In this article, we discuss the 5 best stocks for dividends. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks for Dividends.
5. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 23
Dividend Yield: 4.16%
Realty Income Corporation (NYSE:O) ranks fifth on the list of 10 best stocks for dividends. The company is one of the greatest dividend-paying REITs because it pays its shareholders monthly and has increased its dividend payout for the past 26 years. Realty Income Corporation (NYSE:O) pays an annual dividend of $2.83 per share. As of June 30, 2021, the San Diego-based REIT had a portfolio of 6,761 real estate properties throughout the United States, the United Kingdom, and Puerto Rico.
On August 24, Mizuho analyst Haendel St. Juste maintained a Buy rating on Realty Income Corporation (NYSE:O) and increased his price target for the stock to $81 from $77, noting that the company’s framework is well-positioned for growth.
The company has a market cap of $26.6 billion. In the second quarter of 2021, Realty Income Corporation (NYSE:O) reported funds from operations (FFO) of $0.88 per share, beating estimates by $0.01. The company’s revenue in the second quarter came in at $464.3 million, an increase of 12% year over year, and beat revenue estimates by $31.1 million.
At the end of the second quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $221 million in Realty Income Corporation (NYSE:O), up from 18 in the previous quarter worth $183 million.
4. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
Dividend Yield: 4.88%
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company based in Illinois that ranks fourth on the list of 10 best stocks or dividends. AbbVie Inc. (NYSE:ABBV) has increased its dividends for the past 49 years and now pays an annual dividend of $5.20 per share to its shareholders. The research-driven pharmaceutical company sells medicines and therapeutics globally.
On September 8, JPMorgan analyst Chris Schott kept an Overweight rating on AbbVie Inc. (NYSE:ABBV) with a price target of $140 per share.
The company has a market cap of $190 billion. In the second quarter of 2021, AbbVie Inc. (NYSE:ABBV) reported an EPS of $3.11, beating estimates by $0.08. The company’s revenue in the second quarter came in at $13.96 billion, up 33.9% year over year, and beat revenue estimates by $322.64 million.
At the end of the second quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $5.35 billion in AbbVie Inc. (NYSE:ABBV), up from 72 in the previous quarter worth $5.91 billion.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 50
Dividend Yield: 5.58%
Chevron Corporation (NYSE:CVX) ranks third on the list of 10 best stocks for dividends. The California-based energy company has increased dividends in the last 34 years. Chevron Corporation (NYSE:CVX) currently pays an annualized dividend of $5.36 per share.
Chevron Corporation (NYSE:CVX) stock rose 2.12% the previous day after the oil giant announced a $10 billion clean-energy investment on September 14. The company intends to reduce carbon emissions through 2028 by funding carbon capture, greenhouse gas reductions, renewable fuels, and hydrogen energy projects. On September 15, Citi analyst Alastair Syme maintained a Neutral rating on Chevron Corporation (NYSE:CVX) with a price target of $105 per share.
The company has a market cap of $239 billion. In the second quarter of 2021, Chevron Corporation (NYSE:CVX) reported an EPS of $1.71, beating estimates by $0.11. The company’s revenue in the second quarter came in at $37.6 billion, an increase of 179% year over year, and beat revenue estimates by $1.15 billion. The stock has gained 24.5% in the past twelve months and returned 13.9%, year to date.
At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $4.27 billion in Chevron Corporation (NYSE:CVX), up from 41 in the previous quarter worth $4.86 billion.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 68
Dividend Yield: 6.28%
Exxon Mobil Corporation (NYSE:XOM) ranks second on the list of 10 best stocks for dividends. The oil and gas company based in Texas has increased its dividend payment in the last 37 years. Exxon Mobil Corporation (NYSE:XOM) currently pays its shareholders an annual dividend of $3.48 per share.
On August 3, Exxon Mobil Corporation (NYSE:XOM) was given a Hold rating by DZ Bank analyst Werner Eisenmann with a price target of $62.50 per share.
Exxon Mobil Corporation (NYSE:XOM) shares rose 3.37% on September 15 after the Energy Department reported a bigger decline in domestic crude inventories, as oil prices rose due to the damage caused by hurricanes Nicholas and Ida.
The company has a market cap of $239 billion. In the second quarter of 2021, Exxon Mobil Corporation (NYSE:XOM) reported an EPS of $1.10, beating estimates by $0.11. The company’s revenue in the second quarter grew 108% year over year to $67.74 billion and beat revenue estimates by $3.02 billion. The stock has gained 48.8% in the previous year and 32.4%, year to date.
At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.69 billion in Exxon Mobil Corporation (NYSE:XOM), up from 65 in the previous quarter worth $2.77 billion.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 68
Dividend Yield: 7.61%
Topping the list of 10 best stocks for dividends is AT&T Inc. (NYSE:T). The Texas-based telecom giant has increased its dividend payments in the last 36 years. AT&T Inc. (NYSE:T) currently pays its shareholders an annualized dividend of $2.08 per share. The company was founded in 1983 and is a global provider of telecommunications services.
On September 8, analyst Walter Piecyk of LightShed Partners launched coverage of AT&T Inc. (NYSE:T) with a Buy rating and a $36 price target, highlighting the company’s cellular and fiber growth potential.
The company has a market cap of $197 billion. In the second quarter of 2021, AT&T Inc. (NYSE:T) reported an EPS of $0.89, beating estimates by $0.09. The company’s revenue in the second quarter grew 7.6% year over year to $44 billion and beat revenue estimates by $1.32 billion. AT&T Inc. (NYSE: T) reported 5.5 million new mobility subscribers, resulting in a 31.9% year-over-year increase in equipment revenues to $4.6 billion.
At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $2.89 billion in AT&T Inc. (NYSE:T), up from 63 in the previous quarter worth $2.70 billion.
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