5 Best Consumer Cyclical Dividend Stocks To Invest In

In this article, we discuss 5 best consumer cyclical dividend stocks to invest in. If you want to read our detailed analysis of the consumer cyclical sector and its performance over the years, go directly to read 13 Best Consumer Cyclical Dividend Stocks To Invest In. 

6. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 62

The TJX Companies, Inc. (NYSE:TJX) is a leading off-price retailer and offers a wide range of brand-name and designer merchandise at discounted prices. The company’s off-price business model involves purchasing excess inventory, canceled orders, and closeout merchandise from manufacturers and other retailers at a discounted price, then selling these items to consumers at lower prices. The company currently pays a quarterly dividend of $0.3325 per share and has a dividend yield of 1.37%, as of February 21. It has been growing its dividends for the past 27 years. The company ranks sixth on our list of the best dividend stocks from the consumer cyclical sector.

As of Q4 2023, 62 hedge funds in Insider Monkey’s database reported having stakes in The TJX Companies, Inc. (NYSE:TJX), compared with 71 in the previous quarter. The consolidated value of these stakes is over $2.27 billion.

5. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 63

McDonald’s Corporation (NYSE:MCD) operates a vast network of franchised and company-owned fast-food restaurants globally. On February 8, the company declared a quarterly dividend of $1.67 per share, which was consistent with its previous dividend. The company’s dividend growth streak spans over 47 years, which makes MCD one of the best dividend stocks from the consumer cyclical sector. The stock has a dividend yield of 2.28%, as of February 21.

At the end of Q4 2023, 63 hedge funds in Insider Monkey’s database reported having stakes in McDonald’s Corporation (NYSE:MCD), compared with 70 in the previous quarter. The collective value of these stakes is over $20.9 billion. With roughly 1.8 million shares, Citadel Investment Group was the company’s leading stakeholder in Q4.

4. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is a leading home improvement retailer operating primarily in the US and Canada. The company operates a chain of retail stores that offer a wide range of home improvement products. It currently offers a quarterly dividend of $1.10 per share and has a dividend yield of 1.95%, as of February 21. It is one of the best dividend stocks on our list as the company has been growing its dividends for the past 59 consecutive years.

The number of hedge funds tracked by Insider Monkey owning stakes in Lowe’s Companies, Inc. (NYSE:LOW) jumped to 68 in Q4 2023, from 63 in the previous quarter. The consolidated value of these stakes is over $3.7 billion.

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 69

NIKE, Inc. (NYSE:NKE) is next on our list of the best dividend stocks from the consumer cyclical sector. The multinational corporation mainly designs, develops, manufactures, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company offers a quarterly dividend of $0.37 per share, having raised it by 8.8% in November 2023. It holds a 22-year track record of consistent dividend growth. The stock’s dividend yield on February 21 came in at 1.43%.

Insider Monkey’s database of Q4 2023 indicated that 69 hedge funds owned stakes in NIKE, Inc. (NYSE:NKE), which remained unchanged from the previous quarter. These stakes have a collective value of more than $3.53 billion. With roughly 10 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.

2. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 70

An American home improvement company, The Home Depot, Inc. (NYSE:HD) announced a 7.7% hike in its quarterly dividend to $2.25 per share on February 20. Through this increase, the company achieved its 14th consecutive annual dividend hike, which makes HD one of the best dividend stocks from the consumer cyclical sector. As of February 21, the stock has a dividend yield of 2.31%.

At the end of December 2023, 70 hedge funds in Insider Monkey’s database reported having stakes in The Home Depot, Inc. (NYSE:HD), down from 76 in the preceding quarter. The collective value of these stakes is roughly $6 billion.

You can also take a look at 15 Best Large-Cap Stocks to Buy in 2024 and 12 Best Blue Chip Stocks To Invest In According to Hedge Funds