5 Cash-Rich Dividend Stocks To Buy Now

In this article, we will take a look at 5 cash-rich dividend stocks to buy now. If you want to see our analysis of the current market situation and see other top stocks, go to 12 Cash-Rich Dividend Stocks To Buy Now. 

5. Blackstone Inc. (NYSE:BX)

Number Of Hedge Fund Holders: 61

Dividend Yield As Of January 20: 6.85%

Market Capitalization: $103.12 billion

Enterprise Value (EV): $81.66 billion

Blackstone Inc. (NYSE:BX) is an American alternative investment management company based in New York City. The company’s private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate.

Piper Sandler analyst Sumeet Mody lowered the price target on Blackstone Inc. (NYSE:BX) to $111 from $114 and kept an Overweight rating on the shares on December 21. The analyst updated his estimates ahead of Q4 earnings to account for flow and market activity alongside realizations and fund closings. Mody predicts softer fundraising and deployment levels to end the year for Blackstone.

Blackstone, Inc. (NYSE:BX) currently pays a quarterly dividend of $1.23 per share and has a dividend yield of 5.81%, as recorded on January 20.

At the end of Q3 2022, 61 hedge funds tracked by Insider Monkey owned stakes in Blackstone Inc. (NYSE:BX), the same as in the previous quarter. These stakes are valued at over $1.3 billion collectively. Farallon Capital was the company’s leading stakeholder in Q3.

Baron Funds mentioned Blackstone Inc. (NYSE:BX) in its Q3 2022 investor letter. Here is what the firm has to say:

“Share We also took advantage of a pullback in stocks to acquire shares of Blackstone Inc. (NYSE:BX), though as mentioned above, our timing could have been better. Blackstone is the largest alternative asset manager in the world with nearly $1 trillion of assets under management (AUM) and $700 billion of fee-earning capital. More importantly, 40% of Blackstone’s AUM is perpetual in nature and 90% of revenue is tied to capital that is perpetual or long term in nature. We have long admired Blackstone due to its strong brand, premier global franchise, loyal investor base, nearly 40-year superior investment track record, and talented executive team anchored by CEO Steve Schwarzman and President Jon Gray.

The company has been at the forefront of new product innovation, and we believe that Blackstone will continue to be the winner against an appealing industry backdrop with durable growth characteristics, underpinned by: i) a large and growing addressable market in alternative investments of $10 trillion today vs. $250 trillion for stocks and bonds; ii) institutions continuing to allocate increasing amounts of capital to alternatives (due to historical lower volatility and higher returns); and iii) the opportunity in the retail/high net worth channel that is less than 5% penetrated (versus approximately 30% for institutions)…” (Click here to read the full text)

4. U.S. Bancorp (NYSE:USB)

Number Of Hedge Fund Holders: 52

Dividend Yield As Of January 20: 4.13%

Market Capitalization: $71.09 billion

Enterprise Value (EV): $24.28 billion

U.S. Bancorp (NYSE:USB) is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. It is the parent company of U.S. Bank National Association, and is the fifth largest banking institution in the United States.

On January 10, UBS analyst Erika Najarian upgraded U.S. Bancorp (NYSE:USB) to Buy from Neutral with a price target of $55, up from $47. With the Union Bank deal now closed, the analyst believes that the overhang is removed and U.S. Bancorp is now attractively valued.

U.S. Bancorp (NYSE:USB) has a substantial dividend yield of 4.13% as of January 20. On December 13, U.S. Bancorp (NYSE:USB) declared a quarterly dividend of $0.48, which was paid on January 17 to the shareholders of record on December 30.

Insider Monkey profiled 920 hedge funds to discover that 52 had owned U.S. Bancorp (NYSE:USB)’s shares during 2022’s third quarter. Warren Buffett’s Berkshire Hathaway is U.S. Bancorp (NYSE:USB)’s largest shareholder. It owns 77 million shares that are worth $3 billion.

3. Microsoft Corporation (NASDAQ:MSFT)

Number Of Hedge Fund Holders: 269

Dividend Yield As Of January 20: 1.13%

Market Capitalization: $1.80 trillion

Enterprise Value (EV): $1.73 trillion

Microsoft Corporation (NASDAQ:MSFT) is an American multinational technology corporation that develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft has upped its dividend for 20 consecutive years. As of January 20, the company has a dividend yield of 1.13%.

At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $61.2 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 258 in the previous quarter worth $56 billion. Bill & Melinda Gates Foundation Trust held the biggest stake in Microsoft Corporation (NASDAQ:MSFT) at the end of Q3 2022.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…).

2. Bank of America Corporation (NYSE:BAC)

Number Of Hedge Fund Holders: 97

Dividend Yield As Of January 20: 2.60%

Market Capitalization: $271.56 billion

Enterprise Value (EV): $143.75 billion

The Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank caters to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.

On January 13, Bank of America Corporation (NYSE:BAC) reported Q4 GAAP earnings per share of $0.85 and a revenue of $24.53 billion, outperforming Wall Street estimates by $0.08 and $360 million, respectively.

As of January 20, Bank of America Corporation (NYSE:BAC) pays a quarterly dividend of $0.22 per share and has a dividend yield of 2.60%.

On January 17, Citi analyst Keith Horowitz raised the his price target on Bank of America Corporation (NYSE:BAC) to $38 from $36 but kept a Neutral rating on the shares. While sentiment was negative heading into its earnings, Horowitz was surprised to see the company’s stock outperform on the earnings report given the downside to its EPS consensus revisions.

According to Insider Monkey’s third quarter database, 97 hedge funds were long Bank of America Corporation (NYSE:BAC), compared to 99 funds in the earlier quarter. Harris Associates is a prominent stakeholder of the company, with 41.8 million shares worth $1.26 billion.

Ariel Investment made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2022 investor letter:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”

1. Citigroup Inc. (NYSE:C)

Number Of Hedge Fund Holders: 85

Dividend Yield As Of January 20: 3.98%

Market Capitalization: $99.53 billion

Enterprise Value (EV): -$154.40 billion

Citigroup Inc. (NYSE:C), or Citi, is an American multinational investment bank and financial services corporation headquartered in New York City that was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998.

On January 16, BofA analyst Ebrahim Poonawala raised the price target on Citigroup Inc. (NYSE:C) to $60 from $52 and maintained a Buy rating on the shares following the Q4 results. The analyst believes that the company’s management has done a “commendable job” over the last twelve months in building capital and executing on consumer business exits.

Citigroup Inc. (NYSE:C) declared a $0.51 per share quarterly dividend on January 11, in line with previous. The dividend will be distributed on February 24, to shareholders of record on February 6.

According to Insider Monkey’s data, Warren Buffett’s Berkshire Hathaway held the largest stake in Citigroup Inc. (NYSE:C) as of the end of September 2022, with more than 55 million shares worth $2.3 billion. Overall, 85 hedge funds reported holdings stakes in the company at the close of Q3.

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:

“Shares of Citigroup Inc. (NYSE:C) declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 13 Biggest Meat Processing Companies in the US and 16 Large-Cap Stocks with Insider Buying.