5 Best Passive Income Stocks To Buy According to Hedge Funds

In this article, we discuss 5 best passive income stocks to buy according to hedge funds. If you want to read our detailed analysis of dividend stocks and their previous performance, go directly to read 16 Best Passive Income Stocks To Buy According to Hedge Funds. 

5. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 85

Exxon Mobil Corporation (NYSE:XOM) is an American energy company that is involved in both conventional and unconventional energy resources and has been a major player in the energy sector for decades. The company offers a quarterly dividend of $0.95 per share and has a dividend yield of 3.36%, as of March 20. It is one of the best dividend stocks for passive income as the company has been growing its dividends for the past 41 years.

Of the 900+ hedge funds tracked by Insider Monkey at the end of Q4 2023, 85 funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), growing from 79 in the previous quarter. These stakes have a total value of nearly $4.5 billion.

4. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 85

Walmart Inc. (NYSE:WMT) is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. On February 20, the company increased its dividend by 9% after adjusting for a stock split, resulting in a new quarterly dividend payout of $0.2075 per share. The stock has a dividend yield of 1.36%, as of March 20.

As of the end of Q4 2023, 85 hedge funds in Insider Monkey’s database owned stakes in Walmart Inc. (NYSE:WMT), up from 80 in the previous quarter. The consolidated value of these stakes is over $6.24 billion. With over 28.6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 91

Broadcom Inc. (NASDAQ:AVGO) is next on our list of the best dividend stocks for passive income. The global semiconductor company has been growing its dividends for the past 13 years and currently offers a quarterly dividend of $5.25 per share. During the first quarter of 2024, the company returned $2.4 billion to shareholders through dividends. As of March 20, the stock has a dividend yield of 1.65%.

According to Insider Monkey’s database of Q4 2023, 91 hedge funds held stakes in Broadcom Inc. (NASDAQ:AVGO), up from 87 in the previous quarter. The total value of these stakes is over $8.8 billion.

2. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 98

Merck & Co., Inc. (NYSE:MRK) is a leading pharmaceutical company with a diverse portfolio of healthcare products, ranging from prescription drugs to vaccines to consumer health items. The company’s quarterly dividend comes in at $0.77 per share with a dividend yield of 2.49%, as of March 20. It has been rewarding shareholders with growing dividends for the past 13 consecutive years.

At the end of Q4 2023, 98 hedge funds, growing significantly from 85 in the previous quarter, held stakes in Merck & Co., Inc. (NYSE:MRK), as per Insider Monkey’s database. These stakes are worth over $7.1 billion in total. Fisher Asset Management was the company’s leading stakeholder in Q4.

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 113

UnitedHealth Group Incorporated (NYSE:UNH) tops our list of the best dividend stocks for passive income. The diversified healthcare company pays a quarterly dividend of $1.88 per share and has a dividend yield of 1.52%, as recorded on March 20. The company has raised its payouts every year for the past 13 years.

UnitedHealth Group Incorporated (NYSE:UNH) was included in 113 hedge fund portfolios at the end of Q4 2023, growing from 104 in the previous quarter, according to our database. The stakes owned by these hedge funds have a collective value of over $11 billion.

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