JPMorgan’s Top Dividend Stocks for 2016, Part 4

PACCAR Inc (NASDAQ:PCAR)

– Number of Hedge Fund Holders (as of September 30): 34
– Total Value of Hedge Fund Holdings (as of September 30): $450.79 million
– Hedge Fund Holdings as Percent of Float (as of September 30): 2.40%

Although JPMorgan has a ‘Neutral’ rating and $55 price target on PACCAR Inc (NASDAQ:PCAR) due to the anticipated margin pressure and lower volume on the back of a decreasing demand in the North American HD truck business in 2016, the analysts think PACCAR should trade at a premium due to its track record of good execution. Moreover, the stock pays an attractive dividend yield of 4.1% when factoring in the normal and special dividend payouts. Shares of the company trade for 11.3 times forward earnings.

Disclosure: none