10 Best Dividend Stocks on Robinhood

In this article, we discuss 10 best dividend stocks on Robinhood.

Stock trading applications like Robinhood Markets, Inc. (NASDAQ:HOOD) have taken the investing world by storm in the past few years, prompting a new generation of investors to turn their attention towards the equity markets in the United States. These retail traders, who are also active on internet platforms like Reddit, have taken on hedge funds in a battle of market supremacy that looks set to shape the future of markets. Retail traders often invest in growth firms and do not pursue value-oriented dividend stocks. 

However, as interest rates rise and inflation shows no signs of slowing down, a value-friendly marketplace, where stocks like Chevron Corporation (NYSE:CVX), Gilead Sciences, Inc. (NASDAQ:GILD), and Philip Morris International Inc. (NYSE:PM) are trending on the up, has forced these retail traders to consider dividend-paying firms as investment options in order to protect their growth-heavy portfolios from being obliterated in the current macro environment.

Even Robinhood Markets, Inc. shares are down 45% year-to-date. Despite the fall, hedge funds continue to bet on the long-term potential of the stock. Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm ARK Investment Management is a leading shareholder in the firm as of Q3 2022, with 32.9 million shares worth more than $332 million. At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $616 million in Robinhood Markets, Inc., compared to 19 the preceding quarter worth $947 million.

Our Methodology

The companies that are popular on Robinhood and have solid dividend profiles were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Dividend Stocks on Robinhood

10. BWX Technologies, Inc. (NYSE:BWXT)

Number of Hedge Fund Holders: 27  

Dividend Yield as of October 20: 1.61%   

BWX Technologies, Inc. (NYSE:BWXT) manufactures and sells nuclear components in the United States, Canada, and internationally. It is one of the best dividend stocks to invest in. On October 13, BWX Technologies announced that it has agreed to complete an amended and restated credit agreement with Wells Fargo Bank and other lenders, which increases the company’s liquidity while improving a number of key terms for BWX Technologies.

On October 11, Credit Suisse analyst Scott Deuschle initiated coverage of BWX Technologies, Inc. stock with an Outperform rating and a $65 price target, noting that the company had an exceptional free cash flow outlook and the ability to sustain mid-single digit revenue growth through 2024 in its core navy nuclear business.

At the end of the second quarter of 2022, 27 hedge funds in the database of Insider Monkey held stakes worth $322.5 million in BWX Technologies, Inc., compared to 27 the preceding quarter worth $307.4 million.

Just like Chevron Corporation, Gilead Sciences, Inc., and Philip Morris International Inc., BWX Technologies, Inc. is one of the best dividend stocks to buy according to hedge funds. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and BWX Technologies, Inc. was one of them. Here is what the fund said:

“We also added BWX Technologies, Inc., which manufactures and sells nuclear components globally. BWX supplies nuclear reactors to the U.S. Navy and commercial power producers, primarily in Canada, as well as a nascent offering in nuclear medicine raw materials. With roughly 80% of the company tied to a highly visible and well-funded defense priority (nuclear submarines), the company should drive steady and defensive growth with multiple upside drivers from greater acceptance of nuclear energy’s role in the energy transition coupled with technology advances in micro-reactors and small modular reactors.”

9. Amdocs Limited (NASDAQ:DOX)

Number of Hedge Fund Holders: 27 

Dividend Yield as of October 20: 1.95%   

Amdocs Limited (NASDAQ:DOX) provides software and services worldwide. It is one of the top dividend stocks to invest in. On June 29, Unicard, an integrated ticketing and travel experience provider, and Amdocs collaborated to encourage passengers to use sustainable forms of transport by removing the payment friction of switching one mode of travel to another and providing real time payment and charging updates.

On August 3, Barclays analyst Tavy Rosner maintained an Equal Weight rating on Amdocs Limited stock and raised the price target to $95 from $89, highlighting the company’s solid fiscal Q3 results.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Amdocs Limited, with 6.3 million shares worth more than $528.8 million. 

In its Q2 2021 investor letter, Palm Valley Capital Management, an asset management firm, highlighted a few stocks and Amdocs Limited was one of them. Here is what the fund said:

“The top contributors to the Fund’s second quarter returns (includes) Amdocs Limited. Amdocs’ stock has fully recovered from the erroneous, widely disseminated anonymous short seller report issued on the final day of the first quarter. Amdocs’ organic growth is the strongest it has been in years, and the company is delivering excellent free cash flow.”

8. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 40     

Dividend Yield as of October 20: 5.39%   

International Business Machines Corporation (NYSE:IBM) provides integrated technology solutions and services worldwide. It is one of the premier dividend stocks to invest in. On September 27, International Business Machines revealed that it has entered into a strategic partnership with Saudi Data and Artificial Intelligence Authority to drive adoption of artificial intelligence in the carbon capture and industrial domains across the Kingdom of Saudi Arabia.  

On October 17, Stifel analyst David Grossman maintained a Buy rating on International Business Machines Corporation stock and lowered the price target to $140 from $150, noting that the firm’s growth hasn’t slowed down despite most large-cap tech stocks being affected by macro conditions. 

At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $948.3 million in International Business Machines Corporation, compared to 43 in the previous quarter worth $1.16 billion.

In its Q4 2021 investor letter, St. James Investment Company, an asset management firm, highlighted a few stocks and International Business Machines Corporation was one of them. Here is what the fund said:

“International Business Machines Corporation was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.

One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (read more)

7. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 55   

Dividend Yield as of October 20: 3.13%   

Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. It is one of the major dividend stocks to invest in. On October 17, Evotec and Toronto Innovation Partners stated that they have expanded their transnational BRIDGE partnership LAB150 to include Amgen as a strategic partner. The expansion will go along with a combined investment of $14 million to expedite LAB150 programs for forming new life sciences companies. 

On October 12, Barclays analyst Carter Gould maintained an Equal Weight rating on Amgen Inc. stock and lowered the price target on Amgen to $234 from $236, noting that there was another round of challenging setups for biopharmaceuticals in Q3. 

In its Q2 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Amgen Inc. was one of them. Here is what the fund said:

“Amgen Inc., the pharmaceutical company focused on biotechnology-based therapeutics, was also a top contributor for the quarter. The company reported solid results, with a variety of products, such as bone-strengthening drugs Prolia and EVENITY, contributing to overall revenue growth. Amgen continued to increase the market share for cholesterol drug Repatha (a catalyst we had originally identified), delivering record quarterly sales as the drug’s usage expands with high-risk patients who have not yet had a cardiovascular event, and as barriers for prescribers, healthcare systems and patients are removed. In addition, we believe the company is poised to gain market share with its biosimilars (akin to generic versions of biologic drugs), also a previously identified catalyst. Biosimilars accounted for over $2 billion in revenue in 2021, and we believe this has the potential to more than double by the end of the decade, accelerated by six additional biosimilars (for a total of 11 products on the market). This includes the upcoming launch in the U.S. of arthritis treatment Amjetiva in January 2023. Meanwhile, the company is advancing its robust pipeline of early- and late-stage assets, with several phase III results due this year. These developments have caused us to remain enthusiastic about Amgen’s ability to build on its decades of success developing novel treatments using biopharmaceuticals.”

6. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 58    

Dividend Yield as of October 20: 7.14%    

Verizon Communication Inc. (NYSE:VZ) offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It is one of the prominent dividend stocks to invest in. On October 5, Verizon Communications stated that it has secured a task order to provide IT services for US embassies and other key locations around the globe. The Enterprise Infrastructure Solutions contract will be worth $1.58 billion over next 10 years. 

On October 6, Oppenheimer analyst Timothy Horan upgraded Verizon Communications Inc. stock to Outperform from Perform with a $50 price target, highlighting the gradual stabilization-to-growth of the company’s subscriber base. 

Along with Chevron Corporation, Gilead Sciences, Inc., and Philip Morris International Inc., Verizon Communication Inc. is one of the best dividend stocks to buy according to hedge funds. 

In its Q3 2022 investor letter, Mawar Investment Management, an asset management firm, highlighted a few stocks and Verizon Communication Inc. was one of them. Here is what the fund said:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

5. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 63  

Dividend Yield as of October 20: 3.63%     

Cisco Systems, Inc. (NASDAQ:CSCO) designs, manufactures, and sells Internet Protocol based networking products related to the communications and information technology industry. It is one of the best dividend stocks to invest in. On October 18, IT professional resourcing and project service provider, Experis, and Cisco Systems announced that they will work to train and upskill people around the globe with in-demand IT skills to help them secure employment. 

On August 31, investment advisory KGI Securities upgraded Cisco Systems, Inc. to Outperform from Neutral with a $53 price target. Analyst Jackson Chiang issued the ratings update. 

At the end of the second quarter of 2022, 63 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Cisco Systems, Inc., compared to 66 in the previous quarter worth $1.7 billion.

