10 Best Dividend Stocks on Robinhood

Published May 17, 2021 at 9:59 am EDT Updated August 19, 2026 at 4:56 am EDT

In this article, we will take a look at the 10 best dividend stocks on Robinhood.

The coronavirus outbreak led to unprecedented economic events that resulted in a spike in unemployment rates all over the world. Having a diversified investment portfolio comes in handy during these trying times. Dividend investors had a hard time in 2020 where many companies announced the suspension of dividend payments such as The Walt Disney Company (NYSE: DIS), AMC Entertainment Holdings, Inc. (NYSE: AMC), and Expedia Group, Inc. (NASDAQ: EXPE). On the other hand, some companies continued distributing dividend payments in a reduced amount such as oil and gas giants Royal Dutch Shell plc (NYSE: RDS-A), Occidental Petroleum Corporation (NYSE: OXY), and BP p.l.c. (NYSE: BP).

The Robinhood Stock Craze

Last year, the world saw in awe as hundreds of thousands of individual investors, fueled by online communities, initiated a short squeeze and waged a war against hedge funds. Stock trading app Robinhood was at the center of this drama. The California-based startup, which pioneered the zero-commission stock trading, became the focus of the controversy after it decided to freeze trades for GameStop Corp. (NYSE: GME) on Jan. 28, when GME traded at its all-time high at $483 a share. As of May 2020, Robinhood had approximately 13 million active users. Despite the controversies, individual investors using Robinhood, online communities and trading platforms worth a lot of attention. These investors often put a lot of effort researching stock ideas. That’s why in this article we are doing to discuss some of the best dividend stocks on Robinhood. These stocks are not only popular on Robinhood, but also have strong fundamentals, dividend yields and decent dividend history.

According to Robinhood’s leaderboard, the most popular dividend stocks are from technology, cyclical products, healthcare, and cannabis industries. In general, Robinhood traders are into momentum stocks such as motion picture theater operator AMC Entertainment Holdings, Inc. and video game retailer GameStop Corp., which have stopped paying dividends to investors in March 2020 and March 2019 respectively. But traders are Robinhood are also piling into famous dividend stocks that have years of steady dividend hikes and strong financials.

Robinhood Dividend Stocks

One interesting dividend-paying stock to look at is cigarette manufacturer Altria Group, Inc. (NYSE: MO). The current annualized dividend rate for the company is $3.44 per common share, with a high dividend yield of 6.97%. Altria Group, Inc. (NYSE: MO) is one of the most popular stocks in Robinhood due to its exposure to the cannabis industry. In 2018, the cigarette company purchased a 45% stake of Canadian cannabis manufacturer Cronos Group Inc. (NASDAQ: CRON) for $2.4 billion intending to benefit from Canada’s legalization of recreational use for marijuana. Altria Group, Inc. jumped 38% over the past twelve months.

Another of the best dividend stocks to check out on Robinhood is petroleum company Exxon Mobil Corporation (NYSE: XOM). The company pays a dividend of $0.87 per share yielding at 5.74%. Exxon Mobil Corporation (NYSE: XOM) is seeking potential partners on its $100 billion carbon capture project in Houston, Texas, that could gain market value as much as $2 trillion by 2040 as forecasted. Shares of XOM increased 40% over the past twelve months.

Investors in Robinhood admire tech stocks that pay dividends, and Microsoft (NASDAQ: MSFT) is one of them. The Washington-based multinational tech company Microsoft Corporation is one of the best dividend stocks on Robinhood. The company’s revenue in the first quarter came in at $37.2 billion, up 12% from the same period last year. Microsoft Corporation’s productivity software business grew to 47 million personal and family subscribers. The company’s cloud computing segment Microsoft Azure, gaming console Xbox, and operating system Windows also grew in the first quarter of the fiscal year 2021. Aside from the massive growth capacity of the company, Robinhood investors like Microsoft Corporation as a dependable dividend stock. The tech behemoth announced a quarterly dividend of $0.56 per share in September 2020, up to five cents or 10% from the previous quarter’s dividend. The stock has gained 35% in the last twelve months.

Finding valuable stocks is becoming difficult by the day amid financial volatility that isn’t sparing even the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th, 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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With this context in mind, here is our list of the 10 best dividend stocks on Robinhood.

