In this article, we will highlight 10 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds.
Expect strong market gains heading into the second half of the year. It is a sentiment echoed by research firms on Wall Street in the aftermath of the de-escalation of tensions in the Middle East. Wells Fargo is the latest to raise its year-end target for the S&P 500 to 7,950. It joins Citi, Morgan Stanley, JPMorgan, and UBS, which have raised targets amid expectations that earnings growth and easing macroeconomic concerns will strengthen investor sentiment.
Wells Fargo analysts see a summer of “everything rally on easing war tensions in the Middle East, reducing inflation risks and expectations of Federal Reserve hike “already priced in/ the analysts also see “room for upside in the AI trade.”
Strategists at JPMorgan Global Research remain positive on global equities, forecasting double-digit gains across developed and emerging markets. The gains will be driven by corporate earnings acceleration beyond what typical economic cycles produce. On their part, Morgan Stanley’s strategists expect 18% earnings-per-share growth for 2026, which will support higher valuations relative to historical averages.
Amid expected earnings growth, dividend payments are expected, especially at some of the biggest banks, as they ramp up payouts after passing the FED stress test, affirming they are strong enough to withstand a severe recession.
While dividend stocks offer a way to accumulate income on the side, the best dividend stocks are not necessarily those paying high yields. However, they are stocks with an impressive record of dividend payouts, backed by resilient core businesses.
“Tempting as they might be, the stock market’s juiciest yields are often illusory,” explains Dan Lefkovitz, strategist for Morningstar Indexes. “High dividend yields are often found in risky sectors, industries, and companies.” And as a result, such high-dividend yields aren’t always sustainable.
Therefore, the best dividend stocks yielding at least 5% to buy according to hedge funds are those of companies with strong economic moats and competitive advantages across various sectors.
Our Methodology
For this list, we screened for companies with dividend yields above 5% as of June 27. From that list, we identified companies with trailing-12-month free cash flow exceeding $500 million. The stocks are ranked in ascending order based on the number of hedge funds that hold stakes in them in Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds
10. Cheniere Energy Partners, L.P. (NYSE:CQP)
Dividend Yield: 5.73%
Levered Free Cash Flow: $2.37 billion
Number of Hedge Fund Holders: 5
Cheniere Energy Partners, L.P. (NYSE:CQP) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On May 27, Cheniere Energy Partners, L.P. (NYSE:CQP) priced a $2 billion offering of senior notes in two tranches, maturing in 2036 and 2056. The 2036 notes bear an interest of 5.35% per annum, while the 2056 notes bear a 6.05% interest rate.
The company plans to use net proceeds from the offering to repay, refinance, and redeem existing debt, including the Sabine Pass Liquefaction 5% notes due 2027. The company may also use proceeds from the offering for capital expenditures, working capital, and financing various business opportunities.
The financing round comes on the heels of the company signing a contract with Bechtel Corp for the first phase of its Sabine Pass LNG expansion project in Louisiana. The expansion is to add 6 million mtpa of additional LNG capacity to the Sabine Pass facility.
Cheniere Energy Partners, L.P. (NYSE:CQP) is a midstream energy company that liquefies and exports natural gas. It operates the Sabine Pass LNG terminal in Louisiana, processing natural gas into liquefied natural gas (LNG) and loading it onto ships for global delivery to utilities, energy companies, and traders.
9. Wipro Limited (NYSE:WIT)
Dividend Yield: 6.39%
Levered Free Cash Flow: $115.36 billion
Number of Hedge Fund Holders: 14
Wipro Limited (NYSE:WIT) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 18, Wipro Limited (NYSE:WIT) confirmed the successful completion of a large-scale, multi-year data center migration for leading international food wholesaler METRO. The migration was part of a cloud transformation journey as part of a long-term growth ambition. It also affirmed Wipro’s ability to deliver large-scale enterprise transformation with precision and measurable impact.
Wipro Ltd successfully migrated METRO’s IT operations from legacy data centers to a modern, scalable cloud ecosystem via a phased, risk-controlled program. With the migration, it also built a future-ready digital backbone to strengthen METRO’s cybersecurity and enhance its digital capabilities. The migration will also improve agility and resilience while laying the foundation for AI transformation.
Wipro Limited (NYSE:WIT) is a leading global information technology, consulting, and business process services company. It helps clients accelerate digital transformation, adopt artificial intelligence, modernize cloud infrastructure, and improve operational efficiency across various industries.
