In this article, we will be taking a look at 5 dividend stocks with growth potential. To read our detailed analysis of dividend investing, you can go directly to see the 10 Dividend Stocks With Growth Potential.
5. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 29
Dividend Yield: 2.4%
Number of Years of Dividend Growth: 21
Hormel Foods Corporation (NYSE:HRL) is a food processing company based in the US and founded in 1891. The company is among the best dividend stocks with the potential to grow, with JPMorgan analysts predicting the company’s operating margin to benefit from price increases.
In October, JPMorgan’s Thomas Palmer upgraded Hormel Foods Corporation (NYSE:HRL) shares from Underweight to Neutral.
The fiscal third quarter of 2021 showed an EPS of $0.32 and a revenue of $2.86 billion, beating estimates by $137.54 million, for Hormel Foods Corporation (NYSE:HRL).
In the third quarter, 29 hedge funds held stakes in Hormel Foods Corporation (NYSE:HRL), worth $476 million. In the second quarter, 24 hedge funds held stakes in the company worth $562 million.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Dividend Yield: 2.7%
Number of Years of Dividend Growth: 59
Johnson & Johnson (NYSE:JNJ) is a New Jersey based healthcare company. The company has been noted to have showed more strength than expected in light of its third quarter earnings report, according to Raymond James analyst. Jayson Bedford from Raymond James has as such reiterated an Outperform rating on shares of Johnson & Johnson (NYSE:JNJ) in October.
Johnson & Johnson’s (NYSE:JNJ) third quarter earnings report showed an EPS of $2.60, beating estimates by $0.25. The company’s revenue was $23.34 billion. Johnson & Johnson (NYSE:JNJ) has also gained 1.73% year to date and 10.04% in the past year.
Out of 867 funds, 88 funds held stakes in Johnson & Johnson (NYSE:JNJ) in the third quarter, worth $6.9 billion.
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Dividend Yield: 2.8%
Number of Years of Dividend Growth: 7
Intel Corporation (NASDAQ:INTC) is among the top renowned technology companies out there, and among the best dividend stocks with the potential to grow. This is based on Northland analysts’ comments that the company can become a valuable second source to TSMC (NYSE:TSM), which is globally demanded.
Intel Corporation (NASDAQ:INTC) was upgraded to Market Perform this November by Northland analysts.
According to our data for the third quarter, 66 hedge funds held stakes in Intel Corporation (NASDAQ:INTC) worth $6.5 billion. In the previous quarter, 78 hedge funds held stakes in the company worth $6.7 billion.
2. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
Dividend Yield: 3.03%
Number of Years of Dividend Growth: 59
The Coca-Cola Company (NYSE:KO) is among the largest American beverage companies. The company’s recent full acquisition of Body Armor’s reports shed light on its future prospects, with Morgan Stanley analysts claiming the brand’s growth can add 85 basis points to The Coca-Cola Company’s (NYSE:KO) organic sales growth.
This November, Morgan Stanley analysts reiterated an Overweight rating on shares of The Coca-Cola Company (NYSE:KO).
Insider Monkey’s hedge fund data shows 61 hedge funds holding stakes in The Coca-Cola Company (NYSE:KO) in the third quarter, worth $25 billion. In the second quarter, 62 hedge funds held stakes in the company worth $24.9 billion.
1. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 46
Dividend Yield: 3.3%
Number of Years of Dividend Growth: 63
3M Company (NYSE:MMM) is an American corporation operating in the industry, worker safety, healthcare, and consumer goods sectors. The company has consistently raised its dividend for 63 years and is among the best dividend stocks with the potential to grow.
As of this November, JPMorgan analysts have a Neutral rating on shares of 3M Company (NYSE:MMM).
The company’s third quarter report shows an EPS of $2.45, beating estimates by $0.24. The revenue was $8.94 billion, beating estimates by $285.13 million. 3M Company (NYSE:MMM) has also gained 2.12% year to date and 1.62% in the past year.
Out of 867 hedge funds, 46 held stakes in 3M Company (NYSE:MMM) in the third quarter, worth $1.6 billion. In the second quarter, 42 hedge funds held stakes in the company worth $1.5 billion.
See also 10 Best 3D Printing Stocks to Buy Now and 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks.
