In this article, we will be looking at the 5 best blue chip dividend stocks hedge funds are buying. If you want to see our detailed analysis of blue-chip stocks, and dividend investing, go directly to the 10 Best Blue Chip Dividend Stocks Hedge Funds Are Buying.
5. Comcast Corporation (NASDAQ: CMCSA)
Number of Hedge Fund Holders: 88
Dividend Yield: 1.73%
Number of Years of Consistent Dividend Growth: 13
Comcast Corporation (NASDAQ: CMCSA) is a media and technology company operating worldwide to provide cable services, internet, streaming services, and other related services. It ranks 5th on our list of the best blue chip dividend stocks hedge funds are buying.
This July, Benchmark analyst Matthew Harrigan raised the firm’s price target on Comcast Corporation (NASDAQ: CMCSA) shares to $72, retaining a Buy rating on the stock, adding that the Tokyo Olympics are expected to boost Comcast Corporation (NASDAQ: CMCSA) owned Peacock’s performance.
In the first quarter of 2021, Comcast Corporation (NASDAQ: CMCSA) had an EPS of $0.76, beating estimates by $0.18. The company’s revenue was $27.20 billion, up 2.24% year over year and beating estimates by $465.18 million. Comcast Corporation (NASDAQ: CMCSA) has also gained 18.65% in the past 6 months and 14.37% year to date.
By the end of the first quarter of 2021, 88 hedge funds out of the 866 tracked by Insider Monkey held stakes in Comcast Corporation (NASDAQ: CMCSA) worth roughly $9.76 billion. This is compared to 84 hedge funds in the previous quarter with stakes worth about $8.83 billion.
Nelson Capital Management, an investment management firm, has mentioned Comcast Corporation (NASDAQ: CMCSA) in its first-quarter 2021 investor letter. Here’s what they said:
“Comcast is the Largest cable provider in t he U.S. and is the dominant internet access provider in the markets it serves. Though Comcast will likely see further declines in cable subscriptions due to ongoing cord-cutting, it should be able to off set that lost revenue by growing internet access customers and instituting higher pricing. The pandemic has increased the importance of a fast internet connection, with more content streaming to homes at increasingly higher quality. Comcast made significant upgrades early on, allowing it to quickly deploy new technology and increase speeds to meet t he evolving needs of its customers.”
4. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 89
Dividend Yield: 1.4%
Number of Years of Consistent Dividend Growth: 11
UnitedHealth Group Incorporated (NYSE: UNH) is an American healthcare company operating to provide consumer-oriented health benefit plans and services, Medicaid plans, children’s health insurance programs, and other related products and services. It ranks 4th on our list of the best blue chip dividend stocks hedge funds are buying.
This July, UnitedHealth Group Incorporated (NYSE: UNH) raised its full-year net earnings view to $17.35-$17.85 per share, while raising its EPS view to $18.30-$18.80 per share in light of its performance in the first half of 2021. Seaport Global has also initiated coverage of UnitedHealth Group Incorporated (NYSE: UNH) shares with a Buy rating and a $450 price target.
In the first quarter of 2021, UnitedHealth Group Incorporated (NYSE: UNH) had an EPS of $5.31, beating estimates by $0.93. The company’s revenue was $70.20 billion, up 8.96% year over year and beating estimates by $1.10 billion. UnitedHealth Group Incorporated (NYSE: UNH) has gained 18.06% in the past 6 months and 18.67% year to date.
By the end of the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in UnitedHealth Group Incorporated (NYSE: UNH) worth roughly $12.09 billion. This is compared to 91 hedge funds in the previous quarter with stakes worth about $10.77 billion.
ClearBridge Investments, an investment management firm, mentioned UnitedHealth Group Incorporated (NYSE: UNH) in its first-quarter 2021 investor letter. Here’s what they said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
3. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 111
Dividend Yield: 2.32%
Number of Years of Consistent Dividend Growth: 10
JPMorgan Chase & Co. (NYSE: JPM) is a global financial services company operating through four segments, namely Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset & Wealth Management. It ranks 3rd on our list of the best blue chip dividend stocks hedge funds are buying.
This July, Credit Suisse raised its price target on JPMorgan Chase & Co. (NYSE: JPM) from $170 to $177, keeping an Outperform rating on the shares. Analyst Susan Roth Katzke commented that the company’s Q2 EPS was well about her $2.85 estimate and even the estimate of Visible Alpha consensus ($3.18).
In the second quarter of 2021, JPMorgan Chase & Co. (NYSE: JPM) had an EPS of $3.78, beating estimates by $0.62. The company’s revenue was $30.48 billion, also beating estimates by $762.45 million. JPMorgan Chase & Co. (NYSE: JPM) has also gained 11.89% in the past 6 months and 23.24% year to date.
By the end of the first quarter of 2021, 111 hedge funds out of the 866 tracked by Insider Monkey held stakes in JPMorgan Chase & Co. (NYSE: JPM) worth roughly $5.25 billion. This is compared to 112 hedge funds in the previous quarter with stakes worth about $6.96 billion.
2. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 164
Dividend Yield: 0.52%
Number of Years of Consistent Dividend Growth: 13
Visa Inc. (NYSE: V) is a data processing and outsourced services company operating in the information technology sector to provide payments technology across the world. The company facilitates digital payments for its consumers, and any merchants, financial institutions, businesses, strategic partners, and government entities that use its services. It ranks 2nd on our list of the best blue chip dividend stocks hedge funds are buying.
This July, Evercore ISI added Visa Inc. (NYSE: V) to its Tactical Outperform List, while Baird has also raised its price target on the company’s shares from $282 to $305.
In the fiscal second quarter of 2021, Visa Inc. (NYSE: V) had an EPS of $1.38, beating estimates by $0.11. The company’s revenue was $5.73 billion, also beating estimates by $175.03 million. Visa Inc. (NYSE: V) has gained 22.02% in the past 6 months and 12.96% year to date.
By the end of the first quarter of 2021, 164 hedge funds out of the 866 tracked by Insider Monkey held stakes in Visa Inc. (NYSE: V) worth roughly $26.5 billion. This is compared to 166 hedge funds in the previous quarter with stakes worth about $23.5 billion.
ClearBridge Investments, an investment management firm, mentioned Visa Inc. (NYSE: V) in its first-quarter 2021 investor letter. Here’s what they said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
1. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 251
Dividend Yield: 0.8%
Number of Years of Consistent Dividend Growth: 19
Microsoft Corporation (NASDAQ: MSFT) is an information technology company that develops, licenses, and supports software, services, devices, and solutions for consumers across the world. It ranks 1st on our list of the best blue chip dividend stocks hedge funds are buying.
This July, Morgan Stanley’s Keith Weiss cited the firm’s Q2 CIO survey to claim that Microsoft Corporation (NASDAQ: MSFT) is still leading IT wallet share gainers, and kept the stock as a top pick with an Overweight rating and a $300 price target on Microsoft Corporation (NASDAQ: MSFT) shares.
In the fiscal third quarter of 2021, Microsoft Corporation (NASDAQ: MSFT) had an EPS of $1.95, beating estimates by $0.17. The company’s revenue was $41.71 billion, up 19.09% year over year and beating estimates by $852.09 million. Microsoft Corporation (NASDAQ: MSFT) has gained 32.85% in the past 6 months and 29.78% year to date as well.
By the end of the first quarter of 2021, 251 hedge funds out of the 866 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ: MSFT) worth roughly $58.9 billion. This is compared to 251 hedge funds in the previous quarter with stakes worth about $52.8 billion.
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