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 2024, the top-performing dividend payers included midstream oil and gas company Kinder Morgan KMI, regulated electric company Entergy ETR, and packaged foods company Kellanova K.
To find the year’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 2024
- Kinder Morgan KMI
- Entergy ETR
- Kellanova K
- Oneok OKE
- First Horizon Bank FHN
- Janus Henderson JHG
- Synovus Financial SNV
- Altria Group MO
- International Business Machines IBM
- Citizens Financial Group CFG
How Have Dividend Stocks Performed?
Over the past month, the Dividend Leaders Index fell 2.9%. The broad Morningstar Dividend Composite Index lost 1.8%. In the 12 months leading up to Dec. 31, the Dividend Leaders Index gained 17.5% and the Dividend Composite Index gained 15.7%.
The overall US stock market, as measured by the Morningstar US Market Index, has gained 2.6% on the month and 24.1% on the year.
Yields and Metrics for 2024’s Best-Performing Dividend Stocks
Kinder Morgan
Midstream oil and gas company Kinder Morgan rose 64.4% in 2024 and 24.7% annualized over the past three years. Trading at $27.40 per share, the stock has a forward dividend yield of 4.2%. Kinder Morgan pays investors an annual dividend of $1.15 per share. The stock, which has a narrow economic moat, is trading at a 25% premium to its fair value estimate of $22 per share, leaving it with a Morningstar Rating of 2 stars.
Entergy
Regulated electric company Entergy rose 55.9% in 2024 and 13.5% annualized over the past three years. At $75.82 per share, the stock has a forward dividend yield of 3.17% and an annual dividend of $2.40. The stock, which has a narrow economic moat, is moderately overvalued, trading 17% above its fair value estimate of $65 per share. It has a Morningstar Rating of 2 stars.
Kellanova
Packaged foods company Kellanova gained 49.8% in 2024 and 13.8% annualized over the past three years. The stock’s $80.97 price gives it a forward dividend yield of 2.82%. Kellanova pays investors an annual dividend of $2.28 per share. With a fair value estimate of $83.50 per share and a narrow economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.
Oneok
Midstream oil and gas company Oneok rose 48.6% in 2024 and 24.0% annualized over the past three years. Trading at $100.40 per share, Oneok stock has a forward dividend yield of 3.94% and an annual dividend of $3.96 per share. The stock, which has a narrow economic moat, is moderately overvalued, trading 13% above its fair value estimate of $89 per share. It has a Morningstar Rating of 2 stars.
First Horizon Bank
Regional bank First Horizon gained 46.5% in 2024 and 10.3% annualized over the past three years. Trading at $20.14 per share, its forward dividend yield is 2.98%. First Horizon pays investors an annual dividend of $0.60 per share. It has a quantitative Morningstar Rating of 3 stars.
Janus Henderson
Asset management firm Janus Henderson gained 46.2% in 2024 and 4.0% annualized over the past three years. At $42.53 per share, the stock has a forward dividend yield of 3.67% and an annual dividend of $1.56 per share. The stock, which has no economic moat, is trading near its fair value estimate of $38 per share. It has a Morningstar Rating of 3 stars.
Synovus Financial
Regional bank Synovus rose 40.1% in 2024 and 5.1% annualized over the past three years. Trading at $51.23 per share, Synovus stock has a forward dividend yield of 2.97% and an annual dividend of $1.52 per share. It has a quantitative Morningstar Rating of 3 stars.
Altria Group
Tobacco company Altria rose 39.5% in 2024 and 10.4% annualized over the past three years. Trading at $52.29 per share, Altria stock has a forward dividend yield of 7.8% and pays investors an annual dividend of $4.08 per share. The stock, which has a wide economic moat, is trading near its fair value estimate of $58 per share, leaving it with a Morningstar Rating of 3 stars.
International Business Machines
Information technology services company IBM gained 38.5% in 2024 and 21.5% annualized over the past three years. The stock’s $219.83 price gives it a forward dividend yield of 3.04%. IBM pays investors an annual dividend of $6.68 per share. With a fair value estimate of $139 per share and a narrow economic moat, the stock is significantly overvalued, trading at a 58% premium. It has a Morningstar Rating of 1 star.
Citizens Financial Group
Regional bank Citizens rose 37.1% in 2024 and 1.0% annualized over the past three years. At $43.76 per share, Citizens has a forward dividend yield of 3.84% and an annual dividend of $1.68 per share. It has a quantitative Morningstar Rating of 3 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 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 not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was generated with the help of automation and reviewed by Morningstar editors.
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