5 Best Dividend Growth Stocks With High Upside Potential: Part 2

#3 McDonald’s Corporation (NYSE:MCD)

– Number of Hedge Fund Holders (as of September 30): 55
– Total Value of Hedge Fund Holdings (as of September 30): $2.77 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 2.90%

With the election of Donald Trump as the 45th President of the United States, McDonald’s Corporation (NYSE:MCD) shareholders have several things to be happy about. Under a Trump administration, McDonald’s taxes will likely be lower, providing more capital for management to return to shareholders. Given Trump’s business-friendly stance, the push for sharply-higher minimum wage could take a back-seat, lowering labor-inflation for McDonald’s. Both potential developments are good for McDonald’s Corporation’s dividend, which has increased for 39-straight years and currently yields 3.12%.

#2 Exxon Mobil Corporation (NYSE:XOM)

– Number of Hedge Fund Holders (as of September 30): 59
– Total Value of Hedge Fund Holdings (as of September 30): $2.83 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 0.80%

In terms of scale and safety, there is no better investment in the energy sector than Exxon Mobil Corporation (NYSE:XOM). Not only has Exxon Mobil raised its dividend for 33 years in a row, but the company also has one of the lowest cost of production in the public industry. Throw in the fact that Exxon has a natural hedge in its enormous downstream business, and it’s not hard to see why traders have bid up the stock by 15.7% year-to-date. With Trump having threatened to tear up the Iran deal, the country could be more conciliatory when it comes to OPEC cutting production. As a result, Brent could go higher and help Exxon Mobil’s profits grow.

#1 Procter & Gamble Co (NYSE:PG)

– Number of Hedge Fund Holders (as of September 30): 71
– Total Value of Hedge Fund Holdings (as of September 30): $20.1 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 2.50%

Although Procter & Gamble Co (NYSE:PG) isn’t cheap with a forward P/E of around 20, the stock has proven to be a very dependable dividend payer. The consumer staple has raised its dividend each year for 59-consecutive years, and has a current yield of around 3.21%. According to our database of 742 funds which filed 13Fs for the September quarter, 71 owned shares of Procter & Gamble Co (NYSE:PG) at the end of September, up by 15 funds from the end of the previous quarter. Although the company’s international earnings could languish due to the strong dollar, Procter & Gamble will benefit from a stronger U.S. economy and lower taxes.

Disclosure: None