In this article, we will take a look at the 5 boring stocks that pay dividends. To see more such companies, go directly to 11 Boring Stocks That Pay Dividends.
5. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 34
With over four decades of consistent dividend increase, consumer products company The Clorox Company (NYSE:CLX) ranks 5th in our list of boring stocks that pay dividends. Consumer staples stocks like The Clorox Company (NYSE:CLX) are favored by investors during recessions as these companies make essential items whose sales largely remain unaffected even during economic downturns.
As of the end of the last quarter of 2022, 34 hedge funds had stakes in The Clorox Company (NYSE:CLX). The most significant stakeholder of The Clorox Company (NYSE:CLX) is Andreas Halvorsen’s Viking Global which owns an $108 million stake in the company.
4. Air Products and Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 41
Chemical company Air Products and Chemicals, Inc. (NYSE:APD) upped its dividend in January 2023. This was the 41st consecutive year Air Products and Chemicals, Inc. (NYSE:APD) has increased its dividend. In January, Goldman Sachs equity strategy team added Air Products and Chemicals, Inc. (NYSE:APD) in its list of stocks that are poised to benefit from the China reopening.
Insider Monkey’s proprietary database of 943 hedge funds shows that 41 hedge funds had stakes in Air Products and Chemicals, Inc. (NYSE:APD). The total value of these stakes was $508 million. The biggest stakeholder of Air Products and Chemicals, Inc. (NYSE:APD) was Phill Gross and Robert Atchinson’s Adage Capital Management which owns a $70 million stake in the company.
3. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 52
With over six decades of consistent dividend growth, the maker of Scotch tape and Post-It is one of the ideal boring stocks that pay dividends.
Hedge funds also love this dividend stock. As of the end of the fourth quarter of 2022, 52 hedge funds tracked by Insider Money had stakes in 3M Company (NYSE:MMM), up from 49 hedge funds in the previous quarter. The total value of these hedge funds’ stakes is about $1.6 billion. The biggest stakeholder of 3M Company (NYSE:MMM) was Cliff Asness’s AQR Capital Management which owns a $221 million stake.
2. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 68
Retail giant Lowe’s Companies, Inc. (NYSE:LOW) is one of the ideal boring stocks to have in your portfolio during volatile economic times. Recently, BofA screened for what it called “sleep at night” stocks for investors who are looking for safety during these troubled times. Lowe’s Companies, Inc. (NYSE:LOW) made it to BofA’s high-quality defensive group of stocks.
As of the end of the last quarter of 2022, 52 hedge funds tracked by Insider Monkey had stakes in Lowe’s Companies, Inc. (NYSE:LOW). The biggest hedge fund stakeholder of Lowe’s Companies, Inc. (NYSE:LOW) was Pershing Square of Bill Ackman which had a stake of over $2 billion in the company.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 110
UnitedHealth Group Incorporated (NYSE:UNH) has a relatively low dividend yield but this boring stock also provides share price appreciation opportunities for long-term investors. In February, UnitedHealth Group Incorporated (NYSE:UNH) declared a quarterly dividend of $1.65 per share. The dividend was payable on March 21 to shareholders of record as of March 13. Morgan Stanley recently gave bullish comments on UnitedHealth Group Incorporated (NYSE:UNH). The firm, which has an Overweight rating on UnitedHealth Group Incorporated (NYSE:UNH) and a $587 price target, believes the company’s resilient and diversified business will create long-term “double-digit earnings growth.”
At the end of the fourth quarter of 2022, 110 hedge funds had stakes in UnitedHealth Group Incorporated (NYSE:UNH), as per Insider Monkey’s database of hedge funds.
Sequoia Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2022 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) was among Sequoia’s best performing stocks this year, thanks to typically strong financial results and increased appreciation for the business’ relative insensitivity to the broader economy. For the full year 2022, United’s revenues and EPS are expected to be up approximately 13% and 17%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of approximately 10% and 14%, respectively.
UnitedHealth Group may not be a particularly beloved company, but it is one of the more entrenched businesses we’ve come across. Managed care, in its various forms-commercial risk, commercial fee, Medicare Advantage, and managed Medicaid- is an utterly essential component of our healthcare system. And in managed care, no one is bigger, more diversified or better run than United. In addition to its managed care business, United owns and operates the country’s third largest pharmacy benefit manger and is also the single largest owner by a wide margin of non-hospital care assets, including physician practices, urgent care centers, and ambulatory surgical centers…” (Click here to read the full text)
You can also take a peek at 25 Highest Paying Jobs in the World and Top 50 Perfume Brands in the World.
