In this article we discuss the 5 best dividend stocks to buy for consistent growth and income. If you want to read our detailed analysis of these stocks and our discussion on the benefits of dividend investing, go directly to 10 Best Dividend Stocks to Buy for Consistent Growth and Income.
5. Schwab U.S. Dividend Equity ETF (NYSE: SCHD)
Number of Hedge Fund Holders: 5
Schwab US Dividend Equity is one of the best dividend ETFs to gain exposure to high-yield and strong dividend players in the industry. Some of the notable holdings of the ETF include Exxon, Texas Instruments, Altria Group Inc, Coca-Cola Co and IBM.
There were 5 hedge funds that hold a position in SCHD in the fourth quarter of 2020.
4. Main Street Capital Corporation (NYSE: MAIN)
Number of Hedge Fund Holders: 7
Main Street Capital ranks 4th in the list of 10 best dividend stocks to buy for consistent growth and income. The PE firm offers equity capital to lower middle market companies. With a dividend yield of over 6% and close to 5 years of consecutive dividend hikes, the company is a reliable option for income investors. In the fourth quarter, the company’s distributable net investment income easily beat the consensus estimate. Total investment income in the period came in at $62.5 million, versus the consensus of $55.0 million.
The company is also getting the attention of the smart money, as 7 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 4 funds a quarter earlier.
3. The Toronto-Dominion Bank (NYSE: TD)
Number of Hedge Fund Holders: 22
With a dividend yield of 3.76%, Toronto-Dominion ranks 3rd in the list of 10 best dividend stocks to buy for consistent growth and income. Toronto-Dominion is one of the Big Five banks in Toronto. The bank has increased its dividend for 10 straight years. The bank’s 5-year dividend growth rate is 9.2%.
As of the end of the fourth quarter, there were 22 hedge funds in Insider Monkey’s database that held stakes in Toronto-Dominion Bank, compared to 15 funds in the third quarter. Jim Simons’ Renaissance Technologies, with 524,680 shares of TD, is the biggest stakeholder in the company.
2. Enbridge Inc. (NYSE: ENB)
Number of Hedge Fund Holders: 28
Natural gas company Enbridge has increased its dividend consistently for the last 26 years. Currently, Enbridge dividend yield stands at around 7%. The Canadian company is investing heavily to adapt to the energy transition happening worldwide. One of Enbridge’s largest gas transmissions serves 170 million people in regional markets, while its gas distribution business serves about 14 million people in Canada.
Marshall Wace LLP currently holds 1.4 million shares of Enbridge that amounts $44.5 million. ENB occupies 0.24% of Marshall Wace’s total portfolio.
1. Waste Management, Inc. (NYSE: WM)
Number of Hedge Fund Holders: 37
Waste Management is one of the 10 best dividend stocks to buy for consistent growth and income. The company has 18 years of consecutive dividend hikes. In February, Waste Management increased its quarterly dividend by 6%. The stock is up 43% over the last 12 months. In the fourth quarter, the company posted non-GAAP EPS of $1.13, above the Street estimates by $0.04. Revenue in the period jumped 5.7% to $4.07 billion.
According to our database, the number of WM’s long hedge funds positions decreased at the end of the fourth quarter of 2020. There were 37 hedge funds that hold a position in Waste Management Inc. compared to 38 funds in the third quarter. The biggest stakeholder of the company is Bill & Melinda Gates Foundation Trust, with 18.6 million shares, worth $2.2 billion.
You can also take a peek at 10 Best 5G Stocks to Buy Now and 10 Best Pharma Stocks to Buy Now.
