In this article, we will take a look at some of the best Cash App stocks that pay dividends.
Technology has seamlessly woven itself into our daily lives in today’s digital era, significantly impacting how we manage finances. The shift from physical wallets to digital platforms is becoming increasingly common. Cash App has become a prominent player in the digital financial space, steadily growing in popularity. This mobile payment service allows users to send, receive, and request money from individuals and businesses alike. Since its launch in 2013, Cash App has become one of the most widely used digital wallets in the US, competing with other platforms like Venmo and Zelle. The Consumer Financial Protection Bureau (CFPB) reported that Cash App now boasts over 56 million accounts, with Block, its developer, earning over 50% of its gross profit from the app in 2023.
Also read: 15 Stocks to Invest in with Steady Dividends
The pandemic served as a catalyst, speeding up the rising trend of app usage, especially in the financial sector. With lockdowns and social distancing measures in place, people increasingly relied on online platforms for shopping, highlighting the importance of contactless payments. This change in consumer habits drove a surge in app usage, enabling a smooth transition to remote and contactless transactions. Zelle, the peer-to-peer money transfer app, reported a 27% increase in network transactions during the first half of 2024, with nearly $500 billion in payments processed. In the first six months of the year, consumers and businesses completed 1.7 billion transactions across 143 million accounts, as reported by Bloomberg.
This mainly highlights the promising future of online payments and their continued growth across upcoming generations. In fact, Block CFO Amrita Ahuja shared with CNBC’s Jim Cramer that Cash App’s payment services are particularly popular among younger consumers. Ahuja pointed out that the Cash App card, a free Visa debit card, has gained significant traction with this demographic. She also highlighted that Cash App successfully engages the younger generation through initiatives like a family program, which enables adults to sponsor accounts for teenagers.
That said, with success comes increased risk. Recently, Cash App has faced challenges, as the CFPB accused the platform of enabling widespread fraud and misleading its users. In 2023, Hindenburg Research, a well-known short seller, claimed that Block had inflated the number of Cash App users and highlighted illegal activities on the app. Block dismissed the report as “factually inaccurate and misleading.” In its enforcement action, the CFPB stated that Block is legally obligated to investigate and resolve disputes regarding unauthorized transactions, but described the company’s efforts as “severely lacking.” Instead, Block reportedly directed users to request their banks to reverse transactions, which Block would subsequently deny. As a result, Block will pay up to $120 million in refunds to consumers, establish a 24-hour customer service program, and pay a $55 million fine.
Across different investment platforms, investors consistently prioritize generating cash flow. This focus on cash generation drives them towards dividend stocks, which are well-known for offering shareholders a steady stream of income. Given this, we will take a look at some of the best Cash App stocks that pay dividends.
Photo by buian_photos on Unsplash
Our Methodology:
For this article, we reviewed multiple reliable websites and videos that discuss dividend stocks available on Cash App. Our goal was to identify stocks that were consistently recommended by credible sources and analyst reports. After analyzing the gathered information, we selected 12 stocks that stood out due to their dividend yields exceeding 4% as of January 21. These stocks are ranked in order of their dividend yields, starting from the lowest. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for 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. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 21: 4.11%
Chevron Corporation (NYSE:CVX) is a California-based multinational energy company that manufactures and sells a range of high-quality refined products. The company is a major force in the energy industry, with exploration and production at its core. It extracts crude oil and natural gas from resource-rich areas such as the Permian Basin, utilizing advanced recovery methods. This upstream activity is a crucial component of Chevron’s integrated operations. CVX has surged by over 11% in the past 12 months.
Chevron Corporation (NYSE:CVX) is catching the eye of investors with its extensive operations and robust cash flow. The CEO recently announced that the company is set to boost its free cash flow by $6 billion to $8 billion in the coming year, alongside plans to cut costs by several billion dollars. These improvements are expected to be driven by new or expanded oil production projects in Kazakhstan, US shale regions, and the offshore Gulf of Mexico.
