In this article, we will take a look at some of the best dividend stocks according to billionaires.
Dividend stocks have been overshadowed in the market as tech and AI-related equities have surged to record levels. However, Ned Davis Research suggests that a more challenging macroeconomic environment this year could create favorable conditions for dividend stocks to gain traction.
With concerns over economic growth and uncertainty surrounding President Trump’s tariff policies, investors have been looking for defensive strategies. In this context, dividend stocks have performed well, providing a safe haven while offering attractive passive income opportunities. The Dividend Aristocrat index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has surged by nearly 5% in 2025, as compared to a 0.32% decline in the broader market, as of the close of March 3.
READ ALSO: 10 Best Affordable Dividend Stocks To Buy According to Hedge Funds
Companies that consistently pay dividends are often viewed as stable investments due to their reliable cash flows and financial strength. These firms typically operate in non-cyclical sectors like consumer staples, utilities, and healthcare, making them less susceptible to economic downturns and helping investors mitigate portfolio risks. At the start of 2025, heightened concerns about resurgent inflation and stagnating economic growth prompted investors to bolster their portfolios with defensive stocks. This strategic shift aimed to safeguard investments against potential market volatility associated with these economic challenges.
Ned Davis’s Clissold and his team made the following comment on the situation:
“One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.”
Analysts are optimistic about the growth of dividend stocks, largely due to anticipated increases in free cash flow (FCF). FCF represents the cash a company has remaining after covering its operating expenses and capital expenditures. This surplus is crucial for corporate boards when deciding on capital allocation strategies, such as enhancing dividend payouts or initiating stock buyback programs. Ameriprise Financial projects a continuous rise in FCF growth through 2027, suggesting that companies with substantial FCF are likely to expand their dividend distributions and share repurchase initiatives in 2025.
The report further mentioned that typically, mature companies—those beyond their initial growth phases—and businesses benefiting from significant economies of scale or operating in less capital-intensive industries generate higher levels of FCF. Sectors such as communication services, consumer staples, and information technology often exhibit elevated FCF, positioning them well for potential increases in shareholder returns.
In dividend investing, investors often favor companies that have consistently increased their payouts. BMO suggested that dividend growth stocks can help strengthen portfolios during periods of market volatility while enhancing overall returns. The firm emphasizes that a dividend growth strategy targets stocks that offer both yield and growth potential, as these companies generally demonstrate a track record of stable earnings and cash flow. Over the long term, such attributes tend to be valued by investors. Given this, we will take a look at some of the best dividend stocks according to billionaires.
Our Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified dividend stocks from the list. From that group, we picked the top 25 stocks with at least 2% dividend yields, as of March 3. All of these billionaires are founders or managers of some of the top hedge funds in the world.
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).
25. Medtronic plc (NYSE:MDT)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 2.95%
Medtronic plc (NYSE:MDT) is a global medical device company that operates in four main divisions—medical-surgical, neuroscience, cardiovascular, and diabetes—providing a broad range of products. A key highlight for the company in 2025 is its adoption of artificial intelligence (AI) across its product portfolio. The company is incorporating machine learning and automation into various applications, with the GI Genius intelligent endoscopy module being a standout innovation. This AI-powered system is transforming colonoscopy procedures by enhancing polyp detection. In the past 12 months, the stock has surged by over 11%.
In fiscal Q3 2025, Medtronic plc (NYSE:MDT) reported revenue of $8.3 billion, reflecting a 2.5% year-over-year increase but falling slightly short of Wall Street’s expectation of $8.33 billion. The company recorded GAAP diluted earnings per share (EPS) of $1.01, while adjusted EPS grew 7% year over year to $1.39, surpassing analysts’ forecasts of $1.35.
Medtronic plc (NYSE:MDT)’s latest earnings report highlights its strong financial position. Over the first nine months of the fiscal year, the company generated over $4.5 billion in operating cash flow and $3.1 billion in free cash flow. This solid cash performance has allowed Medtronic to increase its dividend payouts for 47 consecutive years, which makes it one of the best dividend stocks according to billionaires. The company pays a quarterly dividend of $0.70 per share and has a dividend yield of 2.95%, as of March 3.
24. Comcast Corporation (NASDAQ:CMCSA)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 3.67%
Comcast Corporation (NASDAQ:CMCSA) is a Pennsylvania-based telecommunications company that offers a wide range of mobile phone and cable TV services. The company currently offers a quarterly dividend of $0.33 per share and has a dividend yield of 3.67%, as of March 3. It maintained a solid cash position in the most recent quarter, reporting an operating cash flow exceeding $8 billion, up from $6 billion in the same period last year. Free cash flow also surged to $3.26 billion, compared to $1.7 billion a year earlier. In addition, the company returned $1.2 billion to shareholders through dividend payments. It has been growing its payouts for 17 consecutive years, which makes CMCSA one of the best dividend stocks on our list.
