In this article, we discuss 5 best dividend stocks on Robinhood. If you want to read our detailed analysis of these stocks, go directly to read 10 Best Dividend Stocks on Robinhood.
5. Edison International (NYSE:EIX)
Number of Hedge Fund Holders: 22
Dividend Yield as of June 6: 4.01%
Edison International (NYSE:EIX) is an American utility company that specializes in renewable energy and invests in energy services and technologies. At the end of March 2022, the company experienced a decline in hedge fund positions, as 22 hedge funds in Insider Monkey’s database reported owning stakes in the company, down from 25 in the previous quarter. These stakes hold a collective value of over $1.36 billion.
In December 2021, Edison International (NYSE:EIX) raised its quarterly dividend by 6% to $0.70 per share. This was the company’s 18th consecutive annual dividend increase. In the past 10 years, the Dividend Contender has grown its dividend by 7.5%. The stock has an attractive dividend yield of 4.01%, recorded on June 6.
In Q1 2022, Edison International (NYSE:EIX) reported solid earnings, posting an EPS of $1.07, which beat estimates by $0.26. The company generated revenue of $3.97 billion, presenting a 34% growth from the prior-year period and beating consensus by $630 million. Edison International (NYSE:EIX) expects its EPS to reach within the range of $4.40 to $4.70 for FY22.
Earlier in 2022, Edison International (NYSE:EIX) allocated over $2.2 billion for wildfire mitigation capital projects in 2022 and 2023. In May, Citigroup raised its price target on the stock to $79, with a Buy rating on the shares, appreciating the company’s continued wildfire mitigation efforts.
ClearBridge Investments mentioned Edison International (NYSE:EIX) in its Q4 2021 investor letter. Here is what the firm has to say:
“Defensive sectors such as utilities underperformed the broader market, with our California-based utilities, Edison International, generating modestly below-sector returns on continuing wildfire concerns, despite significantly improved financial exposure due to the 2019 legislation AB 1054. The legislation was a major positive step toward reducing wildfire risk to California public utilities, which we expect to be reflected in improved valuations over time.”
4. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield as of June 6: 4.39%
Realty Income Corporation (NYSE:O) is an American real estate investment trust that invests in commercial properties in the US, Spain, and UK. In March, the company raised its monthly dividend by 0.2% to $0.247 per share. Realty Income Corporation (NYSE:O) has raised its dividend 115 times throughout its 53-year operating history, coming through as one of the best dividend stocks. As of June 6, the stock’s dividend yield came to be recorded at 4.39%.
In Q1 2022, Realty Income Corporation (NYSE:O) posted an FFO of $0.98, beating analysts’ expectations by $0.01. The company’s revenue for the quarter represented an 82.3% year-over-year growth and beat estimates by $58.6 million. Moreover, during the quarter, Realty Income Corporation (NYSE:O) also invested over $1.56 billion in 213 properties, taking the total to 11,288 properties in different countries.
In May, Wolfe Research set a $73 price target on Realty Income Corporation (NYSE:O), while downgrading it to Peer Perform as the sector lacks repricing power due to high inflation.
Matthew Barrett’s Glendon Capital Management was the largest shareholder of Realty Income Corporation (NYSE:O) in Q1 2022, owning stakes over $128.6 million. Overall, the number of hedge funds tracked by Insider Monkey owning stakes in the company stood at 22 at the end of March 2022, down from 30 in the previous quarter. These stakes hold a consolidated value of roughly $285 million, compared with nearly $400 million worth of stakes held by hedge funds in Q4 2021.
3. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Dividend Yield as of June 6: 6.67%
Altria Group, Inc. (NYSE:MO) is an American manufacturing company that mainly deals in the production of tobacco, cigarettes, and related products. Insider Monkey’s Q1 2022 database shows that the hedge fund interest has spiked in the company, as 47 hedge funds held stakes in it, up from 39 in the previous quarter. The collective value of these stakes is roughly $2 billion, as compared with $1.05 billion worth of stakes held by hedge funds in Q4 2021.
On April 28, Altria Group, Inc. (NYSE:MO) announced its earnings for the first quarter of 2022, posting an EPS of $1.12, which surpassed expectations by $0.03. However, the company’s revenue of $4.82 billion missed the market estimates by $60 million. Following the company’s Q1 results, Deutsche Bank lifted its price target on Altria Group, Inc. (NYSE:MO) to $60, while maintaining a Buy rating on the shares.
On May 19, Altria Group, Inc. (NYSE:MO) announced a quarterly dividend of $0.90 per share, consistent with its previous dividend. In the past 52 years, the company has raised its dividend 56 times, which makes it one of the best dividend stocks. On June 6, the stock’s dividend yield was recorded at 6.67%.
Broyhill Asset Management also mentioned Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm had to say:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
2. New Residential Investment Corp. (NYSE:NRZ)
Number of Hedge Fund Holders: 19
Dividend Yield as of June 6: 9.84%
New Residential Investment Corp. (NYSE:NRZ) is an American real estate investment trust that mainly maintains investments comprised of mortgage servicing rights and related segments.
New Residential Investment Corp. (NYSE:NRZ) currently pays a quarterly dividend of $0.25 per share, growing it by 25% in 2021. The stock’s dividend yield, as of June 6, stood at 9.84%. In May, Piper Sandler analyst Kevin Barker mentioned in his investors’ note that New Residential Investment Corp. (NYSE:NRZ) is fairly valued and is expected to deliver more within the mortgage and servicing sector. The analyst set a $12 price target on the stock while downgrading the stock to Neutral.
In Q1 2022, New Residential Investment Corp. (NYSE:NRZ) posted an EPS of $0.37, beating the consensus by $0.02. During the quarter, the company also saw its book value climb by 10% to $12.56 per share and expects further growth in the second quarter.
As per Insider Monkey’s Q1 2022 database, 19 hedge funds held stakes in New Residential Investment Corp. (NYSE:NRZ), the same as in the previous quarter. The consolidated value of these stakes is over $57.6 million. Arrowstreet Capital owned the largest stake in the New York-based company in Q1 2022, worth over $28.7 million.
1. MFA Financial, Inc. (NYSE:MFA)
Number of Hedge Fund Holders: 16
Dividend Yield as of June 6: 12.68%
MFA Financial, Inc. (NYSE:MFA), an American real estate investment trust, topped consensus in its first-quarter 2022 results. The company posted an EPS of $0.62, exceeding expectations by $0.23. The net interest income for the quarter stood at $63.05 million, presenting a 23.7% year-over-year growth.
MFA Financial, Inc. (NYSE:MFA) pays a quarterly dividend of $0.11 per share, with a dividend yield of 12.68%, as of the close of June 6. The company has been paying dividends for the past 22 years but suspended the payouts several times during this period. In April, JMP Securities lowered its price target on MFA Financial, Inc. (NYSE:MFA) to $18, but kept an Overweight rating on the shares, expressing concerns about the rising interest rates and geopolitical instability.
At the end of March 2022, 16 hedge funds tracked by Insider Monkey were bullish on MFA Financial, Inc. (NYSE:MFA), up from 15 in the previous quarter. The consolidated value of these stakes is $105.3 million. Millennium Management was one of the company’s leading shareholders in Q1 2022, owning stakes worth roughly $13.6 million.
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