In this article, we will take a look at some of the best dividend stocks according to analysts.
Dividend-paying stocks have long benefited investors by delivering consistent and solid returns. During periods of economic uncertainty, they’ve generally performed more reliably than many other types of investments. Because of these qualities, more investors are turning to dividend stocks to take advantage of their compounding potential. This growing optimism has also encouraged several companies to join the dividend club, which was evident in the way tech firms eagerly began issuing dividends in 2024.
According to a report by S&P Dow Jones Indices, dividends paid by the S&P companies reached a new high of $167.6 billion in the fourth quarter of 2024, marking a 6.7% increase from the previous quarter’s $157.0 billion—which itself had set a record. This also represented an 8.7% rise compared to the $154.1 billion paid out in Q4 2023. For the full year, total dividend payments hit an all-time high of $629.6 billion in 2024, up 7.0% from the $588.2 billion distributed in 2023. The report further mentioned that the indicated dividends for the top 20 companies in the S&P index amounted to over $141 billion.
Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, made the following comment about dividends:
“Under an increased tax, some of the expenditures may shift from buybacks to dividends. However, any shift was not seen as being on a dollar-for-dollar basis as dividends remain a long-term pure cash-flow item which must be incorporated into corporate budgets.”
Dividends have played a key role in driving overall returns from equity investments over the long haul. This was emphasized in a study by London-based Guinness Global Investors, which examined the broader market’s performance dating back to 1940. According to their analysis, dividends and reinvested payouts made up about 94% of the index’s total return during that time. To put it in perspective, a $100 investment made at the end of 1940 would have grown to roughly $525,000 by the end of 2019 if dividends were reinvested, compared to just $30,000 if the dividends had simply been taken as cash.
The report also pointed out that dividends become a more significant part of total returns the longer an investment is held. Since 1940, for the broader market, dividends have made up about 27% of total returns over a typical one-year holding period. Stretching that to three years, their contribution rises to 36%. Over five years, it climbs to 40%, and over ten years, it reaches 47%. For investors who hold their positions for twenty years, dividends end up accounting for around 57% of the total returns. Due to this performance, analysts also recommend investing in dividend stocks. In this article, we will take a look at some of the best dividend stocks according to analysts.
Photo by Vitaly Taranov on Unsplash
Our Methodology
We created this list by scanning Insider Monkey’s Q4 2024 database for US companies that have strong dividend policies and are traded on American stock exchanges. From that group, we further refined our selection criteria by identifying stocks with a projected upside potential of over 5% based on analyst price targets, as of April 20. The stocks are ranked according to their upside potential.
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).
13. The Coca-Cola Company (NYSE:KO)
Upside Potential as of April 20: 5.19%
The Coca-Cola Company (NYSE:KO) is one of the most popular beverage manufacturers in the world. The company boasts a vast lineup of beverages designed to suit a wide range of tastes and preferences, backed by more than a century of operations. It’s also recognized as a powerhouse in marketing, and perhaps more importantly, enjoys a strong base of loyal customers who feel a deep connection to the brand.
Thanks to its strong competitive edge, The Coca-Cola Company (NYSE:KO) is in a position to raise prices when needed. In 2024, the company reported a 9% gain tied to favorable pricing and product mix. This pricing power offers some protection against rising costs, especially in an inflationary environment or in the face of potential tariffs.
Due to these traits, The Coca-Cola Company (NYSE:KO)’s cash position has always remained strong. In FY24, the company generated $6.8 billion in operating cash flow, and its free cash flow came in at $4.7 billion. Notably, in February, it marked its 63rd straight year of increasing its dividend, which makes it one of the best dividend stocks according to analysts. The company offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.79%, as of April 20.
12. The Procter & Gamble Company (NYSE:PG)
Upside Potential as of April 20: 5.42%
The Procter & Gamble Company (NYSE:PG) is an Ohio-based multinational consumer goods company that offers a wide range of related products and services to its consumers. The company’s biggest strengths are its massive scale and dominance across numerous product categories and brands, which help offset potential risks. As one of the world’s largest players in everyday personal and household goods, the company offers a wide range of top-selling brands spanning beauty, grooming, health, home care, fabric care, baby products, and more.