Comcast Corporation (NASDAQ:CMCSA) has established itself as a major player in connectivity services, offering broadband and wireless solutions, while also maintaining a strong media presence through NBC, Telemundo, and the Peacock streaming platform. By prioritizing network enhancements and expanding its content portfolio, it seeks to stay competitive in the fast-changing media industry.
In the fourth quarter of 2024, Comcast Corporation (NASDAQ:CMCSA) reported nearly $32 billion in revenue, reflecting a 2.1% increase from the previous year. This growth was supported by strong performance across its six key business segments. Despite a highly competitive market, connectivity revenue rose by 5%, while mobile services expanded with the addition of 1.2 million new lines. Business Services also recorded a 5% revenue increase.
23. PepsiCo, Inc. (NASDAQ:PEP)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 3.48%
An American food and beverage company, PepsiCo, Inc. (NASDAQ:PEP) offers a wide range of related products to its consumers. Despite ongoing market uncertainties, the company has a track record of recovering from downturns, offering potential opportunities for investors amid current concerns over tariffs and market sentiment.
PepsiCo, Inc. (NASDAQ:PEP) maintained stable earnings in fiscal year 2024, reporting $91.8 billion in revenue, a slight increase from $91.4 billion the previous year. Operating profit climbed to $12.8 billion from $11.9 billion in FY23, while net income also saw an uptick, reaching $9.6 billion. Looking ahead to 2025, PepsiCo expects organic revenue to grow at a low-single-digit rate, with mid-single-digit growth projected for core constant currency EPS.
In FY24, PepsiCo, Inc. (NASDAQ:PEP) generated $12.5 billion in operating cash flow. For FY25, it plans to return approximately $7.6 billion to shareholders through dividend payments. On February 3, the company announced a 5% increase in its annual dividend to $5.69 per share, extending its dividend growth streak to 53 years. This consistency makes it one of the best dividend stocks according to billionaires. The stock’s dividend yield on March 3 comes in at 3.48%.
22. Union Pacific Corporation (NYSE:UNP)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 2.17%
Union Pacific Corporation (NYSE:UNP) is an American railroad holding company that transports a wide range of products and commodities, providing it with broad exposure across multiple industries. The company provides services to industries such as agriculture, automotive, and energy. In recent years, it has prioritized enhancing efficiency by expanding its revenue streams and broadening its geographic presence—both essential for staying competitive in the rail transportation sector.
In the fourth quarter of 2024, Union Pacific Corporation (NYSE:UNP) reported $6.12 billion in revenue, marking a 1% decline from the previous year. However, a 5% rise in revenue carloads helped mitigate some of the downturn. The company’s operating ratio improved to 58.7%, reflecting a 220-basis-point enhancement, despite a 70-basis-point impact from the ratification of a crew staffing agreement. Additionally, operating income increased by 5%, reaching $2.5 billion.
Union Pacific Corporation (NYSE:UNP), one of the best dividend stocks, has been consistently paying dividends for 125 consecutive years and has raised its payouts for 18 years in a row. This dividend growth is due to the company’s strong cash position. In FY24, it generated over $9.3 billion in operating cash flow and it ended the quarter with over $1 billion available in cash and cash equivalents. The company’s quarterly dividend comes in at $1.34 per share and has a dividend yield of 2.17%, as of March 3.
21. NIKE, Inc. (NYSE:NKE)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 2.03%
NIKE, Inc. (NYSE:NKE) is an Oregon-based apparel and footwear company. It encountered difficulties in the second quarter, especially in China, where revenue fell 8% year-over-year. However, the decline was less pronounced than analysts had anticipated, as forecasts had predicted a 10% drop. At the same time, gross margins saw a slight decline, slipping to 43.6% from 44.6% in the same quarter last year. Despite these setbacks, the company reduced operating expenses by 5%, potentially creating room for reinvestment in marketing initiatives.
NIKE, Inc. (NYSE:NKE) pays a quarterly dividend of $0.40 per share and has a dividend yield of 2.03%, as of March 3. The company remains committed to delivering strong shareholder returns, supported by its solid financial standing. In its latest quarter, it reported $7.9 billion in cash and cash equivalents, reflecting a 1% increase from the prior year. It also distributed $1.6 billion to shareholders through dividends and share buybacks. With 23 consecutive years of dividend increases, Nike stands out as one of the best dividend stocks according to billionaires.
