In this article, we discuss 5 best annual dividend stocks to buy now. If you want to see more best annual dividend stocks to buy now, the risk/reward, and methodology of this list, go directly to 13 Best Annual Dividend Stocks to Buy Now.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Dividend Yield as of 3/6: 2.91%
Johnson & Johnson (NYSE:JNJ) is a leading healthcare giant with substantial financial resources given its scale and profitability. In 2022, for instance, Johnson & Johnson (NYSE:JNJ) deployed over $17 billion in M&A including the acquisition of Abiomed and the company also raised its annual dividend for the 60th straight year. In combination with its dividend, Johnson & Johnson (NYSE:JNJ) returned more than $14 billion to shareholders. In terms of the future for its dividend, Johnson & Johnson (NYSE:JNJ) said, “We know investors value our dividend, and as a part of the consumer health separation, we intend, at a minimum, to maintain that dividend.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/6: 2.80%
JPMorgan Chase & Co. (NYSE:JPM) ranks #4 on our list of 13 Best Annual Dividend Stocks to Buy Now given 100 hedge funds in our database owned shares of the bank at the end of Q4. Although JPMorgan Chase & Co. (NYSE:JPM) could face headwinds if the economy slows, the bank has a strong enough balance sheet that management believes could allow it to potentially begin repurchasing shares this year. With the share repurchases, JPMorgan Chase & Co. (NYSE:JPM)’s annual dividend could also increase if the economy doesn’t slow too much.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/6: 2.58%
Bank of America Corporation (NYSE:BAC) is one of the big four American banks in the United States with an annual dividend of $0.88 per share and a dividend yield of 2.58% as of March 6. In terms of its dividend, Bank of America Corporation (NYSE:BAC) is committed to it as they said, “The strategy hasn’t changed. We’ve got, number one, support our clients. We’re going to, number two, invest in our growth. Then we plan to just sustain and grow our dividend.” Like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) earnings could decline if there is an economic slowdown or recession but nevertheless has long term growth potential.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Dividend Yield as of 3/6: 0.60%
Apple Inc. (NASDAQ:AAPL) is a tech giant that makes high end smartphones and computers that has raised its annual dividend for 11 straight years. For the December quarter, Apple Inc. (NASDAQ:AAPL)’s business continued to generate very strong cash flow and the company returned more than $25 billion to shareholders, including $3.8 billion in dividends and $19 billion through open market repurchases. Apple Inc. (NASDAQ:AAPL) ended the December quarter with $165 billion in cash and marketable securities.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of 3/6: 1.06%
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 13 Best Annual Dividend Stocks to Buy Now given 259 hedge funds in our database owned shares of the software giant at the end of Q4. The 259 hedge funds holding shares also make Microsoft Corporation (NASDAQ:MSFT) the most popular stock among hedge funds in our database as well. In addition to having strong growth potential in AI, Microsoft Corporation (NASDAQ:MSFT) is also a pretty decent dividend stock given it has raised its annual dividend for 20 straight years. For those of you interested, check out 10 High Growth AI Stocks to Buy.
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