In this article, we will take a look at some of the best high-yield dividend stocks.
Dividend stocks have been investors’ favorites for a long time now. Over the years, these equities have performed better than the broader market. That said, when it comes to dividend investing, opinions often split down the middle between those seeking high yields and those favoring dividend growth. Though analysts recommend buying stocks with proven tracks of dividend growth, the appeal of high yields is hard to ignore. According to analysts, investors should steer clear of yield traps and focus on companies that consistently increase the value returned to shareholders. However, those advocating yields have plenty to say about the significance of dividend yields.
Also read: 12 Best Fortune 500 Dividend Stocks To Buy Right Now
One such example is a report published by Newton Investment Management. According to the report, high-yield dividend stocks outperformed the broader market during high inflationary periods between 1940 and 2021. The report also revealed that investment portfolios with high-yield dividend stocks outperformed those with low or no dividends in terms of value-weighted performance. High-yield portfolios surpassed low-yield ones by 199 basis points and zero-yield portfolios by 330 basis points. While this result provides useful information, it doesn’t offer details about the market conditions at the time, giving only a broad picture of high-yield stock performance. Analysts have paid close attention to how dividend stocks perform during market volatility, as the need for consistent income becomes more pronounced in such times. As a result, they suggest considering high-yield stocks only if these companies also have a strong history of dividend growth.
Dan Lefkovitz, a strategist for Morningstar Indexes, made the following comment about extremely high yields in the firm’s recent report:
“It’s really critical to be selective when it comes to buying dividend-paying stocks and chasing yield. Looking for the most yield-rich areas of the market can often lead you into troubled areas and dividend traps—companies that have a nice-looking yield that is ultimately unsustainable. You have to screen for dividend durability and reliability going forward.”
That said, high yields aren’t automatically a bad sign. In fact, dividend yield plays an important role when investing in dividend stocks, as it shows how much income an investor can expect relative to the stock’s price. However, to fully benefit from high yields, other factors like the company’s cash flow, payout ratio, and dividend growth must also be considered. If these metrics are strong, high-yield stocks can still be appealing. Some reports have pointed out the long-term advantages of high-yield stocks, noting that as dividend yields increase, returns generally rise, and risk decreases. Hartford Funds conducted research factoring in annualized standard deviation, which measures a portfolio’s return volatility, with a higher standard deviation indicating greater historical risk. The report found that from December 1969 to March 2024, high-dividend portfolios delivered an annualized return of 12.3%, mid-dividend portfolios 10.5%, and low-dividend portfolios 9.7%. The annualized standard deviations for these portfolios were 14.1%, 16%, and 20.8%, respectively.
The ideal situation would be when dividend growth and high yields go hand in hand, as many companies have demonstrated that this is achievable. With that being said, we will now take a look at some of the best dividend stocks with high yields to invest in.
Photo by Annie Spratt on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of 900 hedge funds as of Q3 2024 and picked dividend stocks that have yields above 4%, as of January 20. The stocks are ranked in ascending order of hedge fund investors having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 32
Dividend Yield as of January 20: 7.87%
Altria Group, Inc. (NYSE:MO) is an American tobacco company, based in Virginia. The company manufactures a wide range of related products including cigarettes and other nicotine products. The tobacco industry has experienced significant changes in recent years. Despite the global decline in smoking rates, more consumers are shifting toward smoke-free alternatives, such as electronic cigarettes and oral tobacco, which are considered less harmful and have gained substantial popularity. Altria, known for brands like Marlboro and Parliament, seems to be adapting well to these evolving market trends by expanding into smoke-free products. In the past 12 months, the stock has surged by nearly 29%.
In the third quarter of 2024, Altria Group, Inc. (NYSE:MO) generated $5.34 billion in revenues, which showed a 1.1% growth from the same period last year. The company experienced strong income growth in its smokeable products segment, driven by the continued success of the Marlboro brand. Its oral tobacco segment also boosted profitability, with MST brands performing well and the on! product maintaining its market position. Moreover, the company launched its “Optimize & Accelerate” initiative, aimed at modernizing operations and advancing its strategic goals. The company reaffirmed its 2024 adjusted diluted EPS guidance, forecasting a range of $5.07 to $5.15, representing a growth rate of 2.5% to 4% from the 2023 base of $4.95.
