In this article, we will take a look at some of the best dividend stocks of 2024.
Macroeconomic factors have weighed on US stocks in the final days of the year, with the broader market declining by over 1% in the past week. Despite this post-Christmas slowdown, US financial markets are on the verge of closing out another exceptional year. The broader market index is projected to post a roughly 25% gain for 2024, marking the first back-to-back annual increases of more than 20% since 1997-1998. This strong performance has been supported by positive economic indicators, including resilient consumer spending and a robust labor market. Inflation, though still elevated, has shown consistent signs of moderation.
Improved economic data and easing inflation have also influenced the Federal Reserve’s policy shift this year. Anticipation of rate cuts contributed to market growth, with the central bank implementing its third rate reduction in 2024.
Dividend stocks have had a relatively weak performance this year, with the Dividend Aristocrats Index achieving a modest return of about 4%, widening the gap between its performance and that of the broader market. The index tracks the performance of companies that have raised their payouts for at least 25 consecutive years. However, investors shouldn’t lose confidence in these results, as the value of dividend stocks becomes more apparent over the long term. A report by Franklin Templeton highlighted that, since 1926, dividends have accounted for nearly one-third of the total equity returns of US stocks. Additionally, from 1980 to 2019—a period marked by a sharp decline in interest rates—dividends contributed 75% to the market’s overall returns.
Investors are often drawn to dividend growth stocks because dividend payments are generally viewed as a sign of long-term commitment. Maintaining these payments demands profitability, strong returns, and consistent cash flow generation, making them a valuable indicator of a company’s quality. Businesses that regularly raise their dividends showcase their ability to consistently generate profits, which can also signal greater resilience during economic or market downturns. According to research, companies within the broader market that pay dividends have historically been more profitable compared to those that do not.
Reflecting investors’ preference for dividend stocks, many US companies are increasing their payouts and implementing dividend policies. As of September 30, 2024, around 80% of companies in the Index paid dividends, a figure consistent with a decade ago. Notably, 24% of these dividend-paying companies now belong to the technology sector, a significant rise from 13% ten years earlier, as reported by Franklin Templeton. Other innovative industries, such as healthcare and industrials, have also seen growth in dividend payers.
This broader adoption of dividends has expanded the range of options for equity income investors, offering greater access to dynamic and high-growth companies. For instance, major tech companies that are market leaders have recently introduced dividends. Meanwhile, established tech giants demonstrate that dividend payments can coexist with innovation and reinvestment, proving that companies can excel at both.
Photo by Annie Spratt on Unsplash
Our Methodology:
For this list, we reviewed a selection of dividend stocks and identified those that have provided positive returns in 2024. From this group, we focused on companies offering yields above 2% as of December 30. We then narrowed down the list by selecting companies with the most hedge fund investments, based on Insider Monkey’s Q3 2024 database. The stocks are arranged in ascending order of hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
20. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 7
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based business development company that provides customized debt and equity financing to lower-middle-market companies and debt capital to middle-market companies. In the third quarter of 2024, the company reported $136.8 million in total investment income, reflecting an 11% increase compared to the same period in the previous year. The company completed $51.6 million in investments within its lower middle market (LMM) portfolio, including an $11.2 million investment in a newly added LMM portfolio company. Its financial position remained robust, with cash and cash equivalents rising to $84.4 million by the end of the quarter, up from $60 million at the close of December 2023.
Main Street Capital Corporation (NYSE:MAIN) demonstrates exceptional cost efficiency, maintaining an Operating Expenses to Assets Ratio of 1.3% on an annualized basis. This figure, which measures non-interest operating expenses as a percentage of the average total assets for the quarter, remained steady for both the latest quarter and the twelve-month period ending September 30, 2024. In the past 12 months, the stock has surged by nearly 34%.
On November 2, Main Street Capital Corporation (NYSE:MAIN) declared a 2% hike in its monthly dividend to $0.25 per share. In addition, the company also announced a supplemental dividend of $0.30 per share. This marked the company’s 13th consecutive quarter of paying supplemental dividends to shareholders, which makes it one of the best dividend stocks. The stock has a dividend yield of 5.16%, as of December 30.
At the end of Q3 2024, 7 hedge funds tracked by Insider Monkey held stakes in Main Street Capital Corporation (NYSE:MAIN), compared with 8 in the previous quarter. These stakes have a collective value of over $21 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q3.
19. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Enterprise Products Partners L.P. (NYSE:EPD) is an American midstream natural gas and crude oil pipeline company that offers petrochemicals and related products. The company reported strong earnings in the third quarter of 2024. It posted revenue of $13.78 billion, representing a growth of nearly 15% compared to the same period the previous year. However, this figure missed analysts’ projections by over $97 million. Operating income came in at $1.78 billion, while net income rose to $1.43 billion, showing an increase from last year’s figures of $1.7 billion and $1.3 billion, respectively.
In addition, Enterprise Products Partners L.P. (NYSE:EPD) has attracted investor interest due to its strong cash position. In the latest quarter, it reported $2.1 billion in operating cash flow, a 4% increase year-over-year. Distributable cash flow rose to $2 billion, reflecting a 5% growth compared to the same period last year. Over the twelve months ending September 30, 2024, the company allocated 56% of its Adjusted Cash Flow from Operations (CFFO) to distributions for common unitholders and share repurchases of partnership common units.
This robust cash flow has enabled Enterprise Products Partners L.P. (NYSE:EPD) to increase its dividend for 26 consecutive years. On October 2, the company announced a quarterly dividend of $0.525 per share, maintaining the level of its previous payout. The stock has a dividend yield of 6.73%, as of December 30.
Enterprise Products Partners L.P. (NYSE:EPD) benefits from a stable foundation rooted in its predominantly fee-based business model, which minimizes its vulnerability to risks associated with commodity prices and market spreads. Nearly 90% of its contracts include provisions to adjust for inflation. Moreover, the company adopts a prudent approach to leverage, ensures solid distribution coverage, and manages growth capital expenditures with care. The stock has surged by over 17% in the past year, which makes EPD one of the best dividend stocks of 2024.
As of the close of Q3 2024, 25 hedge funds in Insider Monkey’s database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), up from 23 in the previous quarter. These stakes have a consolidated value of nearly $316 million. Among these hedge funds, Fairholme (FAIRX) was the company’s leading stakeholder in Q3.
18. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 26
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline and energy company. It has achieved consistent growth by broadening its energy infrastructure and focusing more on cleaner energy sources such as natural gas and renewables. Rising industrial activity and increasing electricity demand across the US and Canada are expected to drive further demand for natural gas. Notably, data centers are significantly contributing to the surge in electricity consumption, fueled by the growing need for AI applications. Many data center operators prefer powering their facilities with cleaner energy options, including renewable energy and natural gas. In the past 12 months, the stock has surged by nearly 25%.
In the third quarter of 2024, Enbridge Inc. (NYSE:ENB) successfully completed the acquisition of three U.S. natural gas utilities, a deal first announced in September 2023. These assets align well with Enbridge’s established low-risk business model, providing stable cash flow and offering potential for rapid growth opportunities. The company reported revenue of $10.66 billion, up significantly by over 48% from the same period last year. The revenue beat analysts’ estimates by $5.77 billion.
Enbridge Inc. (NYSE:ENB)’s cash position also came in strong during the quarter. The company generated nearly $3 billion in operating cash flow and its distributable cash flow came in at $2.6 billion. On December 3, it declared a 3% increase in its quarterly dividend to C$0.9425 per share. Through this increase, the company stretched its dividend growth streak to 30 years, which makes ENB one of the best dividend stocks of 2024. The stock’s dividend yield on December 30 came in at 6.25%.
Enbridge Inc. (NYSE:ENB) was included in 26 hedge fund portfolios at the end of Q3 2024, compared with 32 in the previous quarter, as per Insider Monkey’s database. The stakes held by these funds are worth $3.2 billion in total. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q3.
17. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) ranks seventeenth on our list of the best dividend stocks of 2024. The Texas-based energy company is engaged in the pipeline transportation and storage for natural gas, crude oil, and other refined products. The company boasts one of the strongest growth projects in the midstream sector and is planning to allocate between $2.5 billion and $3.5 billion annually for growth capital expenditures (capex), driven by the opportunities it is encountering. During its most recent earnings call, the company highlighted strong interest from power generation firms and data center operators in natural gas pipeline projects, driven by the growing power demands from the expansion of AI infrastructure. With a 12-month return of nearly 41%, ET is one of the best dividend stocks of 2024.
Energy Transfer LP (NYSE:ET) has demonstrated strong operational and financial results this year, setting multiple volume records in Q3 due to organic growth and strategic acquisitions. In November, it acquired Crestwood Equity Partners for $7.1 billion, and in July, it completed the $3.1 billion acquisition of WTG Midstream. In addition, the company successfully finished two processing optimization projects: the Red Lake III processing plant and a pipeline connection between Midland and Cushing.