What sets The Procter & Gamble Company (NYSE:PG) apart is that it isn’t dependent on any one brand, product line, or region. Its broad diversification works in its favor. The company also has a strong history of managing expenses efficiently and, when needed, passing on higher costs to consumers. The stock has surged by nearly 3% since the start of 2025, and its 12-month return came in at over 6%.
The Procter & Gamble Company (NYSE:PG) is a strong dividend payer, which has been grabbing investors’ attention for quite a while now. On April 8, the company declared a 5% hike in its quarterly dividend to $1.0568 per share. Through this increase, the company stretched its dividend growth streak to 69 years, which makes it one of the best dividend stocks. Supported by strong financial performance, the company produced $4.8 billion in operating cash flow for the quarter, with a free cash flow productivity rate of 84%. It also returned $2.4 billion to shareholders through dividend payments, further cementing its status as a leading choice for long-term investors. As of April 20, the stock has a dividend yield of 2.48%.
11. Johnson & Johnson (NYSE:JNJ)
Upside Potential as of April 20: 7.53%
Johnson & Johnson (NYSE:JNJ) ranks eleventh on our list of the best dividend stocks according to analysts, with an upside potential of over 7%. The American multinational healthcare company recently reported earnings for Q1 2025. The company posted revenue of $21.9 billion, which showed a 2.4% growth from the same period last year. The revenue also beat analysts’ estimates by $315.6 million. Its net earnings of $11 billion showed a significant growth of 238% on a YoY basis.
During the quarter, Johnson & Johnson (NYSE:JNJ) strengthened its reputation as a leader in innovation by making significant progress across its development pipeline. This included advancements with TREMFYA in inflammatory bowel disease, the combination of RYBREVANT and LAZCLUZE for non-small-cell lung cancer, and OTTAVA, its robotic system for soft tissue surgery. Additionally, the firm bolstered its neuroscience portfolio through the completed acquisition of Intra-Cellular Therapies.
Johnson & Johnson (NYSE:JNJ) also reported a strong cash position. In the most recent quarter, the company’s free cash flow came in at $3.4 billion, up from $2.8 billion in the prior-year period. On April 15, it declared a 4.8% hike in its quarterly dividend to $1.30 per share. This marked the company’s 63rd consecutive year of dividend growth. The stock supports a dividend yield of 3.30%, as of April 20.
10. Costco Wholesale Corporation (NASDAQ:COST)
Upside Potential as of April 20: 9.26%
Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based retail company that operates membership-only big box warehouse club stores. With a global network of 897 warehouses, the company continues to deliver consistent revenue growth and maintains membership renewal rates above 90%.
Looking ahead to fiscal 2025, Costco Wholesale Corporation (NASDAQ:COST) plans to open 29 additional locations. For investors, this signals continued growth potential, especially since the company hasn’t yet reached market saturation—even in the US, where 617 of its warehouses are located. Several midsize American cities still lack a Costco, and many large metropolitan areas do not yet have a business center, indicating significant room for further domestic expansion.
In fiscal Q2 2025, Costco Wholesale Corporation (NASDAQ:COST) reported revenue of $63.7 billion, which showed a 9.1% growth from the same period last year. The company’s net income for the quarter came in at $1.8 billion, up from $1.7 billion in the prior-year period. Its cash position also came in strong as it had over $12.3 billion available in cash and cash equivalents. The company’s operating cash flow for the quarter came in at $6 billion, up from $5.4 billion in the same quarter last year.
Due to this cash position, Costco Wholesale Corporation (NASDAQ:COST) declared a 12% hike in its quarterly dividend to $1.30 per share on April 16. This was the company’s 21st consecutive year of dividend growth, which makes COST one of the best dividend stocks on our list. The stock has a dividend yield of 0.47%, as of April 20.
9. Union Pacific Corporation (NYSE:UNP)
Upside Potential as of April 20: 15.27%
Union Pacific Corporation (NYSE:UNP) is an American railroad holding company, headquartered in Nebraska. The company transports a wide range of goods and commodities, providing exposure to multiple industries, including agriculture, automotive, and energy. It is one of the two main railroads serving the US West Coast, with a vast network that provides critical access to major Pacific ports. This makes it a key player in transporting goods imported from Asia across the country.
