5 Best Passive Income Stocks in 2021

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 111

Topping the 10 best passive income stocks in 2021 is JPMorgan Chase & Co. (NYSE:JPM). The New York-based financial services holding company has over 32,800 customers. One of the biggest acquisitions the company made was medical technology firm InstaMed in an over $500 million deal. The 2019 acquisition allowed JPMorgan to push farther into the healthcare business in the United States.

JPMorgan Chase & Co. (NYSE:JPM)’s net income came in at $8.1 billion in the first quarter of 2021, up from $4.0 billion in the first quarter of 2020. JPM shares currently trade for $166 and have a P/E of 13.17. The current dividend yield is 2.17%. The 52-week price range of JPMorgan Chase & Co. (NYSE:JPM) is $90.78-167.44. Shares of JPM jumped 59% over the last twelve months.

There were 111 hedge funds that reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM) at the end of the first quarter, down from 112 funds a quarter earlier. The total value of these stakes at the end of Q1 is $5.25 billion.

Bretton Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2021 investor letter. Here is what the fund said:

“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”

You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.

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