5 Best Large-Cap Dividend Growth Stocks To Buy Now

In this article, we discuss 5 best large-cap dividend growth stocks to buy now. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read 15 Best Large-Cap Dividend Growth Stocks To Buy Now. 

5. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 73
5-Year Average Dividend Growth Rate: 14.5%

AbbVie Inc. (NYSE:ABBV) is an Illinois-based pharmaceutical company that specializes in drug and treatment discovery. In April, Morgan Stanley lifted its price target on the stock to $181 and maintained an Overweight rating on the shares. The firm expects the company to deliver growth in the second half of the year.

AbbVie Inc. (NYSE:ABBV) is one of the best dividend stocks on our list as it has raised its dividends at an annual average rate of 14.5% in the past five years. Moreover, it also maintains a 50-year streak of consistent dividend growth. The company offers a quarterly dividend of $1.48 per share and has a dividend yield of 3.58%, as of April 25.

At the end of December 2022, 73 hedge funds in Insider Monkey’s database reported owning stakes in AbbVie Inc. (NYSE:ABBV), compared with 80 in the previous quarter. The collective value of these stakes is over $1.5 billion.

Baron Funds mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter. Here is what the firm has to say:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 76
5-Year Average Dividend Growth Rate: 13.9%

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company that specializes in a wide range of medicines and drugs. In December 2022, the company declared a 15% hike in its quarterly dividend to $1.13 per share. Through this increase, the company took its dividend growth streak to nine years and its 5-year average dividend growth rate came in at 13.9%. It has been paying uninterrupted dividends to shareholders for the past 138 years, which makes it one of the best dividend stocks on our list.

Morgan Stanley raised its price target on Eli Lilly and Company (NYSE:LLY) in April to $445 with an Overweight rating on the shares, presenting a positive outlook on the company for this year.

As of the fourth quarter of 2022, 76 hedge funds tracked by Insider Monkey reported owning stakes in Eli Lilly and Company (NYSE:LLY), up from 75 in the previous quarter. The collective value of these stakes is over $5 billion.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q4 2022 investor letter. Here is what the firm has to say:

“Eli Lilly and Company (NYSE:LLY) is a large-cap pharmaceutical company. Shares increased on investor optimism about Lilly’s new product pipeline, which includes Mounjaro for diabetes and obesity and Donanemab for Alzheimer’s disease. We continue to think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to strong revenue and earnings growth over at least the next five years.”

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 92
5-Year Average Dividend Growth Rate: 15.05%

Thermo Fisher Scientific Inc. (NYSE:TMO) provides medical equipment, analytical instruments, and other consumables. The company has been raising its dividends consistently for the past six years, which makes it one of the best dividend stocks on our list. The company’s 5-year average dividend growth stands at 15.05%. The stock’s dividend yield on April 25 came in at 0.25%.

At the end of Q4 2022, 92 hedge funds in Insider Monkey’s database owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), the same as in the previous quarter. The collective value of these stakes is over $7 billion.

Polen Capital mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is a leader in attractive end markets with a skilled management team who has demonstrated the ability to consistently and wisely allocate capital. It is the world leader in serving science. It is a globally scaled supplier serving more than 400,000 customers working within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, research institutions, and government agencies. Thermo provides many of the products and services that companies in these industries, particularly pharma and biotech, need to operate and drive science forward. The company manufactures and sells instruments, reagents, and consumables used for a wide range of applications in labs. (Click here to view the full text)

2. S&P Global Inc. (NYSE:SPGI)

Number of Hedge Fund Holders: 97
5-Year Average Dividend Growth Rate: 16.04%

S&P Global Inc. (NYSE:SPGI) is an American private banking company that specializes in financial information and analytics. Argus highlighted the company’s outperformance in the last quarter and raised its price target on the stock to $400 with a Buy rating on the shares.

S&P Global Inc. (NYSE:SPGI), one of the best dividend stocks, is a Dividend King as it has raised its dividends for 50 years straight. It currently pays a quarterly dividend of $0.90 per share and has a dividend yield of 1.03%, as of April 25. In the past five years, the company has raised its dividends at an annual average rate of 16.04%.

S&P Global Inc. (NYSE:SPGI) was a part of 97 hedge fund portfolios in Q4 2022, up from 90 in the previous quarter, as tracked by Insider Monkey. The stakes owned by these hedge funds have a total value of over $7.8 billion.

Wedgewood Partners mentioned S&P Global Inc. (NYSE:SPGI) in its Q1 2023 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) was a bottom contributor to portfolio performance during the quarter. Adjusted revenue declined -5%, mostly driven by the decline in ratings revenues which is lapping strong one-year and two-year comparisons. During 2022, the Company closed on its acquisition of IHS Markit which has diversified its revenue streams into new, but high-margin business lines. The Company’s new corporate structure should allow for attractive growth, even if fixed income issuance trends stay at stall-speeds for the next few quarters.”

1. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 110
5-Year Average Dividend Growth Rate: 17.08%

UnitedHealth Group Inc. (NYSE:UNH) is an American multinational managed healthcare and insurance company. The company started paying annual dividends to shareholders in 1990 and shifted to quarterly payouts in 2010. In the past five years, the company has raised its dividends at an annual average rate of 17.08%. It currently offers a quarterly dividend of $1.65 per share and has a dividend yield of 1.33%, as of April 25.

At the end of Q4 2022, 110 hedge funds in Insider Monkey’s database owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), the same as in the previous quarter. The collective value of these stakes is over $11.4 billion.

Madison Investments mentioned UnitedHealth Group Inc. (NYSE:UNH) in its Q1 2023 investor letter. Here is what the firm has to say:

“US Bancorp, Eli Lilly, Danaher, UnitedHealth Group Incorporated (NYSE:UNH), and Apple were the largest detractors. We remain confident that UnitedHealth Group can deliver long term double digit earning per share growth from its value-based care offerings for both its government and private sector customers.”

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