In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. was one of them. Here is what the fund said:

“Cisco Systems traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 65

Dividend Yield as of October 20: 5.62%   

Intel Corporation (NASDAQ:INTC) engages in the design, manufacture, and sale of computer products and technologies worldwide. It is one of the top dividend stocks to invest in. On October 17, Intel Corp added that it has cut valuation for its upcoming initial public offering of Mobileye Global, the self-driving car unit of Intel, as it is set to launch a roadshow for the IPO. Mobileye is targeting a valuation of under $20 billion after seeing a valuation of $50 billion.  

On October 11, Needham analyst N Quinn Bolton maintained a Buy rating on Intel Corporation stock and lowered the price target to $32 from $40, highlighting that reduced demand spreading across most end-markets like analog, industrial, automotive, and data center, had led to decreasing forward estimates for the firm.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Intel Corporation was one of them. Here is what the fund said:

“Then, there is the case of Intel Corporation. A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.”

3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 69  

Dividend Yield as of October 20: 1.93%      

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide. It is one of the elite dividend stocks to invest in. On September 29, Oracle and Telefonos de Mexico, a Mexican telecommunication company, disclosed that they will offer Oracle Cloud Infrastructure or OCI services to customers across Mexico. 

On September 13, Evercore ISI analyst Kirk Materne maintained an In Line rating on Oracle Corporation stock and raised the price target to $87 from $78, highlighting that the company delivered solid fiscal Q1 results.

At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Oracle Corporation, compared to 61 in the previous quarter worth $4.3 billion.

In its Q2 2022 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Oracle Corporation was one of them. Here is what the fund said:

“Oracle Corporation is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyse medical records and other healthcare data.

Oracle took on additional debt to finance this all-cash acquisition and as a result plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better- than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year.”

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128  

Dividend Yield as of October 20: 0.64%   

Apple Inc. (NASDAQ:AAPL) manufactures and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It is one of the major dividend stocks to invest in. On October 17, Apple stated that it is set to unveil its new model of iPad Pro tablet within days. The new iPad Pro will come in the 11 inch and 12.9 inch versions. On October 17, Apple disclosed that it has paused its plans to use memory chips from China’s Yangtze Memory Technologies in its products.

On October 13, Credit Suisse analyst Shannon Cross maintained an Outperform rating on Apple Inc. stock and lowered the price target to $190 from $201, noting the weaker consumer backdrop had led to lowered estimates for the firm in 2023 and 2024.

At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc., compared to 131 in the preceding quarter worth $182 billion. 

In its Q3 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Apple Inc. was one of them. Here is what the fund said:

“Apple Inc. grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favourable competitive dynamic to continue for the foreseeable future.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258   

Dividend Yield as of October 20: 1.15%   

Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. It is one of the elite dividend stocks to invest in. On October 17, Mizuho analyst Gregg Moskowitz maintained a Buy rating on Microsoft Corporation stock and lowered the price target to $320 from $340, highlighting that software stocks are still under pressure due to high inflation, supply chain constraints and the ongoing Russia-Ukraine war.  

At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes worth $56 billion in Microsoft Corporation, compared to 259 in the preceding quarter worth $65.6 billion. 

In its Q3 2022 investor letter, Lakehouse Capital, an asset management firm, highlighted a few stocks and Microsoft Corporation was one of them. Here is what the fund said:

“During the month, the Fund initiated a new position in Microsoft Corporation, a name that is no doubt familiar to our investors. The company was founded by Bill Gates and Paul Allen in a friend’s garage in 1975 and began dominating the operating system market with MS-DOS by the mid-1980s. The company has come a long way since then and is now widely considered the most critical and indispensable IT mega-vendor for businesses globally. In addition to its well-known Windows operating systems and Office productivity suite, the company has a broad portfolio of strategic products, including a rapidly growing public cloud business in Azure and a sizeable gaming presence.

Microsoft’s foundational products, Office365 and Windows365, are ubiquitous and highly penetrated with circa 90% and 80% market share, respectively. These solutions are deeply ingrained in commercial and personal use globally and across all industry sectors. They serve as stable, high-margin cash flow generators for Microsoft whilst they expand and invest in other growth areas of the business. One particular growth area, which is the most exciting part of Microsoft’s business in our view, is their public cloud service, Azure (read more)

You can also take a peek at 10 Best MLP Dividend Stocks to Buy and 10 Best Stocks to Buy According to Billionaire Dan Loeb.

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This article is originally published at Insider Monkey.