10 Best Stocks For Dividends

In this article, we discuss 10 best stocks for dividends. If you want to read our detailed analysis of dividend investments and their performance over the years, go directly to read 25 Best Stocks For Dividends. 

10. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 60

Amgen Inc. (NASDAQ:AMGN) is a California-based multinational biotech company that specializes in the discovery and manufacturing of biological medicines. On March 7, the company declared a quarterly dividend of $2.13 per share, which was in line with its previous dividend. It has raised its payouts every year since 2011, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 3.58%, as of March 25.

In March, Wells Fargo upgraded Amgen Inc. (NASDAQ:AMGN) to Overweight with a $265 price target.

Amgen Inc. (NASDAQ:AMGN) was a popular stock among hedge funds in Q4 2022, as 60 funds in Insider Monkey’s database owned stakes in the company, up from 53 in the previous quarter. The collective value of these stakes is over $2.2 billion. With over 1.5 million shares, Two Sigma Advisors was the company’s leading stakeholder.

9. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 61

Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor manufacturing company, based in Texas. The company remained committed to its shareholders in Q4 2022, returning approximately $2 billion to investors in dividends. It is among the best dividend stocks on our list.

Texas Instruments Incorporated (NASDAQ:TXN) currently offers a quarterly dividend of $1.24 per share for a dividend yield of 2.76%, as of March 25. The company maintains a 19-year streak of consistent dividend growth and has raised its payouts at an annual average rate of 18.1%.

At the end of December 2022, 61 hedge funds in Insider Monkey’s database owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), up from 59 in the previous quarter. These stakes have a collective value of nearly $2 billion.

8. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 61

American Tower Corporation (NYSE:AMT) is a real estate investment trust company that owns and operates wireless and broadcast communications infrastructure globally. Barclays maintained an Overweight rating on the stock in March with a $229 price target, highlighting the customer exposure and growth metrics.

American Tower Corporation (NYSE:AMT) pays a quarterly dividend of $1.56 per share. In 2022, the company raised its dividend for the 11th consecutive year, which makes it one of the best dividend stocks on our list. As of March 25, the stock has a dividend yield of 3.13%.

As of the end of Q4 2022, 61 hedge funds tracked by Insider Monkey reported having stakes in American Tower Corporation (NYSE:AMT), worth nearly $3.4 billion collectively.

ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Real estate and communication services sectors generated positive returns but lagged others within the Russell 1000 Value Index. The Strategy benefited from its underweight in the real estate sector with American Tower Corporation (NYSE:AMT) as its only holding. REITs are generally perceived to be interest rate sensitive, which negatively impacted American Tower’s recent stock performance. However, we remain confident in the company’s highly durable and predictable business model, which is supported by long-term customer contracts and insatiable wireless data growth.”

7. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 62

A Georgia-based home improvement company, The Home Depot, Inc. (NYSE:HD) is next on our list of the best dividend stocks. The company offers a quarterly dividend of $2.09 per share, having raised it by 10% on February 21. This was the company’s 13th consecutive year of dividend growth. The stock’s dividend yield on March 25 came in at 2.95%.

At the end of Q4 2022, 62 hedge funds tracked by Insider Monkey reported owning stakes in The Home Depot, Inc. (NYSE:HD), with a total value of over $4.8 billion.

Matrix Asset Advisors mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

6. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 70

PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food company that deals in the manufacturing and marketing of food, snacks, and other beverages. Deutsche Bank raised its price target on the stock to $188 in March with a Hold rating on the shares, expressing concerns about the consumer staples sector.

PepsiCo, Inc. (NASDAQ:PEP), one of the best dividend stocks, has been raising its dividends consistently for the past 50 years. It currently offers a quarterly dividend of $1.15 per share and has a dividend yield of 2.57%, as of March 25.

At the end of December 2022, 70 hedge funds in Insider Monkey’s database owned stakes in PepsiCo, Inc. (NASDAQ:PEP), worth over $4.4 billion collectively. Among these hedge funds, Fundsmith LLP was the company’s largest stakeholder in Q4.

Lindsell Train mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q3 2022 investor letter. Here is what the firm has to say:

“At this point, it may help to give a further example of these self-reinforcing moats to illustrate the idea, drawing from the consumer franchises side of our portfolio. In our view, strong consumer brands can similarly exhibit Lindycompatible anti-ageing properties. Consider, that the longer a company invests in its brands through advertising and R&D, the stronger and more resonant they may get. When successful, a self-sustaining feedback loop is established, whereby it becomes ever harder to recreate a heritage-rich brand from scratch, raising barriers to entry, and proportionately increasing its likely lifespan. There are plenty of long-lived portfolio franchises I could reference here, but I’ve gone with PepsiCo (NYSE:PEP); partly because we have good time-series stats on it (beware data bias!) but also, as I hope will become evident, because Pepsi over its 129 years has succeeded in creating some wonderfully deep moats.