Chevron Corporation (NYSE:CVX) demonstrated a solid cash position in its most recent quarter, generating $9.7 billion in operating cash flow, a significant increase from $46.3 billion in the same period last year. The company returned $7.7 billion to shareholders through dividends and share buybacks. With this strong cash flow, Chevron has maintained a dividend growth streak of over 37 years and currently offers a quarterly dividend of $1.63 per share. With a dividend yield of 4.11% as of January 21, CVX is one of the best Cash App stocks on our list.
At the end of Q3 2023, 63 hedge funds tracked by Insider Monkey owned stakes in Chevron Corporation (NYSE:CVX), compared with 64 in the previous quarter. These stakes have a consolidated value of over $21 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.
11. Comerica Incorporated (NYSE:CMA)
Dividend Yield as of January 21: 4.30%
Comerica Incorporated (NYSE:CMA) is an American financial services company that offers a wide range of financial products and related services to its consumers. In the third quarter of 2024, growth in customer deposits helped offset subdued loan demand, leading to net interest income surpassing expectations for the quarter. The company prioritized expense management, adhering to action plans established earlier in the year. Credit quality remained robust, with net charge-offs at 8 basis points, significantly below historical averages, and future migration is anticipated to stay manageable. A conservative stance on capital management was maintained, as the estimated CET1 capital ratio increased to 11.97%, well above the 10% target. In addition, a downward shift in the rate curve resulted in a notable improvement in AOCI for the quarter.
Comerica Incorporated (NYSE:CMA) reported a net interest income of $534 million in Q3 2024, up from $533 million in the previous quarter. The company’s net income for the quarter came in at $184 million, which fell from $206 million in Q2. However, its cash position came in strong. The company’s cash and due from banks came in at $870 million at the end of September 30, 2024, up from $719 million at the end of June 30, 2024.
Ariel Investments highlighted CMA in its Q3 2024 investor letter. Here is what the firm has to say:
“We purchased Comerica Incorporated (NYSE:CMA) a financial holding company whose revenue is primarily generated across three business segments: the Commercial Bank, the Retail Bank and Wealth Management. The company offers a high-touch business model with an enhanced focus on long-term customer relationships. Lower deposit levels and declining demand for loans driven by the Fed’s quantitative tightening regime as well as deteriorating credit conditions presented an attractive entry point. Looking ahead, we believe the company is well-positioned to take advantage of economic growth, which should lead to enhanced deposit gathering and loan generation. Additionally, we expect more moderate rate cuts to allow for margin expansion and slower deposit cost increases. At today’s valuation, we believe the risk/reward is skewed to the upside.”
Comerica Incorporated (NYSE:CMA) has remained committed to its shareholder obligation as the company returned $94 million to investors through dividends in the most recent quarter. Currently, it pays a quarterly dividend of $0.71 per share and has a dividend yield of 4.30%, as of January 21.
The number of hedge funds tracked by Insider Monkey owning stakes in Comerica Incorporated (NYSE:CMA) grew to 46 in Q3 2024, from 38 in the previous quarter. These stakes are worth over $1.2 billion in total.
10. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Dividend Yield as of January 21: 4.37%
T. Rowe Price Group, Inc. (NASDAQ:TROW) ranks tenth on our list of the best Cash App stocks that pay dividends. The American asset management company offers a wide range of related products and services to its consumers. The company recently reported that its assets under management slid 3.6% in December to $1.61 trillion as it saw net outflows of $10.9 billion and equity markets declined. However, it is just a blip on the road for the company as it is exploring new opportunities.
T. Rowe Price Group, Inc. (NASDAQ:TROW) is concentrating on developing its own ETF business while expanding into high-demand areas such as alternative investments. With no long-term debt on its balance sheet, it enjoys significant flexibility to adapt and make strategic adjustments as necessary.
