Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Best Diversified Dividend Stocks to Buy Now

In this article, we discuss 10 best diversified dividend stocks to buy now. You can skip our detailed analysis of best dividend stocks and their returns over the years, and go directly to read 5 Best Diversified Dividend Stocks to Buy Now

In September, the S&P 500 reported its largest percentage drop in 20 years, declining 1.51% for the month. Similarly, Dow Jones Indices and NASDAQ also posted their second consecutive monthly losses, according to a recent report by Reuters. The current economic landscape has caught investors in the vortex of uncertainty as they explore different investment options. Analysts are recommending dividend stocks as they can produce stable income for investors in these times.

Since 2000, dividend payouts have increased three times compared to the dividends paid in the period starting from 1971 through 1999, according to the National Bureau of Economic Research. This year, dividend payments reached their record high and have represented a significant share of operating income. In the second quarter of 2022, dividends and buybacks accounted for 89.2% of the operating earnings of the S&P 500, as reported by Yardeni Research, Inc.

Historically, dividend stocks have delivered strong returns during periods of high inflation. Especially the companies with strong dividend growth histories proved to be real winners and returned strong capital to shareholders. According to a report by Sterling Capital, dividend growers delivered an annual average return of 10.4% from January 1973 to December 1984 and non-dividend paying stocks returned 5.1% in comparison. Overall, dividend stocks returned 9.5% during this period. Some of the best dividend stocks like PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM) have shown strong dividend growth over the years and are popular among investors.

Our Methodology:

The dividend companies mentioned below are conglomerate firms that specialize in several different businesses. We analyzed these companies through their dividend histories, financial strength, and balance sheets. The stocks are ranked according to their dividend yields, as recorded on October 3.

Best Diversified Dividend Stocks to Buy Now

10. Danaher Corporation (NYSE:DHR)

Dividend Yield as of October 3: 0.39%

Danaher Corporation (NYSE:DHR) is an American diversified conglomerate that designs and manufactures medical, industrial, and commercial products. In addition to this, the company also provides related services to its consumers. In Q2 2022, the company reported a strong cash position, with its operating cash flow standing at over $2 billion, up from $1.9 billion in the previous quarter. Its free cash flow stood at over $1.7 billion. The company’s revenue of $7.75 billion showed a 7.3% growth from the same period last year.

Danaher Corporation (NYSE:DHR) has been raising its dividends consistently for the past eight years. It currently pays a quarterly dividend of $0.25 per share and has a yield of 0.39%, as of October 3. In the past five years, it raised its payouts at a CAGR of 11.99%, coming through as one of the best dividend stocks on our list.

In August, Credit Suisse initiated its coverage of Danaher Corporation (NYSE:DHR) with an Outperform rating and a $340 price target. The firm mentioned that the company has emerged stronger after the pandemic and has shown structural growth acceleration over the years.

At the end of Q2 2022, 82 hedge funds tracked by Insider Monkey owned stakes in Danaher Corporation (NYSE:DHR), compared with 83 in the previous quarter. The collective value of these stakes is over $4.8 billion. With roughly 4 million shares, Fisher Asset Management owned the largest position in the company.

In addition to PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM), Danaher Corporation (NYSE:DHR) is one of the best dividend stocks due to its strong dividend policy.

Weitz Investment Management mentioned Danaher Corporation (NYSE:DHR) in its Q2 2022 investor letter. Here is what the firm has to say:

“Consistent with that approach, portfolio activity among our long holdings tilted toward purchases. We added to almost half our holdings by varying degrees, and we were pleased to initiate new positions in Danaher (NYSE:DHR). Danaher is a provider of instruments and diagnostic tools to medical, life science, and other desirable end-markets worldwide. The business generate significant free cash flow, possess strong competitive positions, and have excellent management teams with demonstrated acquisition records.”

9. General Electric Company (NYSE:GE)

Dividend Yield as of October 3: 0.52%

General Electric Company (NYSE:GE) is a Boston-based multinational conglomerate that manufactures electronic equipment and aircraft engines and also offers financial services to its consumers. On September 9, the company declared a quarterly dividend of $0.08 per share, in line with its previous dividend. The stock’s dividend yield came in at 0.52%, as of October 3.

In Q2 2022, General Electric Company (NYSE:GE) reported an operating cash flow of over $550 million, and its free cash flow came in at $162 million. The company’s revenue for the quarter stood at $18.6 billion, up 2% from the same period last year. For Fy22, it expects to generate nearly $1 billion in free cash flow due to its increasing energy-related orders.

In August, Bernstein resumed its coverage of General Electric Company (NYSE:GE) with an Outperform rating and a $100 price target due to its outperformance in aviation and growth in earnings. The firm expects the company to show growth in sales for at least nine months.

As of the close of Q2 2022, 49 hedge funds tracked by Insider Monkey owned stakes in General Electric Company (NYSE:GE), down from 51 a quarter earlier. These stakes hold a combined value of over $3.8 billion.