Ashva Capital made the following comment about MO in its Q3 2024 investor letter:
“At Ashva Capital, our focus on intrinsic value–rather than market sentiment or temporary price metrics– sets our portfolio apart from peers. For example, we hold Altria Group, Inc. (NYSE:MO), which has demonstrated resilience and strong performance within our portfolio, particularly following a robust Q3 earnings report. Altria’s results highlighted increased demand for smokeless products, underscoring both the adaptability of its business model and its long-term growth potential—a key factor in our investment decision.
This approach to intrinsic value echoes insights from renowned value investor Bill Miller, whose strategy emphasized fundamental value over market-driven factors. Key principles from Miller’s approach that inform our strategy include:..” (Click here to read the full text)
Altria Group, Inc. (NYSE:MO) is one of the best dividend stocks on our list as the company maintains a 55-year track record of dividend growth. It currently pays a quarterly dividend of $1.02 per share and has an attractive dividend yield of 7.87%, as of January 20. In the most recent quarter, the company returned $1.7 billion to shareholders through dividends.
At the end of Q3 2024, 32 hedge funds tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE:MO), compared with 36 in the preceding quarter. These stakes have a total value of $2.27 billion. With over 22 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.
9. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 49
Dividend Yield as of January 20: 4.60%
Diamondback Energy, Inc. (NASDAQ:FANG) is an American company that is engaged in the exploration of hydrocarbons. The company stands as the top pure-play producer in the Permian Basin, having secured a substantial position of 870,000 net acres through several acquisitions. The most significant of these was its $26 billion merger with Endeavor Energy Resources, finalized in September. The newly combined entity is expected to produce over 816,000 barrels of oil equivalent (BOE) per day. Diamondback now boasts more than 6,100 drilling locations, with a break-even cost of under $40 per barrel. The stock has surged by over 18.5% in the past 12 months.
Diamondback Energy, Inc. (NASDAQ:FANG) has a strong cash position. The company’s operating cash flow for the most recent quarter came in at $1.2 billion and its free cash flow was $780 million. During the quarter, it also returned $708 million to shareholders through dividends, which represents approximately 78% of its Adjusted Free Cash Flow.
Diamondback Energy, Inc. (NASDAQ:FANG) aims to return half of its free cash flow to investors. The company plans to keep increasing its dividend, which has seen an average quarterly growth of 8% since its introduction in 2018, leading the industry. In addition, it intends to buy back shares and, if there is extra cash available, it will distribute a variable dividend to shareholders. In the third quarter of 2024, the company reported revenue of $2.65 billion, which saw a 13% growth from the same period last year.
Diamondback Energy, Inc. (NASDAQ:FANG), one of the best dividend stocks, started paying dividends in 2018 and has paid regular dividends to shareholders since then. Its quarterly dividend comes in at $0.90 per share for a dividend yield of 4.60%, as of January 20.
The number of hedge funds tracked by Insider Monkey owning stakes in Diamondback Energy, Inc. (NASDAQ:FANG) grew to 49 in Q3 2024, from 44 in the previous quarter. These stakes have a collective value of over $1.67 billion.
8. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 57
Dividend Yield as of January 20: 4.25%
Viatris Inc. (NASDAQ:VTRS) is a Pennsylvania-based pharmaceutical company that specializes in a wide variety of therapeutic areas. The company spun off from Pfizer in 2020. It is currently experiencing a period of robust global execution, resulting in steady growth of its core business, a trend expected to persist into the following year. It reported total revenues of $3.8 billion, which includes $133 million from new products. In addition, the company strengthened its financial position by repaying approximately $1.9 billion in debt and expanded its innovative portfolio through an exclusive licensing agreement with Lexicon Pharmaceuticals for sotagliflozin outside the US and Europe.
With sector-leading cash flow and a solid balance sheet as its foundation, Viatris Inc. (NASDAQ:VTRS) is well-positioned to achieve steady growth in its core business, while also investing in its operations and returning substantial capital to shareholders. In the most recent quarter, the company generated $826.5 million in operating cash flow and its free cash flow came in at approximately $750 million.