With Pepsi Cola you get the flagship soft drinks brand, which is both global and generational, but you also get the Frito-Lay salty snacks portfolio assembled alongside it, claiming nearly 40% of the global market. That’s ten-times greater than the nearest competitor and likely higher than the next 65 competitors combined. These are exceptionally strong global bands with market shares to match; the long-term empirical result being Pepsi’s dividend record which over the past 66 years (as far back as we’ve been able to go) has compounded at an annualised rate of 10%. Pepsi is no ‘in at the ground floor’ start-up today, but it wasn’t six decades ago either. Early growth investor Philip Fisher put it well when in 1958 (two years into Pepsi’s current winning streak) he wrote of “companies which in spite of outstanding prospects of major further growth are so financially strong, with roots going so deep into the economic soil, that they qualify under the general classification of ‘institutional stocks’”. PepsiCo fits this description well…” (Click here to see the full text)

5. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 77

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company. The company was a part of 77 hedge fund portfolios at the end of Q4 2022, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $5 billion.

Merck & Co., Inc. (NYSE:MRK) has raised its dividends for 12 years in a row. Its current quarterly dividend stands at $0.73 per share and has a dividend yield of 2.79%, as recorded on March 25.

Berenberg sees price appreciation for MRK and raised its price target on the stock to $130 in March. The firm maintained a Buy rating on the shares.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter. Here is what the firm has to say:

“Merck & Co., Inc. (NYSE:MRK) is a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Shares have benefited from investors seeking safety in areas with less economic and interest rate sensitivity. With about one third of its sales generated by blockbuster oncology drug Keytruda, the key issue for investors is the success of its large R&D pipeline to replace those sales when Keytruda comes off patent in 2028. However, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”

4. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 79

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest chemical and energy companies in the world. It is one of the best dividend stocks on our list as it has raised its payouts for 40 years straight. The company currently pays a quarterly dividend of $0.91 per share for a dividend yield of 3.52%, as of March 25.

In March, Mizuho raised its price target on Exxon Mobil Corporation (NYSE:XOM) to $147 with a Buy rating on the shares, presenting a solid outlook for energy companies.

At the end of Q4 2022, the number of hedge funds owning stakes in Exxon Mobil Corporation (NYSE:XOM) grew to 79, from 75 a quarter earlier, according to Insider Monkey’s Q4 data. These stakes have a consolidated value of over $7.1 billion.

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 84

Johnson & Johnson (NYSE:JNJ) is one of the largest pharmaceutical industry companies in the world. The company also deals in consumer packaged products. The company maintains a 61-year streak of dividend growth and currently pays a quarterly dividend of $1.13 per share. The stock’s dividend yield on March 25 came in at 2.96%.

As per Insider Monkey’s Q4 2022 database, 84 hedge funds owned investments in Johnson & Johnson (NYSE:JNJ), with a total value of over $5.5 billion. Ken Griffin, Ray Dalio, and Donald Yacktman were some of the company’s leading stakeholders in Q4.

2. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 87

Wells Fargo & Company (NYSE:WFC) is an American multinational financial services company that offers a wide range of banking services to its consumers. The company has been making regular dividend payments to shareholders since 1959, which places it as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 3.31%, as recorded on March 25.

RBC Capital maintained a Sector Perform rating on Wells Fargo & Company (NYSE:WFC) in March with a $42 price target.

Wells Fargo & Company (NYSE:WFC) was a popular stock among elite funds in Q4 2022, as 87 funds in Insider Monkey’s database owned investments in the company, up from 77 in the previous quarter. These investments have a value of over $5.5 billion collectively.

Davis Advisers mentioned Wells Fargo & Company (NYSE:WFC) in its annual 2022 investor letter. Here is what the firm has to say:

“Our investment thesis for our next largest bank investment, Wells Fargo, is totally different. As is well known, Wells Fargo & Company (NYSE:WFC) is the country’s third-largest bank, serving one in three U.S. households. Years of regulatory missteps under prior managements resulted in reputational damage, higher-than-average expenses, numerous consent orders, caps on asset growth, all added to the negative impact of low rates on their interest income. However, where others see bad news, we see resiliency and gradual improvement. Wells Fargo’s resiliency is reflected in the fact that despite years of terrible headlines and congressional hearings, Wells Fargo’s core customers stayed put and customer attrition remains extraordinarily low. (Click here to view the full text)

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 100

An American multinational financial services company, JPMorgan Chase & Co. (NYSE:JPM) tops our list of the best dividend stocks. The company pays a quarterly dividend of $1.00 per share and has a dividend yield of 3.20%, as of March 25.

At the end of Q4 2022, 100 hedge funds tracked by Insider Monkey reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 110 in the previous quarter. These stakes have a collective value of over $5.1 billion. Citadel Investment Group was the company’s largest stakeholder in Q4.

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