5 Best Dogs of the Dow Stocks Ranked By Hedge Fund Sentiment

In this article, we discuss 5 best Dogs of the Dow stocks ranked by hedge fund sentiment. If you want to read our detailed analysis of the Dogs’ performance over the years, go directly to read Best Dogs of the Dow Stocks Ranked By Hedge Fund Sentiment. 

5. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 59

An American leading beverage company, The Coca-Cola Company (NYSE:KO) is one of the strongest dividend payers in the market. The company has paid regular dividends to shareholders since 1920 and has raised its payouts consistently for the past 60 years. It currently pays a quarterly dividend of $0.44 per share and has a dividend yield of 2.73%, as of December 14.

In December, Deutsche Bank raised its price target on The Coca-Cola Company (NYSE:KO) to $62 with a Hold rating on the shares, highlighting the company’s positive developments this year.

As of the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), with a collective value of $25 billion. Berkshire Hathaway was the company’s largest stakeholder with 400 million shares.

Carillon Tower Advisers mentioned The Coca-Cola Company (NYSE:KO) in its Q3 2022 investor letter. Here is what the firm has to say:

“Shares of The Coca-Cola Company (NYSE:KO) sold off with consumer staples even as the company reported strong pricing for the second quarter. On average, product prices rose with management hinting at further momentum.”

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 62

Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company. In the third quarter of 2022, the company’s revenue of $34.2 billion saw a 4% growth from the same period last year. The company’s operating cash flow came in at $28.2 billion year-to-date and its free cash flow amounted to $12.4 billion.

Verizon Communications Inc. (NYSE:VZ) holds the longest dividend growth track record in the US telecom industry. The company has raised its dividends for the past 16 years in a row, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.6525 per share and has a dividend yield of 6.91%, as of December 14.

Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 66

Chevron Corporation (NYSE:CVX) is an American multinational energy company. The company remained committed to its shareholder return in Q3 2022, distributing $2.7 billion in dividends. Its dividend payments showed a 6% growth from the same period last year.

Chevron Corporation (NYSE:CVX) currently pays a quarterly dividend of $1.42 per share for a dividend yield of 3.26%, as of December 14. The company is one of the best dividend stocks on our list as it maintains a 25-year streak of dividend growth.

The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion. Berkshire Hathaway was the company’s leading stakeholder in Q3.

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

2. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 69

Intel Corporation (NASDAQ:INTC) is a California-based multinational semiconductor company. The company has been raising its dividends consistently for the past seven years and paid dividends for 28 years in a row. Its dividend growth and solid balance sheet make it one of the best dividend stocks on our list. The company currently pays a quarterly dividend of $0.365 per share and has a dividend yield of 5.06%, as of December 14.

Intel Corporation (NASDAQ:INTC) reported strong earnings in the third quarter of 2022. The company expects its revenue to be between $14 billion to $15 billion in the next quarter.

As of the end of the September quarter, 69 hedge funds owned stakes in Intel Corporation (NASDAQ:INTC), up from 65 in the previous quarter. These stakes have a total value of roughly $2 billion. With over 15 million shares, Two Sigma Advisors was one of the company’s leading stakeholders in Q3.

ClearBridge Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter. Here is what the firm has to say:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

1. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 82

Merck & Co., Inc. (NYSE:MRK) has been raising its dividends consistently for the past 12 years. It currently offers a quarterly dividend of $0.73 per share and has a dividend yield of 2.61%, as recorded on December 14.

At the end of Q3 2022, 82 hedge funds tracked by Insider Monkey presented a bullish stance on Merck & Co., Inc. (NYSE:MRK), up from 79 in the previous quarter. The stakes owned by these hedge funds have a total value of over $4.7 billion.

Chartwell Investment Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes Merck (NYSE:MRK, 3.6%), up 12.0%. Merck, like other pharma companies, is in a defensive business, but the stock also did well as peak-sales estimates for their flagship drug, Keytruda, have gone up (JPMorgan estimates $32 billion in sales by 2026).”

You can also take a look at 16 Best Dividend Stocks of 2022 and 12 Defensive Healthcare Dividend Stocks To Buy

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