12 Best Dividend Stocks For Passive Income

Published on October 13, 2023 at 2:11 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 12 best dividend stocks for passive income. You can skip our detailed analysis of passive income ideas and dividend stocks, and go directly to read 5 Best Dividend Stocks For Passive Income.

Passive income is becoming increasingly popular among people from diverse backgrounds. It’s an appealing idea, especially with the current economic uncertainty, and it’s capturing the attention of investors more than ever. According to a survey by LendingClub Corp. and Pymnts.com conducted in March this year, nearly half of working people have a side job or another source of extra income, like selling handmade items. Surprisingly, it’s not just those with lower income; even people making $100,000 a year often seek additional income to cover their expenses. The report also mentioned that consumers could be collecting over $50 billion in total every month from their extra earnings, and a significant part of this money might not be reported to tax authorities.

Passive income often arises from investments, assets, or activities that need very little ongoing work after they are established. Passive exchange-traded funds, that aim to replicate the performance of a specific market index or asset class, are important in this regard. In one of our articles, we referred to James Seyffart’s statement from Bloomberg Intelligence, who mentioned that passive investing is steadily on the rise in the US. Currently, passive mutual funds and ETFs own around 19% of the average publicly traded U.S. stock, which is three times higher than it was in 2013.

Investing in dividend stocks is also one of the most reliable ways to generate passive income. Dividend-paying stocks help investors receive regular dividend payments, typically on a quarterly basis, without having to actively work or make ongoing investments. This income can provide a steady cash flow, making it a reliable source of passive income. In addition to this, dividend stocks have significantly contributed to the market’s overall returns. Between 2013 and 2022, dividends accounted for 17% of the overall returns in the S&P 500 Index. But if we consider a much longer period, going back to the 1930s, dividends contributed to 37% of the returns.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks as these companies have been raising their payouts year after year. To create passive income, it’s vital that dividends consistently increase over time. In this article, we will further discuss dividend stocks to earn passive income.

Photo by Sharon McCutcheon on Unsplash

Our Methodology:

For this list, we scanned Insider Monkey’s database of Q2 2023 and picked companies that have raised their dividends for at least 10 consecutive years or more. From that list, we narrowed down our options to companies with strong financial positions and steady cash flow, indicating reliable future dividends for generating passive income. We then sorted these companies in ascending order based on the number of funds that hold stakes in them as of the second quarter of 2023.

12. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 66

Comcast Corporation (NASDAQ:CMCSA) is an American multinational telecommunications and media conglomerate. The company is also one of the largest cable television and broadband internet service providers in the country.

In the second quarter of 2023, Comcast Corporation (NASDAQ:CMCSA) reported revenue of $30.5 billion, which showed a 1.6% growth from the same period last year. The company’s operating cash flow for the quarter came in at roughly $7.3 billion and its free cash flow amounted to $3.4 billion. It also returned $1.2 billion to shareholders through dividends during the quarter, which makes it one of the best dividend stocks for passive income.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other reliable options for generating passive income.

Comcast Corporation (NASDAQ:CMCSA) has raised its dividends for 15 years in a row. The company currently pays a quarterly dividend of $0.29 per share and has a dividend yield of 2.65%, as of October 12.

At the end of Q2 2023, 66 hedge funds in Insider Monkey’s database reported having stakes in Comcast Corporation (NASDAQ:CMCSA), down from 68 a quarter earlier. The consolidated value of these stakes is over $3.14 billion.

ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q3 2023 investor letter. Here is what the firm has to say:

“Long-term holdings Charter and Comcast Corporation (NASDAQ:CMCSA) delivered strong second-quarter results relative to expectations; their stable recurring revenue streams and undemanding valuations were rewarded in the current environment. Cable multiples compressed over the past 24 months on fears of heightened competition in their core broadband business from fixed wireless and fiber providers. While fiber remains a competitive alternative to cable broadband over the long term, high upfront investments and a materially higher cost of capital are resulting in slower buildouts than previously expected. Fixed wireless also continues to gain traction, particularly in rural markets, but share gains also appear to be moderating. At the same time, both Comcast and Charter are expanding their footprints into rural and adjacent markets while gaining wireless market share, leveraging their mobile virtual network operator agreements with Verizon. We think both cable companies are well-positioned to continue to grow while generating substantial free cash flows. We added to Comcast during the quarter.”

11. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

Costco Wholesale Corporation (NASDAQ:COST) is a well-known American multinational retail corporation that operates a chain of membership-based warehouse clubs. The company’s dividend growth streak stands at 19 years, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $1.02 per share and has a dividend yield of 0.72%, as of October 12.

In fiscal Q4 2023, Costco Wholesale Corporation (NASDAQ:COST) reported revenue of roughly $79 billion, which saw a 9.5% growth from the same period last year. For FY23, the company generated over $11 billion in operating cash flow, up from $7.4 billion in the past year.

