12 Best Income Stocks To Invest In

Published on October 20, 2022 at 9:20 am by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best income stocks to invest in. If you want to see more stocks in this selection, check out 5 Best Income Stocks To Invest In.

With the current stock market volatility, many market experts are announcing that the US economy is heading towards a prolonged downturn. With two negative quarters of economic growth, there is an active debate about whether the U.S. has already plunged into a recession.

Ivory Johnson, the founder of Washington-based Delancey Wealth Management, said that he is preparing his clients for market uncertainty and it is time to maintain defensive positions. He has acquired gold, utilities, and consumer staples while boosting cash stockpiles and slashing technology positions. He noted that currently, the aim should not be to outperform the market, rather damage control should be prioritized.

Marguerita Cheng, a CFP and CEO of Blue Ocean Global Wealth in Maryland, has been watching dividend stocks. She contended that “we’re not looking for high flyers,” and opted for firms with resilient financials and a history of rising dividends. Smart investors take shelter in dividend stocks as a hedge against inflation, and some of the best income stocks to consider include Citigroup Inc. (NYSE:C), Exxon Mobil Corporation (NYSE:XOM), and Philip Morris International Inc. (NYSE:PM).

Our Methodology

We selected the following income stocks based on positive analyst coverage, strong business fundamentals, and solidity of dividend profiles. The dividend yields as of October 19 have been mentioned. We have assessed the hedge fund sentiment from Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022.

Photo by lucas Favre on Unsplash

Best Income Stocks To Invest In

12. British American Tobacco p.l.c. (NYSE:BTI)

Number of Hedge Fund Holders: 17

Dividend Yield as of October 19: 7.54%

British American Tobacco p.l.c. (NYSE:BTI) is a London-based provider of tobacco and nicotine products, offering vapor, tobacco heating, modern and traditional oral nicotine products, and combustible products. On September 28, British American Tobacco p.l.c. (NYSE:BTI) declared a $0.7404 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record on September 30. British American Tobacco p.l.c. (NYSE:BTI)’s dividend yield on October 19 came in at 7.54%.

On August 30, Barclays analyst Gaurav Jain raised the price target on British American Tobacco p.l.c. (NYSE:BTI) to 4,500 GBp from 4,400 GBp and maintained an Overweight rating on the shares.

According to Insider Monkey’s second quarter database, 17 hedge funds held stakes worth $2.3 billion in British American Tobacco p.l.c. (NYSE:BTI), compared to 19 funds in the prior quarter worth $2.2 billion. Rajiv Jain’s GQG Partners is the leading position holder in the company, with more than 34 million shares worth $1.46 billion.

In addition to Citigroup Inc. (NYSE:C), Exxon Mobil Corporation (NYSE:XOM), and Philip Morris International Inc. (NYSE:PM), elite hedge funds are piling into British American Tobacco p.l.c. (NYSE:BTI).

Here is what Distillate Capital has to say about British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”

11. Enbridge Inc. (NYSE:ENB)

Number of Hedge Fund Holders: 25

Dividend Yield as of October 19: 7.25%

Enbridge Inc. (NYSE:ENB) is a Canadian energy infrastructure company that operates through five segments – Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. Enbridge Inc. (NYSE:ENB) is one of the premier income stocks to invest in, with a dividend yield of 7.25% as of October 19. Enbridge Inc. (NYSE:ENB) announced on September 29 the acquisition of U.S. renewable project developer Tri Global Energy for $270 million in cash and assumed debt. The acquisition will boost Enbridge’s renewable platform, while enhancing its North American growth strategy.

On September 19, Raymond James analyst Michael Shaw upgraded Enbridge Inc. (NYSE:ENB) to Outperform from Market Perform with a price target of C$60, up from C$57. While the stock is trading below its 2022 highs in June, the fundamental outlook for Enbridge Inc. (NYSE:ENB) has only improved, the analyst told investors in a research note. Enbridge Inc. (NYSE:ENB)’s short and medium-term growth outlook has accelerated while the company has also maintained a moderate capital allocation strategy, the analyst contended.

According to Insider Monkey’s Q2 data, 25 hedge funds were long Enbridge Inc. (NYSE:ENB), compared to 24 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the leading stakeholder of the company, with 51.85 million shares worth $2.18 billion.

Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:

“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”

10. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 36

Dividend Yield as of October 19: 7.76%

Energy Transfer LP (NYSE:ET) is a Texas-based company that provides energy-related services. Energy Transfer LP (NYSE:ET) owns and operates natural gas transportation pipelines and natural gas storage facilities. On August 24, the company signed a 20-year agreement with Shell plc (NYSE:SHEL) to supply 2.1 million metric tons per year of liquefied natural gas from its Lake Charles LNG export project in Louisiana. Energy Transfer LP (NYSE:ET) is one of the premier income stocks to invest in, with a dividend yield of 7.76% as of October 19.

Barclays analyst Theresa Chen on August 16 raised the price target on Energy Transfer LP (NYSE:ET) to $14 from $13 and kept an Overweight rating on the shares. The analyst believes there are still unique tailwinds within the firm’s North American midstream and refining coverage and the U.S. refining fundamentals will continue to fare well.

According to Insider Monkey’s data, 36 hedge funds were long Energy Transfer LP (NYSE:ET) at the end of Q2 2022, up from 31 funds in the prior quarter. David Abrams’ Abrams Capital Management is the largest position holder in the company, with more than 22 million shares worth $220.80 million.

Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:

“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”

9. Phillips 66 (NYSE:PSX)

Number of Hedge Fund Holders: 38

Dividend Yield as of October 19: 4.00%

Phillips 66 (NYSE:PSX) is a Texas-based energy manufacturing and logistics company. It operates through four segments – Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). On October 7, Phillips 66 (NYSE:PSX) declared a $0.97 per share quarterly dividend, in line with previous. The dividend is payable on December 1, to shareholders of record on November 17. Phillips 66 (NYSE:PSX)’s dividend yield on October 19 stood at 4%.

On October 6, Piper Sandler analyst Ryan Todd raised the price target on Phillips 66 (NYSE:PSX) to $116 from $113 and kept an Overweight rating on the shares. The analyst said refining “remains a brightspot” into the Q3 reporting season.

Among the hedge funds tracked by Insider Monkey, 38 funds reported owning stakes worth $1 billion in Phillips 66 (NYSE:PSX) at the end of June 2022, compared to 41 funds in the prior quarter worth $1.38 billion. D E Shaw is the biggest stakeholder of the company, with 3.4 million shares valued at $282 million.

Black Bear Value Partners released its Q3 2020 investor letter and mentioned Phillips 66 (NYSE:PSX). Here is what it said:

“PSX has been a top 5 position in years past. Its long-term value is similar to when we last owned it but is down 50+% in price in sympathy with broader energy concerns.

PSX is an integrated energy company with 4 central divisions: refining, chemicals, midstream (pipelines etc.) and marketing (gas stations). Due to downstream demand destruction, the refining business is taking it on the chin. This could persist for the remainder of 2020 and into 2021. As in years past, a lot of focus is given to the refining business as it has historically been the lion’s share of the value for PSX. Management has invested in the non-refining businesses who now make up most of the value of the company.

Management is extremely thoughtful with capital allocation and has focused on a healthy balance sheet with opportunistic share repurchases. They do not spend capex on projects unless they meet a healthy margin of safety for returns.

PSX should be able to generate substantial amounts of cash in the coming years and generate a 15+% free cash flow yield on quarter-end pricing. If the stock remains low, management will be buying a lot of stock.”

8. Shell plc (NYSE:SHEL)

Number of Hedge Fund Holders: 39

Dividend Yield as of October 19: 3.82%

Shell plc (NYSE:SHEL), a London-based energy and petrochemical company operating in Europe, Asia, Oceania, Africa, the United States, and the rest of the Americas, is one of the elite income stocks to consider. In a bid to expand its global renewables portfolio, Shell plc (NYSE:SHEL) announced on September 28 that it had entered the African power sector by purchasing the Nigerian renewable energy provider, Daystar Power, for an undisclosed sum.

JPMorgan analyst Christyan Malek on October 13 reiterated an Overweight rating on Shell plc (NYSE:SHEL) but trimmed the firm’s price target on the shares to 2,900 GBp from 3,000 GBp.

According to Insider Monkey’s Q2 data, 39 hedge funds were bullish on Shell plc (NYSE:SHEL), with collective stakes worth $3.4 billion, compared to 37 funds in the prior quarter worth $5.6 billion. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 20.25 million shares valued at $1.06 billion.

Here is what Harding Loevner International Equity Fund has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:

“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multinational companies were at risk of declining sales from increasingly hostile, siloed countries. Royal Dutch Shell (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”

7. FirstEnergy Corp. (NYSE:FE)

Number of Hedge Fund Holders: 42

Dividend Yield as of October 19: 4.23%

FirstEnergy Corp. (NYSE:FE) generates, transmits, and distributes electricity in the United States. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. On September 19, FirstEnergy Corp. (NYSE:FE) declared a quarterly dividend of $0.39 per share, in line with previous. The dividend is payable on December 1, to shareholders of record on November 7. FirstEnergy Corp. (NYSE:FE)’s dividend yield on October 19 came in at 4.23%.

On September 16, Morgan Stanley analyst Stephen Byrd maintained an Overweight rating and a $53 price target on FirstEnergy Corp. (NYSE:FE) shares. He said that he remains bullish on the stock with overhangs getting resolved and “several catalysts ahead for a re-rating”.

According to Insider Monkey’s second quarter database, 42 hedge funds were long FirstEnergy Corp. (NYSE:FE), up from 33 funds in the earlier quarter. Carl Icahn’s Icahn Capital LP is the leading stakeholder of the company, with approximately 19 million shares worth $728 million.

Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter:

“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).

During the quarter we initiated new positions in U.S. electric utility FirstEnergy. With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”

6. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 56

Dividend Yield as of October 19: 5.43%

Newmont Corporation (NYSE:NEM) is a Colorado-based company that explores for gold, copper, silver, zinc, and lead. Newmont Corporation (NYSE:NEM) is one of the best income stocks to consider, given its dividend yield of 5.4% as of October 19. Newmont Corporation (NYSE:NEM)’s latest quarterly dividend of $0.55 per share was distributed to shareholders on September 22.

On October 13, National Bank analyst Mike Parkin maintained an Outperform rating on Newmont Corporation (NYSE:NEM) and raised the firm’s price target on the shares to C$80 from C$79.

According to Insider Monkey’s second quarter database, 56 hedge funds held stakes worth $2.9 billion in Newmont Corporation (NYSE:NEM), compared to 53 funds in the earlier quarter worth $3.5 billion. Jean-Marie Eveillard’s First Eagle Investment Management is one of the leading position holders in the company, with 17.50 million shares valued at more than $1 billion.

Like Citigroup Inc. (NYSE:C), Exxon Mobil Corporation (NYSE:XOM), and Philip Morris International Inc. (NYSE:PM), Newmont Corporation (NYSE:NEM) is one of the top dividend stocks to invest in.

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”

Click to continue reading and see 5 Best Income Stocks To Invest In.

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