In this article, we discuss 5 best stagflation stocks to buy now. If you want to see more stocks in this selection, check out Stagflation Definition: 11 Best Stagflation Stocks To Buy.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 80
Walmart Inc. (NYSE:WMT), a well-established American retail giant headquartered in Bentonville, Arkansas, is renowned for its extensive network of hypermarkets, discount department stores, and strategically located grocery outlets throughout the United States.
The company has consistently increased its dividend for an impressive five decades, spanning 50 years. As of December 21, Walmart Inc. (NYSE:WMT) offers a quarterly dividend of $0.57 per share, equating to a dividend yield of 1.47%.
In the third quarter of 2023, Walmart Inc. (NYSE:WMT) drew significant attention from hedge funds, with 80 hedge funds establishing positions in the company, according to Insider Monkey’s database. The combined holdings of these hedge funds were valued at over $5.94 billion. Notably, Ken Fisher’s Fisher Asset Management emerged as the largest shareholder, boasting holdings valued at approximately $1.45 billion.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Established in 1886, Johnson & Johnson (NYSE:JNJ) is a prominent American multinational corporation recognized for its groundbreaking advancements in medical devices, pharmaceuticals, and consumer packaged goods. Notably, the company’s pharmaceutical division has maintained a remarkable track record of dividend growth for over 62 years. As of December 21, Johnson & Johnson (NYSE:JNJ) offers a quarterly dividend of $1.19 per share, resulting in a dividend yield of 3.07%.
On October 17, Johnson & Johnson (NYSE: JNJ) announced adjusted earnings and revenue that exceeded the forecasts of Wall Street, subsequently increasing its full-year guidance due to robust sales in both its pharmaceutical and medical devices divisions. The pharmaceutical company also disclosed net income of $4.31 billion, equivalent to $1.69 per share. This figure remained consistent with the net income of $4.31 billion, or $1.62 per share, reported for the corresponding period in the previous year.
In the third quarter of 2023, the number of hedge funds tracked by Insider Monkey with holdings in Johnson & Johnson (NYSE:JNJ) declined to 84, down from 88 in the prior quarter. The collective investments by these hedge funds surpass a total value of $4.15 billion. A leading hedge fund investor in Johnson & Johnson (NYSE:JNJ) is Bridgewater Associates, managed by Ray Dalio, with a substantial stake valued at approximately $424.3 million.
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 85
Merck & Co., Inc. (NYSE:MRK), a distinguished American multinational pharmaceutical company headquartered in Rahway, New Jersey, can trace its origins to the Merck Group, established in Germany in 1668. Originally the American arm of this venerable group, the company operates under the names Merck Sharp & Dohme or MSD outside the United States and Canada. It holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.
Insider Monkey dug through 910 hedge funds for their third quarter of 2023 investments to discover that 85 had invested in Merck & Co., Inc. (NYSE:MRK), up from 78 in the previous quarter.
Carillon Eagle Growth & Income Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q2 2023 investor letter:
“Merck & Co., Inc. (NYSE:MRK) presented positive clinical data for a new drug in its oncology pipeline, announced an acquisition that was viewed favorably by investors, and reported strong first-quarter financial results while also increasing its earnings guidance for 2023.”
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 104
UnitedHealth Group Incorporated (NYSE:UNH), based in Minnetonka, Minnesota, stands as a leading American multinational corporation specializing in managed healthcare and insurance services, operating as a for-profit entity. The corporation is structured into four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Recognized as one of the best stagflation stocks available, UnitedHealth Group Incorporated (NYSE:UNH) affirmed a quarterly dividend of $1.88 per share on November 8, maintaining consistency with the previous payout.
Insider Monkey’s database of 910 hedge funds reveals that 104 hedge funds reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH). The most significant stakeholder in the firm during this period was Rajiv Jain’s GQG Partners, which holds a $1.63 billion stake in the company.
Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:
“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 116
Berkshire Hathaway Inc. (NYSE:BRK-B) functions as a versatile multinational conglomerate holding company, with its headquarters located in Omaha, Nebraska. Primarily driven by its activities in the insurance sector, the company strategically allocates profits generated from insurance operations across a diverse array of subsidiaries, equity holdings, and various financial instruments. The company’s resilience to market fluctuations is notably attributed to its well-diversified portfolio, encompassing businesses and investments in various industries.
Insider Monkey’s third-quarter data revealed that 116 hedge funds maintained positive positions in Berkshire Hathaway Inc. (NYSE:BRK-B), indicating an increase from 109 funds in the preceding quarter. The Bill & Melinda Gates Foundation Trust emerged as the largest shareholder in the company, holding 22.52 million shares valued at $7.89 billion.
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