10 Top-Performing Dividend Stocks of October 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 October 2024, the top-performing dividend payers included regulated electric company Entergy ETR, entertainment company Sirius XM Holdings SIRI, and midstream oil and gas company Kinder Morgan KMI.

To find the month’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 October 2024

1. Entergy ETR
2. Sirius XM Holdings SIRI
3. Kinder Morgan KMI
4. Synovus Financial SNV
5. Lincoln Financial Group LNC
6. First Horizon Bank FHN
7. Zions Bancorporation ZION
8. Associated Bank ASB
9. Philip Morris International PM
10. Columbia Banking System COLB

How Have Dividend Stocks Performed?

Over the past month, the Morningstar Dividend Leaders Index, which captures the 100 highest-yielding names, was roughly flat. The broad Morningstar Dividend Composite Index lost 1.1%. In the 12 months leading up to Oct. 31, the Dividend Leaders Index gained 37.2% and the Dividend Composite Index gained 30.9%.

The overall US stock market, as measured by the Morningstar US Market Index, was roughly flat on the month but has risen 38.1% on the year.

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

Entergy

Regulated electric company Entergy rose 17.6% in October and 66.6% over the past 12 months. Trading at $154.78 per share, it has a forward dividend yield of 3.1%. Entergy pays investors an annual dividend of $4.80 per share. The stock, which has a narrow economic moat, is trading at a 23% premium to its fair value estimate of $126 per share, leaving it with a Morningstar Rating of 2 stars.

Sirius XM Holdings

Entertainment company Sirius XM rose 12.7% in October and lost 35.2% over the past 12 months. At $26.66 per share, its stock has a forward dividend yield of 4.05% and an annual dividend of $1.08 per share. The stock, which has no economic moat, is trading near its fair value estimate of $30 per share. It has a Morningstar Rating of 3 stars.

Kinder Morgan

Midstream oil and gas company Kinder Morgan gained 12.3% in October and rose 58.4% over the past 12 months. The stock’s $24.51 price gives it a forward dividend yield of 4.69%. Kinder Morgan pays investors an annual dividend of $1.15 per share. With a fair value estimate of $22 per share and a narrow moat, the stock is moderately overvalued, trading at an 11% premium. It has a Morningstar Rating of 2 stars.

Synovus Financial

Regional bank Synovus rose 12.1% in October and 97.1% over the past 12 months. Trading at $49.87 per share, Synovus stock has a forward dividend yield of 3.05% and an annual dividend of $1.52 per share. It has a quantitative Morningstar Rating of 3 stars.

Lincoln Financial Group

Life insurance company Lincoln Financial gained 11.7% in October and 67.9% over the past 12 months. Trading at $34.75 per share, its forward dividend yield is 5.18%. Lincoln Financial pays investors an annual dividend of $1.80 per share. It has a quantitative Morningstar Rating of 3 stars.

First Horizon Bank

Regional bank First Horizon gained 11.6% in October and 66.8% over the past 12 months. At $17.33 per share, First Horizon stock has a forward dividend yield of 3.46% and an annual dividend of $0.60 per share. It has a quantitative Morningstar Rating of 3 stars.

Zions Bancorporation

Regional bank Zions rose 10.2% in October and 74.1% over the past 12 months. Trading at $52.06 per share, Zions stock has a forward dividend yield of 3.15% and an annual dividend of $1.64 per share. The stock, which has no moat, is trading near its fair value estimate of $59 per share. It has a Morningstar Rating of 3 stars.

Associated Bank

Regional bank Associated rose 10.2% in October and 51.9% over the past 12 months. Trading at $23.74 per share, Associated stock has a forward dividend yield of 3.88% and pays investors an annual dividend of $0.92 per share. The stock has a quantitative Morningstar Rating of 3 stars.

Philip Morris International

Tobacco company Philip Morris gained 9.3% in October and 54.7% over the past 12 months. The stock’s $132.70 price gives it a forward dividend yield of 4.07%. Philip Morris pays investors an annual dividend of $5.40 per share. With a fair value estimate of $120 per share and a wide moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.

Columbia Banking System

Regional bank Columbia rose 9.2% in October and 52.3% over the past 12 months. At $28.51 per share, Columbia has a forward dividend yield of 5.05% and an annual dividend of $1.44 per share. It has a quantitative Morningstar Rating of 3 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.
• 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.