5 Most Profitable Dividend Stocks To Invest In

In this article, we discuss 5 most profitable dividend stocks to invest in. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read 12 Most Profitable Dividend Stocks to Invest In.

5. Johnson & Johnson (NYSE:JNJ)

Latest TTM Net Income: $19.1 billion

Johnson & Johnson (NYSE:JNJ) is a New Jersey-based pharmaceutical industry company that also offers services in consumer health. The company announced a 4% increase in its quarterly dividend to $1.24 per share on April 16. This marked the company’s 62nd consecutive year of dividend growth. The stock’s dividend yield on April 27 came in at 3.39%. With a TTM net income of over $19 billion, JNJ is one of the most profitable stocks on our list.

At the end of December 2023, 81 hedge funds tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE:JNJ), compared with 84 in the previous quarter. These stakes are worth nearly $4 billion in total. Ray Dalio’s Bridgewater Associates was one of the company’s leading stakeholders in Q4.

4. Chevron Corporation (NYSE:CVX)

Latest TTM Net Income: $20.3 billion

Chevron Corporation (NYSE:CVX) is one of America’s leading energy companies that is engaged in various aspects of the oil and gas industries. On April 26, the company declared a quarterly dividend of $1.63 per share, which was in line with its previous dividend. Overall, it has been growing its dividends for the past 37 years consistently. In FY23, the company returned nearly $11 billion to shareholders through dividends, which places it on our list of the most profitable dividend stocks. The stock has a dividend yield of 3.93%, as recorded on April 27.

Chevron Corporation (NYSE:CVX) was included in 71 hedge fund portfolios at the end of Q4 2023, compared with 72 in the previous quarter, as per Insider Monkey’s database. These stakes have a total value of over $21.6 billion.

3. Bank of America Corporation (NYSE:BAC)

Latest TTM Net Income: $23.3 billion

Bank of America Corporation (NYSE:BAC) is next on our list of the most profitable stocks that pay dividends. The American financial services company has a 25-year run of paying regular dividends to shareholders. Its current quarterly dividend comes in at $0.24 per share and has a dividend yield of 2.54%, as recorded on April 27.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) jumped to 96 in Q4 2023, from 88 in the previous quarter. The collective value of these stakes is roughly $40 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4, owning over 1 billion BAC shares.

2. Exxon Mobil Corporation (NYSE:XOM)

Latest TTM Net Income: $32.8 billion

Exxon Mobil Corporation (NYSE:XOM) is a Texas-based natural gas and energy company that specializes in the distribution of petroleum-based products. On April 26, the company announced a quarterly dividend of $0.95 per share, which fell in line with its previous dividend. It has a solid history of paying regular dividends to shareholders as the company has never missed a dividend since 1882. Moreover, it maintains a 41-year track record of consistent dividend growth. As of April 27, the stock has a dividend yield of 3.22%.

The number of hedge funds tracked by Insider Monkey owning stakes in Exxon Mobil Corporation (NYSE:XOM) grew to 85 in Q4 2023, from 79 a quarter earlier. The consolidated value of these stakes is over $4.47 billion.

1. JPMorgan Chase & Co. (NYSE:JPM)

Latest TTM Net Income: $48.5 billion

JPMorgan Chase & Co. (NYSE:JPM) tops our list of the most profitable dividend stocks to invest in. The multinational investment banking company offers a quarterly dividend of $1.15 per share, having raised it by 10% in March this year. In the first quarter of 2024, it returned approximately $3.3 billion to shareholders through dividends. The stock’s dividend yield on April 27 came in at 2.38%.

At the end of Q4 2023, 103 hedge funds tracked by Insider Monkey reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 109 in the previous quarter. The overall value of these stakes is over $9 billion.

You can also take a look at 10 Best Technology Dividend Aristocrats to Buy and 15 Best Cheap Stocks To Buy For 2024