In this article, we discuss 5 diversified dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 11 Best Diversified Dividend Stocks to Buy Now.
5. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 52
3M Company (NYSE:MMM) is an American multinational conglomerate company that manufactures a wide range of products belonging to different industries. In January, Mizuho maintained a Neutral rating on the stock with a $120 price target, highlighting the company’s fourth-quarter earnings.
3M Company (NYSE:MMM), one of the best dividend stocks on our list, currently offers a per-share dividend of $1.50 every quarter, having raised it by 0.7% on February 7. This increase took the company’s dividend growth streak to 65 years. The stock has a dividend yield of 5.91%, as of March 28.
Of the 973 hedge funds tracked by Insider Monkey in Q4 2022, 52 funds owned stakes in 3M Company (NYSE:MMM), up from 49 in the previous quarter. The collective value of these stakes is over $1.57 billion. AQR Capital Management was one of the company’s leading stakeholders in Q4.
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4. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 59
General Electric Company (NYSE:GE) is a Boston-based multinational company that operates in aviation, power, manufacturing, energy, and digital industries. The company’s cash position remained strong in Q4 2022 as it reported $4.6 billion in operating cash flow and its free cash flow came in at $4.3 billion. It is among the best dividend stocks on our list.
On February 10, General Electric Company (NYSE:GE) declared a quarterly dividend of $0.08 per share, which was in line with its previous dividend. The stock has a dividend yield of 0.34%, as of March 28.
General Electric Company (NYSE:GE) gained positive ratings from Street analysts due to its positive growth outlook. In March, both RBC Capital and BofA raised their price targets on the stock to $100 and $105, respectively.
The number of hedge funds tracked by Insider Monkey owning stakes in General Electric Company (NYSE:GE) grew to 59 in Q4 2022, from 53 a quarter earlier. These stakes have a total value of over $4.38 billion.
Vulcan Value Partners mentioned General Electric Company (NYSE:GE) in its recently-published Q4 2022 investor letter. Here is what the firm has to say:
“General Electric Company (NYSE:GE) recently spun off its health care businesses, General Electric HealthCare Technologies, which has leading market share positions in medical imaging products including MRI devices and CT scanners. General Electric’s remaining businesses include Aerospace and its Power and Renewables business. Aerospace is performing well and comprises the bulk of General Electric’s value in our opinion. We believe that the spin-off of General Electric HealthCare Technologies has highlighted the value of General Electric’s remaining business units. General Electric intends to spin out its Power and Renewables business unit early in 2024.”
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3. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 61
An American manufacturing company, Colgate-Palmolive Company (NYSE:CL) is next on our list of the best dividend stocks. The company specializes in the household, healthcare, and personal care sectors. It pays a quarterly dividend of $0.48 per share and has a dividend yield of 2.59%, as of March 28. The company has been raising its dividends consistently for the past 61 years.
In March, Deutsche Bank maintained a Buy rating on Colgate-Palmolive Company (NYSE:CL) with an $80 price target, presenting a conservative outlook for the consumer staples sector.
At the end of December 2022, 61 hedge funds in Insider Monkey’s database had stakes in Colgate-Palmolive Company (NYSE:CL), compared with 57 in the previous quarter. The consolidated value of these stakes is over $4.46 billion.
Third Point mentioned Colgate-Palmolive Company (NYSE:CL) in its Q4 2022 investor letter. Here is what the firm has to say:
“Colgate-Palmolive Company (NYSE:CL) remains one of the firm’s largest equity positions. The company offers defensive growth at a reasonable valuation, and we continue to see the potential for shares to deliver attractive risk adjusted returns over the next several years.
Fourth Quarter results were disappointing. The company missed on gross margins, guided 2023 well below the Street, and took another large impairment charge on its portfolio of skin care brands. The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade.”
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2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Johnson & Johnson (NYSE:JNJ) operates in a wide range of industries, including healthcare, consumer packaged goods, and medical devices. The company has been raising its dividends consistently for the past 61 years and pays a quarterly dividend of $1.13 per share. As of March 28, the stock has a dividend yield of 2.95%.
Guggenheim initiated its coverage of Johnson & Johnson (NYSE:JNJ) with a Neutral rating in March with a $161 price target, appreciating the company’s business model and growth in its MedTech segment.
As per Insider Monkey’s database for Q4 2022, 84 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ) with a total value of over $5.5 billion. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q4.
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1. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 88
Danaher Corporation (NYSE:DHR) tops our list of the best dividend stocks to buy now. The company manufactures products related to the medical, commercial, and industrial sectors. The company offers a quarterly dividend of $0.27 per share, having raised it by 8% on February 22. This was the company’s ninth consecutive year of dividend growth. The company’s shares have a yield of 0.44%, as of March 28.
Danaher Corporation (NYSE:DHR) was a part of 88 hedge fund portfolios in Q4 2022, as per Insider Monkey’s database. The stakes owned by these funds have a total value of over $5.4 billion.
Stewart Asset Management mentioned Danaher Corporation (NYSE:DHR) in its Q3 2022 investor letter. Here is what the firm has to say:
“We also need to point out one global consequence of the rapid rise in interest rates: an irrepressibly strong dollar. This hurts the reported earnings of U.S. companies who sell their goods and services overseas. Foreign currency earnings translate into fewer dollars and thus lower earnings. Most of the companies in your portfolios gain a notable amount of earnings from their international operations. While the strength or weakness of a currency doesn’t change the quality of a business or its longer-term earnings power, it can change the reported earnings of a company over short periods of time. It is difficult to forecast this effect accurately because many of our companies manufacture where they sell, which to some extent dulls the sharp negative effect of a surging dollar. Danaher (NYSE:DHR), among others, is a good example.”
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Follow Danaher Corp (NYSE:DHR)
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