In this article, we discuss 5 best dividend-paying stocks to buy now. If you want to read our detailed analysis of dividend stocks and their returns, go directly to read 11 Best Dividend Paying Stocks To Buy Now.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 91
Dividend Yield as of September 26: 1.30%
UnitedHealth Group Incorporated (NYSE:UNH) is a Minnesota-based multinational managed healthcare and insurance company that provides insurance services and healthcare products to its consumers. The company has been paying uninterrupted quarterly dividends since 2010 and paid annual dividends before that for 20 years. Currently, it pays a quarterly dividend of $1.65 per share, with a dividend yield of 1.30%, as of September 26.
In September, Raymond James raised its price target on UnitedHealth Group Incorporated (NYSE:UNH) to $635 with a Strong Buy rating on the shares, as the company’s deal with Change Healthcare reaches its final stage.
At the end of Q2 2022, 91 hedge funds in Insider Monkey’s database owned stakes in UnitedHealth Group Incorporated (NYSE:UNH) in Q2, with a total value of roughly $11 billion. GQG Partners owned $1.6 billion worth of stakes in the company, becoming its leading stakeholder in Q2 2022.
Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2022 investor letter. Here is what the firm has to say:
“UnitedHealth Group Incorporated is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and health care services arm, Optum, which offers care delivery and other services. Shares increased 1.1% on strong first quarter results (revenues were up 14% year-over-year), and the company increased its annual guidance.
The performance was driven by Optum as a result of a growing adoption of value-based solutions. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
4. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 99
Dividend Yield as of September 26: 3.75%
Bank of America Corporation (NYSE:BAC) is one of America’s leading multinational investment bank and financial services holding companies. The bank’s CEO has announced to initiate its digital investments and cryptocurrency research to extend its digital leadership into the future. The bank plans to invest nearly $3.5 billion to enhance its platform.
On July 20, Bank of America Corporation (NYSE:BAC) announced the hike of its quarterly dividend by 5%. Through this increase, the company extended its dividend growth to nine years. It currently offers a quarterly dividend of $0.22 per share, with a dividend yield of 3.75%, as of September 26.
Deutsche Bank mentioned Bank of America Corporation (NYSE:BAC) in its investors’ note and maintained its Buy rating on the stock, as the firm sees upside in the banking sector after underperforming for weeks.
At the end of Q2 2022, 99 hedge funds tracked by Insider Monkey owned stakes in Bank of America Corporation (NYSE:BAC), the same as in the previous quarter. The combined value of these stakes is roughly $36 billion. Warren Buffett and Ken Griffin were some of the company’s most prominent stakeholders in Q2.
Miller Value Partners mentioned Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter. Here is what the firm had to say:
“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.
A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).
We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
Dividend Yield as of September 26: 2.84%
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based multinational investment banking and financial services company. This year so far, the company has held its top position as a global investment banking revenue generator as its equity capital markets revenue and the US marketed loans revenue remain unchanged from the year-ago period. Year-to-date, the company’s revenue came in at $4.5 billion, which represented 8.1% of the global banking revenue.
On September 20, JPMorgan Chase & Co. (NYSE:JPM) declared a quarterly dividend of $1.00 per share, in line with its previous dividend. The company maintains a 7-year streak of consistent dividend growth. The stock’s dividend yield came in at 3.75%, as of September 26.
In September, Deutsche Bank maintained its Buy rating on JPMorgan Chase & Co. (NYSE:JPM) with a $155 price target, highlighting the company’s performance in the current economic landscape.
As of the close of Q2 2022, 104 hedge funds tracked by Insider Monkey owned stakes in JPMorgan Chase & Co. (NYSE:JPM), falling from 110 in the previous quarter. These stakes hold a combined value of over $5.8 billion, compared with $5 billion worth of stakes owned by hedge funds in the previous quarter.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Dividend Yield as of September 26: 0.61%
Apple Inc. (NASDAQ:AAPL) is a California-based tech giant which is widely known for its consumer electronics and other tech-related services. On September 26, JPMorgan highlighted the continued strong sales volumes of the company’s new iPhone 14. The firm mentioned that this new product is expected to fare better than the previous model. The firm maintained its Overweight rating on the stock.
Apple Inc. (NASDAQ:AAPL) currently pays a quarterly dividend of $0.23 per share and has a dividend yield of 0.61%, as of September 26. The company has been raising its dividends consistently for the past nine years and has a five-year dividend CAGR of 8.45%.
In fiscal Q3 2022, Apple Inc. (NASDAQ:AAPL) reported an operating cash flow of roughly $23 billion, up from $21 billion in the same period last year. Its free cash flow came in at $20.7 billion, compared with $19 billion in the prior-year quarter. During the quarter, the company returned $28 billion to shareholders and announced its plans to invest in its long-term growth plans.
With over $122.3 billion worth of stake, Berkshire Hathaway was the largest stakeholder of Apple Inc. (NASDAQ:AAPL) in Q2 2022. In addition to this, 128 hedge funds tracked by Insider Monkey owned stakes in the company in Q2, valued at over $143 billion.
Alger Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter. Here is what the firm has to say:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Dividend Yield as of September 26: 1.15%
Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech company that specializes in a wide range of computer software and consumer electronics. Recently, the company’s management showed confidence in its $69 billion acquisition of Activision Blizzard. The deal was proposed to enhance the company’s cloud-based gaming segment.
On September 20, Microsoft Corporation (NASDAQ:MSFT) declared a 10% hike in its quarterly dividend to $0.68 per share. This marked the company’s 16th consecutive year of dividend growth. As of September 26, the stock’s dividend yield came in at 1.15%.
On September 22, Morgan Stanley raised its price target on Microsoft Corporation (NASDAQ:MSFT) to $354 with an Overweight rating on the shares, highlighting the company’s expanding solution portfolio. The firm also mentioned that the company is able to sustain strong demand.
At the end of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among hedge funds, with 258 funds taking up investments in the company, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $56 billion.
Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter. Here is what the firm has to say:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.
As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”
You can also take a look at 10 Best Dividend Growth Stocks to Buy Now and 10 Quality Stocks With Dividend Yields Over 2%
