In this article, we will discuss some of the best dividend stocks for the long term.
The allure of steady income remains a top priority, come rain or shine in the market and for that, investors often prioritize stable companies. High-quality stocks provide investors with the opportunity to earn through dividends while also benefiting from potential price growth fueled by increasing earnings. According to a report by Hartford Funds, dividends have been a major contributor to the returns investors have enjoyed over the past several decades. Since 1960, reinvested dividends and the impact of compounding have accounted for 85% of the cumulative total returns of the broader market.
Before exploring the long-term benefits of dividend stocks, let’s take a look at how dividend investing has performed in recent years. The year 2024 has been particularly notable for dividends, with several major tech companies introducing quarterly payouts to shareholders in the first quarter. In addition, the sustained inflows into dividend-focused ETFs, even during challenging years like 2024, are a positive sign. This suggests that dividend investing may rely less on chasing performance compared to other strategies. Furthermore, US companies are on pace to set a new record for total dividend payments by year-end. This trend has left analysts optimistic about the future potential of dividend investing.
Over the long term, companies that pay dividends have demonstrated a remarkable history of delivering strong total returns. Data from the French Data Library, highlighted in a June report by Morningstar, showed that dividend-paying stocks outperform those that don’t, with high-yield stocks being the top-performing income segment in the US equity market since 1927. The reasons for this include the elimination of speculative companies, the financial discipline imposed on corporate managers by regular dividend payments, and the advantage of the “value effect,” where stocks with lower valuations tend to outperform over time.
Also read: 8 Best American Dividend Stocks To Buy Right Now
Steven Wieting, who serves as the chief investment strategist at Citi Wealth, expressed the view that high-quality dividend-paying stocks across different sectors have the potential to deliver better performance than the broader market in the coming years. During a conversation with Barron’s, he highlighted that an increasing dividend provides a clear advantage to shareholders while also reflecting the financial strength of companies with robust balance sheets. He remarked that dividends are a reliable indicator since they cannot be fabricated.
That said, maintaining consistent dividend growth over time requires both financial stability and a strong commitment. Stocks that focus on dividend growth have historically outperformed the market, thanks to their potential for capital appreciation and robust financial health. The Dividend Aristocrats Index, which includes companies that have increased their dividends for at least 25 consecutive years, has provided shareholders with a remarkable return of 10.68% from its inception in 2005 through 2023, according to ProShares. In contrast, the broader market returned only 10.05% during the same period. Notably, the dividend aristocrats achieved these impressive returns with lower volatility, recording a volatility rate of 15.30%, compared to the benchmark’s 16.24%. This demonstrates that investing in dividend growth stocks can offer both stability and attractive returns over time.
In view of this, we will take a look at some of the best dividend stocks.
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Our Methodology:
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, CNBC, Times, and Business Insider. We aimed to identify the top long-term dividend stocks recommended by financial media, analysts, and experts. From our research, we picked 12 dividend stocks which are the most popular in the financial media these days. These stocks have strong dividend histories and are financially sound, indicating their ability to sustain dividend payments well into the future. The list is ranked in ascending order of the number of hedge fund investors, according to Insider Monkey’s database of 900 hedge funds as of Q3 2024.
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).
12. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Enterprise Products Partners L.P. (NYSE:EPD) is an American midstream natural gas and crude oil pipeline company that offers petrochemicals and related products. The company’s reliability is rooted in its predominantly fee-based business model, which minimizes exposure to commodity or spread risk. Around 90% of its contracts include inflation-adjustment clauses. In addition, the company has traditionally maintained a cautious approach to leverage, ensured strong distribution coverage, and managed its growth capital expenditures prudently. Since the start of 2024, the stock has surged by nearly 22%.
In the third quarter of 2024, Enterprise Products Partners L.P. (NYSE:EPD) reported revenue of $13.78 billion, which showed a nearly 15% growth from the same period last year. The revenue, however, missed analysts’ estimates by over $97 million. The company’s operating income was $1.78 billion and its net income came in at $1.43 billion, which grew from $1.7 billion and $1.3 billion YoY, respectively.