At the end of Q4 2024, 14 billionaires, with a collective value of over $3 billion, held stakes in NIKE, Inc. (NYSE:NKE). Ken Fisher and Ken Griffin were some of the most prominent billionaires holding positions in the company.
20. The Kroger Co. (NYSE:KR)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 2.02%
The Kroger Co. (NYSE:KR) is an Ohio-based retail company that operates supermarkets and multi-department stores throughout the US. The company operates in the consumer defensive sector, providing stability to its business. During challenging economic periods, consumers may scale back on purchasing branded products like those offered by Coca-Cola and Kraft Heinz. However, they will continue shopping for essential groceries, ensuring a steady demand for staple items. In the past year, the stock has surged by nearly 28%.
The Kroger Co. (NYSE:KR) delivered strong third-quarter sales in 2024, fueled by robust performance in its pharmacy and digital divisions, showcasing the resilience and flexibility of its business model. Throughout the quarter, it expanded its customer base by providing exceptional value through competitive pricing, strategic promotions, and high-quality private-label offerings, all within an integrated shopping experience. Revenue for the period totaled $33.63 billion, reflecting a slight 0.95% decline from the previous year.
The Kroger Co. (NYSE:KR) is a solid dividend payer, having raised its payouts for 18 consecutive years. The company offers a quarterly dividend of $0.32 per share and has a dividend yield of 2.02%, as recorded on March 3.
19. The Procter & Gamble Company (NYSE:PG)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 2.29%
The Procter & Gamble Company (NYSE:PG) is an American consumer goods company that specializes in a broad range of products across various categories, including beauty, grooming, oral care, personal care, fabric and home care, baby and feminine products, and family care.
The Procter & Gamble Company (NYSE:PG) announced its fiscal Q2 2025 earnings, reporting $21.9 billion in revenue, a 2% year-over-year increase that exceeded analysts’ expectations by more than $291 million. Organic sales, which adjust for currency impacts, divestitures, and acquisitions, grew by 3%. Although the company paused price increases, it achieved volume growth, a key factor for sustainable long-term revenue. Organic volume rose by 2%, while pricing remained unchanged. The baby, feminine, and family care segment stood out, with both organic sales and volume increasing by 4%.
The Procter & Gamble Company (NYSE:PG) has a long history of dividend growth, having increased its payouts for 68 consecutive years, supported by a strong cash position. In its most recent quarter, it generated $4.8 billion in operating cash flow, with a free cash flow productivity rate of 84%. In addition, it returned $2.4 billion to shareholders through dividends. The company pays a quarterly dividend of $1.0065 per share and has a dividend yield of 2.29%, as of March 3.
Instead of developing new brands, The Procter & Gamble Company (NYSE:PG) focuses on enhancing its existing ones through continuous product improvements and strategic marketing. This approach drives volume growth while enabling gradual price increases. Even during economic downturns, P&G maintains strong performance, as demand for everyday essentials remains steady compared to more discretionary spending.
18. Chevron Corporation (NYSE:CVX)
Number of Billionaire Investors: 14
Dividend Yield as of March 3: 4.42%
Chevron Corporation (NYSE:CVX) ranks eighteenth on our list of the best dividend stocks according to billionaires. The American energy company reported earnings of $2.06 per share, falling short of analyst expectations due to weaker margins, which led to its refining segment recording a loss for the first time since 2020. However, quarterly revenue reached $52.23 billion, marking a 10.7% year-over-year increase and surpassing Wall Street estimates by over $3.8 billion. This growth was driven by a 7% increase in global production and a 19% rise in US output, both reaching record highs for the year. In addition, the company generated nearly $8 billion from asset sales and maintained a solid financial position, closing the year with a net debt ratio of 10%.
Chevron Corporation (NYSE:CVX) maintained a strong financial position in FY24, generating $31.5 billion in operating cash flow and $15 billion in free cash flow. The company returned nearly $12 billion to shareholders through dividends and repurchased over $15 billion in shares, reinforcing its commitment to share buybacks—a strategy it has followed in 17 of the past 21 years. Its quarterly dividend comes in at $1.71 per share for a dividend yield of 4.42%, as of March 3. Overall, the company maintains a 38-year streak of consistent dividend growth.
17. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 2.75%
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor company, headquartered in Texas. The company specializes in analog and embedded chips. It produces more than 80,000 products, serving a diverse customer base of over 100,000. While the company primarily focuses on the industrial and automotive sectors, its chips are also widely used in enterprise systems, communications equipment, and personal electronics. In the past 12 months, the stock has surged by nearly 14%.
