In this article, we will take a look at the 5 best dividend stocks according to Jim Cramer. To see more such companies, go directly to 10 Best Dividend Stocks According To Jim Cramer.
5. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 55
Jim Cramer recently said in a program that Cisco Systems, Inc. (NASDAQ:CSCO) is a Buy. He said that Cisco Systems, Inc. (NASDAQ:CSCO) was recently getting Sell ratings after the company bought Splunk since Splunk was the biggest competitor of Datadog. Cramer however said these concerns were unfounded. Cramer was referring to an overall skepticism in the industry around Cisco Systems, Inc. (NASDAQ:CSCO)’s deal to buy Splunk. For example, Needham analyst Alex Henderson said in a note that the acquisition of Splunk will not solve Cisco Systems, Inc. (NASDAQ:CSCO)’s problems. The analyst thinks Cisco Systems, Inc. (NASDAQ:CSCO) has a “poor” track record handling synergies in the past.
Cisco Systems, Inc. (NASDAQ:CSCO) stock has a dividend yield of 3%.
A total of 55 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Cisco Systems, Inc. (NASDAQ:CSCO). The most significant stake in Cisco Systems, Inc. (NASDAQ:CSCO) was owned by Cliff Asness’s AQR Capital Management which owns a $568 million stake in the company.
ClearBridge Large Cap Value Strategy made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q2 2023 investor letter:
“Cisco Systems, Inc. (NASDAQ:CSCO), which provides IT and networking services in the form of network security, software development and cloud computing, traded down as enterprise customers showed signs of tightening their IT spending budgets and news of cybersecurity concerns, even while it beat expectations and raised its full-year guidance. Concerns over increased competition and share loss in its core verticals led us to exit our position during the quarter as we made several moves to add to existing higher-conviction holdings or initiate new positions that we find more compelling in the long term.”
4. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 60
Answering a question about Blackstone Inc. (NYSE:BX) in a Lightning Round on his program, Jim Cramer recently praised Blackstone Inc. (NYSE:BX)’s management and said that he “likes” to “invest” with them. He added that Blackstone Inc. (NYSE:BX) has come down enough but he is not as concerned as he was once. Over the past one year the stock has lost about 6% but on a year-to-date basis Blackstone Inc. (NYSE:BX) is up about 27%.
Hedge funds are also piling into Blackstone Inc. (NYSE:BX). As of the end of the second quarter of 2023, 60 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Blackstone Inc. (NYSE:BX), up from 45 hedge funds in the previous quarter. The biggest stakeholder of Blackstone Inc. (NYSE:BX) was Thomas Steyer’s Farallon Capital which owns a $284 million stake in the company.
Ithaka US Growth Strategy made the following comment about Blackstone Inc. (NYSE:BX) in its Q3 2023 investor letter:
“Blackstone Inc. (NYSE:BX) is one of the world’s leading alternative asset management firms with total Assets Under Management now in excess of $1 trillion. Over the past few decades Blackstone has evolved into one of the financial service industry’s largest asset gatherers, managing money on behalf of pension funds, insurance companies, and individual investors. The company remains at the forefront of financial innovation, broadening its product offering through time. Today, Blackstone invests clients’ capital across four business segments: (a) Real Estate, (b) Private Equity, (c) Hedge Fund Solutions, and (d) Credit & Insurance. The stock’s relative outperformance in the quarter was in part due to the announcement in early September that it would be added to the S&P 500.”
3. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 67
Last month Jim Cramer talked about how Costco Wholesale Corporation (NASDAQ:COST) was falling even after receiving several price target boosts. Cramer said Costco Wholesale Corporation (NASDAQ:COST) fell because the company did not offer any special dividend and did not announce price hikes for members. Earlier this year Cramer disclosed that Costco Wholesale Corporation (NASDAQ:COST) was part of his charitable trust’s portfolio. He said at the time that Costco Wholesale Corporation (NASDAQ:COST)’s problems would be resolved in a couple of months.
Earlier this month Costco Wholesale Corporation (NASDAQ:COST) said its net sales in October jumped 4.5% year over year to $18.53 billion from $17.73 billion reported last year.
Cooper Investors made the following comment about Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2023 investor letter:
“With the market rally in the first half of 2023 driving double digit returns we took the opportunity early in the quarter to reassess Value Latency embedded in the portfolio. The spotlight was on more highly valued stocks that represent some of our longest held positions and among the better performers over the years. The outcome is that we have exited several long-term positions at what we consider attractive prices, where the balance of Risk Adjusted Value Latency was no longer in our favour.
We remain admirers of these businesses and they remain on our watchlist, but the reality is their appeal is widely recognised today. Management have executed well on earnings growth, but returns have also come from substantial multiple re-ratings that we see as unlikely to reoccur from today’s higher base.
Costco Wholesale Corporation (NASDAQ:COST) was acquired in March 2015 at ~$150 and has more than tripled over its holding period to ~$550 today, delivering a total return with dividends reinvested of ~330% in USD or IRR of 20%. Over the journey the multiple re-rated from 25 times to ~35 times.”
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
Jim Cramer has long been a fan of The Procter & Gamble Company (NYSE:PG). In October the analyst counted The Procter & Gamble Company (NYSE:PG) among the names to own if the economy enters a recession. Cramer said that The Procter & Gamble Company (NYSE:PG) was a “textbook slowdown stock” to own that will grow even if the economy slows down.
Jim Cramer also believes The Procter & Gamble Company (NYSE:PG) is among the best of breed stocks. Read more on Cramer’s best of breed picks here.
ClearBridge Sustainability Leaders Strategy made the following comment about The Procter & Gamble Company (NYSE:PG) in its Q2 2023 investor letter:
“Reinforcing defensive exposure and pushing our consumer staples positioning from underweight to overweight the benchmark, we added The Procter & Gamble Company (NYSE:PG), a leading consumer products company with leading franchises in a variety of stable categories, including fabric care, baby, beauty and health. It is a high-quality company with a track record of superior growth, market share gains and attractive returns on capital. It also has defensive attributes when economic conditions deteriorate. Procter & Gamble is a sustainability leader with a demonstrated commitment to addressing environmental and social objectives in how it manages the business, and it has above-average corporate governance practices. Many Procter & Gamble products have a positive impact by promoting hygiene, self-care or health.”
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 81
Jim Cramer yet again praised Walmart Inc. (NYSE:WMT) in a recent program and said he “likes” Walmart. This isn’t the first time the analyst has recommended Walmart Inc. (NYSE:WMT). Earlier this year Cramer had praised Walmart Inc. (NYSE:WMT)’s first quarter results and said the company posted just an “excellent quarter.” Jim Cramer also thinks Walmart Inc. (NYSE:WMT) could defeat Amazon. In early 2023 he talked about Walmart Inc. (NYSE:WMT)’s advantage over other retailers due to its size.
A total of 81 hedge funds tracked by Insider Monkey reported owning stakes in Walmart Inc. (NYSE:WMT) as of the end of the second quarter of 2023. The most significant stakeholder of Walmart Inc. (NYSE:WMT) was D. E. Shaw which had an $862 million stake in the company.
You can also take a peek at 11 Undervalued Mid Cap Stocks To Buy According to Analysts and 12 Most Important Holidays in the US.