Enterprise Products Partners L.P. (NYSE:EPD)’s cash position also remained strong. In the most recent quarter, the company generated $2.1 billion in operating cash flow, up 4% from the same period last year. The company’s distributable cash flow came in at $2 billion, showing a 5% increase on a YoY basis. For the twelve months ending September 30, 2024, it allocated 56% of its Adjusted Cash Flow from Operations (CFFO) to distributions for common unitholders and the repurchase of partnership common units.
Enterprise Products Partners L.P. (NYSE:EPD) is one of the best dividend stocks with 26 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $0.525 per share and has a dividend yield of 6.46%, as of December 11.
At the end of Q3 2024, 25 hedge funds tracked by Insider Monkey held stakes in Enterprise Products Partners L.P. (NYSE:EPD), up from 23 in the previous quarter. The consolidated value of these stakes is nearly $316 million. With over 5.4 million shares, Fairholme (FAIRX) was the company’s leading stakeholder in Q3.
11. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 30
General Mills, Inc. (NYSE:GIS) is a Minnesota-based food processing company that also markets processed consumer food through retail stores. The company experienced a boost during the COVID-19 pandemic as more consumers turned to home-cooked meals due to limitations on dining out. The company’s primary North American retail division saw strong performance, supported by demand for organic products, meal solutions, and baking essentials. The stock has surged by over 20% since March 2020.
In fiscal Q1 2025, General Mills, Inc. (NYSE:GIS) posted $4.85 billion in revenue, which, though, fell slightly by 1% from the same period last year, surpassed analysts’ estimates by $47.6 million. The company’s operating profit came in at $832 million. It enhanced its core operations by providing consumers with more engaging experiences, resulting in better volume, increased net sales, and improved market share trends compared to the previous quarter. Moreover, the company advanced efforts to reshape its portfolio for greater growth and profitability by announcing the proposed sale of its North American yogurt business to Lactalis and Sodiaal.
General Mills, Inc. (NYSE:GIS) has a solid cash position, with operating cash flow for the most recent quarter coming in at $624 million, up from $378 million in the prior-year period. The company paid $338 million to shareholders through dividends. It has always remained committed to its shareholder return, paying uninterrupted dividends for 125 years. The company offers a quarterly dividend of $0.60 per share and has a dividend yield of 3.64%, as of December 11.
As of the close of Q3 2024, 30 hedge funds tracked by Insider Monkey held stakes in General Mills, Inc. (NYSE:GIS), up from 29 in the previous quarter. The consolidated value of these stakes is more than $674 million.
10. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 38
LyondellBasell Industries N.V. (NYSE:LYB) ranks tenth on our list of the best dividend stocks. The Netherland-based multinational chemical company specializes in plastics, chemicals, and refining. The company was included in 38 hedge fund portfolios at the end of Q3 2024, compared with 41 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $546.2 million.
In the latest quarter, LyondellBasell Industries N.V. (NYSE:LYB) began construction on its MoReTec-1 facility in Germany, marking significant progress in its pursuit of a more sustainable future. This initiative underscores LYB’s commitment to driving the industry’s shift toward a circular economy.
Despite challenging global macroeconomic conditions, LyondellBasell Industries N.V. (NYSE:LYB) leveraged its strong North American operations to benefit from favorable ethylene margins in the region. Through September, demand for polyethylene and polypropylene in North America grew by over 7% and 4%, respectively, compared to 2023 levels. During the third quarter, the company’s volumes were supported by high operating rates at its crackers, allowing it to capitalize on improved margins from merchant ethylene sales. Quarterly revenue totaled $10.32 billion, reflecting a 2.8% decline from the prior-year period.
LyondellBasell Industries N.V. (NYSE:LYB) remains a favored pick among dividend-focused investors, thanks to its solid cash reserves, which support significant dividend payouts. During the third quarter of 2024, the company distributed $479 million to shareholders through dividends and share buybacks. Additionally, it generated $670 million in operating cash flow for the quarter.
