10 Top-Performing Dividend Stocks of Q3 2024

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 third quarter of 2024, the top-performing dividend payers included packaged foods company Kellanova K, tools and accessories firm Stanley Black & Decker SWK, and agricultural inputs company Scotts Company SMG.

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 Q3 2024

1. Kellanova K
2. Stanley Black & Decker SWK
3. The Scotts Company SMG
4. Columbia Banking System COLB
5. Valley National Bank VLY
6. International Business Machines IBM
7. Fidelity National Financial FNF
8. Hasbro HAS
9. Entergy ETR
10. Ameren AEE

How Have Dividend Stocks Performed?

Over the past quarter, the Morningstar Dividend Leaders Index, which captures the 100 highest-yielding names, rose 11.8%. The broad Morningstar Dividend Composite Index gained 8.9%. In the 12 months leading up to Sept. 30, the Dividend Leaders Index gained 32.0% and the Dividend Composite Index gained 29.1%.

The overall US stock market, as measured by the Morningstar US Market Index, has gained 6.1% on the quarter and 35.6% on the year.

Yields and Metrics for Q3′s Best-Performing Dividend Stocks

Kellanova

Packaged foods company Kellanova rose 40.9% in the quarter and gained 51.2% over the past 12 months. Trading at $80.71 per share, the stock has a forward dividend yield of 2.82%. Kellanova pays investors an annual dividend of $2.28 per share. The stock, which has a narrow economic moat, is trading near its fair value estimate of $83.50 per share, leaving it with a Morningstar Rating of 3 stars.

Stanley Black & Decker

Tools and accessories firm Stanley Black & Decker rose 38.9% in the quarter and gained 35.7% over the past 12 months. At $110.13 per share, its stock has a forward dividend yield of 2.98% and an annual dividend of $3.28 per share. It has a quantitative Morningstar Rating of 4 stars.

Scotts Company

Agricultural inputs company Scotts gained 34.3% in the quarter and rose 72.9% over the past 12 months. The stock’s $86.70 price gives it a forward dividend yield of 3.04%. Scotts pays investors an annual dividend of $2.64 per share. With a fair value estimate of $105 per share and a narrow moat, the stock is moderately undervalued, trading at a 17% discount. It has a Morningstar Rating of 4 stars.

Columbia Banking System

Regional bank Columbia rose 33.1% in the quarter and gained 35.7% over the past 12 months. Trading at $26.11 per share, Columbia stock has a forward dividend yield of 5.52% and an annual dividend of $1.44 per share. It has a quantitative Morningstar Rating of 3 stars.

Valley National Bank

Regional bank Valley National gained 31.4% in the quarter and rose 11.0% over the past 12 months. Trading at $9.06 per share, its forward dividend yield is 4.86%. Valley National pays investors an annual dividend of $0.44 per share. It has a quantitative Morningstar Rating of 3 stars.

International Business Machines

Information technology services company IBM gained 28.8% in the third quarter and rose 62.3% over the past 12 months. At $221.08 per share, IBM stock has a forward dividend yield of 3.02% and an annual dividend of $6.68 per share. The stock, which has a narrow economic moat, is significantly overvalued, trading 59% above its fair value estimate of $139 per share. It has a Morningstar Rating of 1 star.

Fidelity National Financial

Specialty insurance firm Fidelity National rose 26.5% in the quarter and gained 54.9% over the past 12 months. Trading at $62.06 per share, Fidelity National stock has a forward dividend yield of 3.09% and an annual dividend of $1.92 per share. It has a quantitative Morningstar Rating of 2 stars.

Hasbro

Leisure company Hasbro rose 24.8% in the quarter and gained 13.6% over the past 12 months. Trading at $72.32 per share, Hasbro stock has a forward dividend yield of 3.87% and pays investors an annual dividend of $2.80 per share. The stock, which has a narrow moat, is trading at a 14% discount to its fair value estimate of $84 per share, leaving it moderately undervalued, with a Morningstar Rating of 4 stars.

Entergy

Regulated electric company Entergy gained 24.1% in the quarter and rose 47.2% over the past 12 months. The stock’s $131.61 price gives it a forward dividend yield of 3.43%. Entergy pays investors an annual dividend of $4.52 per share. With a fair value estimate of $126 per share and a narrow moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.

Ameren

Regulated electric company Ameren rose 23.9% in the quarter and gained 20.4% over the past 12 months. At $87.46 per share, Ameren has a forward dividend yield of 3.06% and an annual dividend of $2.68 per share. The stock, which has a narrow economic moat, is moderately overvalued, trading 11% above its fair value estimate of $79 per share. It has a Morningstar Rating of 2 stars.

What Is the Morningstar Dividend Leaders Index?

The Morningstar 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.
• Watch this video to learn how Morningstar uses the star rating, moat rating, and other metrics to evaluate stocks.

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.