Although Viatris Inc. (NASDAQ:VTRS) has made efforts to reduce its debt in the latest quarter, it still holds over $16 billion in debt. This may concern some investors, but given the company’s commitment to returning value to shareholders, it may not be a significant issue. Annually, Viatris allocates approximately $580 million to dividend payments, indicating that its current dividend is likely sustainable. The company has been paying regular dividends to shareholders since 2021. Currently, it offers a quarterly dividend of $0.12 per share and has a dividend yield of 4.25%, as of January 20.
Viatris Inc. (NASDAQ:VTRS) remained popular among elite funds in Q3 2024, with 57 funds tracked by Insider Monkey owning positions in the company, up from 45 in the previous quarter. These stakes have a total value of nearly $1.3 billion. Among these hedge funds, Deerfield Management was the company’s leading stakeholder in Q3.
7. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Dividend Yield as of January 20: 6.99%
Verizon Communications Inc. (NYSE:VZ) ranks seventh on our list of the best dividend stocks. The American multinational telecommunications company plays a significant role in advancing the AI sector through its 5G wireless network, which provides the speed and security needed to bring AI to edge devices like laptops and smartphones. One example of the company’s involvement in AI edge computing is its collaboration with Nvidia to deliver AI capabilities to private networks, which are tailored wireless services for specific organizations. For example, Verizon is set to provide a private network for FIFA during the 2026 Men’s World Cup.
In the first nine months of 2024, Verizon Communications Inc. (NYSE:VZ) saw a 0.9% increase in consumer revenue compared to the prior year, while business revenue declined by 2.1%, leading to an overall revenue growth of 0.3%. The recovery in the consumer segment was driven by targeted incentives, marketing efforts, and the effective implementation of strategic initiatives, including recent acquisitions. Third Point Management made the following comment about VZ in its Q3 2024 investor letter:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
Verizon Communications Inc. (NYSE:VZ) has been a solid dividend payer because of its stable cash position. In the first nine months of the year, the company reported an operating cash flow of $26.5 billion and a free cash flow of $14.5 billion. It has also been rewarding shareholders with growing dividends for the past 18 consecutive years. The company pays a quarterly dividend of $0.6775 per share and has a dividend yield of 6.99%, as of January 20.
Verizon Communications Inc. (NYSE:VZ) was a part of 57 hedge fund portfolios at the end of Q3 2024, according to Insider Monkey’s database. The stakes owned by these funds have a consolidated value of over $3.2 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.
6. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 59
Dividend Yield as of January 20: 4.98%
AT&T Inc. (NYSE:T) is an American telecommunications, media, and technology services company that provides a wide range of services to its consumers. Over the past few years, the company has consistently increased its wireless and fiber internet subscriber base. Between the end of September 2022 and September 2024, the company expanded its total wireless customer base by approximately 7.5 million subscribers. Moreover, it gained over two million fiber subscribers during this period, which helped counterbalance the declining demand for traditional wireline services.
In the past 12 months, AT&T Inc. (NYSE:T) has surged by nearly 33%, due to improving fundamentals such as higher gross margins and reduced debt levels. In addition, at the end of Q3 2024, the company announced the sale of its remaining 70% stake in DirecTV to private equity firm TPG, which will generate significant cash to help reduce debt and return value to shareholders. With its strong balance sheet, rising share price, and high dividend yield, the company presents an appealing option for income seekers.
TCW Funds stated the following about AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
AT&T Inc. (NYSE:T) plans to distribute over $40 billion to its shareholders via dividends and share buybacks within the next three years. In the most recent quarter, the company reported an operating cash flow of $10.2 billion and its free cash flow came in at $5.1 billion. The company’s quarterly dividend comes in at $0.2775 per share and supports a dividend yield of 4.98%, as of January 20.
As of the end of Q3 2024, 59 hedge funds in Insider Monkey’s database owned stakes in AT&T Inc. (NYSE:T), worth more than $5.6 billion in total. Arrowstreet Capital was the company’s leading stakeholder in Q3.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
Dividend Yield as of January 20: 4.04%
Chevron Corporation (NYSE:CVX) is an American multinational energy company that manufactures and sells a range of high-quality refined products. The company reported a 7% increase in global production for Q3 2024 compared to the previous year, setting a new record for the quarter. It continues to perform well in the Permian and has completed significant turnarounds at TCO and Gorgon ahead of schedule. These projects, along with other new initiatives expected to launch by 2025, are projected to boost Chevron’s Gulf of Mexico production to 300,000 barrels per day by 2026.
