In this article, we discuss 5 best diversified dividend stocks to buy now. If you want to read our detailed analysis of best dividend stocks and their returns over the years, go directly to read 10 Best Diversified Dividend Stocks to Buy Now.
5. Emerson Electric Co. (NYSE:EMR)
Dividend Yield as of October 3: 2.81%
Emerson Electric Co. (NYSE:EMR) is a Missouri-based multinational company that manufactures products related to industrial, commercial, and consumer markets. In fiscal Q3 2022, the company reported an operating cash flow of $740 million, up from $442 million in the previous quarter. The company’s free cash flow came in at $630 million, compared with $333 million a quarter earlier. Its revenue of $5 billion showed a 7% year-over-year growth.
Emerson Electric Co. (NYSE:EMR) holds one of the longest dividend growth track records, having raised its dividends consistently for the past 65 years. It currently pays a quarterly dividend of $0.515 per share and has a dividend yield of 2.81%, as recorded on October 3.
In August, Argus lifted its price target on Emerson Electric Co. (NYSE:EMR) to $98 with a Buy rating on the shares, appreciating the company’s strong quarterly earnings and its balance sheet. Moreover, the firm also acknowledged the company’s one of the longest dividend growth streaks.
The number of hedge funds tracked by Insider Monkey owning stakes in Emerson Electric Co. (NYSE:EMR) grew to 47 in Q2 2022, from 45 a quarter earlier. These stakes hold a collective value of over $1.25 billion. Citadel Investment Group was the company’s leading stakeholder in Q2.
4. Corning Incorporated (NYSE:GLW)
Dividend Yield as of October 3: 3.72%
Corning Incorporated (NYSE:GLW) is an American multinational company that operates through different businesses, including technology, materials, and communications. In September, Susquehanna maintained a Positive rating on the stock with a $40 price target, highlighting the company’s earnings and its guidance in the recent quarter.
In Q2 2022, Corning Incorporated (NYSE:GLW)’s cash position remained stable as it generated $758 million in operating cash flow, up from $534 million in the previous quarter. Its free cash flow stood at $440 million, compared with $151 million in the preceding quarter. The company’s revenue for the quarter came in at $3.76 billion, showing a 7.4% growth from the same period last year.
Corning Incorporated (NYSE:GLW) has been raising its dividends consistently for the past 11 years. It currently pays a quarterly dividend of $0.27 per share and has a dividend yield of 3.72%, as of October 3.
As of the end of June 2022, 34 hedge funds tracked by Insider Monkey owned stakes in Corning Incorporated (NYSE:GLW), compared with 43 a quarter earlier. These stakes hold a collective value of nearly $320 million.
3. Unilever PLC (NYSE:UL)
Dividend Yield as of October 3: 4.28%
Unilever PLC (NYSE:UL) is a London-based consumer goods company that operates through various segments, including beauty, food, and personal care. The company is one of the largest producers of soap in the world. In Q2 2022, the company’s operating cash flow came in at roughly $8 billion. Its free cash flow stood at €2.2 billion, down from €2.4 billion during the same period last year. The company’s revenue of €30 billion showed a 14.8% year-over-year growth.
Unilever PLC (NYSE:UL) has raised its dividends at a CAGR of 4.63% in the past five years. It currently pays a quarterly dividend of $0.4343 per share and has a dividend yield of 4.28%, as of October 3.
In September, Berenberg upgraded Unilever PLC (NYSE:UL) to Buy with a price target of 4,800 GBP, up from 4,000 GBP. The firm appreciated the company’s organic growth and improvement in its pricing actions.
At the end of Q2 2022, 21 hedge funds in Insider Monkey’s database owned stakes in Unilever PLC (NYSE:UL), compared with 23 in the previous quarter. These stakes hold a total value of over $813.3 million. Gardner Russo & Gardner was the company’s leading stakeholder in Q2.
Polen Capital mentioned Unilever PLC (NYSE:UL) in its Q2 2022 investor letter. Here is what the firm has to say:
“Multinational consumer goods company Unilever PLC (NYSE:UL) showed robust price increases overall, with minimal impact on volume, resulting in faster-than-expected sales growth during the quarter. Indeed, higher inflation can be a positive change for companies with favorable brands like Unilever as these conditions make it easier for the biggest brands to raise prices, continue spending on advertising, and take share. We believe the appointment of an activist investor to Unilever’s board in June will help spur additional growth.”
2. 3M Company (NYSE:MMM)
Dividend Yield as of October 3: 5.39%
3M Company (NYSE:MMM) is a Minnesota-based multinational conglomerate that operates in the field of industry, healthcare, and consumer goods. In October, Barclays maintained its Underweight rating on the stock with a $130 price target. The firm expressed concerns regarding the company’s performance in the current economic landscape.
3M Company (NYSE:MMM) has been making consecutive dividend payments for the past 100 years and has raised its payouts consistently for the past 64 years. This qualifies the company as one of the best dividend stocks on our list. It currently pays $1.42 per share in quarterly dividends and has a dividend yield of 5.39%, as of October 3.
In Q2 2022, 3M Company (NYSE:MMM) reported $1.1 billion in operating cash flow, up from $1.01 billion in the previous quarter. The company’s free cash flow grew to $743 million, from $587 million a quarter earlier. During the quarter, it paid nearly $800 million to shareholders in dividends.
At the end of Q2 2022, 54 hedge funds in Insider Monkey’s database owned stakes in 3M Company (NYSE:MMM), up from 51 in the previous quarter. These stakes are collectively valued at over $1.38 billion. Ken Fisher, Jim Simons, and Cliff Asness were some of the company’s major stakeholders in Q2.
Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.
1. Deswell Industries, Inc. (NASDAQ:DSWL)
Dividend Yield as of October 3: 6.45%
Deswell Industries, Inc. (NASDAQ:DSWL) is a Macao-based company that manufactures injection-modeled plastic parts, electronic products, subassemblies, and metallic products. The company currently pays a quarterly dividend of $0.10 per share and has a dividend yield of 6.45%, as recorded on October 3.
In the second half of 2022, Deswell Industries, Inc. (NASDAQ:DSWL) reported revenue of $45.7 million, up 22.8% from the same period last year. The company had $13.5 million available in cash and cash equivalents and over $64 million in working capital. Its total current assets amount to nearly $88 million.
You can also take a look at 11 Best Dividend Paying Stocks Under $50 and 10 Best Cheap Dividend Stocks to Buy Now
