Watch PepsiCoMorningstar Rating: 4 starsMorningstar Economic Moat Rating: WideMorningstar Uncertainty Rating: LowTrailing Dividend Yield: 4.19%Industry: Beverages—NonalcoholicPepsi is the third dividend aristocrat on this month’s list of top dividend stocks to buy. We think is worth $162, and shares trade 19% below that. Despite near-term headwinds from consumer belt-tightening in the US and higher supply-chain costs, we think Pepsi remains poised to bolster its competitive standing in beverages and snacks by leveraging marketing and product initiatives, reports Morningstar Equity Analyst . Over the next decade, we expect Pepsi’s payout ratio to remain in the low 70s on average and the dividend payment to grow at a mid-single-digit pace annually, says Su. ConocoPhillipsMorningstar Rating: 4 starsMorningstar Economic Moat Rating: NarrowMorningstar Uncertainty Rating: HighTrailing Dividend Yield: 3.22%Industry: Oil and Gas E&PThe second energy stock on our list of best dividend stocks to buy, ConocoPhillips stock, trades 13% below our $111 fair value estimate. Morningstar’s Allen Good calls the firm “a compelling option in the energy sector, given its commitment to capital restraint and clear policy on the return of cash to shareholders.” ConocoPhillips ties cash returns to cash flow and is committed to returning 30% of operating cash flow to shareholders, which keeps dividend growth modest but ties excess cash toward repurchases and a variable dividend each year. MedtronicMorningstar Rating: 4 starsMorningstar Economic Moat Rating: NarrowMorningstar Uncertainty Rating: MediumTrailing Dividend Yield: 3.21%Industry: Medical DevicesA top dividend stock to buy, Medtronic shares trade 22% below our $112 fair value estimate. The largest pure-play medical device-maker is a key partner for its hospital customers, thanks to its diversified product portfolio aimed at a wide range of chronic diseases, Morningstar Senior Equity Analyst explains. The company aims to return a minimum of 50% of its annual free cash flow to shareholders but has been in the 60% to 70% range in recent years, says Wang. Medtronic has raised its dividend for 46 consecutive years, earning it dividend aristocrat status. Lockheed MartinMorningstar Rating: 4 starsMorningstar Economic Moat Rating: WideMorningstar Uncertainty Rating: MediumTrailing Dividend Yield: 2.68%Industry: Aerospace and DefenseThe only name from the on our list of good dividend stocks, Lockheed Martin, increased its dividend earlier this year by 5%. As a bet on the defense industry, wide-moat Lockheed is hard to beat, argues Morningstar Analyst . “Biggest isn’t always best, but Lockheed (and investors) benefit from the sheer scale of its tens of billions of dollars of contracts that provide defined decades-long revenue and profit streams,” he explains. Given the company’s conservatively run balance sheet, stable business model, and strong history of returning capital to shareholders, the dividend will likely remain a priority. We think this top dividend stock is worth $539, and shares trade 10% below that.Mondelez InternationalMorningstar Rating: 4 stars Morningstar Economic Moat Rating: Wide Morningstar Uncertainty Rating: Low Trailing Dividend Yield: 2.74% Industry: ConfectionersMondelez International is one of the top performers this year among our list of the best dividend stocks to buy. With a portfolio of brands that includes Oreo, Chips Ahoy, Halls, and Cadbury, we think the firm has carved out a wide economic moat. “Mondelez has proved unrelenting in its commitment to remove further complexity from its operations by rationalizing its supplier base, parting ways with unprofitable brands, and continuing to upgrade its manufacturing facilities,” argues Morningstar Director . We forecast the company will increase its dividend in the high-single-digit range on average through fiscal 2033. We think this top dividend stock is worth $74, and shares trade 10% below that.OneokMorningstar Rating: 4 stars Morningstar Economic Moat Rating: Narrow Morningstar Uncertainty Rating: Medium Trailing Dividend Yield: 4.82% Industry: Oil and Gas MidstreamThe third energy name on our list of the best dividend stocks to buy is also the highest-yielding stock on our list. Oneok is trading 16% below our fair value estimate of $100 per share. Several recent acquisitions made at favorable prices have set up Oneok for growth in 2025 and 2026, explains Morningstar Analyst Adam Baker. We expect the company to raise dividends at a consistent 4%-6% rate, he adds.SchlumbergerMorningstar Rating: 5 starsMorningstar Economic Moat Rating: NarrowMorningstar Uncertainty Rating: MediumTrailing Dividend Yield: 3.09%Industry: Oil and Gas Equipment and ServicesSchlumberger rounds out this month’s list of the best dividend stocks to buy. This top dividend stock trades 29% below our $51 fair value estimate. The world’s premier oilfield services company, as measured by market share, Schlumberger has carved out a narrow economic moat owing to its cost advantages and intangible assets. Morningstar Director calls the company’s distributions “shareholder-friendly,” and we expect the management to return more than 70% of free cash flow to shareholders in dividends or buybacks.What Is the Morningstar Dividend Yield Focus Index?A subset of the Morningstar US Market Index (which represents 97% of equity market capitalization), the Morningstar Dividend Yield Focus Index tracks the top 75 high-yielding stocks that meet our screening requirements for quality and financial health.How are the stocks selected for the index? Only securities whose dividends are qualified income are included; are tossed out. Companies are then screened for quality using the and . Specifically, companies must earn a Moat Rating of narrow or wide and an Uncertainty Rating of Low, Medium, or High; companies with Very High or Extreme Uncertainty Ratings are excluded. The index includes a screen for financial health using a distance-to-default measure, which uses market information and accounting data to determine how likely a firm is to default on its liabilities; it is a measure of balance-sheet strength.The 75 highest-yielding stocks that pass the quality screen are included in the index, and constituents are weighted according to the total dividends paid by the company to investors.More on Dividend Stocks The Best Dividend Stocks for 2025: More Ideas to ConsiderInvestors who would like to uncover more cheap dividend stocks to research further can do the following:Review the included in the Morningstar Dividend Yield Focus Index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.Use our tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures such as price/earnings, and more.Use Morningstar Investor to of the best dividend stocks and create a view that allows you to easily follow the valuations, ratings, and dividend yields of the stocks on your list.Watch our dividend stock video series, hosted by , for ideas to consider.Bookmark our to stay up to date on Morningstar’s newest dividend stock content. The author or authors do not own shares in any securities mentioned in this article., These stocks pay dividend yields of 3% or greater and are sorted by the number of MarketBeat users following each company. The table below shows each public company's current dividend yield, payout ratio, market indicators and other important metrics investors use to evaluate dividend stocks. Learn more about best dividend stocks., Discover the best dividend stocks with solid yields, strong fundamentals, and room to grow—even in uncertain markets..