Best Dividend Stocks on Robinhood

10. Constellation Brands, Inc. (NYSE: STZ)

Number of Hedge Fund Holders: 58
Dividend Yield: 1.3%

International alcohol beverage manufacturer Constellation Brands, Inc. (NYSE: STZ) is one of the best dividend stocks on Robinhood. In April, the company increased its dividend quarterly payout to $0.76 per share from $0.75 per share in the previous quarter. Aside from the company’s booming beer and spirit business, Constellation Brands, Inc. owns about 39% of Canadian marijuana firm Canopy Growth Corporation (NASDAQ: CGC), which makes the company one of the fastest-growing cannabis stocks to invest in. Revenue increased by just over 3% to $8.6 billion for the year, while adjusted earnings-per-share increased from $9.12 to $9.97.

Constellation Brands, Inc. has a market cap of $45 billion. The company’s net income for the fiscal year 2021 came in at $4.5 billion, up from $4.15 billion in 2020. Shares of STZ jumped 46% over the past twelve months. At the end of the fourth quarter of 2020, 58 hedge funds in the database of Insider Monkey held stakes worth $1.76 billion in Constellation Brands, Inc. which is an increase from 53 hedge funds in the previous quarter holding stakes worth $2.19 billion.

9. AT&T Inc. (NYSE: T)

Number of Hedge Fund Holders: 58
Dividend Yield: 6.46%

American telecommunication giant AT&T Inc. ranks 9th in our list of 10 best dividend stocks on Robinhood. Due to its relative stability, brand recognition, and high yield, AT&T has been a common dividend stock for many years. The telecom company is a dividend aristocrat as it has raised its dividend annually for at least 25 consecutive years and currently yields at 6.46%. The company pays an annualized dividend of $2.08 per share. The Dallas-based company offers telecommunication, technology, and media services worldwide.

The company has a market cap of $230 billion. The company’s revenue in the first quarter came in at $43.9 billion. Both the communications and media segment contributed to an increase in revenue for the quarter as AT&T Inc. added 595,000 wireless phone subscribers and totaled nearly 64 million HBO Max subscribers globally. Shares of T climbed 12.7% over the past twelve months.

At the end of the fourth quarter of 2020, 58 hedge funds in the database of Insider Monkey held stakes worth $1.04 billion in AT&T Inc. which is an increase from 51 hedge funds in the previous quarter holding stakes worth $1.16 billion.

Nelson Capital Management, in its Q1 2021 investor letter, mentioned AT&T Inc. (NYSE: T). Here is what the fund said:

“Nelson Capital stayed busy i n t he first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”

8. The Coca-Cola Company (NYSE: KO)

Number of Hedge Fund Holders: 62
Dividend Yield: 3.09%

The Coca-Cola Company (NYSE: KO), which is also a part of our list of best dividend kings of 2021, ranks 8th in our list of 10 best dividend stocks on Robinhood. The Georgia-based beverage maker has increased its dividend for 59 consecutive years. The Coca-Cola Company pays a quarterly dividend of $0.42 per share with a yield of 3.09%. The company has been producing soft drinks, enhanced water, juice, sports drink, and dairy for the last 135 years.

The Coca-Cola Company has a market cap of $235 billion. The company’s revenue for the first quarter came in at $9 billion, up 5% from $8.6 billion in the year-ago quarter. On average, Wall Street analysts have rated The Coca-Cola Company a “Moderate Buy” with a $60 price target. Shares of KO jumped 25% over the past twelve months.

At the end of the fourth quarter of 2020, 62 hedge funds in the database of Insider Monkey held stakes worth $24.7 billion in The Coca-Cola Company which is an increase from 60 hedge funds in the previous quarter holding stakes worth $22 billion.

7. Pfizer Inc. (NYSE: PFE)

Number of Hedge Fund Holders: 63
Dividend Yield: 3.93%

New York-based pharmaceutical firm Pfizer Inc. (NYSE: PFE) is another best dividend stock on Robinhood. Pfizer Inc.’s dividend yield has comfortably surpassed 4% for the majority of the last 18 months. The company currently pays an annualized dividend of $1.56 per share with a yield of 3.90%. Shares of PFE jumped 15% over the past three months.

