In this article, we discuss 5 best income stocks to buy right now. If you want to read our detailed discussion on the current market condition and dividend investing, go directly to read 11 Best Income Stocks to Buy Right Now.
5. Weyerhaeuser Company (NYSE:WY)
Dividend Yield as of October 20: 2.48%
Weyerhaeuser Company (NYSE:WY) is a Washington-based timberland company that owns over 12 million acres of timberlands across the country. The company also specializes in the manufacturing of wood products. It reported strong earnings in Q2 2022 with its operating cash flow of $1.14 billion, up from $957 million in the previous quarter. The company generated over $800 million in free cash flow.
On August 12, Weyerhaeuser Company (NYSE:WY) declared a quarterly dividend of $0.18 per share, in line with its previous dividend. The company is committed to raise its sustainable base dividend by 5% annually through 2025. As of October 20, the stock has a dividend yield of 2.48%.
In October, DA Davidson maintained its Neutral rating on Weyerhaeuser Company (NYSE:WY) with a $33 price target ahead of the company’s Q3 results. The firm mentioned that the ongoing work stoppages has impacted the company’s western lumber mills and harvest operations.
At the end of Q2 2022, 41 hedge funds in Insider Monkey’s database owned stakes in Weyerhaeuser Company (NYSE:WY), up from 40 in the previous quarter. The total value of these stakes is over $328.6 million, compared with $280 million worth of stakes owned by hedge funds a quarter earlier.
4. Caterpillar Inc. (NYSE:CAT)
Dividend Yield as of October 20: 2.60%
Caterpillar Inc. (NYSE:CAT) is one of America’s leading manufacturers of industrial and construction equipment. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 28 years. Currently, it offers a quarterly dividend of $1.20 per share for a dividend yield of 2.60%, as of October 20.
Caterpillar Inc. (NYSE:CAT) remained obligated to its shareholder returns in the second quarter of 2022. The company returned $1.7 billion to shareholders in dividends and share repurchases during the quarter. In the first half of the year, it generated over $2.5 billion in free cash flow, returning $600 million in dividends.
In October, JPMorgan raised its price target on Caterpillar Inc. (NYSE:CAT) to $220 with an Overweight rating on the shares, appreciating the company’s high-end user demand. The firm also expects resilient demand and improved deliveries for the company.
At the end of the June quarter, 45 hedge funds tracked by Insider Monkey owned stakes in Caterpillar Inc. (NYSE:CAT), compared with 54 in the previous quarter. These stakes are collectively valued at over $3.25 billion. Fisher Asset Management was the company’s leading stakeholder in Q2, owning shares worth over $1.3 billion.
Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q1 2022 investor letter. Here is what the firm had to say:
“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”
3. The Procter & Gamble Company (NYSE:PG)
Dividend Yield as of October 20: 2.82%
The Procter & Gamble Company (NYSE:PG) is another best dividend stock on our list for stable income. The company reported its fiscal Q1 2023 recently, beating Street expectations. Its operating cash flow was $4.1 billion and its free cash flow productivity stood at 86%. During the quarter, the company returned $6.3 billion to shareholders, including $2.3 billion in dividend payments.
On October 11, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, consistent with its previous dividend. The company holds one of the strongest dividend growth track records in the market, having raised its dividends for consecutive 66 years. As of October 20, the stock has a dividend yield of 2.82%.
In October, Barclays raised its price target on The Procter & Gamble Company (NYSE:PG) to $145 with an Overweight rating on the shares, appreciating the company’s recent quarterly earnings beat.
Of the 895 hedge funds tracked by Insider Monkey, 71 funds owned stakes in The Procter & Gamble Company (NYSE:PG) in Q2 2022, compared with 72 a quarter earlier. These stakes hold a consolidated value of over $5.5 billion. Ray Dalio’s Bridgewater Associates was the company’s leading stakeholder in Q2.
2. Tyson Foods, Inc. (NYSE:TSN)
Dividend Yield as of October 20: 2.83%
Tyson Foods, Inc. (NYSE:TSN) is an American food industry company that is one of the largest processors of chicken, beef, and pork worldwide. The company has been raising its dividends consistently for the past 10 years and has a five-year dividend CAGR of 15.38%. The company currently pays a quarterly dividend of $0.46 per share and has a yield of 2.83%, as recorded on October 20.
In its fiscal Q3 2022 report, Tyson Foods, Inc. (NYSE:TSN) posted revenue of $13.5 billion, up 8.2% from the same period last year. Its operating cash flow stood at $666 million and it generated $190 million in free cash flow. The company ended the quarter with over $1 billion in cash and cash equivalents and over $9.3 billion in total current assets.
At the end of Q2 2022, 37 hedge funds tracked by Insider Monkey owned stakes in Tyson Foods, Inc. (NYSE:TSN), with a total value of $1.15 billion. Cliff Asness’ AQR Capital owned over 3.2 million shares in the company worth $278.4 million, becoming the company’s largest stakeholder in Q2.
1. Cohen & Steers, Inc. (NYSE:CNS)
Dividend Yield as of October 20: 3.81%
Cohen & Steers, Inc. (NYSE:CNS) is an American investment management company that specializes in liquid real assets. The company provides income solutions to its consumers worldwide. In Q3 2022, the company reported $79.2 billion in assets under management and $89.7 billion in average assets under management. At the end of the quarter, the company had $270 million in cash and cash equivalents, up from $227 million in the previous quarter.
Cohen & Steers, Inc. (NYSE:CNS) currently pays a quarterly dividend of $0.55 per share for a dividend yield of 3.81%, as of October 20. The company is one of the best dividend stocks for regular income as it managed to raise its dividends for 12 straight years.
As of the end of June 2022, Cohen & Steers, Inc. (NYSE:CNS) was a part of 11 hedge fund portfolios, down from 14 a quarter earlier, according to Insider Monkey’s database. The stakes owned by these hedge funds hold a combined value of $76.5 million. With over $25 million worth of stakes, GAMCO Investors owned the largest position in the company in Q2.
Carillon Tower Advisers mentioned Cohen & Steers, Inc. (NYSE:CNS) in its Q2 2022 investor letter. Here is what the firm has to say:
“Cohen & Steers, Inc. (NYSE:CNS) manages real estate investments for investors. The stock traded down in the quarter despite reporting good quarterly results and gathering additional assets. The broader universe of investment management firms was weak in the quarter as global stock markets declined.”
You can also take a look at 13 Best Long-Term Dividend Stocks to Buy Now and 10 Best MLP Dividend Stocks to Buy