Patient Capital Management mentioned ET in its Q3 2024 investor letter. Here is what the firm has to say:
“Energy names disappointed in the quarter following commodity prices lower throughout the period. We took the opportunity to add to our highest conviction ideas. We look to names that have idiosyncratic opportunities and are attractive in a variety of different commodity price environments. Many see risk to energy prices over the next year as supply is expected to outstrip demand by 1.3mb/d even before assuming any incremental OPEC supply comes onto the market. With commodities, consensus is rarely right. We assess companies on through cycle returns and normalized prices. From this perspective, we see a handful of attractive opportunities, including Energy Transfer LP (NYSE:ET), Seadrill (SDRL) and Kosmos (KOS).
Our ownership of Energy Transfer began in 2019 with the belief that the limited supply of new pipelines would provide attractive pricing opportunities over the long-term. At the same time, the company was paying us an attractive dividend (10% yield over the period). So far this investment thesis has largely played out, but we continue to see an attractive long-term setup for the name given our belief that natural gas will be a key ingredient to bridge us to a net carbon neutral world.”
Energy Transfer LP (NYSE:ET) also reported a solid cash position in its most recent quarter. Distributable cash flow (DCF), which reflects the cash generated before growth capital expenditures, increased by $4 million, reaching $1.99 billion. The company saw strong volumes across its systems, setting several volume records during the quarter. On October 28, Energy Transfer declared a 0.8% increase in its quarterly dividend to $0.3225 per share, marking the 12th consecutive quarterly dividend increase. The stock supports a dividend yield of 6.59%, as of December 30.
As per Insider Monkey’s database of Q3 2024, 29 hedge funds held stakes in Energy Transfer LP (NYSE:ET), compared with 32 in the previous quarter. These stakes are collectively valued at over $965.5 million.
16. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 32
Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco company that manufactures a wide range of related products including cigarettes and other nicotine products. In the past 12 months, the stock has surged by over 24.5%, which makes it one of the best dividend stocks of 2024.
In the third quarter of 2024, Altria Group, Inc. (NYSE:MO) reported revenue of $5.34 billion, reflecting a modest 1.1% increase from the same period last year. The company saw strong income growth in its smokeable products segment, fueled by the continued success of the Marlboro brand. Its oral tobacco products segment also contributed to profitability, with the MST brands performing well and the on! product maintaining its market position. In addition, Altria introduced its “Optimize & Accelerate” initiative, which is focused on modernizing operations and advancing its strategic objectives. The company also reaffirmed its 2024 adjusted diluted EPS guidance, projecting a range of $5.07 to $5.15, reflecting a growth rate of 2.5% to 4% compared to the 2023 base of $4.95.
Ashva Capital made the following comment about MO in its Q3 2024 investor letter:
“At Ashva Capital, our focus on intrinsic value–rather than market sentiment or temporary price metrics– sets our portfolio apart from peers. For example, we hold Altria Group, Inc. (NYSE:MO), which has demonstrated resilience and strong performance within our portfolio, particularly following a robust Q3 earnings report. Altria’s results highlighted increased demand for smokeless products, underscoring both the adaptability of its business model and its long-term growth potential—a key factor in our investment decision.
This approach to intrinsic value echoes insights from renowned value investor Bill Miller, whose strategy emphasized fundamental value over market-driven factors. Key principles from Miller’s approach that inform our strategy include:..” (Click here to read the full text)
On December 11, Altria Group, Inc. (NYSE:MO) declared a quarterly dividend of $1.02 per share, which was in line with its previous dividend. The company has always remained committed to its shareholder obligation, returning $1.7 billion to investors through dividends. Moreover, it has raised its payouts for 55 consecutive years. The stock has an attractive dividend yield of 7.88%, as of December 30.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 32 funds held stakes in Altria Group, Inc. (NYSE:MO), compared with 36 in the previous quarter. The consolidated value of these stakes is over $2.26 billion.
15. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 41
The Clorox Company (NYSE:CLX) is a California-based manufacturer and marketer of consumer and professional products. The company has encountered several major challenges in recent years. During the pandemic, sales surged as demand for cleaning products increased, but the company overestimated the lasting change in consumer behavior toward heightened hygiene. This led to overcommitment once pandemic restrictions were lifted. In addition, the company experienced a cyberattack in 2023. However, despite these difficulties, it reported that its supply chain has been fully restored, along with the recovery of most of the market share lost during the disruptions. The stock is up by roughly 12% in the past 12 months, which makes CLX one of the best dividend stocks of 2024.