8. BCE Inc. (NYSE:BCE)
Dividend Yield: 5.29%
Levered Free Cash Flow: $2.68 billion
Number of Hedge Fund Holders: 21
BCE Inc. (NYSE: BCE) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 18, BCE Inc. (NYSE:BCE) entered into a major AI infrastructure deal in partnership with Cohere, Hypertec, and BUZZ High Performance Computing (HPC), a subsidiary of Hive Digital Technologies. The collaboration is to bring together Bell AI Fabric’s data center and connectivity foundation with Cohere’s secure, enterprise-grade AI solutions and large language model capabilities. It will also merge BUZZ HPC’s scalable, accelerated computing infrastructure.
The four companies are to enable conditions for conducting critical research and development on AI models. The collaboration underscores the growing collaboration among tech leaders since the launch of Bell AI Fabric and the Canadian Sovereign AI Alliance. It also affirms BCE Inc.’s push to support sovereign AI and to bring together connectivity data centers and cybersecurity.
BCE Inc. (NYSE:BCE) is Canada’s largest communications company. It provides comprehensive telecommunications, internet, TV, and media services to millions of residential, business, and wholesale customers.
7. Sanofi SA (NASDAQ:SNY)
Dividend Yield: 5.85%
Levered Free Cash Flow: $16.67 billion
Number of Hedge Fund Holders: 32
Sanofi SA (NASDAQ:SNY) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 22, Sanofi SA (NASDAQ:SNY) announced the appointment of Paulo Fontoura, MD, PhD, FAAN, as Executive Vice President and Global Head of Research & Development Pharma, effective September 1. Based in Paris, Fontoura will join Sanofi’s Executive Committee and report directly to CEO Belen Garijo.
As head of R&D Pharma, Fontoura will oversee Sanofi’s end‑to‑end innovation engine, spanning research, translational medicine, clinical development, and regulatory affairs. His mandate includes advancing a differentiated pipeline and accelerating the delivery of transformative medicines to patients worldwide. He succeeds Dr. Houman Ashrafian, who is leaving the company to pursue new opportunities.
Fontoura brings more than 25 years of experience across academic medicine, translational science, clinical development, and pharmaceutical innovation. His appointment comes at a pivotal time for Sanofi, which is driving an R&D transformation and progressing a pipeline of new medicines across multiple therapeutic areas.
Meanwhile, on June 22, MacroGenics confirmed it is entitled to $24.5 million in regulatory milestone payments from Sanofi. The payment follows the FDA accelerated approval of TZIELD (teplizumab-mzwv) to delay the decline in endogenous insulin production in children.
Sanofi SA (NASDAQ:SNY) is a global biopharmaceutical company that researches, develops, and manufactures prescription medicines and vaccines. It focuses heavily on the immune system to treat complex conditions, including immunology, rare diseases, and oncology, and is also a leading worldwide supplier of vaccines for polio, influenza, and RSV.
6. AngloGold Ashanti PLC (NYSE:AU)
Dividend Yield: 5.85%
Levered Free Cash Flow: $3.56 billion
Number of Hedge Fund Holders: 32
AngloGold Ashanti PLC (NYSE:AU) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 26, Freedom Broker initiated coverage of AngloGold Ashanti (NYSE: AU) with a Buy rating and a $114 price target, citing the company’s position at a “strategic inflection point.” In its research note, the firm highlighted AngloGold’s recent portfolio transformation, including the addition of Sukari, which has strengthened its asset base. The analyst also pointed to AngloGold’s improved balance sheet and a pipeline of growth projects in Nevada, positioning the miner for enhanced operational and financial performance.
On June 24, Roth Capital analyst Joe Reagor reiterated a Buy rating on Anglogold Ashanti PLC. (NYSE:AU) but lowered the price target to $110 from $121. Despite the cut, the new price target underscores significant upside potential given that the stock is trading at about $78 a share.
The price target cut is in response to the president of Guinea announcing a ban on the export of unrefined gold from the country. The ban is expected to have a significant impact on the company’s operations. Additionally, Roth also lowered its price target to reflect the significant decline in gold prices over the past few weeks. The precious metal has lost more than 25% in value from its all-time high.
AngloGold Ashanti PLC (NYSE:AU) is a leading global gold mining company that explores, extracts, and processes gold across four continents. Headquartered in Denver, Colorado, and operating in 10 countries, the company produces gold bullion bars, along with silver and sulphuric acid by-products, to supply financial and manufacturing sectors worldwide.
While we acknowledge the potential of AU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AU and that has 100x upside potential, check out our report about the cheapest AI stock.
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