In this article, we discuss the 5 best dividend paying stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Dividend Paying Stocks to Buy Now.
5. Sysco Corporation (NYSE: SYY)
Number of Hedge Fund Holders: 42
Dividend Yield as of August 2: 2.53%
Sysco Corporation (NYSE: SYY) ranks 5th on the list of 10 best dividend paying stocks to buy now. The Texas-based firm sells food products, kitchen equipment, and tabletop items. Sysco Corporation (NYSE: SYY) pays an annual dividend of $1.88 per share and yields at 2.53%. The consumer goods firm has increased its annual dividend for the last 41 years.
UBS analyst Mark Carden started coverage on Sysco Corporation (NYSE: SYY) with a Buy rating on August 3, with a price target of $89 per share, stating that the company’s flexible balance sheet will be beneficial to restaurants post-COVID 19.
The company has a market cap of $37.44 billion. In the fiscal third quarter of 2021, Sysco Corporation (NYSE: SYY) reported an EPS of $0.22, beating estimates by $0.10. The company’s fiscal third-quarter revenue came in at $11.8 billion, beating estimates by $12.39 billion.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $2.72 billion in Sysco Corporation (NYSE: SYY), up from 40 hedge funds in the previous quarter holding stakes worth $2.51 billion.
Broyhill Asset Management mentioned Sysco Corporation (NYSE: SYY) in its Q1 2020 investor letter. Here is what the fund said:
“Sysco (SYY), the largest food distributor in the country, provides essential services to restaurants, grocery chains, and convenience stores. Although the company will likely face short-term challenges, we believe management has a generational opportunity to consolidate share amongst smaller operators who don’t have the cash or access to capital to survive. We purchased shares at the company’s lowest valuation in its history.”
4. The Coca-Cola Company (NYSE: KO)
Number of Hedge Fund Holders: 61
Dividend Yield as of August 2: 2.95%
The Coca-Cola Company (NYSE: KO) ranks 4th on the list of 10 best dividend-paying stocks to buy now. The Georgia-based multinational beverage company has been rewarding its investors with dividends since 1964. The Coca-Cola Company (NYSE: KO) has over 200 brands being distributed in over 200 countries. The Coca-Cola Company (NYSE: KO) pays an annual dividend of $1.68 per share and has a dividend yield of 2.95%.
The Coca-Cola Company (NYSE: KO) has soared 21% in the last twelve months. Truist analyst Bill Chappell raised The Coca-Cola Company’s (NYSE: KO) price target to $65 per share from $60 per share and kept its Buy rating on the stock. The analyst said in his note that the company’s long-term focus on profitability will be “rewarded.”
The company has a market cap of $245.53 billion. In the second quarter of 2021, The Coca-Cola Company (NYSE: KO) reported an EPS of $0.68, beating estimates of $0.55. The company’s second-quarter revenue came in at $10.1 billion, beating revenue estimates of $9.25 billion. Shares of The Coca-Cola Company (NYSE: KO) increased 3% year to date.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $24.9 billion in The Coca-Cola Company (NYSE: KO), down from 62 hedge funds in the previous quarter holding stakes worth $24.6 billion.
3. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 65
Dividend Yield as of August 2: 5.91%
Exxon Mobil Corporation (NYSE: XOM) ranks 3rd on the 10 best dividend-paying stocks to buy now. The Texas-based oil and gas corporation has over 12,000 branded stations in the United States. Exxon Mobil Corporation (NYSE: XOM) pays an annual dividend of $3.48 per share and yields at 5.91%. The American oil and gas firm has increased its annual dividend for the last 37 years.
The company has a market cap of $243.77 billion. In the second quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) reported an ex-items EPS of $1.10, beating estimates of $0.97. The company’s second-quarter revenue was $67.74 billion, beating revenue estimates of $65.02 billion. Shares of XOM jumped 32% over the last twelve months.
At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2.77 billion in Exxon Mobil Corporation (NYSE: XOM), up from 63 hedge funds in the previous quarter holding stakes worth $2.21 billion.
Harding Loevner mentioned Exxon Mobil Corporation (NYSE: XOM) in its Q1 2021 investor letter. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
2. AbbVie Inc. (NYSE: ABBV)
Number of Hedge Fund Holders: 72
Dividend Yield as of August 2: 4.47%
AbbVie Inc. (NYSE: ABBV) ranks 2nd on the list of 10 best dividend-paying stocks to buy now. The Illinois-based healthcare company manufactures pharmaceutical products namely Humira, Viekira, and Imbruvica. AbbVie Inc. (NYSE: ABBV) pays an annual dividend of $5.20 per share and yields at 4.47%. The American oil and gas firm has increased its annual dividend for the last 37 years.
Last year, AbbVie Inc. (NYSE: ABBV) purchased Allergan in a $63 billion deal. The acquisition will support the expansion of the company’s products in the market. Shares on AbbVie Inc. (NYSE: ABBV) jumped 22% in the last twelve months.
On August 3rd, Mizuho analyst Vamil Divan raised AbbVie Inc.’s (NYSE: ABBV) price target to $131 per share from $128 per share and reiterated its Buy rating on the stock. According to the analyst, AbbVie Inc. (NYSE: ABBV) delivered strong quarterly reports and is still trading lower than its peers.
The company has a market cap of $203.91 billion. The company’s second-quarter EPS was $3.11, beating consensus estimates by $0.02. AbbVie Inc. (NYSE: ABBV) reported revenue in the second quarter of 2021 was $13.96 billion, beating estimates of $13.63 billion. Shares of AbbVie Inc. (NYSE: ABBV) increased 7% year to date.
At the end of the first quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $5.92 billion in AbbVie Inc. (NYSE: ABBV), down from 83 hedge funds in the previous quarter holding stakes worth $6.97 billion.
1. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Dividend Yield as of August 2: 34.2%
Topping the list of 10 best dividend-paying stocks to buy now is American multinational company Johnson & Johnson (NYSE: JNJ). The New Jersey-based consumer goods manufacturer engages in the production of medical devices, pharmaceutical, and consumer-related goods. Johnson & Johnson (NYSE: JNJ) is one of the best dividend-paying stocks to buy now that started paying dividends in 1972. Johnson & Johnson (NYSE: JNJ) pays an annual dividend of $4.24 per share and yields at 2.46%.
In May, Morgan Stanley analyst David Risinger assumed coverage on Johnson & Johnson (NYSE: JNJ) with an Overweight rating and price target of $187 per share. The analyst believes that pharmaceuticals momentum will remain strong and the three segments of JNJ will deliver strong performance.
The company has a market cap of $452 billion. In the second quarter of 2021, Johnson & Johnson (NYSE: JNJ) reported an adjusted EPS of $2.48, beating estimates by $0.21. The company’s second-quarter revenue was $23.31 billion, beating consensus estimates of $22.19 billion.
At the end of the first quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $6.91 billion in Johnson & Johnson (NYSE: JNJ).
Amana Mutual Funds Trust mentioned Johnson & Johnson (NYSE: JNJ) in its Q1 2021 investor letter. Here is what the fund said:
“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth-quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”
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