In this article, we will be looking at the 5 best dividend stocks with over 5% yield according to hedge funds. To read our detailed analysis of dividend investing, you can go directly to see the 10 Best Dividend Stocks with Over 5% Yield According to Hedge Funds.
5. The Williams Companies, Inc. (NYSE: WMB)
Number of Hedge Fund Holders: 39
Dividend Yield: 6.7%
The Williams Companies, Inc. (NYSE: WMB) is also an energy infrastructure company, operating mainly in the US through its Transmission & Gulf of Mexico, Northeast G&P, and West segments. The company ranks 5th on our list of the best dividend stocks with over 5% yield according to hedge funds.
This May, Argus analyst Bill Selesky upgraded shares of The Williams Companies, Inc. (NYSE: WMB) from Hold to Buy. The analyst also placed a $30 price target on the stock.
In the second quarter of 2021, The Williams Companies, Inc. (NYSE: WMB) had an EPS of $0.27, missing estimates by $0.01. The company’s revenue was $2.28 billion, up 28.19% year over year and beating estimates by $215.23 million. The Williams Companies, Inc. (NYSE: WMB) has gained 9.97% in the past 6 months and 21.79% year to date.
By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Williams Companies, Inc. (NYSE: WMB) worth roughly $551 million. This is compared to 34 hedge funds in the previous quarter with a total stake value of approximately $475 million.
Like Altria Group, Inc. (NYSE: MO), Exxon Mobil Corporation (NYSE: XOM), McDonald’s Corporation (NYSE: MCD), and The Coca-Cola Company (NYSE: KO), The Williams Companies, Inc. (NYSE: WMB) is a good stock to invest in
Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned The Williams Companies, Inc. (NYSE: WMB) in its second-quarter 2021 investor letter. Here’s what they said:
“Williams (14%, 0.50%), the natural gas pipeline operator, was also a positive contributor. The value grew slowly but steadily thanks to continued cash flow growth at Williams’s main Transco pipeline, as well as good volume trends (up 11% YOY) in its Northeast assets. The stock traded up with gas price strength as the quarter went on. We believe that management is open to more transactions to grow and simplify value per share, and as industry conditions improve, this becomes more likely.”
4. Altria Group, Inc. (NYSE: MO)
Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%
Altria Group, Inc. (NYSE: MO) is a tobacco company manufacturing cigarettes, oral tobacco products, and wine in the US. The company ranks 4th on our list of the best dividend stocks with over 5% yield according to hedge funds.
This August, Morgan Stanley’s Pamela Kaufman retained her Overweight rating on shares of Altria Group, Inc. (NYSE: MO). The analyst also has a $110 price target on the stock.
In the second quarter of 2021, Altria Group, Inc. (NYSE: MO) had an EPS of $1.23, beating estimates by $0.06. The company’s revenue was $5.61 billion, up 10.90% year over year and beating estimates by $250.80 million. Altria Group, Inc. (NYSE: MO) has gained 11.3% in the past 6 months and 18.9% year to date.
By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.
3. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 50
Dividend Yield: 5.3%
Chevron Corporation (NYSE: CVX) works with and manages integrated energy, chemicals, and petroleum operations. The company ranks 3rd on our list of the best dividend stocks with over 5% yield according to hedge funds, operating in the energy industry as one of the only dividend aristocrats of the sector.
This July, Chevron Corporation (NYSE: CVX) was upgraded at Redburn. The firm’s new rating on shares of the company is Buy, compared to the previous Neutral rating.
In the second quarter of 2021, Chevron Corporation (NYSE: CVX) had an EPS of $1.71, beating estimates by $0.11. The company’s revenue was $37.6 billion, up 178.62% year over year and beating estimates by $1.15 billion. Chevron Corporation (NYSE: CVX) has gained 6.03% in the past 6 months and 18.91% year to date.
By the end of the second quarter of 2021, 50 hedge funds out of the 873 tracked by Insider Monkey held stakes in Chevron Corporation (NYSE: CVX) worth roughly $4.3 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $4.9 billion.
2 AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 68
Dividend Yield: 7.4%
AT&T Inc. (NYSE: T), one of the world’s largest and most renowned communication services companies, ranks 2nd on our list of the best dividend stocks with over 5% yield according to hedge funds. The company operates through its Communications, WarnerMedia, and Latin America segments.
This July, Deutsche Bank raised the price target on AT&T Inc. (NYSE: T) from $34 to $37, alongside reiterating a Buy rating on the stock.
In the second quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.7 billion.
1. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 68
Dividend Yield: 6.2%
Exxon Mobil Corporation (NYSE: XOM) operates primarily in the use for the exploration and production of crude oil and natural gas. The company also has operations internationally. It ranks 1st on our list of the best dividend stocks with over 5% yield according to hedge funds.
Ryan Todd, an analyst at Piper Sandler, just this July raised his price target on shares of Exxon Mobil Corporation (NYSE: XOM). The analyst’s new target on the shares is $69, compared to the previous target of $63.
In the second quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $1.10, beating estimates by $0.11. The company’s revenue was $67.74 billion, up 107.77% year over year and beating estimates by $3.02 billion. Exxon Mobil Corporation (NYSE: XOM) has gained 6.81% in the past 6 months and 33.88% year to date.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in Exxon Mobil Corporation (NYSE: XOM) worth roughly $3.7 billion. This is compared to 65 hedge funds in the previous quarter with a total stake value of approximately $2.8 billion.
You can also take a look at 15 Best Cities For Singles Over 40 and 10 Best High-Yield Dividend Stocks to Buy According to Billionaire George Soros.