LyondellBasell Industries N.V. (NYSE:LYB), one of the best dividend stocks, has been rewarding shareholders with growing dividends for the past 14 years. Moreover, it has raised its payouts at an annual average rate of 4.8% in the past five years. The company currently pays a quarterly dividend of $1.34 per share with an appealing dividend yield of 7%, as of December 11.
9. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 46
U.S. Bancorp (NYSE:USB) is an American bank holding company, based in Minnesota. The company offers a broad spectrum of financial solutions, including personal and commercial banking, wealth management, and payment services. Recently, it has prioritized regulatory compliance, maintaining sufficient capital reserves, and enhancing its digital platforms to boost customer satisfaction and streamline operations. Its performance hinges on effectively navigating a challenging regulatory landscape, sustaining robust capital levels, and adopting cutting-edge technology to stay competitive while safeguarding against cybersecurity risks. Since the start of 2024, the stock has surged by over 17.3%.
In the third quarter of 2024, U.S. Bancorp (NYSE:USB) reported net income of $1.7 billion, up from $1.5 billion in the same period last year. The company announced diluted earnings per share of $1.03 and a return on tangible common equity of 17.9%. Year-over-year expense reductions contributed to slight positive operating leverage, excluding net securities losses and notable items from the prior year. Management anticipates further improvement in operating leverage during the fourth quarter and extending into 2025.
U.S. Bancorp (NYSE:USB)’s credit quality results met expectations, and it continued to strengthen its capital position, closing the quarter with a CET1 capital ratio of 10.5%. On December 11, the company declared a quarterly dividend of $0.50 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 14 years in a row. The stock supports a dividend yield of 3.88%, as of December 12.
The number of hedge funds tracked by Insider Monkey owning stakes in U.S. Bancorp (NYSE:USB) grew to 46 in Q3 2024, from 43 in the preceding quarter. These stakes have a collective value of more than $2.6 billion. With over 33.6 million shares, Viking Global was the company’s leading stakeholder in Q3.
8. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 51
Chubb Limited (NYSE:CB) is an American Swiss insurance company that offers a wide range of related products and services to its consumers. The company also manages a portfolio of insurance businesses that offer various services, including property and casualty insurance, personal accident coverage, and supplemental health insurance. In addition, the firm participates in the reinsurance market, offering insurance policies to other insurance companies. Similar to Berkshire Hathaway, Chubb invests its “float”—the excess cash generated from its insurance operations—in securities, earning returns alongside any profits from underwriting. The stock has delivered a return of nearly 22% this year so far.
In the third quarter of 2024, Chubb Limited (NYSE:CB) reported a net income of $2.32 billion, reflecting a 13.8% increase from the previous year. Net premiums exceeded $12.2 billion, growing by 5.4% year-over-year. The company’s property and casualty (P&C) underwriting results were strong, with all divisions making substantial contributions, despite facing significant industry-wide catastrophe losses. The combined ratio was 87.7%, and P&C underwriting income rose by more than 11.5%.
Chubb Limited (NYSE:CB) is a strong dividend payer with ample cash on its balance sheet. In the most recent quarter, the company reported an operating cash flow of $4.55 billion. Its dividend growth streak currently stands at 31 years, which makes it one of the best dividend stocks on our list. The company pays a quarterly dividend of $0.91 per share and has a dividend yield of 1.32%, as of December 11.
The London Company made the following comment about CB in its Q3 2024 investor letter:
Initiated: Chubb Limited (NYSE:CB) – CB engages in the provision of commercial and personal property and casualty insurance, personal accident and health (A&H), reinsurance, and life insurance. While the company is headquartered outside the U.S., roughly 2/3 of its profits are generated in the U.S. with Asian markets representing another 20% of earnings. CB has a portfolio of top-performing, multibillion-dollar businesses that have substantial scale and yet potential for growth. CB has a culture of superior underwriting discipline, and management has a strong track record of expense control. CB also has a well-balanced mix of business by customer and product, with extensive distribution channels. We are attracted to CB’s globally diversified business model, superior underwriting and expense management, consistent and best-in-class profitability, upside potential from growth in Asia, and the potential to benefit from higher interest rates in its investment portfolio.
