7 Best Non-REIT Dividend Stocks to Invest in

Core Insights - The article discusses the best non-REIT dividend stocks to invest in, highlighting the importance of dividends across various sectors beyond real estate investment trusts (REITs) [1][3] Dividend Market Overview - REITs have shown resilience in 2025, with aggregate funds from operations rising by 6.2%, net operating income increasing by 4.7%, and total dividends paid climbing by 6.3% compared to the same period in 2024, indicating strong fundamentals and disciplined capital access [2] - There is a significant demand for dividend-paying stocks, with over $1 trillion in funds and ETFs globally focusing on dividends, reflecting investors' desire for consistent and reliable income streams [3] Methodology for Stock Selection - The article identifies dividend-paying stocks outside of REITs with a yield above 3% as of January 31, and selects those with the highest number of hedge fund investors at the end of Q3 2025 [6] Company Highlights - Open Text Corporation (NASDAQ:OTEX): - Dividend yield of 4.31% with 14 hedge fund holders; focuses on software for information management, heavily reliant on recurring revenue [9] - Analyst Stephanie Price from CIBC cut the price target to $37 from $40, maintaining a Neutral rating due to weaker-than-expected Q2 guidance [10] - The company plans to divest non-core business units, potentially reducing revenue by up to 20% to focus on AI-related content [12] - NorthWestern Energy Group, Inc. (NASDAQ:NWE): - Dividend yield of 3.89% with 24 hedge fund holders; operates as a regulated utility providing electricity and natural gas [13] - Barclays raised its price target to $62 from $61, maintaining an Overweight rating following a solid Q3 performance with GAAP earnings of $0.62 per share [14][15] - The company is pursuing a strategic all-stock merger with Black Hills Corporation, expected to enhance its market presence [16]