The company delivered mixed earnings in the third quarter of 2024. The company’s revenue increased by 7% year-over-year to $1.8 billion but missed analysts’ projections by over $61 million. On the upside, net income saw a notable rise of 33.1%, climbing to $603 million from $453 million in the prior year. T. Rowe Price Group, Inc. (NASDAQ:TROW)’s equity ETFs showed strong performance, with improved sales pipelines and lower-than-anticipated net outflows. Moreover, its strategic emphasis on alternative investments, including private credit, is poised to provide substantial diversification advantages.
Lindsell Train Ltd made the following comment about TROW in its Q3 2024 investor letter:
“T. Rowe Price Group, Inc. (NASDAQ:TROW) is the only asset manager held in your Fund. The headwinds to this industry, notably the long-term shift to passive and resultant fee pressures, are well known, leading to mouthwatering valuations for what can be extremely profitable companies. In our view T. Rowe stands out with trillion-dollar scale, exceptional margins, and a long track-record of headwind-defying growth, affording it a place in our portfolio since inception. Its shares, however, have not been stellar performers over this four-year+ period, returning just c.30% in USD vs. the MSCI North America’s c.120%. In this month’s update we outline our reasons for continued optimism.” (Click here to read the full text)
T. Rowe Price Group, Inc. (NASDAQ:TROW) also holds a strong dividend history. The company is a Dividend Aristocrat with 38 consecutive years of dividend growth under its belt. It currently offers a quarterly dividend of $1.24 per share and has a dividend yield of 4.36%, as of January 21.
As of the close of Q3 2024, 26 hedge funds in Insider Monkey’s database held stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), compared with 28 in the previous quarter. These stakes have a total value of over $422.5 million. With nearly 2 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.
9. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of January 21: 4.45%
Best Buy Co., Inc. (NYSE:BBY) is an American consumer electronics company that deals in a wide range of related products and services. The company’s third-quarter earnings report revealed a mixed performance, with certain areas falling short of expectations. Non-GAAP EPS reached $1.26, below the forecasted $1.30, and revenue totaled $9.45 billion, missing the projected $9.63 billion, marking a year-over-year revenue decline. Despite these shortfalls, the quarter demonstrated potential stability, supported by significant progress in its strategic initiatives.
Best Buy Co., Inc. (NYSE:BBY) has recently concentrated on diversifying its services, particularly through its Geek Squad and expanding its health segment. These initiatives not only complement its product sales but also boost margins and strengthen customer relationships. Effective inventory and supply chain management remain crucial, enabling the company to meet consumer needs efficiently despite changing market conditions. In the past 12 months, the stock has surged by over 15%.
Best Buy Co., Inc. (NYSE:BBY)’s balance sheet also remained strong. The company ended the quarter with $643 million available in cash and cash equivalents, up from $636 million in the prior year period. Its total assets amounted to over $17 billion. The company’s operating cash flow also jumped to $561 million, from $290 million in the same quarter last year. This cash generation allowed the company to distribute $202 million worth of dividends during the quarter. BBY is one of the best Cash App stocks with dividends as the company has raised its payouts for 11 consecutive years. It offers a quarterly dividend of $0.94 per share and has a dividend yield of 4.45%, as of January 21.
Best Buy Co., Inc. (NYSE:BBY) was included in 37 hedge fund portfolios at the end of Q3 2024, the same as in the previous quarter, as per Insider Monkey’s database. The stakes held by these funds are worth $941 million in total.
8. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Dividend Yield as of January 21: 4.84%
Sirius XM Holdings Inc. (NASDAQ:SIRI) is a New York-based broadcasting corporation that is a leading provider of satellite radio and online audio entertainment services. The company’s subscriber base reached its peak of 34.9 million in 2019 but has since declined to 33.2 million, representing a 5% drop. Several factors contribute to this slowdown. Auto sales, a key source of new subscriptions for the satellite radio service, have been weak. In addition, many people still work from home, and they spend less time in their cars, where Sirius XM subscriptions are typically most utilized. Furthermore, there is increasing competition from more affordable streaming apps that drivers can easily access through their Bluetooth car systems. The stock is down by 59% in the past 12 months.