In the fourth quarter of 2024, Union Pacific Corporation (NYSE:UNP) posted $6.12 billion in revenue, reflecting a slight 1% year-over-year decline. However, a 5% rise in revenue carloads helped cushion the impact. The railroad also improved its operating ratio to 58.7%, a 220-basis-point gain, despite a 70-basis-point drag from a newly ratified crew staffing agreement. Operating income climbed 5% to reach $2.5 billion.
Union Pacific Corporation (NYSE:UNP) has a long history of rewarding shareholders, with uninterrupted dividend payments for 125 years and 18 consecutive years of dividend increases. In fiscal 2024, it generated more than $9.3 billion in operating cash flow and ended the quarter with over $1 billion in cash and equivalents. Currently, it offers a quarterly dividend of $1.34 per share and has a dividend yield of 2.43%, as recorded on April 20. With an upside potential of over 15%, UNP is one of the best dividend stocks according to analysts.
8. Exxon Mobil Corporation (NYSE:XOM)
Upside Potential as of April 20: 20.4%
Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and gas company. The company is leveraging artificial intelligence to boost efficiency and enhance overall performance across its operations.
Exxon Mobil Corporation (NYSE:XOM) has been utilizing machine learning to prevent equipment failures, optimize production, and automate various tasks. AI holds significant potential in the energy sector, where breakdowns can cause costly delays, and some facilities operate without on-site personnel. The technology helps streamline processes and partially automates drilling operations. Ultimately, the company is working toward autonomous drilling, a system capable of identifying optimal conditions and carrying out drilling with minimal human intervention.
Backed by strong cash flow, Exxon Mobil Corporation (NYSE:XOM) remains a dependable dividend stock. In 2024, it generated $55 billion in operating cash flow—its third-best year over the past decade. For the fourth quarter alone, operating cash flow hit $12.2 billion, with free cash flow reaching $8 billion. The company returned $36 billion to shareholders during the year, including $16.7 billion through dividends.
Exxon Mobil Corporation (NYSE:XOM), one of the best dividend stocks, currently offers a quarterly dividend of $0.99 per share and has a dividend yield of 3.70%, as of April 20. The company has a strong history of paying dividends to shareholders, spanning 143 years. In addition, it has raised its payouts for 42 consecutive years.
7. Eli Lilly and Company (NYSE:LLY)
Upside Potential as of April 20: 21.3%
Eli Lilly and Company (NYSE:LLY) ranks seventh on our list of the best dividend stocks according to analysts. In recent years, weight loss medications have emerged as a key growth driver for the pharmaceutical sector, and Eli Lilly’s entry into the GLP-1 space has proven to be highly successful. Beyond its work with GLP-1 drugs, the company is also seeing strong momentum with its cancer treatment, Verzenio. With multiple FDA approvals under its belt, Verzenio is helping the company expand its presence in the oncology field. Since the start of 2025, the stock has surged by nearly 8%.
According to analysts, another promising area for Eli Lilly and Company (NYSE:LLY) is the treatment of Alzheimer’s disease (AD), a market projected to reach tens of billions of dollars in the coming years. Despite its size, the AD market remains fragmented, with limited competition and many treatments targeting only specific symptoms. In the summer of last year, Lilly secured FDA approval for its AD drug, Kisunla. While weight loss therapies are expected to remain the company’s primary revenue driver in the near term, the long-term growth potential of Kisunla should not be overlooked, especially as Lilly expands its presence in the Alzheimer’s space.
In addition to its strong pipeline of products, Eli Lilly and Company (NYSE:LLY) also holds a solid dividend history. The company has been rewarding shareholders with growing dividends for the past 11 years. It currently offers a quarterly dividend of $1.50 per share and has a dividend yield of 0.71%, as of April 20.