Texas Instruments Incorporated (NASDAQ:TXN) has established a strong presence in the industry. Under the leadership of former CEO Rich Templeton, it became a leader in dividend growth, increasing its payout at a 24% compound annual rate from 2004 to 2023. In fiscal year 2024, the company maintained a solid cash position, generating $6.3 billion in operating cash flow over the past twelve months, with free cash flow reaching $1.5 billion. Moreover, in the fourth quarter of 2024, it distributed $4.8 billion to shareholders through dividends.
Texas Instruments Incorporated (NASDAQ:TXN) currently pays a quarterly dividend of $1.36 per share and has a dividend yield of 2.75%, as of March 3. It is one of the best dividend stocks on our list as the company has raised its payouts for 21 years straight.
16. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 2.56%
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational tech company that mainly specializes in networking hardware, software, and telecommunications equipment. The company continues to be a dominant player in enterprise networking, maintaining a strong presence in both traditional and cutting-edge network systems. The company holds a major share in areas like wireless access, switching, and routing, and also plays a key role in security and collaboration tools. As hybrid cloud solutions and flexible work models gain traction, Cisco is well-placed to take advantage of these shifts. In addition, its broad range of integrated security and networking features provides it with a competitive advantage in the market. In the past year, the stock has surged by nearly 30%.
Cisco Systems, Inc. (NASDAQ:CSCO) recently reported strong earnings for fiscal Q2 2025, with adjusted earnings per share of $0.94 and revenue of $13.99 billion, exceeding analysts’ forecasts of $0.91 per share and $13.87 billion in sales. Revenue rose by 9.4% year-over-year, and AI infrastructure orders amounted to $350 million. Management highlighted that overall product orders grew by 29% compared to the previous year, or 11% when excluding the impact of Splunk.
Cisco Systems, Inc. (NASDAQ:CSCO) maintained a strong cash position in the latest quarter. Operating cash flow surged to $2.2 billion, marking a 177% jump from the $0.8 billion recorded in the same period of fiscal 2024. By the end of the quarter, the company had close to $17 billion in cash and cash equivalents. On February 12, Cisco announced a 3% increase in its quarterly dividend, raising it to $0.41 per share. This adjustment extended its streak of consecutive annual dividend hikes to 18 years, which makes CSCO one of the best dividend stocks on our list. The stock supports a dividend yield of 2.56%, as of March 3.
15. Starbucks Corporation (NASDAQ:SBUX)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 2.11%
With 15 billionaires investing in the company as of Q4 2024, Starbucks Corporation (NASDAQ:SBUX) ranks fifteenth on our list of the best dividend stocks. The global specialty coffee company operates over 32,000 locations across 80 countries as both a roaster and retailer. The company is actively working to revamp its brand and strengthen customer relationships through its “Back to Starbucks” initiative, which focuses on improving operations and enhancing the in-store experience. This strategy highlights its dedication to reinforcing its core identity, with expectations that these efforts will positively influence its stock performance as it realigns with its foundational values.
Starbucks Corporation (NASDAQ:SBUX) has maintained 59 consecutive quarters of dividend payments, achieving a compound annual growth rate (CAGR) of nearly 20% over this period, demonstrating its commitment to long-term shareholder value. It has also raised its dividend payouts for 14 consecutive years. The company currently pays a quarterly dividend of $0.61 per share and has a dividend yield of 2.11%, as of March 3.
In fiscal Q1 2025, Starbucks Corporation (NASDAQ:SBUX) reported consolidated net revenues of $9.4 billion, remaining steady compared to the previous year after accounting for currency fluctuations. During the quarter, it expanded its footprint by opening 377 new locations, bringing its total store count to 40,576. Of these, 53% were company-operated, while 47% operated under licensing agreements. By the end of the quarter, 61% of Starbucks’ global stores were located in the US and China, with 17,049 stores in the US and 7,685 in China.
14. AT&T Inc. (NYSE:T)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 4.01%
AT&T Inc. (NYSE:T) is an American telecommunications company that offers a wide range of related services and products to its consumers. The company has always remained committed to its shareholder obligation because of its stable cash position. In the most recent quarter, it generated an operating cash flow of $11.9 billion and its free cash flow was $4.8 billion. The company currently offers a quarterly dividend of $0.2775 per share and has a dividend yield of 4.01%, as of March 3.
