Looking for Stability? Donaldson (DCI) is a Dividend Stock to Buy in August

Donaldson Company, Inc. (NYSE:DCI) is included among the 10 Best Dividend Stocks to Buy in August.

 On July 25, the company declared a quarterly dividend of $0.30 per share, which was consistent with its previous dividend. Overall, it has been growing its payouts for 29 years, which makes it a prominent Dividend Champion. As of July 28, the stock has a dividend yield of 2.49%.

Donaldson Company, Inc. (NYSE:DCI) showcased solid performance in fiscal Q3 2025, delivering record sales and record adjusted earnings per share. The company raised its full-year earnings guidance and ramped up its share repurchase efforts, having bought back 3.3% of its outstanding shares since the beginning of the year. Quarterly revenue came in at $940.1 million, a 1.3% increase year-over-year and ahead of analyst expectations by $6.65 million.

Over the first nine months of the fiscal year, Donaldson Company, Inc. (NYSE:DCI) generated $251 million in operating cash flow and held $178.5 million in cash and cash equivalents. It also remained focused on shareholder returns, distributing $32.3 million in dividends during the third quarter. The company’s strong cash position makes it a reliable stock among income investors.

While we acknowledge the potential of DCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.