Longleaf Partners mentioned General Electric Company (NYSE:GE) in its Q2 2022 investor letter. Here is what the firm has to say:

General Electric Company (NYSE:GE) – Aviation, Healthcare and Power conglomerate GE was punished in the quarter amid top-down economic fears for this collection of seemingly cyclical businesses. However, the market is not giving the company credit for the material improvements CEO Larry Culp has made in his tenure. The balance sheet today is stronger than it has been in a very long time, and each of the three primary business segments each have strong paths to increasing earnings, regardless of the economic environment. Healthcare has historically not been a cyclical business. While Aviation typically has some economic sensitivity, the business still has a strong COVID rebound tailwind that should continue even in an uncertain environment. Power is a less cyclical business, and GE maintains a steady business servicing approximately one-third of the world’s electricity. GE is another example of strong insider buying indicating management’s confidence in the business, while the company also began buying back discounted shares. GE is still on track to break the company into three separate businesses, and we believe this will help the market properly weigh the value of each core segment.”

8. Carlisle Companies Incorporated (NYSE:CSL)

Dividend Yield as of October 3: 1.07%

Carlisle Companies Incorporated (NYSE:CSL) is an Arizona-based diversified company that designs, manufactures, and sells a wide variety of products that belong to different markets. In August, Oppenheimer raised its price target on the stock to $360 with an Outperform rating on the shares, as the firm sees increasing demand for the company’s products. In addition to this, the firm remains confident in the unit’s resilience in case of a possible recession.

In the second quarter of 2022, Carlisle Companies Incorporated (NYSE:CSL) reported revenue of $1.8 billion, which showed a 54.2% growth from the same period last year. The company’s operating cash flow for the quarter stood at nearly $180 million and its free cash flow was recorded at $127.6 million. During the quarter, the company paid $28 million in dividends, which shows its strong FCF generation. Moreover, it also repurchased shares worth $50 million.

Carlisle Companies Incorporated (NYSE:CSL) is one of the best dividend stocks on our list as the company holds a strong dividend growth history. In 2022, the company stretched its dividend growth streak to 46 years. Currently, it pays a quarterly dividend of $0.75 per share, with a dividend yield of 1.07%, as recorded on October 3.

At the end of June 2022, 30 hedge funds in Insider Monkey’s database owned stakes in Carlisle Companies Incorporated (NYSE:CSL), up from 29 in the previous quarter. These stakes hold a collective value of over $866.6 million. Among these hedge funds, Generation Investment Management owned the largest position in the company in Q2.

7. TE Connectivity Ltd. (NYSE:TEL)

Dividend Yield as of October 3: 2.03%

TE Connectivity Ltd. (NYSE:TEL) is an American company that manufactures products related to various industries, including communications, aerospace, defense, medical, energy, and consumer electronics. In fiscal Q3 2022, the company reported an operating cash flow of over $579 million, up from $413 million in the previous quarter. The company’s free cash flow also jumped to $374 million, from $234 million a quarter earlier. It paid $180 million in dividends to shareholders during the quarter.

TE Connectivity Ltd. (NYSE:TEL) has been raising its dividends consistently for the past seven years and has a five-year dividend CAGR of 6.60%. This makes the company one of the best dividend stocks to buy now. It currently offers a quarterly dividend of $0.56 per share, with a dividend yield of 2.03%, as of October 3.

In August, Evercore ISI maintained its Outperform rating on TE Connectivity Ltd. (NYSE:TEL) and a $145 price target. The firm highlighted the company’s strong guidance and its solid quarterly earnings.

At the end of Q2 2022, 35 hedge funds tracked by Insider Monkey owned stakes in TE Connectivity Ltd. (NYSE:TEL), compared with 38 a quarter earlier. The total value of these stakes is nearly $1.2 billion. Ian Simm and Brandon Haley were some of the company’s major stakeholders in Q2.

Carillon Tower Advisers mentioned TE Connectivity Ltd. (NYSE:TEL) in its Q1 2022 investor letter. Here is what the firm has to say:

TE Connectivity (NYSE:TEL) shares weakened on the back of global auto production issues due to the war in Ukraine. Further, fears are rising that a recession in Europe could hinder demand for autos and undermine the company’s largest end-market.”

6. Johnson & Johnson (NYSE:JNJ)

Dividend Yield as of October 3: 2.77%

Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical company that also specializes in other household and consumer products. The company holds one of the strongest dividend growth track records in the US market, having raised its payouts for 60 years consistently. The company currently pays a quarterly dividend of $1.13 per share, with a dividend yield of 2.77%, as recorded on October 3.

On September 14, Johnson & Johnson (NYSE:JNJ)’s board announced the authorization of a buyback program for $5 billion worth of stock. This was attributed to the company’s strong free cash flow and lowest levels of debt in five years. In Q2 2022, the company generated $4.7 billion in free cash flow, up from $3.37 billion in the previous quarter.

In July, SVB Securities maintained its Outperform rating on Johnson & Johnson (NYSE:JNJ) with a $194 price target, as the demand for the company’s key products and segments gain momentum. Moreover, the firm also appreciated the management’s effort to keep costs in check.

As of the close of Q2 2022, 83 hedge funds tracked by Insider Monkey owned stakes in Johnson & Johnson (NYSE:JNJ), with a total value of over $6.7 billion. In the previous quarter, 83 hedge funds owned stakes in the pharmaceutical company as well, worth over $7.4 billion.

Johnson & Johnson (NYSE:JNJ) is a valuable addition to dividend portfolios alongside some of the best dividend stocks like PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM).

Distillate Capital Partners LLC mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:

Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

Click to continue reading and see 5 Best Diversified Dividend Stocks to Buy Now

Suggested articles:

Disclosure. None. 10 Best Diversified Dividend Stocks to Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…