In its Q4 2024, AT&T Inc. (NYSE:T) delivered solid performance, with revenue rising to $32.3 billion, a 0.6% increase from the same period last year. Operating income stood at $5.3 billion, while net income reached $4.4 billion. AT&T recorded 482,000 net additions in its postpaid phone segment and achieved a projected industry-leading postpaid phone churn rate of 0.85%. Mobility service revenues climbed 3.3% year-over-year to $16.6 billion. Additionally, the company added 307,000 net customers in its AT&T Fiber segment, marking its 20th consecutive quarter with at least 200,000 net additions.
As of Q4 2024, 15 billionaires held positions in AT&T Inc. (NYSE:T), with a collective value of over $4.2 billion. Ken Griffin and Cliff Asness were two of the most prominent billionaires having stakes in the company.
13. The Kraft Heinz Company (NASDAQ:KHC)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 5.12%
The Kraft Heinz Company (NASDAQ:KHC) is an Illinois-based multinational food company. It has faced challenges in establishing a strong position in recent years, relying on cost-cutting measures to boost net income. While this strategy has yielded short-term gains—such as a nearly 21% increase in net income in 2023—earnings declined in 2024. However, sustained profit growth becomes difficult without meaningful revenue expansion. As a result, the company may not appear particularly attractive to investors at the moment. The stock has declined by nearly 11% in the past 12 months.
The Kraft Heinz Company (NASDAQ:KHC) delivered mixed results for Q4 2024, as weaker sales were offset by efforts to enhance profitability. It reported an adjusted EPS of $0.84, beating market expectations by $0.06, largely due to unexpected tax benefits and a lower share count. However, revenue for the quarter declined 5% year-over-year to $6.58 billion, missing the projected $6.66 billion, as organic sales continued to weaken. In the US, its primary market, net sales dropped 3.9% from the previous year, with price increases only partially making up for lower sales volumes.
Despite these challenges, The Kraft Heinz Company (NASDAQ:KHC) maintained a solid cash position in FY24, generating $3.2 billion in free cash flow, a 6% increase from the prior year. Operating cash flow also grew 5.2% year-over-year to $4.2 billion. In addition, the company returned $2.7 billion to shareholders through dividends and share buybacks, which makes it one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 5.12%, as of March 3.
12. ConocoPhillips (NYSE:COP)
Number of Billionaire Investors: 16
Dividend Yield as of March 3: 3.27%
ConocoPhillips (NYSE:COP) is a Texas-based multinational energy company that is engaged in hydrocarbon exploration and production. The company has recently focused on improving operational efficiency and expanding its LNG business. Its performance has been driven by disciplined cost management, smooth integration of acquisitions, and progress in low-carbon technologies. Reinforcing its commitment to reducing emissions, the company earned the Oil and Gas Methane Partnership 2.0 Gold Standard in 2024.
In the fourth quarter of 2024, ConocoPhillips (NYSE:COP) achieved strong production growth, with output rising 14.8% year-over-year to 2,183 thousand barrels of oil equivalent per day (MBOED). This increase was primarily driven by strategic acquisitions, including the completion of its Marathon Oil purchase in November 2024. The company also maintained a strong financial position, generating $20.1 billion in operating cash flow for the year, with total cash from operations reaching $20.3 billion.
ConocoPhillips (NYSE:COP) returned $3.6 billion to shareholders through dividends. It currently offers a quarterly dividend of $0.78 per share, following a 34% increase in October. This latest hike extends its streak of 10 consecutive years of dividend growth, which makes it one of the best dividend stocks on our list. As of March 3, the stock has a dividend yield of 3.27%.
11. Exxon Mobil Corporation (NYSE:XOM)
Number of Billionaire Investors: 16
Dividend Yield as of March 3: 3.63%
Exxon Mobil Corporation (NYSE:XOM) ranks eleventh on our list of the best dividend stocks according to billionaires. The company continues to strengthen its financial position by refining its portfolio and effectively managing capital expenditures through technology-driven efficiencies and a well-structured project organization. With its vast resources, advanced technological capabilities, and global presence, the company is well-positioned to seize emerging opportunities in carbon capture and storage, biofuels, and hydrogen production. These initiatives not only help diversify its revenue streams but also reduce risks associated with the energy transition while creating new growth prospects aligned with broader decarbonization efforts.
In Q4 2024, Exxon Mobil Corporation (NYSE:XOM) reported $83.4 billion in revenue, reflecting a 1.1% year-over-year decline. Since 2019, the company has achieved $12.1 billion in structural cost savings, outperforming industry peers and helping offset inflationary pressures and expansion costs. For the full year, it delivered 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) currently pays a quarterly dividend of $0.99 per share and has a dividend yield of 3.63%, as of March 3. It posted strong financial results in fiscal 2024, generating $55 billion in free cash flow—the third-highest in the past decade. Total free cash flow for the year stood at $36.2 billion, while $16.7 billion was distributed to shareholders through dividends. The company remains committed to its $20 billion annual share repurchase program, which is set to continue through 2026. In addition, it has upheld a 42-year track record of consecutive dividend increases.
