In this article, we discuss 5 dividend stocks with over 2% yield. If you want to read about some more stocks that hedge funds like, the risk/reward, and methodology of this list, go directly to 10 Dividend Stocks With Over 2% Yield.
5. The Goldman Sachs Group, Inc. (NYSE:GS)
Dividend Yield as of September 27: 3.43%
Number of Hedge Funds Holders: 69
Total Value of Hedge Fund Holdings: 4.61 billion
Headquartered in New York, The Goldman Sachs Group, Inc. (NYSE:GS) is a financial company that offers a variety of financial services to consumers, corporations, governments, and financial organizations around the world.
Given its strong position in the capital market, The Goldman Sachs Group, Inc. (NYSE:GS), has the potential to grow earnings in the long term. On July 2022, The Goldman Sachs Group, Inc. (NYSE:GS) declared a quarterly dividend of $2.50 per share. As of September 27, the stock had a dividend yield of 3.43%.
Overall, the company remained a popular stock among hedge funds. At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $4.61 billion in The Goldman Sachs Group, Inc. (NYSE:GS). As of September 12, Eagle Capital Management owned more than 3 million shares in The Goldman Sachs Group, Inc. (NYSE:GS). The hedge fund’s total stake in the company stood at over $1 billion, which accounted for 4.37% of its 13F portfolio.
Here is what GoodHaven Capital Management specifically said about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2022 investor letter:
We also initiated a position in Goldman Sachs at an inexpensive valuation and are attracted by the potential durability of the company’s ability to generate high returns on equity driven in part by the growth in their existing and new franchises.
4. The Home Depot, Inc. (NYSE:HD)
Dividend Yield as of September 27: 2.83%
Number of Hedge Funds Holders: 80
Total Value of Hedge Fund Holdings: 5.35 billion
Based in Georgia, The Home Depot, Inc. (NYSE:HD) is a home improvement retail corporation that operates globally. The company has more than 2300 stores and also has a strong presence in the e-commerce industry.
Given the growth in its earnings, The Home Depot, Inc. (NYSE:HD) has increased its annual dividend for 12 straight years. As a result, the company has a dividend yield of 2.83% and a forward P/E ratio of 15.49 as of September 27.
80 hedge funds in Insider Monkey’s database had The Home Depot, Inc. (NYSE:HD) in a bullish position at the end of the second quarter of 2022. These hedge funds held shares in the firm worth about $5.35 billion. Fisher Asset Management, with a position worth $2.29 billion, stood as the largest shareholder of Home Depot, Inc. (NYSE:HD).
3. Wells Fargo & Company (NYSE:WFC)
Dividend Yield as of September 27: 3%
Number of Hedge Funds Holders: 83
Total Value of Hedge Fund Holdings: 5.16 billion
Based in San Francisco, Wells Fargo & Company (NYSE:WFC) offers financial services internationally.
On July 26 2022, Wells Fargo & Company (NYSE:WFC) declared a quarterly dividend of $0.30 per share, an increase of 20% from the previous. As a result of the increase, the stock has a dividend yield of 3% as of September 27.
83 hedge funds in Insider Monkey’s database had Wells Fargo & Company (NYSE:WFC) in a bullish position at the end of the second quarter of 2022. These hedge funds held shares in the firm worth about $5.2 billion. Eagle Capital Management, with a position worth $709 million, was the largest shareholder of Wells Fargo & Company (NYSE:WFC).
2. Bank of America Corporation (NYSE:BAC)
Dividend Yield as of September 27: 2.88%
Number of Hedge Funds Holders: 99
Total Value of Hedge Fund Holdings: 35.9 billion
Bank of America Corporation (NYSE:BAC) is a multinational investment bank that also offers multiple financial services. As of September 27, the stock has a dividend yield of 2.88%.
Among the hedge funds tracked by Insider Monkey in Q2 2022, 99 funds were bullish on Bank of America (NYSE:BAC), with stakes equaling $35.9 billion. Warren Buffett’s Berkshire Hathaway is the largest Bank of America (NYSE:BAC) stakeholder, with shares worth $31.4 billion.
Here is what ClearBridge Dividend Strategy has to say about Bank of America Corporation (NYSE:BAC) in its Q2 2022 investor letter:
In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.
1. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of September 27: 3.78%
Number of Hedge Funds Holders: 104
Total Value of Hedge Fund Holdings: 5.8 billion
Headquartered in New York, JPMorgan Chase & Co. (NYSE:JPM) is an investment banks and financial services holdings company. As of September 27, the stock has a dividend yield of 3.78%.
Given its growing earnings, JPMorgan Chase & Co. (NYSE:JPM) has increased its annual dividend for 10 consecutive years. Given the decline in its stock this year, JPMorgan Chase & Co. (NYSE:JPM) has a forward P/E ratio of 8.38 as of September 27.
At the end of Q2, 104 hedge funds in our database had a position in JPMorgan Chase & Co. (NYSE:JPM). Our data shows that Fisher Asset Management is the biggest stakeholder of JPMorgan Chase & Co. (NYSE:JPM), with almost 8 million shares worth $8.9 billion.
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