That said, all hope is not lost for Sirius XM Holdings Inc. (NASDAQ:SIRI). During the third quarter of 2024, the company made notable strides in its transformation, including the completion of its transaction with Liberty Media. The company is leveraging its large audience and robust business model to position itself for sustainable growth and generate value for investors. Its long-term strategy focuses on strengthening the subscription business, enhancing advertising offerings, and optimizing costs while reinvesting in the business. There was encouraging growth in self-pay subscribers, with 14,000 net additions, and a 6% rise in podcast advertising revenue, signaling potential for further expansion.
Sirius XM Holdings Inc. (NASDAQ:SIRI) also reported a solid cash position with its operating cash flow coming in at over $1 billion in the first nine months of 2024. The company’s free cash flow for the quarter stood at $93 million. It is one of the best Cash App stocks with dividends as the company maintains a seven-year streak of consistent dividend growth. Currently, it offers a quarterly dividend of $0.27 per share and has a dividend yield of 4.84%, as of January 20.
Sirius XM Holdings Inc. (NASDAQ:SIRI) was a hedge fund favorite in the third quarter of 2024. 49 hedge funds tracked by Insider Monkey held stakes in the company in Q3, growing from 33 in the preceding quarter. These stakes are worth over $3.1 billion in total. Among these hedge funds, Gotham Asset Management was the company’s leading stakeholder in Q3.
7. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of January 21: 4.92%
United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping and supply chain management company offering its consumers various related services. The company is concentrating on expanding its healthcare logistics services and aims to establish itself as a global leader in this field. In January 2025, the company successfully acquired Frigo-Trans and its affiliated company BPL. This acquisition strengthens UPS’s ability to offer comprehensive temperature-controlled logistics solutions, especially in Europe. Since the start of 2025, the stock has surged by over 7%.
In the third quarter of 2024, United Parcel Service, Inc. (NYSE:UPS) reported revenue of $22.2 billion, reflecting a 5.6% increase compared to the same quarter last year. This result exceeded analysts’ expectations by $115.3 million. Additionally, its operating profit rose significantly to $974 million, up from $665 million in the previous year. Artisan Partners highlighted the company’s strengths in its Q3 2024 investor letter. Here is what the firm has to say:
“We made no new purchases in Q3. Instead, our purchase activity was focused on adding to a few of our existing names that remain cheap, such as Dollar General and United Parcel Service, Inc. (NYSE:UPS). When we initiated our position in UPS in late 2023, shares were under pressure due to concerns about its new labor contract diverting volumes and driving up costs, as well as the continued normalization of volumes following COVID-related gains. We welcomed the market’s short-term focus as it provided us an opportunity to purchase UPS at an undemanding valuation of less than 11X our view of normalized earnings. UPS is a good transport operation that easily earns its cost of capital, generates significant free cash, has a wide economic moat, has a strong financial profile and pays an attractive dividend—now yielding 4.8%. More recently, the stock has been weak because profits came in weaker than expected. UPS’ customers traded down to the lower yielding ground segment, which negatively impacted overall pricing and margins. These shifts are common and occur in both directions, but what is important, in our view, is the long-term trend of volume growth remains intact. Nevertheless, investors have lost patience with UPS after a string of earnings disappointments.”
United Parcel Service, Inc. (NYSE:UPS) has also attracted investors due to its strong cash position. The company’s trailing twelve-month operating cash flow came in at $9.22 billion and its levered free cash flow for the period amounted to $4.1 billion. The company maintains a 22-year streak of consistent dividend growth, which makes UPS one of the best Cash App stocks on our list. Its quarterly per-share dividend comes in at $1.63 and it supports a dividend yield of 4.92%, as of January 21.