The company has a market cap of $224 billion. Pfizer Inc. disclosed in its first-quarter results that the company is expecting a full-year revenue for the COVID-19 vaccine of approximately $26 billion in 2021. In the first quarter, the company’s revenue was $14.6 billion, up 45% from $4.2 billion to the prior-year quarter. Pfizer Inc. will continue to supply COVID-19 vaccines to Canada and Israel in 2021. On May 10, Morgan Stanley raised its price target for Pfizer to $42 from $38 but kept its Equal-Weight rating.

There were 63 hedge funds that reported owning stakes in Pfizer Inc. at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $1.85 billion.

6. Exxon Mobil Corporation (NYSE: XOM)

Number of Hedge Fund Holders: 63
Dividend Yield: 5.74%

Texas-based petroleum giant Exxon Mobil Corporation ranks 6th in our list of 10 best dividend stocks on Robinhood. Exxon Mobil Corporation offers a high-yielding dividend that pays dividend share annually for $3.48 per share. Exxon Mobil Corporation’s downstream and chemical segments generate a significant portion of the company’s earnings in addition to its upstream business.

The company has a market cap of $257 billion. Exxon reported first-quarter earnings per share of 65 cents on revenue of $59.15 billion, exceeding analyst expectations. Shares of XOM increased 45% over the past twelve months. On May 5, DZ Bank upgraded Exxon Mobil Corporation from a “Hold” rating to a “Buy” rating, with a $67 price target.

At the end of the fourth quarter of 2020, 63 hedge funds in the database of Insider Monkey held stakes worth $2.21 billion in Exxon Mobil Corporation which is an increase from 52 hedge funds in the previous quarter holding stakes worth $1.38 billion.

Like Altria Group, Inc., XOM is one of the best dividend stocks to buy on Robinhood.

Harding Loevner, in its Q1 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM). Here is what Harding Loevner has to say in its letter:

“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”

Best Dividend Stocks on Robinhood

5. Starbucks Corporation (NASDAQ: SBUX)

Number of Hedge Fund Holders: 67
Dividend Yield: 1.64%

Global coffee roaster Starbucks Corporation (NASDAQ: SBUX) ranks 5th on the list of the best dividend stocks on Robinhood. The Seattle-based coffee giant currently pays its shareholders an annual dividend of $1.80 per share with a dividend yield of 1.62%. The company went public in 1992 and had 165 total stores. Starbucks currently has about 33,000 outlets worldwide, with a goal of 55,000 by 2030. Given the enormous size of Starbucks Corporation, the company continues to expand at a tremendous speed, which may explain why the stock is so famous among Robinhood investors.

The company has a market cap of $131 billion. Revenues for the second quarter came in at $6.7 billion. Starbucks posted a net income of $659.4 million, or $0.56 per share, in the fiscal second quarter, up from $328.4 million, or 28 cents per share, a year ago. On May 4, investment banking firm Jefferies Financial Group maintained its “Buy” rating and raised its price target for Starbucks Corporation from $118 to $135 per share. Shares of SBUX jumped 50% over the past twelve months.

At the end of the fourth quarter of 2020, 67 hedge funds in the database of Insider Monkey held stakes worth $4.99 billion in Starbucks Corporation which is an increase from 66 hedge funds in the previous quarter holding stakes worth $3.26 billion.

Wedgewood Partners, in its Q1 2021 investor letter, mentioned Starbucks Corporation (NASDAQ: SBUX). Here is what Wedgewood Partners has to say about Starbucks Corporation in its letter:

“As we have observed Starbucks through the unpredictable events of the past year, we believe all the things we liked about the Company’s competitive position before the pandemic have been turbocharged by the pandemic. We always have maintained the Company had no serious competition, anyway, and that in both large growth markets (U.S. and China), there was enormous fragmentation of share that would allow the Company to continue to expand through market expansion (especially in China) and through share gain versus small competitors. In fact, when we last discussed Starbucks, there was a lot of noise about competition in China from a newly established domestic competitor, Luckin Coffee, and that situation quickly dissolved into farce. In any case, had Luckin been a legitimate business, we had maintained that China was a massive market – and one in which coffee consumption was massively underpenetrated in comparison to other markets. We believed too that there was plenty of room for multiple large competitors to exploit.

