In this article, we will be looking at the 5 most popular dividend stocks on Robinhood. You can see our detailed analysis of these stocks and go directly to the 10 Most Popular Dividend Stocks on Robinhood.
5 Most Popular Dividend Stocks on Robinhood
5. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield: 4.37%
Oil and gas giant Exxon Mobil Corporation (NYSE:XOM) got upgraded to Buy from Hold this February by Argus analyst, Bill Selesky. The analyst gave the stock a price target of $92 in light of the company’s fourth-quarter 2021 performance. The company announced earnings per share of $2.05, beating estimates by $0.11, and generated $84.97 billion in quarterly revenues. The company’s revenue saw year-over-year growth of 82.56% and beat revenue estimates by $6.24 billion.
On January 26, 2022, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly cash dividend of $0.88 per share of common stock. The dividend will be payable on March 10, 2022, to shareholders of record on February 10, 2022.
Goehring & Rozencwajg Associates published its “Natural Resource Market Commentary” third-quarter 2021 investor letter. Here’s what the firm had to say about Exxon Mobil Corporation (NYSE:XOM):
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
4. Realty Income Corporation (NYSE:O)
Dividend Yield as of February 7: 4.48%
Realty Income Corporation (NYSE:O) is another stock that pays monthly dividends. The company is among the S&P 500 and operates as a real estate investment trust, REIT. Realty Income Corporation (NYSE:O) has been consistent with its dividend increases for over 25 years now and has a track record of 114 dividend hikes and has paid 618 monthly dividends consecutively since it went public in 1994. The company also boasts a payout ratio of 223.73% and a 5-year CAGR of 3.37%.
On November 30, 2021, Mizuho analyst Haendel St. Juste raised the price target on Realty Income Corporation (NYSE:O) to $82 from $81 and reiterated a Buy rating on the shares.
3. Altria Group, Inc. (NYSE:MO)
Dividend Yield: 6.82%
Altria Group, Inc. (NYSE:MO) manufactures and sells cigarettes, oral tobacco products, and wine in the United States. Perhaps you will recognize the company by one of the names we all know and see everywhere, Marlboro. The company has a track record of 52 years of consecutive dividend hikes, making it stand tall among other dividend kings.
Here is what Broyhill Asset Management has to say about Altria Group, Inc. in its second-quarter 2021 investor letter:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
2. Prospect Capital Corporation (NASDAQ:PSEC)
Dividend Yield: 8.78%
Prospect Capital Corporation (NASDAQ:PSEC) operates as a business development company that makes debt and equity investments in middle-market companies. On November 9, 2021, Raymond James analyst Robert Dodd upgraded Prospect Capital Corporation (NASDAQ:PSEC) to Market Perform from Underperform.
Prospect Capital Corporation (NASDAQ:PSEC) was a part of 7 hedge fund portfolios by the end of the third quarter of 2021. The total stakes of these hedge funds in the BDC were in excess of $27.33 million. As of last December, Two Sigma Advisors held the highest stake in Prospect Capital Corporation (NASDAQ:PSEC) worth $15.2 million.
1. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield: 4.73%
By the end of the third quarter of 2021, 57 hedge funds had Verizon Communications Inc. (NYSE:VZ) among their 13F holdings. The total value of these stakes was in excess of $10.35 billion. As of February 4, 2022, Berkshire Hathaway owned the most shares of Verizon Communications Inc. (NYSE:VZ). The fund’s stake in the company was valued at $8.25 billion, which covered 2.49% of the fund’s investment portfolio.
On January 26, 2022, Deutsche Bank analyst Bryan Kraft raised his price target on Verizon Communications Inc. (NYSE:VZ) to $59 from $57 and reiterated a Hold rating on the shares.
Here is what Weitz Investment Management Hickory Fund has to say about Verizon Communications Inc. (NYSE:VZ) in its fourth-quarter 2021 investor letter:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
You can also take a look at 10 best high dividend stocks to buy and 10 Best Growth Stocks To Buy Now.