Chubb Limited (NYSE:CB) was a part of 51 hedge fund portfolios at the end of Q3 2024, up significantly from 46 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a consolidated value of more than $10 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company.
7. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) is an American multinational tech company that provides integrated solutions and services worldwide. In Q3 2024, the company reported a revenue of $15 billion, reflecting a modest 1.46% year-over-year growth. This increase was primarily fueled by strong performance in its Software segment, including a rebound in Red Hat. The company’s generative AI business surpassed $3 billion, marking a quarter-over-quarter growth of over $1 billion. For the final quarter of 2024, IBM expects constant currency revenue growth to remain in line with the third quarter, supported by ongoing strength in Software. Management remains optimistic about achieving more than $12 billion in free cash flow for the year, driven by continued expansion in operating margins.
Under the leadership of CEO Arvind Krishna, who became CEO in 2020, International Business Machines Corporation (NYSE:IBM) has reoriented its focus towards artificial intelligence (AI) and cloud computing. This strategic shift has helped drive steady revenue growth. IBM stands out by providing a full technology stack via its Watsonx platform, along with consulting services to assist in the deployment and management of generative AI. Although the company’s stock performance struggled in the past decade, its strong presence in the AI market has led to notable gains this year.
International Business Machines Corporation (NYSE:IBM) has a solid cash position. The company generated $9.1 billion in operating cash flow in the most recent quarter and its free cash flow came in at $6.6 billion. It also paid $1.5 billion to shareholders in dividends. Currently, the company offers a quarterly dividend of $1.67 per share and has a dividend yield of 2.90%, as of December 11. It is one of the best dividend stocks as the company has been growing its dividends for 29 consecutive years.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 56 funds held stakes in International Business Machines Corporation (NYSE:IBM), growing from 54 in the previous quarter. The consolidated value of these stakes is more than $1.73 billion. Among these hedge funds, Holocene Advisors was the company’s leading stakeholder in Q3.
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company that offers services in communications, technology, information, and entertainment. The company is aiming to acquire Frontier as part of its strategy to enhance its position in the growing fiber-optic internet market. Verizon sees fiber as a key area for future growth. If the company can make Frontier’s operations profitable, the acquisition could prove beneficial in the long term. This is because customers who use both Verizon’s mobile and internet services tend to be more loyal and are less likely to switch providers, according to the company. Since the start of 2024, the stock has surged by more than 8%.
In the third quarter of 2024, Verizon Communications Inc. (NYSE:VZ) reported revenue of $33.3 billion, a slight decrease of 0.02% compared to the same period last year. Its wireless revenue reached $19.8 billion, reflecting a 2.7% year-over-year growth. In addition, the company achieved 389,000 net broadband additions, marking the ninth consecutive quarter with over 375,000 net additions in broadband.
Third Point Management also highlighted the company’s acquisition in its Q3 2024 investor letter. Here is what the firm said:
“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)’s cash position makes it a strong dividend payer. In the first nine months of the year, the company generated $26.5 billion in operating cash flow and its free cash flow for the period came in at $14.5 billion. It maintains an 18-year track record of consistent dividend growth. On December 5, the company declared a quarterly dividend of $0.6775 per share, which was in line with its previous dividend. The stock offers an attractive dividend yield of 6.45%, as of December 11.
According to Insider Monkey’s database of Q3 2024, 57 hedge funds owned stakes in Verizon Communications Inc. (NYSE:VZ), down from 67 in the previous quarter. These stakes have a collective value of more than $3.2 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 58
PepsiCo, Inc. (NASDAQ:PEP) is an American food, snack, and beverage company, headquartered in New York. The company stands out particularly in the salty snack market, with its Frito-Lay division being the leading player in the snack industry. Much like its beverage business, Frito-Lay benefits from PepsiCo’s scale, distribution network, marketing expertise, and innovation, driving both business and profit growth. in addition, the company’s Quaker Oats division, which produces packaged food products, plays a significant role in the consumer food sector. While PepsiCo faces competition from other large companies in this space, it remains one of the most vital partners for retailers globally, including grocery and convenience stores.