10. Merck & Co., Inc. (NYSE:MRK)
Number of Billionaire Investors: 16
Dividend Yield as of March 3: 3.50%
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that offers innovative health solutions to its consumers. The company reported revenue of $15.6 billion, marking a 7% increase from the same period a year earlier. The company has solidified its position in specialty pharmaceuticals and oncology, with its leading cancer treatment, Keytruda, playing a pivotal role in advancing cancer care while driving significant revenue growth. Its strong market presence has enabled Merck to generate robust cash flow, supporting shareholder returns. For fiscal 2024, Keytruda sales surged 18% year-over-year, reaching $29.5 billion.
On January 28, Merck & Co., Inc. (NYSE:MRK) announced a quarterly dividend of $0.81 per share, maintaining its previous payout. The company has consistently increased its dividends for 14 consecutive years, which makes it one of the best dividend stocks on our list. As of March 3, the stock has a dividend yield of 3.50%.
Since the start of 2025, Merck & Co., Inc. (NYSE:MRK) has declined by over 6% and in the past 12 months, it fell by nearly 25%. The recent decline in the stock price is largely due to the company’s revenue forecast for 2025, which came in below market expectations. It projected revenue between $64.1 billion and $65.6 billion, missing analysts’ estimates of $67.31 billion. In addition, the company’s outlook has been affected by the temporary halt in Gardasil shipments to China, though deliveries are anticipated to resume by mid-2025.
9. The Coca-Cola Company (NYSE:KO)
Number of Billionaire Investors: 16
Dividend Yield as of March 3: 2.84%
The Coca-Cola Company (NYSE:KO), the world’s largest beverage company, has a strong global presence, with its popular products enjoyed in 200 countries. Its flagship brand is among the most recognizable worldwide, with loyal consumers willing to pay a premium for it. Since the start of 2025, the stock has surged by nearly 17%, outperforming the broader market.
In Q4 2024, The Coca-Cola Company (NYSE:KO) reported revenue of $11.5 billion, reflecting a 6.5% increase from the previous year. Organic revenue saw a 14% boost, driven by a 9% rise in price/mix and a 5% increase in concentrate sales. Throughout the year, Coca-Cola continued to expand its market share across its beverage portfolio, with Coca-Cola Zero Sugar seeing notable growth, as unit volume climbed 13% during the quarter. The company’s innovative marketing strategies have played a crucial role in its success, contributing to approximately $40 billion in retail sales growth for its flagship brand over the past three years.
The Coca-Cola Company (NYSE:KO) maintained a strong cash flow position in the latest quarter, generating $2.9 billion from operations and $1.6 billion in free cash flow. It also reported a healthy adjusted operating margin of 30.7%, underscoring its profitability. With an exceptional history of increasing dividends for 62 consecutive years, KO remains one of the best dividend stocks on our list. The company’s quarterly dividend comes in at $0.485 per share for a dividend yield of 2.84%, as of March 3.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Billionaire Investors: 17
Dividend Yield as of March 3: 4.16%
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical industry company. It continues to prioritize the development of new molecular entities while leveraging strategic acquisitions to strengthen its research and development capabilities. This strategy enhances its competitive edge, drives innovation, and reinforces its standing in the pharmaceutical industry. In the past 12 months, the stock has surged by over 17%.
In Q4 2024, Bristol-Myers Squibb Company (NYSE:BMY) reported $12.34 billion in revenue, marking a 7.5% increase from the previous year. Its Growth Portfolio delivered particularly strong results, with revenue rising 21% to $6.4 billion. This growth was fueled by high demand for key treatments such as Reblozyl, Breyanzi, and Camzyos, which saw annual sales surges of 71%, 125%, and 101%, respectively.
By the end of the year, Bristol-Myers Squibb Company (NYSE:BMY) held more than $10.3 billion in cash and cash equivalents. Recognized as one of the best dividend stocks, the company has maintained dividend payments for 93 years and has increased its payouts for 16 consecutive years. It offers a per-share dividend of $0.62 every quarter for a dividend yield of 4.16%, as of March 3.
7. NextEra Energy, Inc. (NYSE:NEE)
Number of Billionaire Investors: 17
Dividend Yield as of March 3: 3.20%
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that generates, transmits, and sells electricity. The company primarily operates as a regulated utility, offering a stable and predictable revenue base. Its Florida-based utility business holds a monopoly in the areas it serves, though any plans for capital investments or rate changes must first receive regulatory approval.
