Hedge Funds Are Crazy About These Five Dow Jones Dividend Leaders

Verizon Communications Inc. (NYSE:VZ)’s annual dividend yield of 4.50% is one of the highest among Dow Jones stocks. Although the company performance was not outstanding over the past year, 62 hedge funds remained confident they would see capital gains in the future. Those betting on the company were not disappointed, as the stock has gained 3.19% in the past 52 weeks, and its share price has climbed 67.5% over a five year period. In addition to offering a high dividend yield, Verizon Communications Inc. (NYSE:VZ) boasts Warren Buffett’s Berkshire Hathaway as one of its largest shareholders. Mr. Buffett’s firm disclosed ownership of 15 million shares last quarter, which were valued at around $701 million.

A total of 62 hedge funds were bullish regarding Exxon Mobil Corporation (NYSE:XOM) last quarter, a stock that currently offers shareholders an annual dividend yield of 3.18%. Considering the current state of the energy industry, the quarterly dividend payments offered by the company are quite attractive for long-term investors waiting on capital gains. Nevertheless,  Exxon Mobil Corporation (NYSE:XOM) saw its share price drop 7.45% in 2014, while suffering large capital outflows throughout the fourth quarter. However, numerous hedge funds are still betting on the firm, such as Yacktman Asset Management and Adage Capital Management, which hold 7.01 million shares and 5.4 million shares, respectively.

Disclosure: none.