We like dividend stocks and consider them a better alternative than the 10-year treasuries. We think it just doesn’t make sense to invest in 10-year or longer treasuries. We’d rather be in high dividend yielding stocks that not only yield more than the treasuries but also provide some inflation protection and provide some upside potential through dividend boosts and capital gains. We think it is very unlikely that a portfolio of high dividend stocks will be down 25% or more in 10 years.
One of the ways of picking the best dividend stocks is to invest in what prominent hedge funds like. Insider Monkey tracks more than 300 hedge funds that mostly use fundamental analysis to make investment decisions. We look for at least a 4% dividend yield and $5 Billion in market cap. Hedge funds favorite dividend stocks are Pfizer (PFE), Sanofi (SNY), BP Plc (BP), Merck (MRK), Intel (INTC) and Vodafone (VOD). There are also 24 other high dividend stocks that hedge funds love (See these 24 stocks and our discussion here).