In addition to its utility operations, NextEra Energy, Inc. (NYSE:NEE)’s clean energy segment generates steady cash flow through long-term contracts. With rising demand for renewable energy, the company is aggressively expanding this division. Management aims to increase its renewable energy capacity to 46.5 gigawatts by 2027, up from the current 36 gigawatts—a move that could nearly double the business over the next few years.
On February 14, NextEra Energy, Inc. (NYSE:NEE) announced a 14% increase in its quarterly dividend, raising it to $0.5665 per share. This marks the company’s 29th consecutive year of dividend growth. Strong cash flow supports these payouts, with NextEra generating over $13.2 billion in operating cash flow during fiscal 2024. Looking ahead, the company plans to grow its dividend per share by around 10% annually through at least 2026, using its 2024 payout as a benchmark. As of March 3, the stock has a dividend yield of 3.20%.
6. Citigroup Inc. (NYSE:C)
Number of Billionaire Investors: 17
Dividend Yield as of March 3: 2.86%
Citigroup Inc. (NYSE:C) is an American multinational investment banking company. Operating in over 180 countries, the company has a physical presence in 94 markets worldwide, offering a broad range of financial products and services to individuals, investors, institutions, and corporations. In the US, it stands out as a leader in both wealth management and personal banking. The stock has delivered a nearly 37.5% return in the past 12 months, outperforming the broader market.
In fiscal 2024, Citigroup Inc. (NYSE:C)’s net income surged nearly 40% to $12.7 billion, surpassing its revenue target. This strong performance was driven by growth across its Services, Wealth, and US Personal Banking segments. Citigroup also improved efficiency by managing expenses effectively and executing a major restructuring. Annual revenue grew 3% year-over-year to $81.1 billion.
Reinforcing its commitment to shareholder returns, Citigroup Inc. (NYSE:C) distributed $6.7 billion in 2024 through dividends and share buybacks. With an uninterrupted 34-year history of dividend payments, it remains one of the best dividend stocks on our list. The company’s quarterly dividend comes in at $0.56 per share and has a dividend yield of 2.86%, as recorded on March 3.
5. Wells Fargo & Company (NYSE:WFC)
Number of Billionaire Investors: 18
Dividend Yield as of March 3: 2.05%
Wells Fargo & Company (NYSE:WFC) is a California-based multinational financial services company. In the fourth quarter of 2024, the company reported revenue of $20.3 billion, reflecting a modest 0.5% decline from the same period the previous year. However, net income saw a significant jump, rising to $5.07 billion from $3.4 billion a year earlier. This improvement was largely driven by a 15% year-over-year increase in fee-based revenue, which helped offset the expected decline in net interest income. In addition, operating expenses were lower than the previous year, while credit trends remained stable. The company also maintained a strong capital position, ending the year with a CET1 ratio of 11.1%.
While consumer banking continues to be Wells Fargo & Company (NYSE:WFC)’s primary revenue source, its investment banking segment has become an important growth driver. In the latest quarter, investment banking fees surged by 59% year-over-year. Over the past 12 months, the company’s stock has climbed by over 38%.
On January 28, Wells Fargo & Company (NYSE:WFC) declared a quarterly dividend of $0.40 per share, maintaining the same payout as the previous quarter. With a history of uninterrupted dividend payments since 1988, the company remains one of the best dividend stocks. As of March 3, the stock has a dividend yield of 2.05%.
4. Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Investors: 18
Dividend Yield as of March 3: 2.98%
Johnson & Johnson (NYSE:JNJ) ranks fourth on our list of the best dividend stocks according to billionaires. An American pharmaceutical company operates through its subsidiaries to develop, manufacture, and market a wide range of healthcare products.
Renowned for its strong brand and commitment to research, Johnson & Johnson (NYSE:JNJ) has built a reputation for innovation in areas such as immunology, oncology, and surgical technology. The company recently streamlined its operations by spinning off its consumer health segment, Kenvue, allowing it to focus more on its high-margin pharmaceutical and medical technology businesses. With a strong pipeline of new treatments and a resilient business model, JNJ remains a dominant force in the healthcare industry, benefiting from steady demand and long-term demographic trends. It is considered one of the top undervalued global stocks to watch.
In the fourth quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported $22.5 billion in revenue, marking a 5.2% year-over-year increase. As a leading healthcare company, it continues to target diseases with significant unmet medical needs, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. The MedTech division experienced 6.2% global operational sales growth, with acquisitions and divestitures contributing 1.5% to this increase. Rising demand for electrophysiology products and Abiomed supported growth in the Cardiovascular segment, while strong sales of wound closure products bolstered the General Surgery division.