The number of hedge funds tracked by Insider Monkey owning stakes in Costco Wholesale Corporation (NASDAQ:COST) grew to 67 in Q2 2023, from 63 in the previous quarter. The collective value of these stakes is over $2.24 billion. Among these hedge funds, Bridgewater Associates was the company’s largest stakeholder in Q2.

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

Number of Hedge Fund Holders: 68

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that specializes in a wide range of products and services for both consumers and professional customers. The company’s cash position remained strong in the second quarter of 2023 as it had over $2.8 billion available in cash and cash equivalents. Its operating cash flow jumped to $12.2 billion, from $7.1 billion in the prior-year period.

The Home Depot, Inc. (NYSE:HD), one of the best dividend stocks, currently pays a quarterly dividend of $2.09 per share. The company maintains a 13-year streak of consistent dividend growth. The stock has a dividend yield of 2.86%, as of October 12.

At the end of the second quarter of 2023, 68 hedge funds in Insider Monkey’s database owned stakes in The Home Depot, Inc. (NYSE:HD), growing from 65 in the previous quarter. The total value of these stakes is $2.23 billion.

9. Linde plc (NYSE:LIN)

Number of Hedge Fund Holders: 70

Linde plc (NYSE:LIN) is a multinational industrial gases and engineering company with a focus on providing a wide range of gases, applications, and services for a variety of industries. The company has been raising its dividends consistently for the past 28 years, which makes it one of the best dividend stocks for passive income. It currently pays a quarterly dividend of $1.275 per share and has a dividend yield of 1.35%, as of October 12.

Linde plc (NYSE:LIN) reported a strong cash generation in the second quarter of 2023. The company’s operating cash flow for the quarter came in at $2.1 billion, up 1% from the same period last year. Its free cash flow for the quarter amounted to $1.3 billion. The company also returned $1.53 billion to shareholders through dividends and share repurchases.

Insider Monkey’s database of Q2 2023, 70 hedge funds owned stakes in Linde plc (NYSE:LIN), which remained unchanged from the previous quarter. The total value of these stakes is over $4.5 billion. Among these hedge funds, Scopus Asset Management was the company’s leading stakeholder in Q2.

8. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 70

NIKE, Inc. (NYSE:NKE) is an Oregon-based multinational corporation that is one of the world’s leading and most recognizable athletic footwear, apparel, and sports equipment manufacturers. The company recently announced its fiscal Q1 2024 results and posted revenue of $13 billion, up 2% from the same period last year. During the quarter, it also returned $524 million to shareholders through dividends, which also showed a 9% growth from the prior-year period.

NIKE, Inc. (NYSE:NKE) currently pays a quarterly dividend of $0.34 per share and has a dividend yield of 1.37%, as of October 12. The company maintains a 21-year streak of consistent dividend growth, which makes it one of the best dividend stocks for passive income.

At the end of June 2023, 70 hedge funds in Insider Monkey’s database reported having stakes in NIKE, Inc. (NYSE:NKE), worth over $2.4 billion in total.

7. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 72

Broadcom Inc. (NASDAQ:AVGO) is an American global tech company that specializes in designing and manufacturing semiconductor devices and other solutions for a wide range of industries. The company currently pays a quarterly dividend of $4.60 per share and has a dividend yield of 2.03%, as of October 12. It is one of the best dividend stocks on our list as the company has been growing its dividends consistently for the past 12 years.

In the third quarter of 2023, Broadcom Inc. (NASDAQ:AVGO) generated over $8.88 billion in revenues, which showed a 5% growth over a year-over-year basis. The company’s free cash flow for the quarter amounted to over $4.6 billion. It also returned $1.9 billion to shareholders through dividends during the quarter.

The number of hedge funds in Insider Monkey’s database owning stakes in Broadcom Inc. (NASDAQ:AVGO) stood at 72 in Q2 2023, the same as in the previous quarter. The total value of these stakes is roughly $4.2 billion.

6. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 73

QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational semiconductor and telecommunications equipment company that is a leading player in the development of wireless technology and telecommunications solutions.

In fiscal Q3 2023, QUALCOMM Incorporated (NASDAQ:QCOM) generated over $2.6 billion in operating cash flow. The company ended the quarter with over $6 billion in cash and cash equivalents. It also returned $893 million to shareholders through dividends, which makes it one of the best dividend stocks for passive income. The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are also grabbing investors’ attention.

QUALCOMM Incorporated (NASDAQ:QCOM) has been raising its dividends consistently for the past 19 years. The company offers a quarterly dividend of $0.80 per share and has a dividend yield of 2.87%, as of October 12.

As of the close of Q2 2023, 73 hedge funds tracked by Insider Monkey reported having stakes in QUALCOMM Incorporated (NASDAQ:QCOM), up from 69 in the previous quarter. The overall value of these stakes is over $2.3 billion.

Click to continue reading and see 5 Best Dividend Stocks For Passive Income.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up