10 Best Dividend Paying Stocks To Buy According to Quant Hedge Fund AQR

1. The Cigna Group (NYSE:CI)

AQR Capital’s Stake Value: $510,466,955

Dividend Yield as of August 22: 1.64%

The Cigna Group (NYSE:CI) tops our list of the best dividend-paying stocks according to AQR Capital. The managed healthcare and insurance company is experiencing some of the downturn affecting the broader insurance sector. US health insurers have had a challenging first half of the year, dealing with unforeseen medical expenses, increased regulatory scrutiny, and growing investor skepticism. According to the latest CDC data, the percentage of Americans without health insurance has risen to over 8% this year, after reaching record lows during the pandemic. That said, The Cigna Group (NYSE:CI) has managed to maintain a solid position, with its stock rising over 12% this year. The company also reported strong earnings in the second quarter of 2024.

The Cigna Group (NYSE:CI) generated revenue of $60.4 billion in Q2 2024, which shows a 25% growth from the same period last year. Its adjusted income from operations came in at $1.9 billion, up from $1.8 billion in the prior year period. The company has also presented a strong outlook for its cash flow for FY24, expecting to generate approximately $11 billion in operating cash flow during the year.

On July 24, The Cigna Group (NYSE:CI) declared a quarterly dividend of $1.40 per share, which was consistent with its previous dividend. Overall, the company has raised its payouts for four consecutive years. The stock supports a dividend yield of 1.64%, as of August 22.

The number of hedge funds in Insider Monkey’s database owning stakes in The Cigna Group (NYSE:CI) grew to 66 in Q2 2024, from 61 in the previous quarter. The collective value of these stakes is over $2.77 billion. In addition to AQR Capital, Glenview Capital was also one of the company’s leading stakeholders in Q2.

While we acknowledge the potential of CI as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than CI but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.