In this article, we discuss 5 best passive income 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 10 Best Passive Income Stocks to Buy Now.
5. Apogee Enterprises, Inc. (NASDAQ:APOG)
Apogee Enterprises, Inc. (NASDAQ:APOG) is a Minnesota-based architectural services company that provides related products and services to its consumers. The company currently pays a quarterly dividend of $0.22 per share, with a dividend yield of 2.08%, as of October 10. In 2022, the company raised its dividend for the ninth consecutive year, which makes it one of the best dividend stocks for passive income.
In Q2 2022, Apogee Enterprises, Inc. (NASDAQ:APOG) reported an operating cash flow of over $27.8 million while its free cash flow came in at $23.7 million. Through the first half of the year, the company paid $84 million to shareholders in dividends and share repurchases, up from $32.5 million paid during the same period last year. The company ended the quarter with $22.1 million available in cash and cash equivalents.
Apogee Enterprises, Inc. (NASDAQ:APOG) was a popular buy among hedge funds in Q2 2022, as 14 hedge funds in Insider Monkey’s dataset owned stakes in the company, up from 7 in the previous quarter. These stakes hold a collective value of over $24.4 million. Millennium Management opened its position in the company in Q2 and was the company’s leading stakeholder.
4. Independent Bank Corp. (NASDAQ:INDB)
Independent Bank Corp. (NASDAQ:INDB) is an American bank holding company that provides a wide range of banking services to its consumers. In September, Keefe Bruyette raised its price target on the stock to $100 with an Outperform rating on the shares. The firm was positive on the company’s loan growth, recent acquisitions, and above-peer profitability.
In the second quarter of 2022, Independent Bank Corp. (NASDAQ:INDB) reported a sound cash position. The company’s operating cash flow stood at $97 million, up from $39 million during the same period last year. Its free cash flow jumped to $89 million, from $30 million in the prior-year quarter. The company’s revenue came in at $172.7 million, showing a 46% year-over-year growth.
Independent Bank Corp. (NASDAQ:INDB) maintains an 11-year track record of consistent dividend growth. It currently pays a quarterly dividend of $0.51 per share and has a dividend yield of 2.64%, as recorded on October 10.
At the end of Q2 2022, 9 hedge funds in Insider Monkey’s database owned stakes in Independent Bank Corp. (NASDAQ:INDB), down from 11 in the previous quarter. These stakes hold a consolidated value of over $63.4 million. Jim Simons and Ian Simm were the company’s leading stakeholders in Q2.
3. Horace Mann Educators Corporation (NYSE:HMN)
Horace Mann Educators Corporation (NYSE:HMN) is another one of the best dividend stocks for passive income on our list. The life insurance company also provides financial services to its consumers.
On September 6, Horace Mann Educators Corporation (NYSE:HMN) declared a quarterly dividend of $0.32 per share, in line with its previous dividend. The company has raised its dividends every year since 2011 at a CAGR of 9%. Since then, the company has also completed $81 million in stock repurchases. In the first six months of the year, it spent over $24 million to repurchase 670,816 of its common shares.
In August, Piper Sandler upgraded Horace Mann Educators Corporation (NYSE:HMN) to Overweight, while raising its price target on the stock to $42. The firm mentioned that the company is expected to experience a strong back-to-school period after the pandemic and also appreciated its earnings guidance.
As of June 2022, 13 hedge funds tracked by Insider Monkey reported owning stakes in Horace Mann Educators Corporation (NYSE:HMN), the same as in the previous quarter. These stakes have a collective value of over $42.7 million.
FPA Queens Road mentioned Horace Mann Educators Corporation (NYSE:HMN) in its Q4 2021 investor letter. Here is what the firm has to say:
“Horace Mann, an insurance provider to teachers and educators, 2021 earnings were negatively impacted by above-average catastrophic losses. The insurer targets K-12 educators and administrators and holds a strong position in that niche. In 2021, the company acquired Madison National Life, which provides group life and disability products. We think the acquisition will create value as the company expands its product offering to its key market.”
2. Atlantic Union Bankshares Corporation (NASDAQ:AUB)
Atlantic Union Bankshares Corporation (NASDAQ:AUB) is a Virginia-based bank holding company that also provides financial services to its consumers. On July 28, the company declared a 7% hike in its quarterly dividend to $0.30 per share. This marked the company’s 11th consecutive year of dividend growth. As of October 10, the stock’s dividend yield came in at 3.83%.
In Q2 2022, Atlantic Union Bankshares Corporation (NASDAQ:AUB) reported an operating cash flow of $87.7 million and its free cash flow came in at $86 million. The company ended the quarter with $156 million available in cash and cash equivalents. Its revenue of $180.6 million showed a 5% growth from the same period last year. The company’s strong cash generation takes its payout ratio to a healthy 38.10%.
At the end of the second quarter of 2022, 10 hedge funds tracked by Insider Monkey owned stakes in Atlantic Union Bankshares Corporation (NASDAQ:AUB), compared with 15 in the previous quarter. These stakes hold a combined value of $45.6 million. Fisher Asset Management was one of the company’s leading stakeholders in Q2.
1. Healthcare Services Group, Inc. (NASDAQ:HCSG)
Healthcare Services Group, Inc. (NASDAQ:HCSG) is a leader in managing housekeeping, laundry, dining, and nutritional services. The company operates within the healthcare industry. In July, Baird maintained a Neutral rating on the stock and a $15 price target, showing confidence in the company’s cash generation potential and achievements in the recent quarters.
On July 20, Healthcare Services Group, Inc. (NASDAQ:HCSG) declared a 0.6% increase in its quarterly dividend to $0.2138 per share. The company has raised its dividends every year since 2003, which places it as one of the best dividend stocks for passive income. As of October 10, the stock has a dividend yield of 7.02%.
As of the close of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in Healthcare Services Group, Inc. (NASDAQ:HCSG), compared with 17 a quarter earlier. These stakes have a combined value of over $112.2 million.
Harding Loevner mentioned Healthcare Services Group, Inc. (NASDAQ:HCSG) in its Q4 2021 investor letter. Here is what the firm has to say:
“For the year, the portfolio’s US stocks failed to keep up with the robust returns of the region in the face of a pronounced style headwind, as US small cap growth stocks trailed their value peers by over 1,400 basis points. Disappointing business results from several US companies also worked against us. Healthcare Services, a provider of outsourced housekeeping and dietary services for post-acute-care and long-term assisted living facilities, saw its rising labor and food costs weigh on both revenues and profits as some of its customers balked at higher fees.”
You can also take a look at 10 Dividend Stocks That Are Too Cheap To Ignore and Top 13 High Dividend Stocks to Buy According to Hedge Funds