6. The Home Depot, Inc. (NYSE:HD)
Upside Potential as of April 20: 23.2%
The Home Depot, Inc. (NYSE:HD) is an American home improvement company that offers tools, appliances, construction products, and related services. In the fourth quarter of 2024, The Home Depot, Inc. (NYSE:HD) posted revenue of $39.7 billion, reflecting a 14% increase compared to the same period the previous year. For fiscal 2025, the company expects total sales to grow by about 2.8%, with comparable sales projected to rise roughly 1% over the equivalent 52-week timeframe. Expansion efforts include plans to open around 13 new stores, while gross margins are anticipated to be approximately 33.4%.
The Home Depot, Inc. (NYSE:HD) brand carries significant value in a fragmented market. Consumers have grown to rely on the company thanks to its extensive product selection, strong customer service, and broad distribution network. The stock has surged by nearly 6% in the past 12 months.
By the end of the quarter, The Home Depot, Inc. (NYSE:HD) held more than $1.65 billion in cash and cash equivalents. Over fiscal year 2024, the company generated nearly $20 billion in operating cash flow, underscoring its strong financial footing. This solid performance has enabled the company to maintain a streak of 152 consecutive quarters of dividend payments. On February 25, it announced a 2.2% dividend increase to $2.30 per share, marking its 15th straight year of dividend growth. As of April 20, the stock has a dividend yield of 2.59%.
5. Bank of America Corporation (NYSE:BAC)
Upside Potential as of April 20: 29.16%
Bank of America Corporation (NYSE:BAC) is a North Carolina-based multinational investment bank and financial services company. One of the bank’s key strengths lies in its diverse revenue base. The company operates across multiple areas of the financial sector, generating income from four main divisions: consumer banking, global wealth and investment management, global banking, and global markets. This diversified structure helps balance the business—when one segment faces headwinds, growth in another can help keep overall revenue steady.
In the first quarter of 2025, Bank of America Corporation (NYSE:BAC) delivered solid results, reporting $27.4 billion in revenue, a 6% increase year-over-year. The rise was largely driven by higher noninterest income across all business segments. Net interest income also grew 3% from the prior year, reaching $14.4 billion.
Bank of America Corporation (NYSE:BAC)’s balance sheet remained strong, with average deposits totaling $1.96 trillion, marking the seventh straight quarter of growth in this area. Its Common Equity Tier 1 (CET1) ratio stood at 11.8% under the standardized approach, well above the required minimum of 10.7%. During the quarter, the company returned $6.5 billion to shareholders, including $2.0 billion in common stock dividends and $4.5 billion in share repurchases.
Bank of America Corporation (NYSE:BAC) currently pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.78%, as of April 20. The company has been paying regular dividends to shareholders for the past 27 years and has raised dividends for 11 consecutive years. With an upside potential of nearly 30%, BAC is one of the best dividend stocks to invest in.
4. Citigroup Inc. (NYSE:C)
Upside Potential as of April 20: 37.5%
Citigroup Inc. (NYSE:C) is a New York-based multinational investment bank and financial services company. The company recently announced its Q1 2025 earnings with revenue of $21.6 billion, which showed a 3% growth from the same period last year. The revenue also surpassed analysts’ estimates by $310 million. Its net income for the quarter came in at $4.1 billion, compared with $3.4 billion in the prior-year period. The growth in net income was driven by lower expenses and higher revenues.
Citigroup Inc. (NYSE:C) is popular among investors as it operates through five main divisions: Services, Markets, Banking, U.S. Personal Banking, and Wealth. Although the Trump administration’s broad tariff policies have created market uncertainty and potential disruptions to supply chains and the wider economy, Citigroup may find some upside. While its lending and investment banking segments could face short-term challenges, its global services—such as cash management and trading—might stand to gain from the evolving trade environment.
Citigroup Inc. (NYSE:C) has remained committed to returning value to shareholders as it distributed approximately $2.8 billion to investors through dividends and share repurchases in the most recent quarter. The company offers a quarterly dividend of $0.56 per share and has a dividend yield of 3.54%, as of April 20. It is one of the best dividend stocks on our list as the company has been paying regular dividends to shareholders for the past 34 years.