Chevron Corporation (NYSE:CVX) reported strong earnings for Q3 2024, with revenues of $50.67 billion, surpassing analysts’ expectations by $1.63 billion. Additionally, global production grew by 7% year-over-year, reaching almost 3.4 million barrels of oil equivalent per day (BOE/d). This growth was fueled by record production in the Permian Basin and the acquisition of PDC Energy.
Chevron Corporation (NYSE:CVX) has also been drawing investor attention due to its wide-ranging operations and strong cash flow. The CEO recently shared that the company is on track to increase its free cash flow by $6 billion to $8 billion next year, while also reducing costs by several billion dollars. These expected results are anticipated to stem from new or expanded oil production projects in Kazakhstan, US shale, and the offshore Gulf of Mexico.
In addition to all other developments, Chevron Corporation (NYSE:CVX) showed a strong cash position in the latest quarter, generating $9.7 billion in operating cash flow, up from $46.3 billion during the same period last year. The company returned $7.7 billion to shareholders through dividends and share repurchases. Thanks to this cash flow, the company has maintained a dividend growth streak of over 37 years and currently pays a quarterly dividend of $1.63 per share. The stock’s dividend yield on January 20 came in at 4.04%.
As per Insider Monkey’s database of Q3 2024, 63 hedge funds held stakes in Chevron Corporation (NYSE:CVX), compared with 64 in the previous quarter. These stakes have a consolidated value of over $21 billion.
4. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 63
Dividend Yield as of January 20: 5.06%
CVS Health Corporation (NYSE:CVS) is an American leading health solutions company that provides advanced health care from pharmacy services and health plans to health and wellness. The company posted strong earnings for Q3 2024, with revenue totaling $95.4 billion, marking a year-over-year increase of over 6.3%. The results were driven by strong performance in the Health Services and Pharmacy & Consumer Wellness segments. However, they also emphasized the need for a unified approach across the company to address the macroeconomic challenges impacting the Health Care Benefits segment.
CVS Health Corporation (NYSE:CVS) is generating strong returns in 2025, surging by more than 19% since the start of the year. However, the stock is down by nearly 29% in the past year. The main cause of the decline in the company’s stock value is its Pharmacy and Consumer Wellness division, where the anticipated benefits of integrating this segment with the health businesses have not yet materialized. The adjusted operating income for this division has dropped from $7.26 billion in 2021 to an expected range of $5.70-$5.75 billion in 2024. In addition, front-store revenue is projected to decrease by 6.2%, while the online segment faces increasing competition from major players like Amazon.
CVS Health Corporation (NYSE:CVS) is a solid dividend payer because of its cash position. The company generated $7.2 billion in operating cash flow in the first nine months of the year. It ended the quarter with $6.9 billion available in cash and cash equivalents. It is one of the best dividend stocks on our list as the company has never missed a dividend since 1997. It currently pays a quarterly dividend of $0.665 per share and has a dividend yield of 5.06%, as of January 20.
Insider Monkey’s database of Q3 2024 showed that 63 hedge funds held stakes in CVS Health Corporation (NYSE:CVS), up from 60 in the previous quarter. These stakes are worth over $4.2 billion.
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 70
Dividend Yield as of January 20: 4.41%
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical industry company, headquartered in New York. According to analysts, the company is well-positioned for growth as it enters a pivotal phase with results from 40 clinical trials expected. By 2025, five new products are projected to account for at least 50% of its revenue, signaling the start of significant expansion. A key asset in its pipeline is Cobenfy, a schizophrenia treatment that has already surpassed other branded medications for the condition. Its promising reception indicates considerable commercial potential. In the past year, the stock has surged by over 13.5%.
In the third quarter of 2024, Bristol-Myers Squibb Company (NYSE:BMY) posted revenue of nearly $12 billion, marking an 8.5% year-over-year increase. This growth was driven by strong sales in its expanding oncology portfolio and efficient operational management. The results highlighted the company’s capacity to navigate competitive pressures while achieving significant revenue growth. By the quarter’s end, the company held approximately $8 billion in cash and cash equivalents.
