Dividend Stocks Hedge Funds Are Betting On

#3 Wells Fargo & Co (NYSE:WFC)

– Number of Hedge Fund Holders (as of December 31): 100
– Total Value of Hedge Fund Holdings (as of December 31): $34.68 billion
– Hedge Fund Holdings as Percent of Float (as of December 31): 12.50%

Wells Fargo & Co (NYSE:WFC)’s dividend yield has never been among the highest in the sector but it certainly has been among the safest. With a wide moat, a valuable brand, and national reach, Wells Fargo has been a consistent earnings generator, and its earnings more than support its current dividend yield of around 2.5%. Although the bank stumbled due to last year’s fake account scandal, the stock has largely recovered much of the losses, and looks primed to rally in the long term as customers forgive the bank. Warren Buffett’s Berkshire Hathaway is a major shareholder and owns around 10% of the bank.

#2 JPMorgan Chase & Co. (NYSE:JPM)
– Number of Hedge Fund Holders (as of December 31): 110
– Total Value of Hedge Fund Holdings (as of December 31): $10.69 billion
– Hedge Fund Holdings as Percent of Float (as of December 31): 3.50%

With 110 elite funds holding the stock at the end of December, JPMorgan Chase & Co. (NYSE:JPM) is the second most widely held dividend stock on our list. Shares of the stock currently yield 2.09% at current prices. Although JPMorgan shares fell slightly due to the FOMC’s decision to imply just two more rate hikes in 2017, many bulls expect the bank to benefit from deregulation and the strong U.S. economy. With less regulation, more normalized interest rates, and a low unemployment rate, JPMorgan’s dividend will very likely grow in the future.

#1 Microsoft Corporation (NASDAQ:MSFT)

– Number of Hedge Fund Holders (as of December 31): 126
– Total Value of Hedge Fund Holdings (as of December 31): $18.77 billion
– Hedge Fund Holdings as Percent of Float (as of December 31): 3.90%

126 top funds owned shares of Microsoft Corporation (NASDAQ:MSFT) at the end of December, unchanged from that of the previous quarter. Although bigger companies such as Apple have certainly performed better of late, Microsoft’s dividend (current yield of 2.4%) is arguably as safe as it gets. Not only does Microsoft have a dominant position in the PC/Software productivity market, but also its cloud division is growing rapidly. With new growth and hopefully a successful HoloLens product, Microsoft’s dividend could continue to rise.

Disclosure:None