In fiscal Q1 2025, The Clorox Company (NYSE:CLX) reported a 27% year-over-year increase in revenue, reaching $1.76 billion. The company achieved its eighth consecutive quarter of gross margin expansion, thanks to effective cost-saving measures, and is on track to fully restore its gross margin by fiscal year 2025. Additionally, Clorox completed the divestiture of its Better Health VMS business, following the earlier sale of its Argentina operations. These moves are part of the company’s strategy to streamline its portfolio, reduce volatility, boost sales growth, and improve its structural margin performance.
The Clorox Company (NYSE:CLX) also grabbed investors’ attention because of its cash position. In the first nine months of 2024, the company generated $221 million in operating cash flow, up 1,005% from the same period last year. Its quarterly dividend comes in at $1.22 per share and has a dividend yield of 3.02%, as of December 30.
The number of hedge funds tracked by Insider Monkey owning stakes in The Clorox Company (NYSE:CLX) grew to 41 in Q3 2024, from 38 in the previous quarter. These stakes are collectively valued at over $1.66 billion. Citadel Investment Group was the company’s leading stakeholder in Q3 among these hedge funds.
14. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) is a North American energy infrastructure company that owns and operates oil and gas pipelines and terminals. The company expects a 9% increase in its adjusted earnings per share this year, benefiting from the easing of challenges related to asset sales and large contract rollovers, as well as recent investments in expansion projects, such as the acquisition of STX Midstream at the end of last year. In addition, the company’s long-term growth prospects have significantly improved. It has recently added several large natural gas pipeline projects to its backlog, with expected service dates in 2028. Smaller projects that will come into commercial service in the coming years have further strengthened and extended its growth outlook. The stock has surged by over 54% in the past 12 months, outperforming the broader market.
Kinder Morgan, Inc. (NYSE:KMI)’s growth is primarily fueled by increasing demand, which has optimized capacity utilization on current pipelines and improved contract renewal rates. The company is also benefiting from high-return expansion projects and its $1.8 billion acquisition of STX Midstream completed last year.
In the third quarter of 2024, Kinder Morgan, Inc. (NYSE:KMI) reported strong financial results, ending the period with $108 million in cash and cash equivalents, up from $83 million at the end of December 2023. The company generated $1.2 billion in operating cash flow and $0.6 billion in free cash flow. On October 16, Kinder Morgan declared a quarterly dividend of $0.2875 per share, keeping the payout consistent with the previous quarter. The company has a seven-year history of steady dividend growth. As of December 30, the stock supports a dividend yield of 4.19%.
Insider Monkey’s database of Q3 2024 indicated that 42 hedge funds held stakes in Kinder Morgan, Inc. (NYSE:KMI), up from 41 in the previous quarter. These stakes are worth nearly $1.3 billion.
13. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders: 45
Kimberly-Clark Corporation (NYSE:KMB) is a Texas-based multinational consumer goods and personal care company. The company has a strong dividend history, having raised its payouts for 52 consecutive years. It currently pays a quarterly dividend of $1.22 per share and has a dividend yield of 3.73%, as of December 30. In the past 12 months, the stock has surged by nearly 7%, which makes KMB one of the best dividend stocks on our list.
In the third quarter of 2024, Kimberly-Clark Corporation (NYSE:KMB) reported $4.95 billion in revenue, representing a 4% year-over-year decline. The company is advancing its “Powering Care” strategy to drive innovation, cut costs, and offer improved solutions across various price ranges. Efforts to streamline operations aim to boost agility and responsiveness in the marketplace. Despite the revenue drop, Kimberly-Clark is on track to deliver strong growth in operating profit, margins, and earnings per share for 2024, while also focusing on sustaining momentum into 2025.
Kimberly-Clark Corporation (NYSE:KMB) demonstrated robust cash generation in 2024. Over the first nine months, the company reported $2.4 billion in operating cash flow, up from $2.3 billion during the same period the previous year. It also returned $2 billion to shareholders through dividends and stock repurchases.
As of the end of Q3 2024, 45 hedge funds in Insider Monkey’s database held stakes in Kimberly-Clark Corporation (NYSE:KMB), up from 43 in the previous quarter. The overall value of these stakes is more than $1 billion. With nearly 1.3 million shares, D E Shaw was the company’s leading stakeholder in Q3.
12. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 46
Duke Energy Corporation (NYSE:DUK) is a North Carolina-based electric power and natural gas holding company that is primarily involved in the generation, transmission, distribution, and sale of electricity. In Q3 2024, the company posted $8.15 billion in revenue, a 2% year-over-year increase, surpassing analysts’ expectations by $57.4 million. The Regulated Electric segment contributed $7.78 billion in operating revenue, up 1.8% from the previous year and representing 95.4% of the total revenue for the quarter. Additionally, the Regulated Natural Gas segment reported $298 million in revenue, reflecting a 4.9% increase from the same period last year.
Duke Energy Corporation (NYSE:DUK) also reported a strong cash position at the end of the quarter, with $376 million in cash and cash equivalents. During the first nine months of the year, the company generated $8.95 billion in operating cash flow, an increase from $7.31 billion during the same period the previous year. It is one of the best dividend stocks as it has maintained a 98-year history of regular dividend payments and has consistently raised its payouts for 13 consecutive years. Currently, it offers a quarterly dividend of $1.045 per share and has a dividend yield of 3.88%, as of December 30.
Duke Energy Corporation (NYSE:DUK)’s utility portfolio, regulated by government agencies that set its rates, ensures a steady flow of revenue, providing reliable cash flow for both dividend payments and operational expansion. The company is actively investing in operational improvements and efforts to lower its carbon emissions. Analysts project that these investments will support annual earnings per share growth of 5% to 7% through 2028, a strong pace for a major utility. This growth outlook positions Duke Energy to sustain and increase its dividend over time.
Duke Energy Corporation (NYSE:DUK) was a hedge fund favorite with 46 hedge funds at the end of Q3 2024 owning stakes in the company in Q3 2024, up from 37 in the previous quarter, as per Insider Monkey’s database. These stakes are worth over $1.66 billion. With over 4.3 million shares, GQG Partners was the company’s leading stakeholder in Q3.
11. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) ranks eleventh on our list of the best dividend stocks of 2024. The American telecommunications company offers services in communications, technology, information, and entertainment. Despite facing strong competition, the company achieved notable growth in its customer base. In Q3 2024, it added 239,000 retail postpaid phone customers, more than twice the number gained during the same period the previous year. This growth contributed to a 2.7% year-over-year increase in wireless service revenue, which totaled $19.8 billion.
In the past 12 months, VZ has surged by over 2%. The company is attracting income investors as Verizon Communications Inc. (NYSE:VZ) has a solid financial base, underscoring its reputation as a dependable dividend payer. In the first nine months of the year, the company generated $26.5 billion in operating cash flow and $14.5 billion in free cash flow. With 18 straight years of dividend increases, Verizon remains committed to delivering value to its shareholders. Currently, it offers a quarterly dividend of $0.6775 per share and has a dividend yield of 6.83%, as of December 30.
As per Insider Monkey’s database of Q3 2024, 57 hedge funds held stakes in Verizon Communications Inc. (NYSE:VZ), compared with 67 in the previous quarter. The consolidated value of these stakes is more than $3.2 billion.
10. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 59
Lockheed Martin Corporation (NYSE:LMT) is an American aerospace and defense company that specializes in advanced technology systems, services, and products. On October 3, the company declared a 4.8% hike in its quarterly dividend to $3.30 per share. This marked the company’s 22nd consecutive year of dividend growth, which makes LMT one of the best dividend stocks of 2024. The stock has a dividend yield of 2.73%, as of December 30.
Lockheed Martin Corporation (NYSE:LMT) is anticipated to sustain its dividend in the years ahead, backed by strong cash flow generation. In the latest quarter, it reported $2.4 billion in operating cash flow and $2.1 billion in free cash flow. During this time, it distributed $1.6 billion to shareholders through dividends and stock buybacks.
Investors have shown interest in Lockheed Martin Corporation (NYSE:LMT), as defense contractors are often regarded as reliable investment choices. This reliability stems from having the US government as a stable customer and the consistent nature of defense budgets, which tend to remain steady even during economic challenges. Moreover, rising geopolitical tensions worldwide are leading to increased defense spending, aimed at replacing equipment used in conflicts and tackling escalating security issues. Lockheed Martin’s missiles and fire control division stands out as the fastest-growing segment with the highest profit margins, positioning it as a key area for future growth. The stock is up by nearly 6% in the past 12 months.
Delaware Funds by Macquarie made the following comment about LMT in its Q3 2024 investor letter:
“Finally, we added Lockheed Martin Corporation (NYSE:LMT) to the portfolio. While demand for the company’s products remains strong as a function of increased defense industry expenditures and a favorable geopolitical backdrop, margins have been impaired by government contracts that were fixed in price before the onset of rapid inflation. We believe the longer-term profit outlook is inflecting as mispriced contracts are replaced by more favorable ones, beginning in 2025. As several observers have noted before, defense companies are a great insurance policy for what you don’t know, a saying that certainly rings true amid escalating conflict across the globe.”