Bristol-Myers Squibb Company (NYSE:BMY)’s cash position also remained stable which comfortably supported its dividend payments. Over the past 12 months, the company generated an operating cash flow of $15 billion and its levered free cash flow for the period came in at $17.52 billion. This cash flow enabled the company to pay regular dividends for 93 consecutive years. In addition, it has raised its payouts for 16 years in a row, which makes BMY one of the best dividend stocks on our list. The company pays a quarterly dividend of $0.62 per share and has a dividend yield of 4.41%, as of January 20.
The hedge fund sentiment around Bristol-Myers Squibb Company (NYSE:BMY) also remained positive. 70 hedge funds tracked by Insider Monkey held stakes in the company in Q3 2024, up from 61 in the previous quarter. These stakes are collectively valued at over $3.3 billion.
2. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 75
Dividend Yield as of January 20: 4.44%
Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company that also offers a wide range of related products. In the third quarter of 2024, the company reported revenues of $9.9 billion, marking an 8.4% increase from the previous year. This exceeded analysts’ expectations by $220 million. The company’s operating income reached $3.7 billion, reflecting an 8.4% year-over-year growth. Philip Morris expressed confidence in its financial stability, projecting around $11 billion in operating cash flow for 2024.
Philip Morris International Inc. (NYSE:PM) has a clear strategy to achieve $20 billion in operating income over the next five years, positioning the company to generate significant value for shareholders. It plans to return most of these earnings through dividends and share buybacks, reflecting its commitment to shareholder-friendly capital allocation. This strong outlook makes it challenging for long-term investors to face losses over a 10-year period, as PMI’s market leadership and earnings potential offer a solid base for both growth and stability. In the past 12 months, the stock has surged by over 31.5%.
On December 12, 2024, Philip Morris International Inc. (NYSE:PM) declared a quarterly dividend of $1.35 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 15 consecutive years, which makes PM one of the best dividend stocks on our list. The stock offers a dividend yield of 4.44%, as of January 20.
Broyhill Asset Management made the following comment about PM in its Q3 2024 investor letter:
“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”
The number of hedge funds tracked by Insider Monkey owning stakes in Philip Morris International Inc. (NYSE:PM) jumped to 75 in Q3 2024, from 70 a quarter earlier. These stakes have a total value of more than $12.2 billion.
1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 80
Dividend Yield as of January 20: 6.54%
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical industry company. It currently pays a quarterly dividend of $0.43 per share, having raised it by 2.4% in December 2024. This marked the company’s 15th consecutive year of dividend growth. The stock offers a dividend yield of 6.54%, as of January 20. The company has always remained committed to its shareholder value as it returned $7.1 billion to investors through dividends in the first nine months of 2024.
Pfizer Inc. (NYSE:PFE) gained traction among investors in 2020 as it was the first pharmaceutical company to introduce a COVID-19 vaccine in the US, ahead of Moderna. Beyond its vaccine, the company offers a diverse array of products, including treatments for autoimmune diseases, cancer, migraines, and more. Analysts believe Pfizer’s growth potential may be greater than commonly perceived. The company has made substantial investments in research and development, as well as several key acquisitions, leading to the addition of important products to its portfolio. These include the RSV vaccine Abrysvo, the migraine treatment Nurtec ODT, and cancer drugs Adcetris and Padcev.
In the third quarter of 2024, Pfizer Inc. (NYSE:PFE) achieved revenue of $17.7 billion, marking a significant 32% year-over-year increase. The company also successfully managed the surge in demand for Paxlovid amid the recent uptick in COVID-19 cases.
Parnassus Investments highlighted Pfizer Inc. (NYSE:PFE) in its Q1 2024 investor letter. Here is what the firm has to say:
“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”
As per Insider Monkey’s database of Q3 2024, 80 hedge funds held stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. These stakes have a consolidated value of over $3 billion.
Overall Pfizer Inc. (NYSE:PFE) ranks first on our list of the best dividend stocks with high yields. While we acknowledge the potential for PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
