5 Best Material Dividend Stocks To Buy Now

1. The Sherwin-Williams Company (NYSE: SHW)

Number of Hedge Fund Holders: 49

Dividend Yield: 0.95%

Ohio-based Sherwin-Williams is one of the best material dividend stocks to buy now. The company makes paints, coatings and floor coverings. It has raised its dividend for 42 consecutive years. In February, the company increased its quarterly cash dividend by 23.1%. Its board recently approved a three-for-one stock split.

The Sherwin-Williams Company tops the list of 10 material dividend stocks to buy now as 49 hedge funds tracked by Insider Monkey held stakes in the company at the end of the fourth quarter of 2020. Chilton Investment Company is the biggest stakeholder in the company, with 415,447 shares, worth $305.3 million.

In one of their 2020 investor letters, Diamond Hill Capital highlighted a few stocks and Sherwin-Williams Co (NYSE:SHW) is one of them.

Here is what Diamond Hill Capital said about the company:

“We initiated a position in high-quality paints and coatings retailer Sherwin-Williams Co. Sherwin’s crown jewel is its North American paint stores, which cater primarily to professional painting contractors. There has been a two-decade trend of homeowners hiring painting contractors instead of doing it themselves, which we believe is likely to continue. The pricing power of Sherwin-branded paint is very strong and the store network, which continues to expand, generates very strong returns on invested capital. Longer term, there is additional opportunity to improve margins from businesses acquired from Valspar.”

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