Insider Monkey’s database of Q3 2024 indicated that 43 hedge funds owned stakes in United Parcel Service, Inc. (NYSE:UPS), compared with 44 in the previous quarter. These stakes have a total value of over $1.66 billion.
6. AT&T Inc. (NYSE:T)
Dividend Yield as of January 21: 4.94%
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 year, the stock has seen a nearly 34% increase in its stock price, driven by improved fundamentals like higher gross margins and lower debt levels. In Q3 2024, the company also revealed the sale of its remaining 70% stake in DirecTV to private equity firm TPG, a move that will provide substantial cash flow to reduce debt further and deliver value to shareholders. With a strong balance sheet, rising share price, and attractive dividend yield, AT&T is becoming an appealing choice for income-focused investors.
In recent years, AT&T Inc. (NYSE:T) has steadily grown its wireless and fiber internet subscriber base. From September 2022 to September 2024, it added about 7.5 million wireless customers. In addition, it gained more than two million fiber subscribers during this time, helping to offset the decline in demand for traditional wireline services. 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) has remained committed to returning value to shareholders as the company plans to distribute over $40 billion to its shareholders via dividends and share buybacks within the next three years. The company’s cash generation remained stable in the most recent quarter, with its operating cash flow and free cash flow coming in at $10.2 billion and $5.1 billion, respectively. It currently offers a quarterly dividend of $0.2775 per share and has a dividend yield of 4.94%, as of January 21.
With a collective stake value of more than $5.6 billion, 59 hedge funds tracked by Insider Monkey held positions in AT&T Inc. (NYSE:T) at the end of Q3 2024. Arrowstreet Capital was the company’s leading stakeholder in Q3.
5. CVS Health Corporation (NYSE:CVS)
Dividend Yield as of January 21: 5.01%
CVS Health Corporation (NYSE:CVS) is an American health solutions company that provides advanced health care from pharmacy services and health plans to health and wellness. The stock has seen strong performance in 2025, with a growth of over 20% since the beginning of the year. However, the stock has dropped more than 28% over the past year. The primary reason for this decline is underperformance in its Pharmacy and Consumer Wellness division, where the expected benefits from integrating this segment with its health services have not yet been realized. The division’s adjusted operating income has fallen from $7.26 billion in 2021 to an expected range of $5.70-$5.75 billion in 2024. Moreover, front-store revenue is anticipated to decline by 6.2%, and the online segment faces increasing competition from major companies like Amazon.
That said, CVS Health Corporation (NYSE:CVS) reported strong earnings in the third quarter of 2024, with revenue reaching $95.4 billion, reflecting a year-over-year growth of more than 6.3%. This positive performance was primarily fueled by the strong results in the Health Services and Pharmacy & Consumer Wellness divisions.
In addition, CVS Health Corporation (NYSE:CVS) also reported a strong cash position that would balance out the struggles it is facing. In the first nine months of the year, the company generated an operating cash flow of $7.2 billion. It ended the quarter with $6.9 billion available in cash and cash equivalents. Due to this cash generation, the company has paid regular dividends to shareholders since 1997. It pays a quarterly dividend of $0.665 per share and has a dividend yield of 5.01%, as of January 21.
The number of hedge funds tracked by Insider Monkey owning stakes in CVS Health Corporation (NYSE:CVS) grew to 63 in Q3 2024, from 60 in the previous quarter. These stakes are collectively valued at over $4.2 billion. Among these hedge funds, Pzena Investment Management was the company’s leading stakeholder in Q3.
4. The Kraft Heinz Company (NASDAQ:KHC)
Dividend Yield as of January 21: 5.41%
The Kraft Heinz Company (NASDAQ:KHC) ranks fourth on our list of the best Cash App stocks that pay dividends. The American multinational food company specializes in a wide range of snacks and beverages. The company was formed through the merger of Kraft and Heinz, with the intention of boosting profits by reducing costs. However, the merger did not go as planned, leading to a change in leadership. Currently, Kraft Heinz is focusing on a select group of stronger-performing brands. Despite past challenges, the company is showing improvement, particularly in its financial health. Since its peak in 2020, the company has significantly reduced its leverage, indicating that it can navigate through current challenges and reposition its business for future success.