3. Oracle Corporation (NYSE:ORCL)
Upside Potential as of April 20: 39.4%
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company, headquartered in Texas. The company develops and markets software applications, including its flagship Oracle Database. It has established cloud partnerships with major tech players such as OpenAI, xAI, Meta, NVIDIA, and AMD. With a robust sales backlog totaling $130 billion, the company is aiming for 15% total revenue growth in its upcoming fiscal year, which begins in June.
In the third quarter of fiscal 2025, Oracle Corporation (NYSE:ORCL) reported $14.13 billion in revenue, a 6.4% year-over-year increase. Its cloud segment, which includes Infrastructure as a Service (IaaS) and Software as a Service (SaaS), generated $6.2 billion, reflecting a 23% rise compared to the previous year. IaaS alone saw a significant jump, with revenue climbing 49% to $2.7 billion.
Oracle Corporation (NYSE:ORCL) also maintained strong cash generation, producing $20.7 billion in operating cash flow and $5.8 billion in free cash flow over the trailing twelve months. Oracle closed the quarter with $17.4 billion in cash and equivalents. On March 10, it announced a 25% boost to its quarterly dividend, raising it to $0.50 per share. With uninterrupted dividend payments since 2009, Oracle remains one of the best dividend stocks to monitor. The stock has a dividend yield of 1.55%, as recorded on April 20.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Upside Potential as of April 20: 40.2%
An American health insurance company, UnitedHealth Group Incorporated (NYSE:UNH) offers a wide range of related services and products to its consumers. The company and other major health insurers got a boost on April 8 after the Centers for Medicare and Medicaid Services (CMS) announced that Medicare Advantage plans will receive a larger-than-expected payment increase in 2026.
Adding to the positive outlook, the Senate confirmation of Dr. Mehmet Oz—a former television personality and heart surgeon—was also seen as favorable news for the company. Dr. Oz has been a strong proponent of Medicare Advantage plans, which could support further industry momentum.
In its Q1 2025 results, UnitedHealth Group Incorporated (NYSE:UNH) reported revenues of $109.5 billion, reflecting a 9.8% increase from the prior year. The company expanded its reach by serving 780,000 more customers this year, while its Optum Health division reaffirmed plans to deliver care to 650,000 additional patients through value-based care in 2025. Leadership emphasized ongoing efforts to navigate current challenges and position the business to meet its long-term earnings growth target of 13% to 16%.
UnitedHealth Group Incorporated (NYSE:UNH) also posted strong cash flow, generating $5.5 billion in operating cash during the quarter. It returned about $5 billion to shareholders through dividends and share buybacks and has maintained a consistent dividend payout history since 2010. Its quarterly dividend comes in at $2.10 per share and has a dividend yield of 1.85%, as of April 20.
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Upside Potential as of April 20: 46.18%
Thermo Fisher Scientific Inc. (NYSE:TMO), a major US-based biotech and life sciences company, outperformed expectations in the fourth quarter, posting earnings of $6.10 per share on $11.40 billion in revenue—both exceeding Wall Street’s forecasts of $5.94 and $11.28 billion, respectively. Although the biotech sector continues to experience muted spending, anticipated interest rate cuts could ease financing conditions and serve as a tailwind.
Looking ahead to 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) expects adjusted earnings to fall between $23.10 and $23.50 per share, in line with analysts’ projections. As a key player in the healthcare and pharmaceutical industries, Thermo Fisher allows investors to gain exposure to long-term growth in the sector without facing risks tied to expiring patents or dependency on breakthrough drugs. Its business model is built for stability, with more than 80% of its revenue derived from recurring sources.
Thermo Fisher Scientific Inc. (NYSE:TMO) also demonstrated strong cash generation in the latest quarter, bringing in $3.3 billion in operating cash flow and $2.8 billion in free cash flow. Throughout 2024, it returned $4.6 billion to shareholders through dividends and buybacks. The company currently pays a quarterly dividend of $0.43 per share, which was raised by 10% in February, marking its eighth consecutive year of dividend increases. The stock has a dividend yield of 0.40%, as of April 20.
Overall, Thermo Fisher Scientific Inc. (NYSE:TMO) ranks first on our list of the best American dividend stocks according to analysts. While we acknowledge the potential of TMO 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 TMO 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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