Top 5 High Dividend Stocks To Buy According To Hedge Funds

In this article, we discuss top 5 high dividend stocks to buy according to hedge funds. If you want to read our detailed analysis of high-yield dividend stocks and their previous performance, go directly to read Top 10 High Dividend Stocks To Buy According To Hedge Funds. 

5. British American Tobacco p.l.c. (NYSE:BTI)

Number of Hedge Fund Holders: 22
Dividend Yield as of March 29: 9.61%

British American Tobacco p.l.c. (NYSE:BTI) is a British multinational tobacco company that offers a wide range of related products, with a presence in global markets. The company offers a quarterly dividend of $0.7431 per share, having raised it by 6.1% in February this year. This marked the company’s 26th consecutive year of dividend growth, which makes BTI one of the best dividend stocks on our list. In its FY23 report, the company announced that it expects to generate £40 billion of free cash flow before dividends over the next five years.

British American Tobacco p.l.c. (NYSE:BTI) was a part of 22 hedge fund portfolios at the end of Q4 2023, up from 17 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of nearly $400 million. With roughly 8 million shares, Orbis Investment Management was the company’s leading stakeholder in Q4.

4. Leggett & Platt, Incorporated (NYSE:LEG)

Number of Hedge Fund Holders: 24
Dividend Yield as of March 29: 9.62%

Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturing company that produces various engineered components, mainly found in homes and automobiles. On February 27, the company declared a quarterly dividend of $0.46 per share, which was consistent with its previous dividend. Overall, it maintains a 52-year streak of consistent dividend growth, which makes LEG one of the best dividend stocks on our list. The stock has a dividend yield of 9.62%, as of March 29.

At the end of the fourth quarter of 2023, 24 hedge funds tracked by Insider Monkey held stakes in Leggett & Platt, Incorporated (NYSE:LEG), growing from 19 in the previous quarter. These stakes have a total value of more than $123.6 million.

3. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 34
Dividend Yield as of March 29: 8.05%

Energy Transfer LP (NYSE:ET) is next on our list of the best dividend stocks with high yields. The American midstream energy company has raised its dividends for nine consecutive quarters and offers a quarterly dividend of $0.315 per share. The stock’s dividend yield on March 29 came in at 8.05%.

As per Insider Monkey’s database of Q4 2023, 34 hedge funds invested in Energy Transfer LP (NYSE:ET), the same as in the previous quarter. These stakes are worth over $824.4 million in total. Among these hedge funds, David Abrams’ Abrams Capital Management was the company’s leading stakeholder in Q4.

2. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 34
Dividend Yield as of March 29: 10.38%

Vale S.A. (NYSE:VALE) is a multinational mining company, headquartered in Brazil. The company is involved in the extraction of nickel, iron ore, copper, and other minerals. It currently offers a semi-annual dividend of $0.5519 per share and has a dividend yield of 10.38%, as of March 29. The company has been making regular dividend payments to shareholders since 2002, which makes VALE one of the best dividend stocks on our list.

Vale S.A. (NYSE:VALE) was included in 34 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to our database. The stakes held by these hedge funds are collectively valued at over $1 billion.

1. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 42
Dividend Yield as of March 29: 8.99%

Altria Group, Inc. (NYSE:MO) tops our list of the best dividend stocks with high yields. The American multinational tobacco company currently pays a quarterly dividend of $0.98 per share and has a dividend yield of 8.99%, as recorded on March 29. It holds a 54-year track record of consistent dividend growth.

At the end of Q4 2023, 42 hedge funds in Insider Monkey’s database reported having stakes in Altria Group, Inc. (NYSE:MO), growing from 40 in the previous quarter. The collective value of these stakes is over $1.08 billion.

Should you invest $1,000 in Altria Group right now?

Before you buy stock in MO, consider this:

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