Top 10 Dividend Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 123

JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services company that offers services in commercial banking, financial transaction processing, and asset management. The company remains focused on technology and digital banking, advancing innovations in AI, blockchain, and cybersecurity to enhance efficiency and sustain its industry leadership. In the past 12 months, the stock has surged by over 41%.

In fiscal year 2024, JPMorgan Chase & Co. (NYSE:JPM) achieved record earnings, reporting an annual profit of $58.5 billion—an 18% increase from the previous year. This growth was primarily driven by its dealmakers and traders, who benefited from a market rebound in the fourth quarter. However, net interest income (NII) fell 3% year-over-year to $23.5 billion in Q4 2024, marking its first decline since 2021.

JPMorgan Chase & Co. (NYSE:JPM) is widely regarded as one of the best dividend stocks, having consistently paid dividends to shareholders since 1972. In the latest quarter, the company reaffirmed its commitment to investor returns by distributing $3.5 billion in dividends. It offers a quarterly dividend of $1.25 per share and has a dividend yield of 1.93%, as of February 25. The company has built up substantial excess capital, amounting to approximately 10% of its market capitalization, while adhering to a disciplined capital allocation strategy, with share repurchases being a lower priority. In the third quarter of 2024, the bank repurchased $6.36 billion worth of stock. As the macroeconomic outlook improves, it is expected to have less need for maintaining high cash reserves and will gradually return more capital to shareholders.