belt. Currently, it pays a quarterly dividend of $0.47 per share for a dividend yield of 2.91%, as of March 22. The company’s strong dividend history comes from a solid financial position as it generated $4.9 billion in operating cash flow and $3.5 billion in free cash flow. In addition, it returned $4.7 billion to shareholders through dividends and share repurchases.
6. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 56
Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of hypermarkets and discount department stores. The company differentiates itself from other discount retailers by balancing affordability with trend-driven merchandising and a strong portfolio of private-label brands. In addition to facing competition from Amazon, the company also contends with Walmart’s dominant market presence. Target operates over 1,956 physical stores across the United States, alongside a robust online platform.
Target Corporation (NYSE:TGT) is known for its diverse product selection, spanning apparel, electronics, and home goods. A significant share of its revenue is derived from its owned and exclusive brands, which not only offer unique products to consumers but also contribute to higher profit margins. With a well-integrated omnichannel strategy, Target ensures a seamless shopping experience across both in-store and online channels. More than 96% of its sales are fulfilled through its brick-and-mortar locations, allowing it to leverage its extensive store network as fulfillment hubs, strengthening its position against online-only competitors.
In fiscal year 2024, Target Corporation (NYSE:TGT) generated over $7.3 billion in operating cash flow. Its strong financial position enabled the company to distribute $513 million in dividends during the fourth quarter, slightly up from $508 million in the same period a year earlier. It offers a quarterly dividend of $1.12 per share and has a dividend yield of 4.31%, as of March 22. TGT has been gaining investors’ attention as it holds a 53-year streak of consistent dividend growth.
5. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 65
Lockheed Martin Corporation (NYSE:LMT) is a Texas-based defense and aerospace manufacturing company that specializes in advanced technology systems, services, and products. For decades, the company has been the preferred defense partner for many US allies, with several nations relying on its weapon systems to enhance national security. This strong global demand contributes to analysts’ and investors’ confidence in the stock’s recovery, despite recent setbacks linked to significant losses in certain classified programs and delays in F-35 upgrade rollouts.
In fiscal 2024, Lockheed Martin Corporation (NYSE:LMT) demonstrated robust cash generation, reporting $7 billion in operating cash flow and $5.3 billion in free cash flow. Shareholder returns remained a priority, with $6.8 billion distributed through dividends and share repurchases. The company currently offers a quarterly dividend of $3.30 per share, yielding 3.01% as of March 22. With 22 consecutive years of dividend growth, it is one of the best dividend stocks on our list.
In the fourth quarter of 2024, Lockheed Martin Corporation (NYSE:LMT) posted revenue of $18.6 billion, reflecting a 1.3% decline from the previous year. Despite this, the company remained committed to national security initiatives, investing over $3 billion in research, development, and capital expenditures to advance innovation and improve operational efficiency through digital and manufacturing advancements. Its strong financial position also allowed it to return more than 100% of its free cash flow to shareholders over the year.
4. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 67
Medtronic plc (NYSE:MDT) is a leading global medical device company that operates across four primary segments: medical-surgical, neuroscience, cardiovascular, and diabetes, offering a wide array of healthcare solutions. One of its key initiatives for 2025 involves integrating artificial intelligence (AI) into its product portfolio. The company is incorporating machine learning and automation in various areas, with the GI Genius intelligent endoscopy module being a notable innovation. This AI-powered system enhances polyp detection, improving both the accuracy and efficiency of colonoscopies. So far in 2025, the stock has gained over 12%.
In the third quarter of fiscal 2025, Medtronic plc (NYSE:MDT) reported revenue of $8.3 billion, marking a 2.5% year-over-year increase, though slightly below Wall Street’s estimate of $8.33 billion. The company posted GAAP diluted earnings per share (EPS) of $1.01, while adjusted EPS grew 7% from the prior year to $1.39, exceeding analyst expectations of $1.35.
