5 Best Dividend Paying Debt Free Stocks to Buy

In this article, we discuss 5 best dividend-paying debt free stocks to buy. If you want to read our detailed analysis of dividend stocks and their previous performance, go directly to read 11 Best Dividend Paying Debt Free Stocks to Buy. 

5. Garmin Ltd. (NYSE:GRMN)

Number of Hedge Fund Holders: 27

Garmin Ltd. (NYSE:GRMN) is a Kansas-based tech company that specializes in the design and manufacturing of a wide range of wireless devices. On February 23, the company declared a 3% hike in its quarterly dividend to $0.75 per share. This was the company’s fourth consecutive year of dividend growth. The stock has a dividend yield of 1.76%, as of May 8.

The number of hedge funds tracked by Insider Monkey owning stakes in Garmin Ltd. (NYSE:GRMN) grew to 27 in Q4 2023, from 22 in the previous quarter. The collective value of these stakes is over $555 million. With over 2.2 million shares, Select Equity Group was the company’s leading stakeholder in Q4.

4. T. Rowe Price Group, Inc. (NASDAQ:TROW)

Number of Hedge Fund Holders: 32

T. Rowe Price Group, Inc. (NASDAQ:TROW) is a global investment management company that provides a wide range of investment products and services to individual and institutional investors. On May 7, the company declared a quarterly dividend of $1.24 per share, which was consistent with its previous dividend. Overall, the company holds a 38-year streak of consistent dividend growth. With a dividend yield of 4.44% as of May 8, TROW is one of the best debt free stocks on our list.

T. Rowe Price Group, Inc. (NASDAQ:TROW) was a popular buy among elite funds as hedge fund positions grew to 32 in Q4 2023, from 24 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $637.5 million.

3. A. O. Smith Corporation (NYSE:AOS)

Number of Hedge Fund Holders: 33

A. O. Smith Corporation (NYSE:AOS) is next on our list of the best debt free stocks to buy. The global manufacturing company currently pays a quarterly dividend of $0.32 per share for a dividend yield of 1.50%, as of May 8. The company holds a 30-year track record of consistent dividend growth.

At the end of December 2023, 33 hedge funds in Insider Monkey’s database owned stakes in A. O. Smith Corporation (NYSE:AOS), down from 37 in the preceding quarter. These stakes are valued at over $887.6 million. With over 3.5 million shares, Impax Asset Management was the company’s leading stakeholder in Q4.

2. Cincinnati Financial Corporation (NASDAQ:CINF)

Number of Hedge Fund Holders: 33

Cincinnati Financial Corporation (NASDAQ:CINF) is an American insurance company that offers property and casualty insurance services. The company currently offers a quarterly dividend of $0.81 per share, having raised it by 8% in January this year. This was the company’s 63rd consecutive year of dividend growth. The stock has a dividend yield of 2.76%, as recorded on May 8.

As per Insider Monkey’s database of Q4 2023, 33 hedge funds held stakes in Cincinnati Financial Corporation (NASDAQ:CINF), up from 31 in the previous quarter. These stakes are worth over $700 million in total.

1. The New York Times Company (NYSE:NYT)

Number of Hedge Fund Holders: 39

The New York Times Company (NYSE:NYT) tops our list of the best debt free stocks that pay dividends. The American mass media company currently pays a quarterly dividend of $0.13 per share, growing it by 18.2% in February 2024. Through this increase, the company stretched its dividend growth streak to six years. The stock supports a dividend yield of 1.09%, as of May 8.

At the end of December 2023, 39 hedge funds tracked by Insider Monkey owned stakes in The New York Times Company (NYSE:NYT), up from 33 in the preceding quarter. These stakes are worth over $2.2 billion in total. With over 9.4 million shares, Farallon Capital was the company’s leading stakeholder in Q4.

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