10 Best Affordable Dividend Stocks to Buy According to Hedge Funds

6. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 100

Forward P/E Ratio as of February 26: 23.15

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American multinational biotech and life sciences company. It exceeded Wall Street expectations for the fourth quarter, reporting earnings of $6.10 per share and revenue of $11.40 billion, surpassing analyst estimates of $5.94 per share and $11.28 billion in revenue. Although biotech sector spending has remained subdued, potential interest rate cuts could provide a boost by increasing available funding.

Looking ahead, Thermo Fisher Scientific Inc. (NYSE:TMO) anticipates adjusted earnings for 2025 to range between $23.10 and $23.50 per share, aligning with market forecasts. The company is widely recognized as a top-tier player in the healthcare and pharmaceutical industries, offering investors exposure to industry growth without the risks associated with patent expirations or the need for breakthrough drug discoveries. Its revenue stream is highly diversified, with over 80% generated from recurring sources, ensuring stability and reducing investment risk.

Thermo Fisher Scientific Inc. (NYSE:TMO)’s cash flow remained stable in the most recent quarter. The company reported an operating cash flow of $3.3 billion and its free cash flow came in at $2.8 billion. In FY24, it returned $4.6 billion to shareholders through dividends and share repurchases. On February 19, the company declared a 10% hike in its quarterly dividend to $0.43 per share. This marked the company’s eighth consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. As of February 26, the stock has a dividend yield of 0.32%.