Medtronic plc (NYSE:MDT) currently offers a quarterly dividend of $0.70 per share, yielding 3.10% as of March 22. Its latest earnings report highlighted strong financial performance, with over $4.5 billion in operating cash flow and $3.1 billion in free cash flow generated during the first nine months of the fiscal year. This financial strength has allowed Medtronic to maintain its commitment to shareholder returns, extending its record of consecutive dividend increases to 47 years. MDT is one of the best dividend stocks on our list.
3. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) ranks third on our list of the best dividend stocks with consistent payouts. It is commonly known as a beverage company but it also offers a wide variety of drinks under its well-known brand. The company has a diverse product portfolio that extends beyond beverages, as it also manufactures and sells snacks and packaged food products. In fact, its snack division is a major strength, with its Frito-Lay business securing the top spot in the salty snack market, even as PepsiCo holds the second-largest share in the non-alcoholic beverage industry.
In fiscal year 2024, PepsiCo, Inc. (NASDAQ:PEP) maintained steady earnings, generating $91.8 billion in revenue, a slight increase from $91.4 billion the previous year. Operating profit grew from $11.9 billion in FY23 to $12.8 billion, while net income also improved, reaching $9.6 billion. For 2025, the company anticipates low-single-digit organic revenue growth and mid-single-digit growth in core constant currency earnings per share (EPS).
PepsiCo, Inc. (NASDAQ:PEP) maintains a strong cash position, having generated $12.5 billion in operating cash flow during FY24. For the upcoming fiscal year, the company plans to return around $7.6 billion to shareholders through dividend payments. On February 3, it announced a 5% increase in its annual dividend to $5.69 per share, marking its 53rd consecutive year of dividend growth. As of March 22, the stock supports a dividend yield of 3.73%.
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 91
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company. In the fourth quarter of 2024, the company delivered strong financial results, with revenue rising 7% year-over-year to $15.6 billion. The company has expanded its footprint in specialty pharmaceuticals and oncology, with Keytruda playing a pivotal role in its cancer treatment portfolio and serving as a key driver of revenue growth. Its solid market position has allowed Merck to maintain a steady cash flow, reinforcing its commitment to returning value to shareholders.
For the full year, Keytruda sales surged 18% from the prior year, reaching $29.5 billion. The drug is projected to generate over $35 billion in revenue by 2028 before its patent expires, further solidifying Merck’s dominance in the immunotherapy market.
Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.81 per share, offering a dividend yield of 3.48%, as of March 22. With 14 consecutive years of dividend growth, it remains one of the best dividend stocks on the list.
Merck & Co., Inc. (NYSE:MRK) continues to make significant investments in research and development, focusing on cardiovascular and rare diseases to drive long-term growth. In addition, the healthcare sector’s resilience during economic downturns makes Merck an attractive investment, as demand for essential medications remains stable regardless of broader market conditions.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is an American integrated oil and gas company. Its Upstream segment, responsible for oil and gas production, reached record output levels in 2024, marking its highest production in over four decades. This achievement was driven by the company’s strategic assets, particularly in the Permian Basin, where both existing operations and newly acquired Pioneer assets contributed to significant growth. These assets stem from Exxon’s acquisition of Pioneer Natural Resources, further strengthening its position in the sector.
In the fourth quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported $83.4 billion in revenue, reflecting a slight 1.1% year-over-year decline. Since 2019, the company has achieved $12.1 billion in structural cost reductions, outperforming industry peers and helping to offset inflationary and expansion-related expenses. For the full year, Exxon recorded the highest return on capital employed in its sector at 12.7%, with a five-year average of 10.8%.
Exxon Mobil Corporation (NYSE:XOM) pays a quarterly dividend of $0.99 per share, offering a yield of 3.44% as of March 22. The company delivered a strong financial performance in 2024, generating $55 billion in free cash flow—the third-highest level in a decade. Total free cash flow for the year reached $36.2 billion, with $16.7 billion returned to shareholders through dividends. The company remains committed to its $20 billion annual share repurchase program, which is set to continue through 2026 while maintaining its 42-year streak of consecutive dividend increases.
Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best dividend stocks with consistent payouts. While we acknowledge the potential of XOM 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 XOM 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.
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