With a collective stake value of nearly $2.4 billion, 58 hedge funds tracked by Insider Monkey held positions in Lockheed Martin Corporation (NYSE:LMT) at the end of Q3 2024. In the previous quarter, 56 funds owned stakes in the company.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 59
Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biopharmaceutical company that is known for developing innovative therapies for the treatment of various diseases. In the third quarter of 2024, the company reported revenue of $7.55 billion, which showed a 7% growth from the same period last year. As of September 30, 2024, the company’s cash, cash equivalents, and marketable debt securities totaled $5.0 billion, down from $8.4 billion at the end of 2023. This decline was largely attributed to the $3.9 billion acquisition of CymaBay Therapeutics, Inc. In the past year, the stock is up by over 10.5%, which makes GILD one of the best dividend stocks of 2024.
Polaris Capital Management highlighted Gilead Sciences, Inc. (NASDAQ:GILD) in its Q3 2024 investor letter. Here is what the firm has to say:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. Gilead Sciences, Inc. (NASDAQ:GILD) had two big announcements during the quarter: 1) the FDA approved its new liver disease treatment for biliary cholangitis and 2) its phase III HIV drug trial reduced new infections by 96% when compared to background HIV incidence, which could be a game changer for the disease.”
Gilead Sciences, Inc. (NASDAQ:GILD) demonstrated a strong cash position in the third quarter of 2024. The company generated an operating cash flow of $4.3 billion. In addition, it paid dividends worth $983 million to shareholders. Currently, it pays a quarterly dividend of $0.77 per share and has a dividend yield of 3.35%, as of December 30.
Gilead Sciences, Inc. (NASDAQ:GILD) was a part of 59 hedge fund portfolios at the end of Q3 2024, compared with 62 a quarter earlier, according to Insider Monkey’s database. The stakes held by these funds have a total value of nearly $2.6 billion.
8. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 59
AT&T Inc. (NYSE:T) is an American telecommunications company that offers a wide range of related services and products to its consumers. In 2022, the company refocused its efforts by merging its WarnerMedia division with Discovery, transitioning away from the media sector to strengthen its telecom operations. Since CEO John Stankey took over in 2020, the company has made notable progress in restructuring and lowering its long-term debt, positioning itself for sustainable growth in the future.
AT&T Inc. (NYSE:T) is now highly focused on investing in digital infrastructure, particularly its mid-band 5G network, which now reaches over 210 million people. This commitment to advanced technology enhances its competitive position and boosts service reliability. Additionally, the company is addressing social issues by working to close the digital divide and offering affordable broadband services to underserved communities. With a 12-month return of over 31%, T is one of the best dividend stocks on our list.
In the third quarter of 2024, AT&T Inc. (NYSE:T) reported revenue of $30.2 billion, reflecting a slight decline of 0.5% year-over-year. Despite challenges such as severe weather and a workforce stoppage in the Southeast, the company marked its 19th consecutive quarter of adding over 200,000 new AT&T Fiber customers. AT&T continues to expand its largest segment, Mobility and is on track to lead the industry in postpaid phone churn for the 13th time in 15 quarters. The company remains committed to making strategic industry investments, reducing debt, and increasing its free cash flow for the year.
AT&T Inc. (NYSE:T)’s cash position also came in strong. In the most recent quarter, the company generated $10.2 billion in operating cash flow and its free cash flow came in at $5.1 billion. The company pays a quarterly dividend of $0.2775 per share and has a dividend yield of 4.91%, as of December 30.
7. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company specializing in a wide range of related products and services. The stock has surged by over 12% in the past 12 months, marking a strong performance this year. This accomplishment is mainly attributed to the company’s strong operational performance. Despite facing inflationary pressures, it has consistently delivered solid results by effectively implementing significant price increases. In fact, the company achieved organic sales growth in every quarter of fiscal 2023.
In fiscal Q1 2025, The Procter & Gamble Company (NYSE:PG) reported revenue of $21.7 billion, a slight decrease of 1% compared to the same period last year. The company generated $4.3 billion in operating cash flow, with adjusted free cash flow productivity at 82%, meeting expectations. P&G also continued to provide value to shareholders, returning $4.4 billion through dividends and share buybacks.