In the third quarter of 2024, The Kraft Heinz Company (NASDAQ:KHC) reported mixed results, continuing to miss analysts’ expectations. It generated $6.38 billion in revenue, reflecting a 2.85% decrease compared to the previous year. However, the company did see a slight improvement in its gross profit margin, which increased by 20 basis points to 34.2%. Kraft Heinz is concentrating on investing in marketing, research and development, and technology to offer consumer-focused solutions and drive future revenue growth. These initiatives are supported by its ability to streamline operations and maintain solid cash flow. In addition, the company is focused on expanding its well-established and emerging food and beverage brands globally.
Despite the challenges it is encountering, income investors can be reassured by The Kraft Heinz Company (NASDAQ:KHC)’s robust cash position. In the most recent quarter, the company showed strong cash generation, with year-to-date operating cash flow rising by 6.7% to $2.8 billion compared to the prior year. Free cash flow also grew by 9.7%, reaching $2 billion. Moreover, the company returned $1.5 billion to shareholders through dividends during the first nine months of the year.
Mairs & Power also highlighted efforts made by The Kraft Heinz Company (NASDAQ:KHC) in its Q3 2024 investor letter. Here is what the firm has to say:
“We added The Kraft Heinz Company (NASDAQ:KHC) to the Fund in the quarter. Kraft Heinz is a leading global food company which possesses a portfolio of iconic brands, including its eponymous ketchup brand. The company has been undergoing an operational transformation focused on driving efficiency gains in supply chain, manufacturing and distribution. These efficiency gains have fueled increased investments in technology, automation, innovation and marketing, which should ultimately drive more consistent organic revenue growth and high single digit earnings per share growth. We expect above-average long-term returns, buoyed by consistent free cash flow generation, opportunistic share repurchases and an attractive 4-5% dividend yield. A modest current valuation affords an ample margin of safety.”
The Kraft Heinz Company (NASDAQ:KHC) offers a quarterly dividend of $0.40 per share and has a dividend yield of 5.41%, as of January 21.
Warren Buffett’s Berkshire Hathaway was the largest stakeholder of The Kraft Heinz Company (NASDAQ:KHC) in the third quarter of 2024. Overall, 38 hedge funds tracked by Insider Monkey owned stakes in the company in Q3.
3. Realty Income Corporation (NYSE:O)
Dividend Yield as of January 21: 5.73%
Realty Income Corporation (NYSE:O) is an American real estate investment trust company that invests in single-tenant commercial properties in the country. The company mainly specializes in purchasing commercial properties, leasing them, and sharing the rental income with its investors. By the end of Q3 2024, the company owned 15,457 properties across all 50 US states, the UK, and six European countries, up from 13,458 properties at the end of 2023. This growth was largely driven by its acquisition of Spirit Realty in January 2024. The company primarily leases its properties to retailers that are resistant to economic downturns. The stock has surged by over 5% since the start of 2025.
Over the last 30 years, Realty Income Corporation (NYSE:O) has successfully weathered major events like the dot-com crash, the Great Recession, and the COVID-19 pandemic, all while consistently increasing its dividend. Even during the peak of the Great Recession, the company’s occupancy rates never dropped below 96.6%, and they are currently around 98.7%. This track record highlights the company’s stability and resilience in challenging economic conditions. A key factor in this stability is Realty Income Corporation (NYSE:O)’s strong financial position, backed by an investment-grade balance sheet. Its large size enables the company to access capital markets more easily, securing favorable debt terms to support its growth.