The pandemic disaster over the past year truly highlights the Company’s financial strength in comparison to its small competitors, most of which struggled to survive, and many of which didn’t make it. While there is no perfect data, we have seen estimates from industry groups and restaurant distributors that as many as 15-20% of small, independent restaurants across the broad food and beverage industry may have closed permanently as a result of the pandemic, sadly. Starbucks not only survived due to its superior financial position; they also used its financial resources to invest in a variety of expanded or new capabilities, including the addition of drive-through capacity, new “walk-through” pick-up locations in urban areas, increased investment in technology to drive speed within the stores and drive-through lanes, and expansion of its loyalty program. These could have been viewed, prior to the pandemic, as a fairly big advantage in terms of convenience alone versus the Company’s small primary competitors. In the age of the pandemic, though, one might consider something like a drive-through an absolute necessity, as customers choose not to expose themselves to the interior of restaurants or to other people.

Another sign of the Company’s superior financial strength has been the continued expansion of the store base, even in the face of the pandemic. As of the end of the Company’s last fiscal year, September 2020, Starbucks had opened +4% more stores, including +13% growth in China. Additionally, Starbucks not only opened stores as competing stores folded; the Company is seeing more attractive lease terms on new stores (and on existing stores, for that matter), meaning that a store opening program that already had generated attractive financial returns will now generate even more attractive returns.

Short-term results, of course, have been quite poor all over the world, with some portion of the Company’s locations closed or operating on reduced hours for the last several quarters. Customers are simply reticent to show up even when stores have been open. We expect shorter-term results to remain unpredictable, as they will be tied to the ebb and flow of various COVID-related lockdowns around the world. However, Starbucks said it expected sales at established locations in both the U.S. and China to rebound to pre-pandemic levels in the March quarter that just ended. In addition, despite reduced operating hours still, and despite customers’ work and school routines being completely disrupted, a surprisingly early development in comparison to what we, at least, expected only a few quarters ago, is proof of the Company’s entrenched position in its customers’ lives. In contrast, the National Restaurant Association in the U.S. recently predicted that 2021 industry sales would recover significantly versus 2020, but would still come in nearly (-15%) below 2019 levels.

On the Company’s most recent Analyst Day in December 2020, management took its longerterm expectations a bit higher, primarily driven by a modest expected improvement in sales versus its prior expectations. Considering smaller competitors went belly-up and the Company’s investments in enhanced capabilities further improved its competitive position, we believe this improvement in longer-term sales trends is a layup. We also believe the technological investments and the improved terms from landlords create obvious benefits for to an already attractive margin and return profile. Our bullishness on the Company has not wavered and, in fact, we feel better than we did about the Company’s business model over the next several years than we did when we bought the stock originally.”

4. General Electric Company (NYSE: GE)

Number of Hedge Fund Holders: 69
Dividend Yield: 0.30%

Boston-based digital industrial firm General Electric Company (NYSE: GE) ranks 4th in our list of the 10 best dividend stocks on Robinhood. The quarterly dividend on GE stock is just $0.01 per share, yielding a modest 0.4%. On the other hand, General Electric Company may be an outstanding dividend growth stock for long-term investors. The company offers industrial products and services that range from medical imaging, aircraft engines, oil and gas production equipment, and power generation tools. In March, GE announced a $30 billion merger of its aircraft leasing unit with Dublin-based aircraft leasing company AerCap Holdings N.V. (NYSE: AER), with the proceeds going toward debt reduction.

General Electric Company has a market cap of $116 billion. General Electric’s consolidated revenues in the first quarter were $17 billion, down 12.2% year over year from $19.5 billion in 2020. Shares of GE surged 141% over the past twelve months.

At the end of the fourth quarter of 2020, 69 hedge funds in the database of Insider Monkey held stakes worth $5.68 billion in General Electric Company which is an increase from 45 hedge funds in the previous quarter holding stakes worth $2.75 billion.