The Procter & Gamble Company (NYSE:PG) has provided an optimistic outlook for fiscal 2025, projecting sales growth between 2% and 4% and an increase of 10% to 12% in diluted net EPS, compared to $6.02 in fiscal 2024. If the company reaches the midpoint of this forecast, it will set a new record with a diluted EPS of $6.68 for fiscal 2025. It also has a strong track record of returning value to shareholders, having paid dividends for 134 years and maintained 68 consecutive years of dividend growth, positioning it as one of the best dividend stocks of 2024. Its quarterly dividend comes in at $1.0065 per share and has a dividend yield of 2.41%, as of December 30.
The number of hedge funds tracked by Insider Monkey holding stakes in The Procter & Gamble Company (NYSE:PG) grew to 68 in Q3 2024, from 64 in the previous quarter. These stakes have a total value of more than $8.8 billion. Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q3.
6. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 68
AbbVie Inc. (NYSE:ABBV) is an American biotech and pharmaceutical company. The stock is up by over 10% in the past 12 months, which makes it one of the best dividend stocks on our list. Analysts predict that the company will rely heavily on two blockbuster drugs, Skyrizi and Rinvoq, in the coming years. These drugs generated over $4.8 billion in revenue during the third quarter and are expected to surpass $27 billion in annual sales by 2027, targeting a range of conditions such as rheumatology, dermatology, psoriatic diseases, and inflammatory bowel disorders. Overall, the company reported a revenue of $14.46 billion for Q3 2024, marking a 4% year-over-year increase. Its Immunology Portfolio contributed more than $7 billion, also growing by 4%. In addition, in August, the company completed an $8.7 billion acquisition of Cerevel Therapeutics, a company specializing in neuroscience, enhancing its pipeline with promising treatments like emraclidine, a potential schizophrenia therapy.
Polaris Capital Management also highlighted this in its Q3 2024 investor letter. Here is what the firm has to say:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
AbbVie Inc. (NYSE:ABBV) is a favorite among income investors due to its impressive 52-year record of dividend increases. Additionally, the company has maintained an average annual dividend growth rate of 7.69% over the past five years. It offers a quarterly dividend of $1.64 per share and has a dividend yield of 3.72%, as of December 30.
Insider Monkey’s database of Q3 2024 indicated that 68 hedge funds held stakes in AbbVie Inc. (NYSE:ABBV), up from 67 a quarter earlier. The stakes are worth nearly $2.6 billion. With over 1.7 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 69
The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. It has earned investors’ trust over the years due to its established leadership in the market. The company’s primary competitive edge lies in its powerful brand, which helps it stand out and protect against competitors. Alongside its reputation for providing a dependable product, the company has honed outstanding marketing strategies that keep its brand visible and top-of-mind for consumers. In the past 12 months, the stock has delivered a nearly 4% return to shareholders, which makes it one of the best dividend stocks on our list.
In the third quarter of 2024, The Coca-Cola Company (NYSE:KO) reported revenues close to $12 billion, surpassing analysts’ expectations by $290 million. It showed strong cash flow performance, generating $2.9 billion in operating cash flow and $1.6 billion in free cash flow. The company also achieved an impressive adjusted operating margin of 30.7%, highlighting its robust profitability.
This sustained performance has led to substantial long-term gains for shareholders, as The Coca-Cola Company (NYSE:KO) has increased its dividend for an impressive 62 consecutive years. Such a remarkable track record of rewarding investors is rare among companies. The company currently offers a quarterly dividend of $0.485 per share for a dividend yield of 3.13%, as of December 30.
Insider Monkey’s database of Q3 2024 indicated that 69 hedge funds held stakes in The Coca-Cola Company (NYSE:KO), up from 68 in the previous quarter. The overall value of these stakes is roughly $35 billion. Warren Buffett’s Berkshire Hathaway held the largest individual stake in the company, with 400 million shares.
4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 69
NextEra Energy, Inc. (NYSE:NEE) ranks fourth on our list of the best dividend stocks of 2024. The renewable energy company recently reported strong earnings for the third quarter of 2024, with revenue reaching $7.57 billion, marking a 5.6% year-over-year increase. It also had another successful quarter in renewable energy and storage development, adding approximately 3 gigawatts (GW) to its project backlog for the second consecutive quarter. Over the past year, the company has secured about 11 GW in new projects.
NextEra Energy, Inc. (NYSE:NEE) not only has a solid foundation but also boasts one of the largest global portfolios of solar and wind power assets. This segment has benefited from the shift away from fossil fuels towards cleaner, renewable energy sources. With the long-term transition to renewable power, the company is well-positioned for sustained growth in the decades ahead. In the past 12 months, the stock has surged by over 16.5%.
