5 Best Dividend Stocks for Passive Income

In this article, we discuss 5 best dividend stocks for passive income. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 15 Best Dividend Stocks for Passive Income. 

5. Independent Bank Corp. (NASDAQ:INDB)

Dividend Yield as of December 1: 2.25%

Independent Bank Corp. (NASDAQ:INDB) is a Michigan-based bank holding company that offers loans, mortgages, and personal and business banking services. In the third quarter of 2022, the company reported revenue of $190.8 million, up 63.8% from the same period last year. Its total assets for the quarter amounted to over $19.7 billion.

Independent Bank Corp. (NASDAQ:INDB) currently pays a quarterly dividend of $0.51 per share and has a dividend yield of 2.25%, as of December 1. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 11 years.

As of the end of Q3 2022, 14 hedge funds tracked by Insider Monkey owned stakes in Independent Bank Corp. (NASDAQ:INDB), compared with 9 in the previous quarter. These stakes are collectively valued at over $67.3 million.

4. The Home Depot, Inc. (NYSE:HD)

Dividend Yield as of December 1: 2.35%

The Home Depot, Inc. (NYSE:HD) is an American multinational home improvement company that specializes in construction products. In Q3 2022, the company had $2.4 billion in cash and cash equivalents and its assets stood at $33.6 billion. The company paid $5.8 billion in dividends to shareholders, which makes it one of the best dividend stocks to buy.

In November, Truist maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) with a $382 price target, appreciating the company’s business in the current environment.

The Home Depot, Inc. (NYSE:HD) currently offers a quarterly dividend of $1.90 per share for a dividend yield of 2.35%, as of December 1. The company maintains a 12-year streak of consistent dividend growth.

At the end of September 2022, 89 hedge funds tracked by Insider Monkey owned stakes in The Home Depot, Inc. (NYSE:HD), up from 80 in the previous quarter. These stakes have a collective value of over $5.6 billion.

Diamond Hill Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“The Home Depot, Inc. (NYSE:HD) shares were more resilient in Q3 as the company continues to perform well and reiterated guidance despite increasing market concerns regarding general inflationary pressures and the impact rising mortgage rates may have on the housing market. We view the longterm prospects and multi-year fundamental outlook as unchanged. Home improvement through repair and remodel is likely to be one of more resilient housing-related industries given the relative attractiveness for consumers to renovate existing homes rather than reset their current low fixed mortgage rate to higher rates that we’re seeing today.”

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

Dividend Yield as of December 1: 3.84%

T. Rowe Price Group, Inc. (NASDAQ:TROW) is an American investment management company that offers a wide range of financial services to its consumers. The company has been raising its dividends consistently for the past 36 years, coming through as one of the best dividend stocks. It currently pays a quarterly dividend of $1.20 per share and has a dividend yield of 3.84%, as of December 1.

In October, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported growth in its assets under management to $1.28 trillion, from $1.23 trillion at the end of September. During Q3 2022, it returned $500.9 million to shareholders, including $224.5 million in dividends, which makes it one of the best dividend stocks.

At the end of Q3 2022, 30 hedge funds tracked by Insider Monkey owned stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), up from 27 in the previous quarter. The collective value of these stakes is nearly $320 million. Balyasny Asset Management was the company’s largest stakeholder in Q3.

2. 3M Company (NYSE:MMM)

Dividend Yield as of December 1: 4.37%

3M Company (NYSE:MMM) is an American multinational company that produces products related to industrial, healthcare, and consumer industries. Following the company’s Q3 earnings, Deutsche Bank lifted its price target on MMM to $127 with a Hold rating.

In the third quarter of 2022, 3M Company (NYSE:MMM) remained committed to shareholders, returning $1 billion to shareholders in dividends and share repurchases.

3M Company (NYSE:MMM) pays a quarterly dividend of $1.49 per share. The company has been raising its dividends consistently for the past 64 years and has paid dividends for over 100 years. As of December 1, the stock has a dividend yield of 4.37%.

At the end of Q3 2022, 49 hedge funds tracked by Insider Monkey owned stakes in 3M Company (NYSE:MMM), worth over $1.45 billion.

Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.

1. Healthcare Services Group, Inc. (NASDAQ:HCSG)

Dividend Yield as of December 1: 6.16%

Healthcare Services Group, Inc. (NASDAQ:HCSG) is an American company that provides housekeeping, laundry, linen, and related services. On October 19, the company declared a 0.6% hike in its quarterly dividend to $0.215 per share. The company has been raising its dividends consistently since 2003, which makes it one of the best dividend stocks on our list. As of December 1, the stock has a dividend yield of 6.16%.

In October, RBC Capital maintained a Sector Perform rating on Healthcare Services Group, Inc. (NASDAQ:HCSG) with a $14 price target, highlighting the company’s growth and skilled nursing facilities.

At the end of Q3 2022, 19 hedge funds tracked by Insider Monkey owned stakes in Healthcare Services Group, Inc. (NASDAQ:HCSG), up from 15 in the previous quarter. The collective value of these stakes is over $77.6 million.

You can also take a look at Top 15 Dividend Stocks To Buy According To Hedge Funds and 11 Best Canadian Dividend Stocks To Buy Now

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