Johnson & Johnson (NYSE:JNJ) currently pays a quarterly dividend of $1.24 per share, offering a 2.98% yield as of March. With an impressive 62-year streak of consecutive dividend increases, the company remains one of the most reliable dividend payers in the market.
3. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Investors: 18
Dividend Yield as of March 3: 2.25%
An American financial services company, Bank of America Corporation (NYSE:BAC) offers a wide range of related products and services to its consumers. The company has a strong foothold in retail banking, offering millions of customers a wide range of financial services, including checking accounts, credit cards, mortgages, and loans. Its advanced digital banking platform improves accessibility, while its investment banking and asset management divisions—Merrill and BofA Securities—provide advisory, trading, and financial planning services.
In the fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) reported solid financial performance, with revenue increasing to $25.3 billion from $22 billion in the same period the previous year. Net income more than doubled, rising to $6.7 billion from $3.1 billion a year earlier. The company also continued to grow its customer base, adding 213,000 new consumer checking accounts, extending its streak of quarterly growth to six years. In addition, it returned $2 billion to shareholders through dividend payments.
With a track record of consistent payouts for 27 consecutive years, Bank of America Corporation (NYSE:BAC) remains one of the best dividend stocks according to billionaires. The company offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.25%, as of March 3.
2. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Billionaire Investors: 19
Dividend Yield as of March 3: 2.17%
QUALCOMM Incorporated (NASDAQ:QCOM) is an American semiconductor company. In fiscal Q1 2025, the company reported revenue of $11.7 billion, reflecting a 17.6% increase compared to the same period the previous year. This marked the third consecutive quarter of double-digit revenue growth, setting a new record for quarterly sales. The company’s chip division (QCT) generated $10.1 billion in revenue, up 20% year-over-year. Handset sales, including smartphones, grew by 13% to $7.6 billion, while automotive revenue surged 61% to $961 million. In addition, revenue from the Internet of Things (IoT) segment rose 36% to $1.5 billion.
With a solid financial foundation and strong research and development capabilities, QUALCOMM Incorporated (NASDAQ:QCOM) is well-positioned to expand into high-growth markets such as robotics chips. As automation continues to reshape industries like manufacturing, logistics, and services, the demand for advanced robotics technology is expected to rise, presenting new opportunities for the company. The company’s state-of-the-art semiconductor designs, including its custom “Oryon” cores used in the Snapdragon X Elite and Snapdragon 8 Elite, offer superior performance and energy efficiency—essential for real-time decision-making in robotics applications.
QUALCOMM Incorporated (NASDAQ:QCOM)’s financial standing remained strong in the latest quarter, with over $3.1 billion in cash and cash equivalents. Operating cash flow reached nearly $4.6 billion, and it returned $942 million to shareholders through dividends during the period. The company’s quarterly dividend comes in at $0.85 per share and has a dividend yield of 2.17%, as of March 3.
1. Philip Morris International Inc. (NYSE:PM)
Number of Billionaire Investors: 22
Dividend Yield as of March 3: 3.41%
Philip Morris International Inc. (NYSE:PM) is a multinational tobacco company that also offers a wide range of related products. The company posted strong results for the fourth quarter of 2024, generating $9.7 billion in revenue, up 7.3% from the previous year. Operating income increased by 14.8% year-over-year, reaching $3.3 billion. The company’s smoke-free products saw impressive growth, with shipments of heated tobacco units (HTU) and oral nicotine products surpassing 40 billion units in a single quarter for the first time.
A major driver of growth has been Zyn, a nicotine pouch brand that uses nicotine powder and flavoring instead of traditional tobacco. Since acquiring the brand in late 2022, Philip Morris International Inc. (NYSE:PM) has seen strong demand, with Zyn’s sales volume jumping 46.2% in the fourth quarter to 183.8 million cans. The company anticipates continued expansion, projecting Zyn shipments to rise between 34% and 41% in 2025, totaling between 780 million and 820 million cans.
Philip Morris International Inc. (NYSE:PM) has also remained a favorite among dividend investors. The company offers a quarterly dividend of $1.35 per share and has a dividend yield of 3.41%, as of March 3. With 15 years of consecutive dividend increases, it continues to be one of the most attractive dividend stocks in the market.
Overall, Philip Morris International Inc. (NYSE:PM) ranks first on our list of the best dividend stocks according to billionaires. While we acknowledge the potential for PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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.
