In this article, we discuss the 5 best dividend stocks for college students. If you want to read about some more dividend stocks for college students, go directly to 10 Best Dividend Stocks for College Students.
5. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 48
Colgate-Palmolive Company (NYSE:CL) makes and sells consumer products. Elite hedge funds are bullish on the stock. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Colgate-Palmolive Company (NYSE:CL) with 11.5 million shares worth more than $988 million.
On January 31, Credit Suisse analyst Kaumil Gajrawala kept an Outperform rating on Colgate-Palmolive Company (NYSE:CL) stock with a price target of $90. The company has registered close to two decades of consecutive growth in dividend payments.
Here is what First Eagle Investment Management has to say about Colgate-Palmolive Company (NYSE:CL) in its Q1 2021 investor letter:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
4. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 54
Becton, Dickinson and Company (NYSE:BDX) makes and sells medical supplies. On March 18, Raymond James analyst Jayson Bedford assumed coverage of the stock with a Market Perform rating, underlining that the firm was capable of sustainable 5% revenue growth and should be able to generate 10% earnings growth annually.
Hedge funds have been piling into Becton, Dickinson and Company (NYSE:BDX) stock in recent months. At the end of the fourth quarter of 2021, 54 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Becton, Dickinson and Company (NYSE:BDX), up from 51 the preceding quarter worth $2.3 billion.
In its Q2 2021 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Becton, Dickinson and Company (NYSE:BDX) was one of them. Here is what the fund said:
“Becton, Dickinson and Company (“BD”) is one of the world’s largest medical supply, devices, laboratory equipment, and diagnostic products manufacturers. We like BD because it is a leader in the medical and life science industries with a durable mid-single digit growth profile and attractive returns on capital. They generate about 85% of revenue from consumables and 15% from equipment, and each year, they manufacture billions of needles, syringes, catheters, tubes, and medical devices which results in significant economies of scale that can be matched by few competitors. Their Life Sciences segment produces products that provide diversity in the steadily growing diagnostic testing and life sciences research fields.
Regarding the short-term issues, it’s been a challenging past 18 months for the company. In February 2020, they announced the FDA required an updated 510(k) clearance for their Alaris infusion pump. As a result, BD had to suspend selling new pumps until the updated regulatory filing received FDA clearance. In addition to the regulatory headwind, BD’s business was negatively impacted by the COVID-19 pandemic as individuals postponed doctor office visits and hospitals deferred non-emergency medical procedures. We believe these postponements are just now normalizing. Lastly, while BD’s Life Sciences business swiftly brought COVID-19 tests to market, there is uncertainty over the magnitude and duration of these revenues.
We believe these..”[read the entire letter here]
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
The Procter & Gamble Company (NYSE:PG) markets branded consumer packaged goods. It is one of the top consumer goods stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company (NYSE:PG) with 6 million shares worth more than $985 million.
On March 22, Truist analyst Bill Chappell upgraded The Procter & Gamble Company (NYSE:PG) stock to Buy from Hold and raised the price target to $175 from $165, noting that the product superiority and the trusted brand name would help the company stand out among peers in the marketplace in the coming months.
2. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
The Coca-Cola Company (NYSE:KO) is a beverage company. The company has a stellar dividend history with over five decades of consecutive dividend growth. On February 17, the company declared a quarterly dividend of $0.44 per share, an increase of close to 5% from the previous dividend of $0.42 per share.
Major hedge funds hold large stakes in The Coca-Cola Company (NYSE:KO). Among the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO) with 400 million shares worth more than $23 billion.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) makes and sells health care products. It is one of the top health stocks in the hedge fund universe. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Johnson & Johnson (NYSE:JNJ), compared to 88 in the previous quarter worth $6.8 billion.
On January 26, Raymond James analyst Jayson Bedford kept an Outperform rating on Johnson & Johnson (NYSE:JNJ) stock and raised the price target to $185 from $178, noting the stock felt “safe” given an attractive valuation and a more active capital deployment program in place.
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.
