In a recent publication, we explored the 10 Best Long Term Stocks to Buy According to Billionaires, with a spotlight on UnitedHealth Group Incorporated (NYSE:UNH). This analysis aims to assess where UnitedHealth stands in relation to other top dividend-paying stocks.

Dividend-paying stocks have long been regarded as a cornerstone of investment portfolios. They offer a reliable income stream and can help cushion the effects of volatile market conditions. However, despite their advantages, these stocks sometimes lag behind the broader market, often eclipsed by more glamorous investment opportunities. For instance, in the past couple of years, dividend stocks have underperformed as investors gravitated towards the tech sector, drawn by its rapid growth and potential for high returns. Nonetheless, following a recent market correction and renewed pressure on technology shareslargely due to tariffs introduced during the Trump administrationdividend stocks have started to capture investor interest once again.

According to the Dividend Aristocrats Index, which tracks companies that have increased their dividends for at least 25 consecutive years, the index has seen a decline of nearly 2% since the start of 2025. In comparison, the broader market has faced a more significant downturn, with an approximate 8% decrease. This trend indicates a resurgence in the appeal of dividends, as more companies are initiating dividend policies and existing payers are ramping up their payouts in order to attract investors. A recent report by S&P Global reveals that 408 companies in the broader market are expected to distribute dividends in 2025, with nearly 350 of these companies anticipated to raise their dividends over the next four quarters. This is expected to lead to an estimated 6% year-over-year growth in total dividends.

In the context of the larger U.S. market, aggregate dividend growth is projected to reach 4.6% for 2025. Notably, companies within the S&P 500 account for approximately 85% of all dividends distributed in the United States, making the index a vital barometer for understanding overall dividend trends in the market.

The long-term value proposition of dividend-paying stocks remains robust, particularly for investors aiming to mitigate risk while still pursuing growth opportunities. Portfolio manager Ramona Persaud, who oversees the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, emphasizes her preference for high-quality companies that not only offer robust dividends but are also fairly priced. Persaud highlights that falling interest rates can create a conducive environment for dividend stocks, as their yields become increasingly attractive when compared to fixed-income investments like bonds. Additionally, she points out that lower rates could facilitate broader market gains, in contrast to the recent scenario where performance has been driven predominantly by a select few mega-cap growth companies.

Her investment strategy focuses on identifying companies characterized by strong balance sheets, consistent cash flows, and substantial growth potential. Persaud also underscores the importance of valuation, advocating for the selection of stocks that are competitively priced both relative to their peers and historical averages, while also seeking out dividend yields that stand out in today's market. This strategic combination of quality, value, and income has, in her view, enabled her funds to perform well, regardless of whether market conditions are rising or falling.

In discussing the allure of dividend stocks, Persaud remarked, Investing in companies that consistently deliver dividends not only provides a source of income but also indicates a companys commitment to returning value to its shareholders.