In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and General Electric Co (NYSE:GE) is one of them. Here is what the fund said:

“General Electric (GE) (22%, 1.50%), the revitalized Aviation, Healthcare and Power conglomerate, was a top contributor following on its strong 4Q 2020 performance. Fourth-quarter Healthcare results were excellent, with revenues up 6% year-over-year (YoY), operating margins up 3% to 20% and strong FCF conversion. The Power and Renewables segment improved margins due to strength from gas plant services. With flight traffic increasing, Aviation appears likely to begin a multi-year recovery in the second half of this year. GE also swapped its aircraft leasing operations to AerCap for a 46% stake in the combined company, intelligently wrapping up its previously troubled GE Capital financing operations and further decreasing overall leverage. We continue to be impressed by the turnaround work of CEO Larry Culp, and the stock remains discounted against the quality of the three core business segments.”

3. Bank of America Corporation (NYSE: BAC)

Number of Hedge Fund Holders: 99
Dividend Yield: 1.75%

One of the best dividend stocks on Robinhood is Bank of America Corporation (NYSE: BAC). Since 2014, Bank of America has raised its dividend payout regularly, and its current dividend yield of 1.70% is higher than the average dividend yield of S&P 500 stocks, which is 1.38%. The bank earned $8.1 billion in the first quarter, or $0.86 per share, beating analysts’ expectations of 66 cents per share.

The company has a market cap of over $363 billion and revenue of $22.9 billion in the first quarter. Bank of America Corporation is one of the leading banks worldwide providing financial services to small, medium, and large enterprises as well as governments. Bank of America stock has gained 97% in the last twelve months.

At the end of the fourth quarter of 2020, 99 hedge funds in the database of Insider Monkey held stakes worth $35.3 billion in Bank of America Corporation which is an increase from 88 hedge funds in the previous quarter holding stakes worth $26.6 billion.

2. Apple Inc. (NASDAQ: AAPL)

Number of Hedge Fund Holders: 146
Dividend Yield: 0.70%

California-based tech giant Apple Inc. (NASDAQ: AAPL) ranks 2nd in our list of 10 best dividend stocks on Robinhood. Apple Inc. currently pays a $0.88 per share annual dividend, with a dividend yield of 0.70%. The tech behemoth pays a dividend of 26.83% of its earnings. The company announced record sales of $89.6 billion in the second quarter, up 54% year over year, and $1.40 in quarterly earnings per diluted share.

With over $2 trillion market cap, Apple Inc. is still one of the best growth stocks to invest in. In the second quarter, Apple posted record results of $73 billion across Mac, iPhone, wearables, home, and accessories. The success of Apple’s latest M1 chip, which is now also used in the 5G-enabled iPad Pro, is driving a record sales period for the Mac. Shares of AAPL increased 66% over the past twelve months.

At the end of the fourth quarter of 2020, 146 hedge funds in the database of Insider Monkey held stakes worth $142 billion in Apple Inc. which is an increase from 134 hedge funds in the previous quarter.

Distillate Capital, in its Q1 2021 investor letter, mentioned Apple Inc. (NASDAQ: AAPL). Here is what Distillate Capital has to say in its letter:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”

1. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 258
Dividend Yield: 0.94%

Topping the list of 10 best dividend stocks on Robinhood is American multinational tech firm Microsoft Corporation. Even though its 0.90% yield isn’t particularly attractive on print, with 7.53 billion shares outstanding and a $2.24 annual dividend, Microsoft pays out nearly $17 billion to its shareholders per year. Microsoft shareholders benefit from high-growth cloud services, consistent demand for tech solutions, consistent cash flow from legacy operations, and a balanced capital return strategy.

The company has a market cap of $1.9 trillion. The company’s revenue in the third quarter came in at $41.7 billion, up 19% from $35 billion year over year. Shares of MSFT increased 35% over the past twelve months. On May 13, Rosenblatt initiated a “Buy” coverage on Microsoft Corporation with a $301 price target.

At the end of the fourth quarter of 2020, 258 hedge funds in the database of Insider Monkey held stakes worth $52.9 billion in Microsoft Corporation which is an increase from 234 hedge funds in the previous quarter holding stakes worth $42.1 billion.

Polen Global Growth Fund, in its Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT). Here is what Polen Global Growth Fund has to say about Microsoft Corporation in its letter:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

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