PepsiCo, Inc. (NASDAQ:PEP) delivered solid earnings in the third quarter of 2024, generating revenues exceeding $23.3 billion. Despite facing challenges such as weaker performance in North America, ongoing issues from product recalls at Quaker Foods North America, and disruptions due to increasing geopolitical tensions in some international markets, the company remained resilient. Effective cost management helped maintain profitability, while the company continued to make strategic investments to strengthen its position in the market.
Given these ongoing challenges, PepsiCo, Inc. (NASDAQ:PEP) now anticipates a modest, low-single-digit rise in organic revenue, a reduction from its earlier projection of around 4% growth. Despite these setbacks, the company remains focused on its commitment to shareholders, aiming to return $8.2 billion to investors through dividends and share buybacks in 2024.
PepsiCo, Inc. (NASDAQ:PEP) is one of the best dividend stocks on our list as the company has been growing its payouts for 52 consecutive years. The company’s quarterly dividend currently comes in at $1.355 per share and has a dividend yield of 3.46%, as of December 11.
According to Insider Monkey’s database of Q3 2024, 58 hedge funds held stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The consolidated value of these stakes is more than $4.44 billion.
4. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 60
Medtronic plc (NYSE:MDT) ranks fourth on our list of the best dividend stocks for the long term. The medical device company has a diversified business, offering a wide range of devices across four key sectors: medical-surgical, neuroscience, cardiovascular, and diabetes. Earlier this year, the company received US approval for its Simplera continuous glucose monitoring (CGM) system. Moreover, Medtronic formed a partnership with Abbott Laboratories, a leader in the CGM market. Abbott will provide a CGM compatible with Medtronic’s devices, which will be exclusively sold by Medtronic. This partnership highlights the company’s ongoing efforts to innovate and advance its diabetes business.
In fiscal Q2 2025, Medtronic plc (NYSE:MDT) reported revenue of $8.4 billion, which showed a 5.3% growth from the same period last year. The company’s Diabetes revenue for the quarter came in at $686 million, experiencing a 12.4% growth on a YoY basis. International revenue saw a low double-digit increase, driven by higher attachment rates for continuous glucose monitoring (CGM) and the ongoing launch of the Simplera Sync sensor.
In the first six months of its fiscal year, Medtronic plc (NYSE:MDT) reported an operating cash flow of nearly $2 billion, up from $1.5 billion in the prior-year period. The company’s free cash flow of $1.02 billion also grew from $721 million in the same quarter last year. This cash position allowed the company to grow its payouts for 47 consecutive years. It currently offers a quarterly dividend of $0.70 per share and has a dividend yield of 3.38%, as of December 11.
Medtronic plc (NYSE:MDT) was a popular buy among elite funds at the end of Q3 2024, with hedge fund positions growing to 60, from 52 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of more than $4.2 billion. With roughly 10 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q3.
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company that specializes in a wide range of related products and services. In fiscal Q1 2025, the company reported $21.7 billion in revenue, a 1% decrease compared to the previous year. The company generated an operating cash flow of $4.3 billion for the quarter, with adjusted free cash flow productivity at 82%, meeting expectations. It upheld its commitment to shareholders, returning $4.4 billion through dividends and share buybacks.
The Procter & Gamble Company (NYSE:PG) has performed exceptionally well this year, hitting an all-time high of over $179 per share in December. This success is largely attributed to the company’s strong execution. It has consistently produced solid results, even during inflationary periods, by effectively implementing significant price hikes. For example, in fiscal 2023, the company achieved organic sales growth in each quarter. The stock has surged by nearly 15% so far this year.
