In this article, we will discuss the 5 best dividend stocks right now. If you want to read our detailed analysis of the great stocks to buy this year, go directly to the 15 Best Dividend Stocks Right Now.
5. Coca-Cola Corporation (NYSE: KO)
No of HFs: 62
Total Value of HF Holdings: $24.6 Billion
The beverage company Coca-Cola Corporation ranks 5th on the list of 15 best dividend stocks right now. Founded in 1892, the corporation has established a good consumer base with over 700,000 employees. KO focuses on the manufacturing and marketing of over 500 brands of beverages such as the company’s most valuable brands, Sprite, Fanta, Costa Coffee, Honest Tea, and Vitaminwater. Legendary billionaire Warren Buffett served on the company’s board of directors for around 17 years and is now one of the largest shareholders of the company with 400 million shares, worth $21 billion.
Coca-Cola has bought many beverage brands such as Minute Maid and Fuze Beverage. However, the company has also acquired different production brands such as Columbia Picture. The acquisition of the company was priced at $692 million which was later sold to Sony (NYSE: SONY) in 1989 for $3 billion.
KO currently offers a dividend yield of 3.15% and has a market cap of $229.60 billion. The company’s net operating revenue in the full year 2020 was $33.01 billion.
4. Pfizer, Inc. (NYSE: PFE)
No of HFs: 63
Total Value of HF Holdings: $1.84 Billion
Ranking 4th on the list of the 15 best dividend stocks right now is Pfizer, Inc. Founded in 1849 by Charles Pfizer and Charles F. Erhart, the Pfizer is one of the biggest biopharmaceutical companies in the world. Pfizer is one of the few companies creating vaccines in the fight against the COVID-19 virus. The company’s revenue in 2020 came in at $42 billion, which made the company one of the most remarkable biotech firms based on market capitalization. The company currently offers a dividend yield of 4.34% and has a market cap of $200.31 billion.
Ken Griffin’s Citadel Investment Group is one of the top hedge funds having positions in PFE, with 12 million shares worth $466 million. The stock gained 9.56% over the past twelve months.
Amana Mutual Funds mentioned that they expect better performance from PFE in its Q4 2019 investor letter:
“Pfizer was engaged in its corporate restructuring. During the year it merged its consumer health business with that of GSK, forming a joint venture, while also merging its generics business with Mylan. We expect the leaner Pfizer to demonstrate better performance going forward.”
3. Verizon Communications, Inc. (NYSE: VZ)
No of HFs: 67
Total Value of HF Holdings: $10.5 Billion
Holding the 3rd spot on the list of the 15 best dividend stocks right now is Verizon Communications, Inc. The tech giant focuses on voice, data, and solutions for networks and platforms with products such as Fios Home Internet, LTE Home Internet, Fios TV, among others. In 2020, internet users in the US alone were a total of 83% of the total population, according to data from Statista. The company currently offers a dividend yield of 4.25% and has a market cap of $244.15 billion.
The company’s revenue in the full year 2020 came in at $31 billion. The stock gained 2% in the last twelve months. Mott Capital Management mentioned that VZ has been one of the stocks that the firm has been struggling with in its Q4 2020 investor letter:
“Verizon finished the year lower by around 4.3% and has been a hard holding over the past 6 years. It has gone nowhere and has been the one stock I struggle with. However, 5G has finally arrived. If 5G can deliver on the promise I think it can, then Verizon should eventually come around. I remain hopeful.”
Pixabay/Public Domain
2. Home Depot (NYSE: HD)
No of HFs: 79
Total Value of HF Holdings: $4.92 Billion
Ranking 2nd on the list of the 15 best dividend stocks right now is Home Depot. Founded in 1978, the company operates the biggest online and brick and mortar home improvement needs such as appliances, automotive, building materials, electricals, and alike. In 2020, the company reported a net sales total of $132.1 billion with over 2,000 stores globally. Topping the company’s sales was the garden product category with over $14 billion in worldwide sales. The company currently offers a dividend yield of 2.11% and has a market cap of $335.97 billion.
Ken Fisher’s Fisher Asset Management is one of the biggest funds having positions in Home Depot with 6 million shares, worth $1.8 billion at the end of the fourth quarter. An insider purchased 4,745 shares worth $210 in March 2020. The stock is up 48% since then.
Madison Mid Cap Fund mentioned that HD is a much stronger company in its Q4 2020 investor letter:
“At the very end of the year, we received cash for our shares of HD Supply, which had agreed to be acquired by Home Depot. We initially invested in the summer of 2019, so it was a short but successful investment. It’s full circle for Home Depot, as this was a business that it used to own (no prize for guessing what the “HD” in HD Supply stood for) but had divested in 2007 when a new CEO took over and was intent on simplifying the company to clean up the mess created by his predecessor. Today, Home Depot is a much stronger company, and HD Supply is a much stronger and more focused company, having itself shed many businesses to concentrate on its crown jewel, the facilities distribution business. While we certainly contemplated that it might get acquired at some point given that there were a handful of logical buyers, our investment didn’t rely on that happening. We would have been happy to hold on for a longer ride. But we’re not going to complain about a bird in hand.”
1. Merck & Co, Inc. (NYSE:MRK)
No of HFs: 82
Total Value of HF Holdings: $7.12 Billion
Topping the list of the 15 best dividend stocks right now is Merck & Co, Inc., known as one of the world’s leading pharmaceutical health care companies with a current dividend yield of 3.42% and a market cap of $192.68 billion. The company has established its operations in several countries such as Europe, Africa, Asia, and America. MRK has been in the market since 1891 producing medicine, vaccine, and animal healthcare products. Earlier in the year, the company acquired Pandion Therapeutics, a therapeutics company with a total offer of $1.8 billion. MRK currently offers a dividend yield of 3.42% and has a market cap of $192.68 billion. In 2020, MRK’s cancer drug sales had the highest revenue with a significant increase of around $3.3 billion compared to the previous year.
The company’s net revenue in the fourth quarter of 2020 came in at $12.5 billion. One of the biggest hedge funds having stakes in the company is Warren Buffett’s Berkshire Hathaway which had 131 million shares, worth $6 billion at the end of December.
Saturna Capital Corporation mentioned that MRK benefited from low valuations in its Q1 2020 investor letter:
“Bristol-Myers and Merck benefited from low valuations, strong balance sheets, and attractive dividends going into the crisis, minimizing the negative fallout.”
You can also take a peek at Unknown Billionaire Phill Gross’ Top 10 Stock Picks and Top 10 Food Delivery Stocks to Buy in 2021
