In this article, we discuss 5 best American dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their historical performance, go directly to read 11 Best American Dividend Stocks to Buy Now.
5. Automatic Data Processing, Inc. (NASDAQ:ADP)
Dividend Yield as of October 4: 1.79%
Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that specializes in human resources management software and services. The company reported a strong cash position in the second quarter of 2022. Its operating cash flow stood at $913 million and it generated $768.6 million in free cash flow. The company’s revenue for the quarter came in at $4.13 billion, which showed an 11.6% growth from the same period last year.
On August 3, Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend of $1.04 per share, consistent with its previous dividend. The company holds a strong dividend growth history, having raised its dividends consistently for the past 47 years. As of October 4, the stock’s dividend yield was 1.79%.
In August, Mizuho raised its price target on Automatic Data Processing, Inc. (NASDAQ:ADP) to $257 with a Buy rating on the shares, calling the company’s result ‘solid across the board’. The firm also appreciated the company’s financial payments segment.
At the end of Q2 2022, 39 hedge funds tracked by Insider Monkey owned stakes in Automatic Data Processing, Inc. (NASDAQ:ADP), compared with 47 in the previous quarter. These stakes hold a collective value of nearly $2.5 billion. Fundsmith LLP was the company’s major stakeholder in Q2.
4. Matson, Inc. (NYSE:MATX)
Dividend Yield as of October 4: 1.90%
Matson, Inc. (NYSE:MATX) is a Hawaii-based shipping and navigation services company that provides related services across the Pacific. In July, Stifel maintained a Buy rating on the stock as the company could benefit from the Ocean Shipping Reform Act. The act was expected to control the supply chain blockages.
At the end of June 2022, Matson, Inc. (NYSE:MATX) reported strong cash generation, with its operating cash flow standing at $691 million, up from $238.8 million during the same period last year. The company had $326 million in cash and cash equivalents, compared with $282.4 million in the prior-year period. It paid $25 million in dividends to shareholders during this period.
Matson, Inc. (NYSE:MATX) currently pays a quarterly dividend of $0.31 per share and has a dividend yield of 1.90%, as of October 4. The company last raised its dividend in June this year, taking its dividend growth streak to ten years.
At the end of Q2 2022, 25 hedge funds tracked by Insider Monkey owned stakes in Matson, Inc. (NYSE:MATX), up from 22 in the previous quarter. The collective value of these stakes is roughly $98 million.
Meridian Funds mentioned Matson, Inc. (NYSE:MATX) in its Q2 2022 investor letter. Here is what the firm has to say:
“Matson, Inc. (NYSE:MATX) is a US-based ocean and logistics company with a leading position in Pacific shipping that provides a vital lifeline to Hawaii, Alaska, and Guam as well as premium and expedited service from China to the US. Given its unique position and terminal assets, Matson has an unparalleled speed advantage over other ocean transportation companies. This speed advantage has been highly valuable to customers given supply chain disruptions which has helped improve inventory velocity. Although the company recently reported strong quarterly earnings growth, its stock declined on signs of slower shipping demand due to rising inventories within the consumer channel and improving port congestion. Given these dynamics, overall container rates have begun to recede from the robust levels experienced in 2021 but still remain at levels that are nearly 4x that of pre-pandemic levels. Although we expect container rates to continue to normalize, we believe the company’s unique speed advantage and increased service capacity between Asia and the U.S. could help offset some of these headwinds. Matson continues to generate strong free cash flow and has proven to be a strong allocator of capital, including increasing dividend payouts for shareholders and buying back stock. During the period, we trimmed our position in the company.”
3. Atmos Energy Corporation (NYSE:ATO)
Dividend Yield as of October 4: 2.59%
Atmos Energy Corporation (NYSE:ATO) is a Texas-based natural gas distribution company that serves over three million customers in the state. The company is one of the best dividend stocks on our list as it holds a 37-year track record of consistent dividend growth. It currently pays a quarterly dividend of $0.68 per share, with a dividend yield of 2.59%, as recorded on October 4.
In fiscal Q3 2022, Atmos Energy Corporation (NYSE:ATO) reported a total investment income of $816.4 million, up 34.8% from the same period last year. The company’s operating cash flow for the quarter stood at $288.8 million, compared with $74.2 million in the prior-year quarter. In August, it paid its 155th consecutive quarterly dividend to shareholders.
In July, Barclays maintained an Equal Weight rating on Atmos Energy Corporation (NYSE:ATO) with a $115 price target as the firm updated its price targets for the North American power and utility sectors.
The number of hedge funds tracked by Insider Monkey owning stakes in Atmos Energy Corporation (NYSE:ATO) grew to 21 in Q2 2022, from 16 in the previous quarter. These stakes hold a combined value of $852.5 million, compared with $636 million worth of stakes owned by hedge funds in the preceding quarter.
Aristotle Capital Management mentioned Atmos Energy Corporation (NYSE:ATO) in its Q1 2022 investor letter. Here is what the firm has to say:
“Headquartered in Dallas, Atmos Energy is the largest fully regulated natural gas-only utility in the U.S. It serves over three million distribution customers across eight states, primarily in the South. Approximately 70% of its revenue comes from Texas, where it owns one of the largest natural gas pipeline systems in the state. (Click here to view the full text)
2. Simmons First National Corporation (NASDAQ:SFNC)
Dividend Yield as of October 4: 3.42%
Simmons First National Corporation (NASDAQ:SFNC) is an American financial holding company that provides banking and other financial products and services to its consumers. In Q2 2022, the company posted an operating cash flow of over $117.3 million, compared with $60.5 million in the previous quarter. Its free cash also jumped to $107.4 million, from $53.3 million in the preceding quarter. The company’s revenue showed a 19.6% year-over-year growth at $225.4 million.
Simmons First National Corporation (NASDAQ:SFNC) has been making consecutive dividend payments for the past 113 years, which makes it one of the best dividend stocks on our list. In addition to this, the company has been raising its payouts for the past 10 years. It pays a quarterly dividend of $0.19 per share, with a dividend yield of 3.42%, as of October 4.
At the end of Q2 2022, 17 hedge funds in Insider Monkey’s database owned stakes in Simmons First National Corporation (NASDAQ:SFNC), up from 11 in the previous quarter. The total value of these stakes is over $42.4 million. Among these hedge funds, Citadel Investment Group owned the largest position in the company.
1. Public Service Enterprise Group Incorporated (NYSE:PEG)
Dividend Yield as of October 4: 3.71%
Public Service Enterprise Group Incorporated (NYSE:PEG) is a New Jersey-based electric services company that provides sustainable energy services to its consumers. The company has raised its dividends 18 times in the past 19 years. Moreover, 2022 marked the company’s 115th consecutive year of consistent dividend payment. It currently pays a quarterly dividend of $0.54 per share, with a dividend yield of 3.71%, as of October 4.
In August, Morgan Stanley raised its price target on Public Service Enterprise Group Incorporated (NYSE:PEG) to $81 with an Overweight rating on the shares, as the firm presented a positive outlook on clean energy stocks.
As of the close of Q2 2022, 31 hedge funds tracked by Insider Monkey owned stakes in Public Service Enterprise Group Incorporated (NYSE:PEG), the same as in the previous quarter. These stakes hold a collective value of over $825 million. Ken Griffin and Israel Englander were some of the company’s major stakeholders in Q2.
You can also take a look at 10 Best Diversified Dividend Stocks to Buy Now and 11 Best Dividend Paying Stocks Under $50