Madison Investments made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:
“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”
On October 18, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.515 per share, maintaining the same payout as the previous quarter. The company has now extended its dividend growth streak to 28 years in 2024 and has increased its dividends at an average annual rate of more than 10.5% over the past five years. the stock supports a dividend yield of 2.87%, as of December 30.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 69 funds held stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 73 in the previous quarter. The consolidated value of these stakes is more than $2.47 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) is an American multinational energy company. It described its Q3 performance as “industry-leading” and intends to keep investing in 2025 to sustain that position, while also continuing to buy back its stock to reward shareholders. For 2025, the company plans to increase capital investments to between $27 billion and $29 billion, alongside an additional $20 billion for share repurchases, which will reduce the number of shares in circulation, benefiting shareholders.
Exxon Mobil Corporation (NYSE:XOM) reported revenue of $90.02 billion in Q3 2024, exceeding analysts’ expectations by $1.66 billion. It remains a leader in carbon capture and storage, having secured a new agreement that increases its annual CO2 offtake commitments to 6.7 million metric tons, surpassing all its competitors in the sector. Exxon also demonstrated strong financial performance, generating $17.6 billion in operating cash flow and $11.3 billion in free cash flow for the quarter. Additionally, it returned $9.8 billion to shareholders through dividends and stock buybacks.
Exxon Mobil Corporation (NYSE:XOM) is renowned for its reliability as a dividend payer, having increased its payouts for 42 consecutive years. The company currently offers a quarterly dividend of $0.99 per share and has a dividend yield of 3.74%, as of December 30.
At the end of Q3 2024, 86 hedge funds in Insider Monkey’s database held stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 92 in the previous quarter. The consolidated value of these stakes is roughly $7 billion. First Eagle Investment Management was one of the company’s leading stakeholders.
2. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company. In the third quarter of 2024, the company posted revenue of $20.3 billion, up 1% from the same period last year. In the Markets segment, revenues saw an increase, with Equities rising by 32%. Investment Banking revenue grew by 31%, primarily driven by investment-grade debt issuance. The changes implemented in the Wealth business are beginning to show positive effects, with a 9% revenue growth, including significant increases in client investment assets and investment fee revenue. US Personal Banking revenues grew by 3%, with Branded Cards seeing an 8% increase, fueled by account acquisitions, higher spending, and payment rates, which contributed to an increase in interest-earning balances.
Citigroup Inc. (NYSE:C), one of the best dividend stocks, raised its quarterly dividend by 5.7% in June, following the successful completion of the Federal Reserve’s annual stress test. The company has never missed a dividend payment in over 34 years. Moreover, it returned $2.1 billion to shareholders through dividends and share repurchases in the most recent quarter. It pays a quarterly dividend of $0.56 per share and has a dividend yield of 3.18%, as of December 30.
Diamond Hill Capital made the following comment about C in its Q1 2024 investor letter:
“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”
The number of hedge funds tracked by Insider Monkey at the end of Q3 holding stakes in Citigroup Inc. (NYSE:C) grew to 88 in Q3 2024, from 85 in the previous quarter. The total value of these stakes is roughly $11 billion. With over 55 million shares, Berkshire Hathaway was the company’s leading stakeholder in Q3.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 105
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based multinational investment banking company. The company’s diverse revenue streams make it an attractive investment option. With operations spanning consumer and commercial banking, capital markets, and asset management, its diversification enables strength in one sector to offset weaknesses in others, enhancing overall stability. In the past 12 months, the stock has delivered an over 39% return to shareholders.
In the third quarter of 2024, JPMorgan Chase & Co. (NYSE:JPM) reported revenue of $42.7 billion, marking a 7% increase from the same period last year. The company showed strong financial and operational results, with a net income of $12.9 billion and a return on tangible common equity (ROTCE) of 19%. The Corporate & Investment Bank (CIB) division performed well, with a 31% rise in investment banking fees and an 8% increase in the Market’s revenue.
JPMorgan Chase & Co. (NYSE:JPM) also proved to be a generous dividend payer, distributing around $3.06 billion in dividends to shareholders during the quarter. The company currently pays a quarterly dividend of $1.25 per share, yielding 2.09% as of December 30.
At the end of Q3 2024, 105 hedge funds tracked by Insider Monkey held stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 111 in the previous quarter. The consolidated value of these stakes is more than $8.6 billion.
Overall, JPMorgan Chase & Co. (NYSE:JPM) ranks first on our list of the best dividend stocks of 2024. While we acknowledge the potential for JPM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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