5 Best Mid-Cap Dividend Stocks To Buy Now

In this article, we discuss 5 best mid-cap dividend stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Mid-Cap Dividend Stocks To Buy Now. 

5. Federal Realty Investment Trust (NYSE:FRT) 

Number of Hedge Fund Holders: 24

Dividend Yield as of November 2: 4.29%

Federal Realty Investment Trust (NYSE:FRT) is a Maryland-based real estate investment trust that invests in shopping centers in the United States. Federal Realty Investment Trust (NYSE:FRT) is a reliable dividend king, having increased its payouts annually for the last 55 years consecutively. It is one of the best dividend stocks to invest in. 

Piper Sandler analyst Alexander Goldfarb on October 7 reiterated an Overweight rating on Federal Realty Investment Trust (NYSE:FRT) but lowered the firm’s price target on the shares to $115 from $125. The analyst “once again” trimmed price targets across real estate “given the continued rising risk premiums.”

According to Insider Monkey’s data, 24 hedge funds reported owning stakes worth $200 million in Federal Realty Investment Trust (NYSE:FRT) at the end of Q2 2022, compared to 23 funds in the last quarter worth $306.3 million. 

4. Levi Strauss & Co. (NYSE:LEVI)

Number of Hedge Fund Holders: 25

Dividend Yield as of November 2: 3.16%

Levi Strauss & Co. (NYSE:LEVI) is an apparel company that designs, markets, and sells jeans, activewear, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women, and children in the Americas, Europe, and Asia. The company sells its products under the Levi’s, Dockers, Signature by Levi Strauss & Co., and Denizen brands. Levi Strauss & Co. (NYSE:LEVI) is one of the premier mid-cap dividend stocks to consider. 

On October 10, Citi analyst Paul Lejuez maintained a Buy rating on Levi Strauss & Co. (NYSE:LEVI) but lowered the price target on the shares to $19 from $27 after the Q3 miss. Levi Strauss & Co. (NYSE:LEVI) is not immune to the macro backdrop across the globe and will likely face turbulent results in the coming quarters, the analyst told investors in a research note. However, “relative brand strength/stability and valuation keep us more positive on this one versus most apparel players in this environment,” added the analyst.

Among the hedge funds tracked by Insider Monkey, Levi Strauss & Co. (NYSE:LEVI) was part of 25 public stock portfolios at the end of Q2 2022, compared to 26 in the prior quarter. Richard Scott Greeder’s Broad Bay Capital is the leading position holder in the company, with 1.3 million shares worth $22.3 million. 

3. STAG Industrial, Inc. (NYSE:STAG)

Number of Hedge Fund Holders: 27

Dividend Yield as of November 2: 4.59%

STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. STAG Industrial, Inc. (NYSE:STAG) beat market estimates on earnings and revenue in Q3 2022. On October 12, the company declared a $0.1217 per share monthly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record on October 31. STAG Industrial, Inc. (NYSE:STAG) is one of the top dividend stocks to consider. 

On October 18, Wells Fargo analyst Blaine Heck reaffirmed an Overweight rating on STAG Industrial, Inc. (NYSE:STAG) but lowered the price target on the shares to $36 from $41. The analyst views industrial real estate investment trusts as “well positioned in a tough environment” heading into the Q3 reports. It seems that on-the-ground activity has remained resilient throughout Q3 2022, the analyst wrote in a research note.

Among the hedge funds tracked by Insider Monkey, 27 funds reported owning stakes worth $379.3 million in STAG Industrial, Inc. (NYSE:STAG) at the end of June 2022, compared to 21 funds in the earlier quarter worth $528.6 million. Stuart J. Zimmer’s Zimmer Partners held a leading position in the company, comprising 4.8 million shares valued at $150.5 million. 

Here is what Carillon Scout Mid Cap Fund has to say about STAG Industrial, Inc. (NYSE:STAG) in its Q1 2022 investor letter:

“U.S. and around the world, and the higher inflation this cycle than in 2000. Labor inflation and general labor availability were again concerns for many companies. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Stag Industrial (NYSE:STAG), a warehouse REIT focused on rural distribution properties, fell as interest rates rose and fear of an economic slowdown gripped markets.”

