10 Top-Performing Dividend Stocks | Morningstar

Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.

In the second quarter of 2025, the top-performing dividend payers included asset management firm Franklin Templeton BEN, agricultural inputs company Scotts SMG, and leisure company Hasbro HAS.

To find the quarter’s 10 best-performing income-focused stocks, we screened the Morningstar Dividend Leaders Index, which tracks the performance of the 100 highest-yielding stocks from a broad basket of consistent dividend payers.

The Top-Performing US Dividend Leaders of Q2 2025

1. Franklin Templeton BEN
2. Scotts Company SMG
3. Hasbro HAS
4. State Street STT
5. International Business Machines IBM
6. OneMain Financial OMF
7. Philip Morris International PM
8. Artisan Partners Asset Management APAM
9. Whirlpool WHR
10. Travel + Leisure TNL

How Have Dividend Stocks Performed?

Over the past quarter, the Morningstar Dividend Leaders Index, which captures the 100 highest-yielding names, fell 2.3%. The broad Morningstar Dividend Composite Index gained 3.7%. In the 12 months leading up to June 30, the Dividend Leaders Index gained 15.5% and the Dividend Composite Index gained 13.4%.

The overall US stock market, as measured by the Morningstar US Market Index, has gained 11.1% on the quarter and 15.3% on the year.

Yields and Metrics for Q2’s Best-Performing Dividend Stocks

Franklin Templeton

Asset management firm Franklin Templeton rose 25.6% in the second quarter and gained 12.4% over the past 12 months. Trading at $23.85 per share, its stock has a forward dividend yield of 5.37%. Franklin Templeton pays investors an annual dividend of $1.28 per share. The stock, which has no economic moat, is trading near its fair value estimate of $21 per share, leaving it with a Morningstar Rating of 3 stars.

Scotts Company

Agricultural inputs company Scotts rose 21.4% in the quarter and gained 5.4% over the past 12 months. At $65.96 per share, its stock has a forward dividend yield of 4% and an annual dividend of $2.64 per share. The stock, which has a narrow economic moat, is moderately undervalued, trading 27% below its fair value estimate of $90 per share. It has a Morningstar Rating of 4 stars.

Hasbro

Leisure company Hasbro gained 21.2% in the quarter and rose 31.0% over the past 12 months. The stock’s $73.82 price gives it a forward dividend yield of 3.79%. Hasbro pays investors an annual dividend of $2.80 per share. With a fair value estimate of $83 per share and a narrow economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.

State Street

Asset management firm State Street rose 19.6% in the second quarter and 47.7% over the past 12 months. Trading at $106.34 per share, State Street stock has a forward dividend yield of 2.86% and an annual dividend of $3.04 per share. The stock, which has a wide economic moat, is moderately overvalued, trading 18% above its fair value estimate of $90 per share. It has a Morningstar Rating of 2 stars.

International Business Machines

Information technology services company IBM gained 19.2% in the second quarter and 74.3% over the past 12 months. Trading at $294.78 per share, its forward dividend yield is 2.28%. IBM pays investors an annual dividend of $6.72 per share. The stock, which has a narrow economic moat, is trading at a 22% premium to its fair value estimate of $242 per share, leaving it moderately overvalued. It has a Morningstar Rating of 2 stars.

OneMain Financial

Credit services firm OneMain gained 18.7% in the second quarter and rose 26.1% over the past 12 months. At $57 per share, OneMain stock has a forward dividend yield of 7.3% and an annual dividend of $4.16 per share. It has a quantitative Morningstar Rating of 4 stars.

Philip Morris International

Tobacco company Philip Morris rose 15.6% in the second quarter and gained 85.1% over the past 12 months. Trading at $182.13 per share, Philip Morris stock has a forward dividend yield of 2.96% and an annual dividend of $5.40 per share. The stock, which has a wide economic moat, is moderately overvalued, trading 21% above its fair value estimate of $150 per share. It has a Morningstar Rating of 2 stars.

Artisan Partners Asset Management

Asset management firm Artisan Partners rose 15.1% in the second quarter and gained 16.0% over the past 12 months. Trading at $44.33 per share, Artisan Partners stock has a forward dividend yield of 6.88% and pays investors an annual dividend of $2.72 per share. The stock has a quantitative Morningstar Rating of 5 stars.

Whirlpool

Furnishings, fixtures, and appliances firm Whirlpool gained 14.5% in the second quarter and rose 6.1% over the past 12 months. The stock’s $101.42 price gives it a forward dividend yield of 6.9%. Whirlpool pays investors an annual dividend of $7 per share. The stock has a quantitative Morningstar Rating of 5 stars.

Travel + Leisure

Travel services company Travel + Leisure rose 12.7% in the quarter and gained 19.5% over the past 12 months. At $51.61 per share, Travel + Leisure has a forward dividend yield of 4.34% and an annual dividend of $2.24 per share. It has a quantitative Morningstar Rating of 4 stars.

What Is the Morningstar Dividend Leaders Index?

The Dividend Leaders Index captures the performance of the 100 highest-yielding stocks that have consistent records of paying dividends and can sustain those payments. It’s a subset of the Morningstar US Market Index (which represents 97% of equity market capitalization) that includes only securities whose dividends are qualified income. Real estate investment trusts are excluded.

Companies are screened for dividend consistency and sustainability. Each must have a positive five-year dividend per share growth and a dividend coverage ratio greater than 1. The 100 highest-yielding stocks are included in the index, weighted by the dollar value of their dividends. See the full rulebook here.

The Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to find more top-performing or cheap dividend stocks can do the following:

• Review the full list of stocks in the Morningstar Dividend Leaders Index. Stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Use the Morningstar Investor Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
• Use Morningstar Investor to build a watchlist of the best dividend stocks and easily follow those stocks’ valuations, ratings, and dividend yields.
• Watch our dividend stock video series, hosted by David Harrell, for ideas to consider.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.

Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.