In this article, we discuss 5 best dividend stocks for passive income. If you want to read our detailed analysis of passive income ideas and dividend stocks, go directly to read 12 Best Dividend Stocks For Passive Income.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 73
Chevron Corporation (NYSE:CVX) ranks fifth on our list of the best dividend stocks for passive income. The American energy company has been raising its dividends for 36 consecutive years and currently pays a quarterly dividend of $0.40 per share. The company returned $2.8 billion to shareholders in dividends in the second quarter of 2023. The stock’s dividend yield on October 12 came in at 3.75%.
Insider Monkey’s database of Q2 2023 showed that 73 hedge funds owned stakes in Chevron Corporation (NYSE:CVX), up from 64 in the previous quarter. These stakes are collectively worth over $21.4 billion. With over 123 million shares, Berkshire Hathaway was the leading stakeholder of the company in Q2.
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4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 78
Merck & Co., Inc. (NYSE:MRK) is a leading global pharmaceutical company that operates in the healthcare and life sciences industry. The company currently pays a quarterly dividend of $0.73 per share and has a dividend yield of 2.82%, as of October 12. It maintains an 11-year streak of consistent dividend growth, which places it as one of the best dividend stocks for passive income.
At the end of the second quarter of 2023, 78 hedge funds owned stakes in Merck & Co., Inc. (NYSE:MRK), up from 75 a quarter earlier, according to Insider Monkey’s database. The consolidated value of these stakes is over $2.65 billion.
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3. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 78
The Sherwin-Williams Company (NYSE:SHW) is an American company that deals in the manufacturing, distribution, and sale of paints, coatings, and related products. In fiscal Q1 2023, the company reported a net operating cash flow of $88.2 million. It also paid over $458.2 million to shareholders through dividends.
The Sherwin-Williams Company (NYSE:SHW) has been growing its dividends consistently for the past 44 years and pays a quarterly dividend of $0.605 per share. The stock has a dividend yield of 0.97%, as of October 12.
At the end of Q2 2023, 78 hedge funds in Insider Monkey’s database owned investments in The Sherwin-Williams Company (NYSE:SHW), growing from 68 in the previous quarter. The consolidated value of these stakes is over $4.5 billion.
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2. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 84
Union Pacific Corporation (NYSE:UNP) is an American major transportation and logistics company. It maintains a 16-year streak of consistent dividend growth, which makes it one of the best dividend stocks for passive income. The company pays a quarterly dividend of $1.30 per share and has a dividend yield of 2.50%, as recorded on October 12.
At the end of June 2023, 84 hedge funds tracked by Insider Monkey owned stakes in Union Pacific Corporation (NYSE:UNP), compared with 85 in the previous quarter. The consolidated value of these stakes is over $4.15 billion. With over 8.2 million shares, Soroban Capital Partners was the company’s leading stakeholder in Q2.
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1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 111
UnitedHealth Group Incorporated (NYSE:UNH) tops our list of the best dividend stocks for passive income. The diversified healthcare company has raised its dividends for 13 years in a row and pays a quarterly dividend of $1.88 per share. As of October 12, the stock has a dividend yield of 1.43%.
As of the end of June 2023, 111 hedge funds in Insider Monkey’s database owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), compared with 116 in the previous quarter. The total value of these stakes is over $10.1 billion. Among these hedge funds, GQG Partners was the company’s largest stakeholder in Q2.
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You can also take a look at 20 Stocks with Highest Dividend Right Now and Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks
