In this article, we discuss the 5 best dividend stocks for Roth IRA. If you want to read about some more dividend stocks for Roth IRA, go directly to 10 Best Dividend Stocks for Roth IRA.
5. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 9.43%
BHP Group (NYSE:BHP) is a diversified metals and mining firm. Elite hedge funds hold bullish positions in the stock. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE:BHP) with 7.8 million shares worth more than $470 million.
BHP Group (NYSE:BHP) has a stellar dividend history stretching back over thirteen years. In the past five years, the company has consistently grown the dividend payout. On February 23, the company declared a semi-annual dividend of $3 per share.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP Group (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP Group (NYSE:BHP) from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
4. Annaly Capital Management, Inc. (NYSE:NLY)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 12.21%
Annaly Capital Management, Inc. (NYSE:NLY) operates as a diversified capital manager. The company has paid a dividend to shareholders consistently for the past 23 years. On March 17, it declared a quarterly dividend of $0.22 per share, in line with previous.
Annaly Capital Management, Inc. (NYSE:NLY) remains one of the top corporate lending firms in the finance world. Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Annaly Capital Management, Inc. (NYSE:NLY) with 2.5 million shares worth more than $19 million.
3. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Forward Dividend Yield: 10.13%
Rio Tinto Group (NYSE:RIO) operates as a resource firm. It is one of the favorite resource stocks on Wall Street. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 13.5 million shares worth more than $907 million.
On March 26, UBS analyst Myles Allsop upgraded Rio Tinto Group (NYSE:RIO) stock to Neutral from Sell and raised the price target to GBP5,200 from GBP4,200, noting the risk/reward for the firm had improved amid supply disruptions of iron ore and steel from Russia.
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Forward Dividend Yield: 11.15%
Vale S.A. (NYSE:VALE) markets iron ore products. On March 10, Deutsche Bank analyst Liam Fitzpatrick kept a Buy rating on the stock and raised the price target to $20 from $19, noting that the Ukraine conflict would lead to a new era of investment in resource stocks in the West, benefiting Vale.
Major hedge funds hold large stakes in Vale S.A. (NYSE:VALE). Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Vale S.A. (NYSE:VALE) with 30 million shares worth more than $434 million.
1. Two Harbors Investment Corp. (NYSE:TWO)
Number of Hedge Fund Holders: 34
Forward Dividend Yield: 12.71%
Two Harbors Investment Corp. (NYSE:TWO) is a Minnesota-based real estate investment trust. The company has paid a dividend to shareholders consistently for the past eleven years. On March 23, the company declared a quarterly dividend of $0.17 per share, in line with previous.
Hedge funds have been loading up on Two Harbors Investment Corp. (NYSE:TWO) stock. At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $141 million in Two Harbors Investment Corp. (NYSE:TWO), compared to 31 in the preceding quarter worth $155 million.
You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.