Realty Income Corporation (NYSE:O) is one of the best Cash App stocks that pay dividends because the company offers monthly dividends to shareholders. On January 14, the company declared a monthly dividend of $0.264 per share, which was in line with its previous dividend. Overall, it has raised its payouts multiple times since its IPO in 1994. As of January 21, the stock has a dividend yield of 5.73%.
The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) grew to 23 in Q3 2024, from 19 in the previous quarter. These stakes are worth over $163.5 million in total. Among these hedge funds, AEW Capital Management was the company’s leading stakeholder in Q3.
2. LyondellBasell Industries N.V. (NYSE:LYB)
Dividend Yield as of January 21: 6.89%
LyondellBasell Industries N.V. (NYSE:LYB) is a multinational chemicals firm that specializes in plastics, chemicals, and refining. In the third quarter of 2024, the company surpassed its industry peers in safety performance, reporting a recordable incident rate of 0.13. This reflects strong safety practices. The company also saw significant growth in its Olefins and Polyolefins-Americas segment, which delivered a 13% sequential increase in EBITDA to $758 million. This marked its best quarter since Q2 2022 and a 50% year-over-year rise.
Despite the challenging global macroeconomic environment, LyondellBasell Industries N.V. (NYSE:LYB) leveraged its robust North American operations, benefiting from strong ethylene margins in the region. Demand for polyethylene and polypropylene in North America increased by more than 7% and 4%, respectively, compared to 2023. In 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. The company’s quarterly revenue reached $10.32 billion, a 2.8% decrease from the same period last year.
LyondellBasell Industries N.V. (NYSE:LYB) remains a favored option for dividend-seeking investors, supported by its robust cash reserves, which allow for significant dividend distributions. In the third quarter of 2024, the company returned $479 million to shareholders through dividends and share repurchases. It also generated $670 million in operating cash flow during the quarter. On November 22, 2024, the company announced a quarterly dividend of $1.34 per share, which was in line with its previous dividend. It is one of the best Cash App stocks to buy as the company has raised its payouts for 14 consecutive years. The stock supports a dividend yield of 6.89%, as of January 21.
At the end of Q3 2024, 38 hedge funds, compared with 41 in the previous quarter, owned stakes in LyondellBasell Industries N.V. (NYSE:LYB), as tracked by Insider Monkey’s database. These stakes have a consolidated value of over $546.2 million.
1. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of January 21: 6.94%
Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company. It focuses on 5G network products that support edge computing and AI infrastructure. These products facilitate the processing and transmission of large datasets for various AI applications, including autonomous vehicles, remote surgery, and manufacturing automation.
Recently, Verizon Communications Inc. (NYSE:VZ) teamed up with NVIDIA to create an AI-powered enterprise solution. This solution allows multiple AI applications to run smoothly over its secure 5G private networks with private Mobile Edge Computing. The company is also exploring new AI-driven projects, such as network slicing and satellite connectivity, aiming to generate new revenue streams and strengthen its competitive edge.
In the first nine months of 2024, Verizon Communications Inc. (NYSE:VZ) experienced a 0.9% rise in consumer revenue compared to the previous year. However, business revenue dropped by 2.1%, resulting in a slight overall revenue growth of 0.3%. The growth in the consumer segment was largely driven by focused incentives, marketing strategies, and the successful execution 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 maintained a strong track record of paying dividends, supported by its robust cash flow. For the first nine months of the year, the company generated $26.5 billion in operating cash flow and $14.5 billion in free cash flow. In addition, the company has been consistently increasing its dividends for 18 years in a row, rewarding its shareholders. It currently offers a quarterly dividend of $0.6775 per share and has a dividend yield of 6.94%, as of January 21.
According to Insider Monkey’s database of Q3 2024, 57 hedge funds owned investments in Verizon Communications Inc. (NYSE:VZ), worth over $3.2 billion in total. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.
Overall Verizon Communications Inc. (NYSE:VZ) ranks first on our list of the best Cash App stocks that pay dividends. While we acknowledge the potential for VZ 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 VZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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