In this article, we discuss 5 best value dividend stocks to buy. If you want to see more best value dividend stocks to buy, the risk/reward, and methodology of this list, go directly to 13 Best Value Dividend Stocks to Buy.
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 89
Dividend Yield as of 2/2: 2.24%
The Home Depot, Inc. (NYSE:HD) is the world’s largest home improvement retailer that has a dividend yield of 2.24% as of February 2. Given the company’s sizable operations, The Home Depot, Inc. (NYSE:HD) has economies of scale and earnings power.
In addition to paying a dividend, The Home Depot, Inc. (NYSE:HD)’s board of directors announced a new $15 billion share repurchase program in 2022. With 89 hedge funds in our database owning shares of The Home Depot, Inc. (NYSE:HD) at the end of Q3, the stock ranks #5 on our list of 13 Best Value Dividend Stocks to Buy.
4. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 90
Dividend Yield as of 2/2: 0.94%
Although the company said it is on track to have finished its accelerated share repurchases at the end of 2022, S&P Global Inc. (NYSE:SPGI) stock has nevertheless surged 14.4% year to date as the market has become more bullish on the leading ratings agency’s earnings per share growth potential. In terms of capital returns, S&P Global Inc. (NYSE:SPGI) still has a dividend yield of 0.94% as of 2/2. In terms of earnings estimates, analysts expect S&P Global Inc. (NYSE:SPGI) to earn $11.13 per share in 2022, $12.52 per share in 2023, and $14.54 per share in 2024.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 97
Dividend Yield as of 2/2: 2.44%
Bank of America Corporation (NYSE:BAC) is one of the big four banks in the United States with substantial market share and normalized earnings power if it makes the right loans and if the economic conditions aren’t recessionary. Given it has pretty decent earnings power, Bank of America Corporation (NYSE:BAC) is considered a dividend stock with a dividend yield of 2.44% as of 2/2. If the economy doesn’t worsen too much, there’s potential for a dividend increase this year considering the bank’s EPS growth potential. 97 hedge funds in our database owned shares of Bank of America Corporation (NYSE:BAC) at the end of Q3, ranking the stock #3 on our list of 13 Best Value Dividend Stocks to Buy.
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
Dividend Yield as of 2/2: 2.88%
JPMorgan Chase & Co. (NYSE:JPM) is another leading bank with substantial market share and normalized earnings power if economic conditions don’t worsen too much. While the company halted share buybacks beginning July of last year, there is a chance of the buyback returning this year as the bank remains profitable and has substantial reserves. Just how profitable JPMorgan Chase & Co. (NYSE:JPM) is for 2023 will depend on economic conditions, however, and not current expectations. As of 2/2, the bank had a dividend yield of 2.88%.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 269
Dividend Yield as of 2/2: 1.03%
With 269 hedge funds in our database owning shares of the stock at the end of Q3, Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 13 Best Value Dividend Stocks to Buy. Although the company’s outlook for 2023 was weaker than expected due to the subdued PC market, Microsoft Corporation (NASDAQ:MSFT) still has long term growth potential if it wins a decent market share of the AI market. The software giant also has substantial competitive advantages given its strong brand and scale. As of 2/2, Microsoft Corporation (NASDAQ:MSFT) has a dividend yield of 1.03%.
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