5 Best Dividend Leaders to Buy According to Hedge Funds

1. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 85

Dividend Yield as of February 3: 3.98%

Citigroup Inc. (NYSE:C) was founded in 1812 and is headquartered in New York. It is a diversified financial services holding company that provides financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. (NYSE:C) is one of the best dividend leaders to monitor. 

On January 12, Citigroup Inc. (NYSE:C) declared a quarterly dividend of $0.51 per share, in line with previous. The dividend is payable on February 24, to shareholders of record on February 6. Citigroup Inc. (NYSE:C)’s revenues of $18.0 billion in the fourth quarter of 2022 also increased 6%.

BofA analyst Ebrahim Poonawala on January 16 raised the firm’s price target on Citigroup Inc. (NYSE:C) to $60 from $52 and maintained a Buy rating on the shares following the Q4 results. The analyst believes management has done a “commendable job” over the last twelve months in building capital and executing on consumer business exits. 

According to Insider Monkey’s third quarter database, 85 hedge funds were bullish on Citigroup Inc. (NYSE:C), compared to 82 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with over 55 million shares worth $2.3 billion. 

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:

“Shares of Citigroup Inc. (NYSE:C) declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”

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