In this article, we discuss the 5 best Vanguard dividend stocks with high yields. If you want to read our detailed analysis of dividend stocks and the latest market situation, go directly to 10 Best Vanguard Dividend Stocks with High Yields.
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 68
Dividend Yield (as of May 17): 2.55%
The Home Depot, Inc. (NYSE:HD) is a home improvement retail firm based in the United States. Enjoying strong demand during the Covid lockdown as people turned towards remodeling their homes, the firm is well-positioned for future growth given its dominant status in the industry.
As of May 17, The Home Depot, Inc. (NYSE:HD) offers a dividend yield of 2.55%. On February 22, the firm declared a quarterly dividend of $1.90, showing a 15.2% increase from its prior dividend of $1.65. The home improvement firm has grown its dividend payments to shareholders for 13 years in a row.
The Home Depot, Inc. (NYSE:HD) released its first quarter earnings report on May 17, and posted an EPS of $4.09, beating estimates by $0.40. Revenue of $38.91 billion was also above consensus estimates by $1.27 billion.
Wells Fargo analyst Zachary Fadem kept an ‘Overweight’ rating on The Home Depot, Inc. (NYSE:HD) shares after its Q1 earnings beat. He sees upside for the firm even in a slowing macro environment, and thinks that the shares present an attractive entry point at current levels. The analyst set the price target at $350.
Investors were keen on The Home Depot, Inc. (NYSE:HD) at the close of Q4 2021, where 68 hedge funds reported ownership of the company shares, as compared to 58 hedge funds a quarter ago.
Ensemble Capital, an investment firm, talked about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. The fund said:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
Dividend Yield (as of May 17): 3.28%
JPMorgan Chase & Co. (NYSE:JPM) is the largest bank in the United States with a market capitalization of $358.85 billion. The New York-based firm offers a range of financial and asset management services. It posts a solid dividend yield of 3.28% as of May 17.
On May 3, Oppenheimer analyst Chris Kotowski upgraded JPMorgan Chase & Co. (NYSE:JPM) to ‘Outperform’ from ‘Perform’ with a $167 price target. He sees more than 30% upside for the stock in the 12-18 months ahead, and believes investors should take advantage of the recent weakness in share price.
107 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM) at the end of Q4 2021, with a collective price tag of $6.58 billion. This shows a positive trend from a quarter ago where 101 hedge funds held stakes in the firm. According to its portfolio for Q1 2022, Fisher Asset Management was the largest shareholder of JPMorgan Chase & Co. (NYSE:JPM) with a stake consisting of 7.76 million shares valued at $1.05 billion.
For Q1 2022, JPMorgan Chase & Co. (NYSE:JPM) posted earnings per share of $2.63, missing estimates by $0.08. Quarterly revenue stood at $30.72 billion, above estimates by $318.5 million.
Investment firm ClearBridge Investments talked about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here’s what the fund had to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Dividend Yield (as of May 17): 3.82%
Exxon Mobil Corporation (NYSE:XOM) is an energy firm which deals in the exploration of crude oil and natural gas in the United States and around the world. It also develops, transports and stores petrochemicals and other specialty chemicals. It is one of the world’s largest firms by revenue, and offers investors a sustainable 3.82% yield as of May 17.
Argus analyst Bill Selesky on May 9 raised the firm’s price target on Exxon Mobil Corporation (NYSE:XOM) to $104 from $92 and maintained a ‘Buy’ rating on the company shares. He sees further upside potential in the company shares, and expects the firm to benefit from strong fundamentals in the energy market, as well as an improving balance sheet, higher free cash flow and reduced capital spending.
Exxon Mobil Corporation (NYSE:XOM) was popular among hedge funds at the close of Q4 2021, where 71 reported bullish bets on the company shares. This is up from 64 hedge funds a quarter ago, showing an uptick in investor confidence in the company shares.
At the end of the first quarter, Exxon Mobil Corporation (NYSE:XOM) posted EPS of $2.07, which fell below estimates by $0.16. Quarterly revenue of $90.5 billion jumped 53% from the year-ago quarter, and also outperformed estimates by $5.62 billion. As of May 18, Exxon Mobil Corporation (NYSE:XOM) has gained 52.42% in the last 12 months, and 44.80% in the last 6 months.
Here is what investment firm First Eagle Investment Management had to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
Dividend Yield (as of May 17): 2.35%
The Procter & Gamble Company (NYSE:PG) is a consumer staple giant with a range of popular brands in its portfolio. Demand for consumer products remains stable even during difficult economic times, which makes holding consumer stocks such as The Procter & Gamble Company (NYSE:PG) a good bet in today’s climate. The firm has managed to grow its dividend payments for the last 65 years in a row, and offers a sustainable yield of 2.35% as of May 17.
GQG Partners was the largest shareholder of The Procter & Gamble Company (NYSE:PG) at the close of Q1 2022, with 9.91 million shares valued at $1.51 billion. Of all the hedge funds tracked by Insider Monkey at the close of Q4 2021, 67 reported ownership of stakes in the consumer goods firm.
On April 21, Raymond James analyst Olivia Tong reiterated an ‘Outperform’ rating on The Procter & Gamble Company (NYSE:PG) shares and increased the price target to $180 from $175. She noted that solid demand in the consumer products segment is helping beat cost pressures, and the firm’s solid execution makes it well-positioned for continued outperformance. Deutsche Bank analyst Steve Powers also has a ‘Buy’ rating on The Procter & Gamble Company (NYSE:PG) shares, noting that the firm delivered organic growth well above expectations even within an uncertain macro backdrop.
As of May 18, The Procter & Gamble Company (NYSE:PG) has jumped 13.47% in the last 12 months, and 5.14% in the last 6 months. EPS for the first quarter was recorded at $1.33, beating estimates by $0.04. Quarterly revenue stood at $19.4 billion for the first quarter, outperforming estimates by $687.8 million.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield (as of May 17): 2.53%
Johnson & Johnson (NYSE:JNJ) is known as a dividend king, having grown its dividend payments for 59 years in a row. The firm deals in the development of pharmaceutical products, as well as consumer products related to baby care, skin care and oral care. As of May 17, its dividend yield stands at 2.53%. The firm declared on April 19 a quarterly dividend of $1.13 per share, which showed a 6.6% increase from its prior dividend of $1.06.
On May 17, Citi analyst Joanne Wuensch gave Johnson & Johnson (NYSE:JNJ) a ‘Buy’ rating and a price target of $205, down from $210. As of May 17, shares of Johnson & Johnson (NYSE:JNJ) have gained 4.91% in the last 12 months, and 10.11% in the last 6 months.
For the first quarter, Johnson & Johnson (NYSE:JNJ) recorded EPS of $2.67, beating estimates by $0.10. Q1 revenue stood at $23.4 billion, falling below consensus figures by $192.2 million but growing 4.95% year-on-year.
Johnson & Johnson (NYSE:JNJ) is a popular stock pick among the hedge funds tracked by Insider Monkey. At the close of Q4 2021, 83 reported owning positions in the firm with a combined value of $7.38 billion. The largest shareholder of Johnson & Johnson (NYSE:JNJ) at the end of the first quarter was Arrowstreet Capital, with a stake worth approximately $1.17 billion.
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