5 Best Passive Income Stocks To Buy Now

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 14 Best Passive Income Stocks To Buy Now. 

5. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 61

Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based semiconductor manufacturing company. In February, Susquehanna raised its price target on the stock to $210 and maintained a Positive rating on the shares. The firm highlighted the company’s strong business this year.

On January 19, Texas Instruments Incorporated (NASDAQ:TXN) declared a quarterly dividend of $1.24 per share, which was in line with its previous dividend. The company is one of the best dividend stocks on our list as it has raised its payouts for 19 years in a row. The stock has a dividend yield of 2.79%, as of April 19.

At the end of December 2022, 61 hedge funds in Insider Monkey’s database owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), up from 59 in the previous quarter. These stakes have a collective value of nearly $2 billion.

4. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 61

NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company, based in Florida. On February 7, the company announced a quarterly dividend of $0.4675 per share, having raised it by 10%. This was the company’s 27th consecutive year of dividend growth, which makes it one of the best dividend stocks for passive income. The stock’s dividend yield on April 19 came in at 2.37%.

Erste Group appreciated the business model and dividend policy of NextEra Energy, Inc. (NYSE:NEE) and upgraded the stock to Buy in March.

At the end of Q4 2022, 61 hedge funds tracked by Insider Monkey owned investments in NextEra Energy, Inc. (NYSE:NEE), worth over $2.15 billion collectively. Ken Griffin and Jos Shaver were some of the company’s leading stakeholders in Q4.

ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q3 2022 investor letter. Here is what the firm has to say:

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

3. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 62

The Home Depot, Inc. (NYSE:HD) is a Georgia-based home improvement company that sells related products to its consumers. In February, Truist maintained a Buy rating on the stock with a $352 price target, following the company’s recent quarterly earnings. The firm also appreciated the company’s strong business model.

The Home Depot, Inc. (NYSE:HD), one of the best dividend stocks, currently pays a quarterly dividend of $2.09 per share. The company has been rewarding shareholders with increased dividends for the past 13 years. The stock has a dividend yield of 2.82%, as of April 19.

According to Insider Monkey’s Q4 2022 database, 62 hedge funds owned stakes in the company, with a total value of over $4.8 billion.

Matrix Asset Advisors mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 71

NIKE, Inc. (NYSE:NKE) is a multinational footwear manufacturing company, based in Oregon, US. The company remained committed to its shareholder obligation in fiscal Q3 2022 as it paid approximately $528 million to investors in dividends. It is one of the best dividend stocks on our list.

NIKE, Inc. (NYSE:NKE) offers a quarterly dividend of $0.34 per share and has a dividend yield of 1.08%, as of April 19. In 2022, the company raised its dividends for the 21st consecutive year.

At the end of Q4 2022, 71 hedge funds tracked by Insider Monkey owned stakes in NIKE, Inc. (NYSE:NKE), up from 70 in the previous quarter. These stakes have a collective value of over $4 billion.

RiverPark Advisors mentioned NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter. Here is what the firm has to say:

“NIKE, Inc. (NYSE:NKE) shares were a top contributor for 4Q as the company reported solid 2Q23 results and raised its annual guidance. Nike reported 17% revenue growth (27% on a currency neutral basis) and $0.85 EPS, both significantly greater than expectations. Management raised its F23 outlook to low teens currency-neutral revenue growth.

Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $46 billion in revenue, $6 billion in 2021 annual free cash flow, and over $4 billion of excess cash. We believe that the continued global secular growth trend towards active wear will continue to aid Nike’s top-line growth, while we expect gross and operating margin improvements as it shifts its product mix to more premium products and adopts a more direct to consumer approach, driving long-term mid-teens or higher annual EPS growth for the foreseeable future.”

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 83

An American transport company, Union Pacific Corporation (NYSE:UNP) tops our list of the best dividend stocks for passive income. The company offers a quarterly dividend of $1.30 per share and has a dividend yield of 2.60%, as of April 19. The company has paid regular dividends to shareholders for 123 years and raised its payouts for 16 years straight.

Union Pacific Corporation (NYSE:UNP) was a popular stock among elite funds in Q4 2022, as 83 hedge funds in Insider Monkey’s database owned stakes in the company, up from 74 in the previous quarter. These stakes have a total value of roughly $5.4 billion.

Diamond Hill Capital mentioned Union Pacific Corporation (NYSE:UNP) in its Q4 2022 investor letter. Here is what the firm has to say:

“Other bottom contributors to return included railroad operator Union Pacific Corporation (NYSE:UNP), software and IT services provider Microsoft, and banking and financial services company Truist Financial. Union Pacific and Microsoft, though among our bottom contributors, still contributed positively to performance in Q4 as their share prices rose 7% and 3%, respectively. Truist’s stock ended flat in Q4.”

You can also take a look at 12 Best Covid Treatment Stocks to Buy Today and 10 Best Edge Computing Stocks to Buy Now

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