Difidend -paying stocks have traditionally been considered a solid foundation for investment portfolios, offering a steady income and helping to cushion the impact of market swings. However, despite these benefits, they sometimes track the wider market-often shaded by more high profile opportunities. Over the past few years, for example, dividend stocks performed as investors flocked to technology stocks. But following a recent market correction and the new pressure on technology shares due to tariffs introduced by Trump, dividend stocks have begun to regain investor interest.
The index of dividend aristocrats, which traces the performance of companies with 25 consecutive years of dividend growth, has fallen by almost 2% since the beginning of 2025, compared to a decline of nearly 8% in the wider market. This trend suggests that dividends regain momentum, with an increasing number of companies starting dividend policies while current payers are constantly boosting their payments to attract investors. According to a report by S&P Global, it is anticipated that 408 wider market compounds will pay dividends in 2025. Of these, nearly 350 is expected to raise their dividends over the next four quarters, contributing to an estimated 6% growth of a year -on -year for the total dividends. In the wider US market, the growth of aggregates dividend is forecast to be 4.6% for 2025. Given that S&P companies account for approximately 85% of all the dividends paid in the US, the index is a strong indicator of general dividend trends in the market.
The long -term value of a dividend paying stocks remains strong, especially for investors seeking to reduce risk without giving up growth potential. Ramona Persaud, Portfolio Manager of the Fidelity Equity Income Fund and Fidelity Equity Income Fund, tends to favor high quality companies that offer solid and reasonably priced dividends. He drew attention to reducing interest rates can create a favorable environment for dividend stocks, as their product becomes more attractive compared to bonds. Persaud also noted that lower rates could help expand market earnings, unlike the recent trend where performance was largely driven by a few mega-cap growth names.
Its investment approach focuses on companies with strong balance sheets, consistent cash flow, and high earnings potential. He also emphasized the importance of pricing-looking for stocks that are at a good price compared to their peers and historical levels-when trying a dividend product that stands out in the current market. This combination of quality, value and income, according to it, has helped the fund perform well in rising and collapsing markets. Made the following comment about dividend stocks and their appeal:
“Ideally, I'm looking for a stock that has a combination of these factors. I can't always get all 3, so I'm looking for a good balance of them. If I can get a higher quality at a cheaper price, and the company pays a compelling dividend, that's when stock is really interesting to me.”
Unitedhealth Group Incorporated (UNH): One of the best long -term stocks to buy back billionaire
Senior Healthcare Professional providing advice to a patient at a clinic.
To compile this list, we screened for dividend stocks that have strong financial issues and solid dividend policies. From that group, we chose 10 companies that were most popular among billionaire investors, in line with an internal Monkey billionaire database of CH4 2024.
At Insider Monkey, we have an obsession with hedge funds. Why are we interested in the stocks to which money accumulates? The reason is simple: our research has shown that we can outperform the market by imitating the main stock options of the best hedge funds. Our quarterly newsletter strategy selects 14 small cap stocks and a large cap every quarter and has returned 373.4% since May 2014, beating its 218 percentage point benchmark (See more details here).
Number of billionaire holders: 23
An American Health Insurance Company, Unitedhealth Group Incorporated (NYSE: UNH) is third on our list of best long -term dividend stocks according to billionaire. The company remains an excellent option for those seeking protection from tariffs, strong cost passing capabilities, and reliable growth. Its vital services, robust financial issues, and its strategic integration locate it as a standout performer for long -term success, unaffected by market fluctuations. Since the beginning of 2025, the stock has increased by over 15%.
In 2024 financial, Unitedhealth Group Incorporated (NYSE: UNH) exceeded investor expectations, posting a revenue increase of 8% to $ 400 billion, driven by strong consequences across all its service areas. Operational income reached $ 32.3 billion, and after cost factoring of Gyberattack and issues in South America, adjusted earnings were $ 34.4 billion.
Unitedhealth Group produced incorporated (NYSE: UNH) also impressive cash flow, with $ 24.2 billion in active cash flow, 1.6 times its net income. The company returned over $ 16 billion to shareholders through dividends and stock purchases. In addition, his earnings hit 23.7% in the fourth quarter, reflecting solid gains and efficient capital management. Currently, it offers a quarterly dividend of $ 2.10 per share for a dividend product of 1.44%, in April 15. The company has consistently paid its dividends since 2010.
On the whole, one 3rd ranks On our list of the best long -term dividend stocks by billionaire. While we recognize the potential of UNH as an investment, our conviction lies in the belief that some dividend stocks that are deeply underestimated are more promised for achieving higher earnings, and doing so within a shorter timetable. If you are looking for a deeply underestimated dividend stock that is more promising than UNH but trades 10 times its earnings and grows its earnings at double digit rates annually, check out our report on the Cheap Difidend Stock.
