In this article, we discuss the best high dividend stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best High Dividend Stocks to Buy Now.
Global dividends soared 14.7% on an underlying basis last year, reaching a new high of $1.47 trillion, following the COVID-19 cutbacks in 2020. According to the recently published Janus Henderson Global Dividend Index report, the most rapid dividend growth was seen in Europe and the UK with an underlying growth rate of 25.7% and 21.2%, respectively.
The 33rd edition of Janus Henderson’s report also mentioned that the mining and banking sectors contributed the most to the overall dividend record growth. The surge in cyclical commodity prices, which rewarded mining corporations with record profitability in 2021, boosted dividend growth in the mining sector. Dividend-paying miners contributed more than a quarter of the $212 billion annual increase in global dividend payouts in 2021, or $96.6 billion. Similarly, corporations resuming payouts that had been postponed in 2020 contributed a quarter of the increase. The banking industry accounted for the majority of the growth, with dividends increasing by 40%, or $50.5 billion.
According to Janus Henderson, global dividends will reach a new high of $1.52 trillion in full-year 2022, representing a 5.7% increase in underlying growth. Investors and market analysts are encouraged by the gradual recovery of dividend-paying corporations, as seen by their earnings reports. Among the world’s biggest dividend payers are BHP Group Limited (NYSE:BHP), Exxon Mobil Corporation (NYSE:XOM), and Kinder Morgan, Inc. (NYSE:KMI), among others discussed in detail below.
Our Methodology
We searched for high-yielding dividend stocks in mining, healthcare, real estate, energy, and financial sectors. We ranked each stock based on the dividend yield it provides. In addition, each company’s business fundamentals and analyst ratings are mentioned to provide further context.
We included hedge fund sentiment on each high-yielding dividend stock using Insider Monkey’s Q4 2021 data.
Best High Dividend Stocks to Buy Now
10. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Dividend yield as of March 2: 4.14%
Number of Hedge Fund Holders: 42
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a retail pharmacy behemoth with a 46-year dividend increase streak. The pharmaceutical dividend aristocrat has a five-year dividend growth rate of 5.05% and a current yield of 4.13%.
The Illinois-based pharmaceutical retailer is kicking off a strong first quarter in fiscal 2022, with revenue exceeding expectations by $947 million and totaling $33.9 billion. During the quarter, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) administered 15.6 million COVID-19 booster shots, which helped drive greater traffic to its outlets. Moreover, the company’s digital revenue grew 88% in Q1 fiscal 2022, with customers placing 3.6 million same-day pickup orders during the three-month period.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA), like BHP Group Limited (NYSE:BHP), Exxon Mobil Corporation (NYSE:XOM), and Kinder Morgan, Inc. (NYSE:KMI), is a high dividend stock that is a good investment option for income investors. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) attracted more hedge funds in the fourth quarter of 2021. 42 out of 924 elite funds held stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of December 2021, up from 37 in Q3. Camber Capital Management is the biggest shareholder of the company, owning 3.5 million shares valued at $183 million.
Miller Howard Investments, in its Q3 2021 investor letter, mentioned Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and discussed its stance on the firm. Here is what the fund said:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
9. Exxon Mobil Corporation (NYSE:XOM)
Dividend yield as of March 2: 4.37%
Number of Hedge Fund Holders: 71
With a current dividend yield of 4.52%, Exxon Mobil Corporation (NYSE:XOM) is one of the best high dividend stocks followed by income investors. The Texas-based oil firm attracts more investors not only because it is the world’s second-largest oil company, but also because its dividend payout has increased for the past 38 years, making the oil major a dividend aristocrat.
Exxon Mobil Corporation (NYSE:XOM) has yet to issue a statement regarding its plans for its 30% stake in the Sakhalin Island joint venture, an enormous offshore crude development in Russia’s Far East. As of March 1, Exxon Mobil Corporation (NYSE:XOM) is up 40% in the past six months.
As of the end of December 2021, 71 of the 924 elite funds tracked by Insider Monkey had a $5.39 billion stake in Exxon Mobil Corporation (NYSE:XOM). In Q4 2021, GQG Partners had the largest stake in Exxon Mobil Corporation (NYSE:XOM), with over 32 million shares worth $1.98 billion.
Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon Mobil Corporation (NYSE:XOM) was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
8. Realty Income Corporation (NYSE:O)
Dividend yield as of March 2: 4.48%
Number of Hedge Fund Holders: 30
One of the best high dividend stocks investors are watching is the real estate investment trust Realty Income Corporation (NYSE:O). The California-based REIT offers a dividend yield of 4.39% and pays its shareholders a monthly dividend. Realty Income Corporation’s (NYSE:O) consistent dividend growth ranks it alongside BHP Group Limited (NYSE:BHP), Exxon Mobil Corporation (NYSE:XOM), and Kinder Morgan, Inc. (NYSE:KMI) as one of the best high dividend stocks to invest in.
Realty Income Corporation (NYSE:O) released its fourth-quarter earnings on February 22. The company’s Q4 revenue of $685 million was up 65% year over year. The company invested $6.41 billion in 911 properties and properties under development or expansion in 2021, with $2.57 billion in Europe. As of February 28, shares of Realty Income Corporation (NYSE:O) increased 13% in the past year.
Mizuho analyst Vikram Malhotra maintained a Buy rating on Realty Income Corporation (NYSE:O) with a price target of $76 on January 20. Similarly, hedge funds increased their stake in the REIT company at the end of December 2021 with 30 funds out of the 924 tracked by Insider Monkey owning shares in the company, up from 22 in the previous quarter.
7. GlaxoSmithKline plc (NYSE:GSK)
Dividend yield as of March 2: 5.25%
Number of Hedge Fund Holders: 25
GlaxoSmithKline plc (NYSE:GSK) is one of the world’s major drug manufacturers headquartered in the UK. The pharmaceutical behemoth is an attractive investment option for a number of reasons, one of which is its high dividend yield of 5.25%. Investors like GlaxoSmithKline plc (NYSE:GSK) because of the strength of its core biopharma business. The company offers a wide range of pharmaceuticals and vaccines in various therapeutic areas. Recently, GlaxoSmithKline plc (NYSE:GSK) supplied the adjuvant used in the world’s first plant-based COVID-19 vaccine developed by Canadian biopharmaceutical company Medicago.
Ken Fisher’s Fisher Asset Management is the drugmaker’s largest stakeholder, owning 18.2 million shares of GlaxoSmithKline plc (NYSE:GSK) worth $803 million. The Washington-based money management firm increased its position in the healthcare company by 3% in Q4 2021. Overall, 36 funds of the 924 elite funds tracked by Insider Monkey reported owning stakes in GlaxoSmithKline plc (NYSE:GSK) at the end of December 2021.
6. Medical Properties Trust, Inc. (NYSE:MPW)
Dividend yield as of March 2: 5.72%
Number of Hedge Fund Holders: 20
Healthcare-focused REIT Medical Properties Trust, Inc. (NYSE:MPW) also offers a high dividend yield of 5.58%. The Alabama-based REIT recently hiked its quarterly dividend by 3.6% to $0.29 per share. Medical Properties Trust, Inc. (NYSE:MPW) has increased its dividend to shareholders consistently in the last nine years.
Medical Properties Trust, Inc. (NYSE:MPW) acquires and develops net-leased hospital facilities, owning nearly 440 hospitals spread across nine countries. Currently, the REIT manages a total portfolio worth $22.3 billion. The company’s revenue in the third quarter of 2021 totaled $409.3 million, a 23% increase year on year, and exceeded revenue estimates by $5.61 million.
On February 14, global investment bank Credit Suisse maintained its Outperform rating on Medical Properties Trust, Inc. (NYSE:MPW), with a $26 price target. Hedge funds are drawn to the healthcare REIT because of its diverse portfolio. At the end of the fourth quarter of 2021, 20 funds had stakes in Medical Properties Trust, Inc. (NYSE:MPW), up from 18 at the end of the third quarter. Investment firm Cardinal Capital is the leading shareholder of the Alabama-based REIT, owning over 5.3 million shares worth $128 million.
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Disclosure. None. 10 Best High Dividend Stocks to Buy Now is originally published on Insider Monkey.
