In this article, we discuss 5 best American dividend stocks to buy now. If you want to see more best American dividend stocks to buy now, the risk/reward, and methodology of this list, go directly to 14 Best American Dividend Stocks to Buy Now.
5. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 97
Dividend Yield as of 3/4: 1.04%
S&P Global Inc. (NYSE:SPGI) is a leading financial data firm that ranks #5 on our list of 14 Best American Dividend Stocks to Buy Now given 97 hedge funds in our database owned shares of the company at the end of Q4. In terms of its dividend, S&P Global Inc. (NYSE:SPGI) has raised its annual dividend for 51 consecutive years and the company has also paid a dividend each year since 1937. In January 2023, S&P Global Inc. (NYSE:SPGI)’s board of directors approved a 6.4% increase in the quarterly cash dividend, giving the company a quarterly dividend of $0.90 per share.
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/4: 2.78%
JPMorgan Chase & Co. (NYSE:JPM) is regarded by many as one of the best big four banks in the United States. For its full year 2022, the company had net income of $37.7 billion including fourth quarter net income of $11 billion. In terms of the LTM according to its 2022 report, JPMorgan Chase & Co. (NYSE:JPM) had a net payout ratio of 37%, which indicates substantial dividend coverage and potential for dividend increases in the future if the bank maintains or increases its profitability. As of 3/4, JPMorgan Chase & Co. (NYSE:JPM) had a dividend yield of 2.78%.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/4: 2.58%
Bank of America Corporation (NYSE:BAC) is another of the big four banks with a fairly attractive dividend yield of 2.58% and substantial dividend coverage given its payout ratio of 26.8% according to FINVIZ.com. In terms of the future, FINVIZ.com has an EPS next year of $3.69 versus Bank of America Corporation (NYSE:BAC)’s annual dividend of $0.88. Although its EPS could decrease if there is an economic slowdown, Bank of America Corporation (NYSE:BAC)’s dividend has potential to increase in the long term if the bank can maintain market share.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Dividend Yield as of 3/4: 0.61%
Apple Inc. (NASDAQ:AAPL) ranks #2 on our list of 14 Best American Dividend Stocks to Buy Now given 135 hedge funds in our database owned shares of the company at the end of Q4. Although it is perhaps more well known for its substantial share repurchases in the past decade, Apple Inc. (NASDAQ:AAPL) has also increased its annual dividend for 11 straight years given earnings growth from the increasing popularity of its iPhones. In the future, Apple Inc. (NASDAQ:AAPL) could also be a potential metaverse play as well. For those of you interested, check out 10 Most Promising Metaverse Stocks to Buy.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of 3/4: 1.07%
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 14 Best American Dividend Stocks to Buy Now given 259 hedge funds in our database owned shares of the computer software giant at the end of the fourth quarter. Given its earnings growth over the long term, Microsoft Corporation (NASDAQ:MSFT) has raised its annual dividend for 20 consecutive years, giving the company one of the longest dividend raising histories among tech companies. As of 3/4, Microsoft Corporation (NASDAQ:MSFT) has a dividend yield of 1.07%.
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