From Yahoo Finance: 2025-04-14 09:21:00

Dividend-paying stocks have proven to be a valuable investment over time, with a $10,000 investment in the index growing to over $982,000 between 1960 and 2024. Companies in the S&P index now contribute roughly 85% of total dividends paid across the market, with the top 29 companies expected to distribute $280 billion in dividends.

Investors are increasingly favoring income-generating assets, with dividends offering a reliable source of income. Younger investors are building long-term dividend growth portfolios for capital appreciation. Companies focusing on dividend growth have historically shown strong fundamentals and may deliver attractive performance in the future, making them a solid foundation for equity portfolios.

Oracle Corporation (NYSE:ORCL) ranks fifth on the list of best dividend-paying stocks according to hedge funds. The company posted a revenue of $14.13 billion in fiscal Q3 2025, with its cloud business bringing in $6.2 billion. Oracle expects 15% total revenue growth in the upcoming fiscal year, supported by partnerships with tech giants and strong cash generation.

Oracle Corporation (NYSE:ORCL) has consistently paid dividends since 2009 and recently announced a 25% increase to its quarterly dividend. With $17.4 billion in cash and equivalents, the company remains a reliable dividend stock, supporting a dividend yield of 1.51%. While ORCL shows promise as an investment, some deeply undervalued dividend stocks may offer higher returns in a shorter timeframe.

Read more: Among the Best Dividend Paying Stocks According to Hedge Funds