2. OneMain Holdings, Inc. (NYSE:OMF)

Number of Hedge Fund Holders: 28 

Dividend Yield as of November 2: 9.67%

OneMain Holdings, Inc. (NYSE:OMF) is an Indiana-based financial service holding company focused on consumer finance and insurance businesses. On October 26, OneMain Holdings, Inc. (NYSE:OMF) declared a quarterly dividend per share of $0.95, in line with previous. The dividend is distributable on November 14, to shareholders of the company as of November 7. The dividend yield on November 2 came in at 9.67%. 

On October 28, Citi analyst Arren Cyganovich raised the price target on OneMain Holdings, Inc. (NYSE:OMF) to $39 from $38 and kept a Buy rating on the shares following the Q3 results. OneMain Holdings, Inc. (NYSE:OMF)’s credit tightening actions seem to be working to slow the steep risk in credit losses back towards the targeted levels, the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey, 28 funds were long OneMain Holdings, Inc. (NYSE:OMF) at the end of June 2022, compared to 37 funds in the last quarter. Glenn Greenberg’s Brave Warrior Capital is the biggest stakeholder of the company, with 2.8 million shares worth $108 million. 

Here is what Miller Value Partners specifically said about OneMain Holdings, Inc. (NYSE:OMF) in its Q3 2022 investor letter:

“We own OneMain Holdings, Inc. (NYSE:OMF) ($31.33), a subprime consumer credit company, which exemplifies the situation. It trades at 4x earnings with a 12% dividend yield, which we believe is secure through any recession. We estimate that in a severe 2008-style recession (which we don’t expect), it could earn $4 per share, 45% less than its 2022 estimated earnings. The stock is down 48% from its highs, close to a worst-case recession earnings hit. Not a coincidence in my view. It trades for 7x estimated worst-case trough earnings. It’s currently buying back its stock at highly accretive values, and we expect it to grow earnings per share in the high single digits through the cycle. You’re paid handsomely to be patient and take a long-term view.

People think you are crazy to mention a subprime consumer credit company heading into a recession. The market obsesses over marginal change. Gone are the days when incremental news no longer moves a stock because it was already discounted. This creates excess volatility. Most managers have adapted by minimizing or eliminating contrarian buy calls. This scarcity exacerbates volatility, but can also increase opportunity. Therefore, we believe volatility is the price you pay for outperformance.

We believe OMF will recover from any recession and trade at new highs within 3 years. If it just hits its previous highs, it will compound at 31% per year total return. Even if it goes nowhere, you make 12% per year on the dividend alone. Given it is already pricing in a dire recession, fundamentally the stock should find a floor soon. Given all the algorithms that trade on the next headline, I wouldn’t wager much on that. If our analysis is correct, lower near-term prices just amplify the ensuing recovery…” (Click here to read the full text)

1. First American Financial Corporation (NYSE:FAF)

Number of Hedge Fund Holders: 30

Dividend Yield as of November 2: 4.12%

First American Financial Corporation (NYSE:FAF) is a California-based provider of financial services. The company operates through Title Insurance and Services, and Specialty Insurance segments. First American Financial Corporation (NYSE:FAF) posted a Q3 non-GAAP EPS of $1.62, beating market estimates by $0.10. The dividend yield on November 2 came in at 4.12%, and it is one of the best dividend stocks to invest in. 

On October 17, Truist analyst Mark Hughes reiterated a Buy recommendation on First American Financial Corporation (NYSE:FAF) but slashed the price target on the shares to $67 from $77. The analyst updated his model, stating that his open order assumptions follow the latest Fannie Mae forecast, which suggests 20% declines in title premiums and fees next year, partially offset by increased investment income.

According to the second quarter database of Insider Monkey, 30 hedge funds were long First American Financial Corporation (NYSE:FAF), compared to 31 funds in the last quarter. Parag Vora’s HG Vora Capital Management is the leading stakeholder of the company, with 10.85 million shares worth over $574 million. 

You can also take a look at 10 Boring Stocks That Make Money and 12 Best Annual Dividend Stocks To Invest In. 

Follow Insider Monkey on Twitter