For FY25, The Procter & Gamble Company (NYSE:PG) has provided a positive outlook, expecting sales growth between 2% and 4%, along with a 10% to 12% increase in diluted net EPS, compared to $6.02 in fiscal 2024. If the company reaches the midpoint of its forecast, it will achieve a record-high diluted EPS of $6.68 in fiscal 2025.
The Procter & Gamble Company (NYSE:PG) has a solid dividend history of delivering regular payouts to shareholders for 134 years. Moreover, the company maintains a 68-year track record of consistent dividend growth, which makes PG one of the best dividend stocks on our list. The company’s quarterly dividend comes in at $1.0065 per share and has a dividend yield of 2.36%, as recorded on December 11.
At the end of the third quarter of 2024, 68 hedge funds in Insider Monkey’s database owned stakes in The Procter & Gamble Company (NYSE:PG), up from 64 in the previous quarter. The total value of these stakes is over $8.8 billion.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 70
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based multinational pharmaceutical company. Its earnings came in strong in the third quarter of 2024. The company posted revenue of nearly $12 billion, reflecting an 8.5% increase compared to the same period last year. This strong performance was fueled by higher sales in its growing oncology portfolio and effective operational management. The results demonstrated its capacity to manage competitive challenges while driving substantial revenue growth. By the end of the quarter, the company held around $8 billion in cash and cash equivalents.
Since 2019, Bristol-Myers Squibb Company (NYSE:BMY) has launched several new medications and continues to make significant progress. In September, the U.S. Food and Drug Administration approved Cobenfy, a treatment for schizophrenia. Although this approval is not brand new, Bristol Myers’ shares have recently risen due to positive updates related to Cobenfy. Since the start of 2024, the stock has surged by over 7% and its 12-month return came in at nearly 11%.
Bristol-Myers Squibb Company (NYSE:BMY) has steadily increased its dividends for the last 18 years, positioning itself just seven years away from achieving dividend aristocrat status. With robust cash reserves, the company has the flexibility to further boost its payouts. For the trailing twelve months, its operating cash flow stood at $15 billion, while its levered free cash flow reached $17.52 billion. Currently, the company pays a quarterly dividend of $0.60 per share and has a dividend yield of 4.24%, as of December 11.
With a collective stake value of more than $3.3 billion, 70 hedge funds in Insider Monkey’s database held positions in Bristol-Myers Squibb Company (NYSE:BMY) in Q3 2024. In the previous quarter, 61 funds held investments in the company.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) tops our list of the best dividend stocks for the long term. The American multinational healthcare and insurance company has been facing challenges recently as investors grapple with the backlash following the tragic murder of the company’s CEO Brian Thompson. The long-term consequences of this event remain uncertain, and it is unclear whether it will have any lasting impact on the health insurance industry. At present, however, the situation has garnered significant national attention, with investors appearing taken aback by the extent of the outrage directed at the company. The stock is down by over 1% since the start of 2024.
That said, UnitedHealth Group Incorporated (NYSE:UNH) has demonstrated exceptional performance over the years. The stock has surged by over 420% in the last ten years, outperforming the market. This track record underscores the reliability of investing in a leading healthcare company, particularly as the sector is expected to see continued growth in spending. UnitedHealth Group has attracted investors by executing effective expansion strategies, including expanding into areas like home healthcare and analytics to diversify its operations. These initiatives are designed to provide greater value to both its partners and patients.
On November 6, UnitedHealth Group Incorporated (NYSE:UNH) declared a quarterly dividend of $2.10 per share, which was in line with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 15 years. The stock’s dividend yield on December 11 came in at 1.57%.
UnitedHealth Group Incorporated (NYSE:UNH) was included in 112 hedge fund portfolios at the end of Q3 2024, compared with 114 in the previous quarter, as per Insider Monkey’s database. The total value of these stakes is more than $15 billion. Among these hedge funds, GQG Partners was the company’s largest stakeholder in Q3.
Overall, UnitedHealth Group Incorporated (NYSE:UNH) ranks first on our list of the best dividend stocks. While we acknowledge the potential for UNH to grow, 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 UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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