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10 Best High-Dividend Stocks to Buy Now

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

A historical analysis of high-dividend stocks shows their exceptional performance over other asset classes. According to a report by IHS Markit, high-yield stocks in the US Total Cap space outperformed non-dividend payers by 39.6% in 2021. Similarly, in developed Europe, high-dividend stocks performed better than non-dividend stocks during the same year. This year through June 14, Morningstar Dividend Leaders Index returned 1.08% to shareholders, while Morningstar US Market Index fell by 22.3%. The dividend index tracks the performance of the 100 highest-yielding stocks like Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Kimberly-Clark Corporation (NYSE:KMB), which also have strong dividend growth histories.

Investors look for dividend yields to enhance their returns and diversify their portfolios. A dividend yield of 2% to 6% is considered healthy according to analysts, as it shows the company’s sound financial condition. According to data collected by JPMorgan Asset Management, 135 companies in the US have yields above 3% with attractive valuations than the wider market. Further elaborating on these arguments, we will discuss the best high-dividend stocks to buy now.

Photo by Jp Valery on Unsplash

Our Methodology:

For this list, we selected stocks with dividend yields above 3%, as of October 11. In addition to this, we reviewed these companies through their balance sheets, dividend policies, and basic strong fundamentals to indicate their dividend sustainability. The stocks are ranked from the lowest yield to the highest.

Best High-Dividend Stocks to Buy Now

10. Watsco, Inc. (NYSE:WSO)

Dividend Yield as of October 11: 3.31%

Watsco, Inc. (NYSE:WSO) is a Florida-based distributor of air conditioning, heating, and refrigerating equipment. The company also supplies related parts to consumers in the US. In the first half of 2022, the company’s cash position remained strong. It posted an operating cash flow of $73 million, which reflected the growth in the company’s working capital. From 2016 through 2021, the company generated $2 billion in operating cash flow versus a net income of $1.9 billion, exceeding its goal.

Watsco, Inc. (NYSE:WSO) is one of the best dividend stocks on our list as the company has been making consecutive dividend payments for the past 48 years. It currently pays a quarterly dividend of $2.20 per share and has a yield of 3.31%, recorded on October 11.

In September, KeyBanc raised its price target on Watsco, Inc. (NYSE:WSO) to $310 with an Overweight rating on the shares. The firm mentioned that the company’s products are in demand and its strong pricing power should prove more resilient.

At the end of Q2 2022, 25 hedge funds in Insider Monkey’s database owned stakes in Watsco, Inc. (NYSE:WSO), up from 22 in the previous quarter. The collective value of these stakes is over $257.4 million. Among these hedge funds, Markel Gayner Asset Management was the company’s leading stakeholder in Q2.

In addition to some of the best dividend stocks like Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Kimberly-Clark Corporation (NYSE:KMB), Watsco, Inc. (NYSE:WSO) is also famous among investors due to its yield.

9. Bank of Hawaii Corporation (NYSE:BOH)

Dividend Yield as of October 11: 3.66%

Bank of Hawaii Corporation (NYSE:BOH) is a Hawaii-based banking company that provides services in business and personal banking. The company does not hold any dividend growth track record but has been making consistent payments since 2016. It currently pays a quarterly dividend of $0.70 per share and has a dividend yield of 3.66%, as of October 11.

In Q2 2022, Bank of Hawaii Corporation (NYSE:BOH) reported revenue of $175 million, showing a 4.2% growth from the same period last year. The company’s net income for the quarter was $57 million, up 3.7% from the previous quarter. It generated $109 million in free cash flow, compared with $124 million in the prior-year quarter.

As of the close of Q2 2022, 16 hedge funds in Insider Monkey’s database owned stakes in Bank of Hawaii Corporation (NYSE:BOH), up from 15 in the previous quarter. These stakes have a total value of over $51 million, compared with $31.8 million worth of stakes owned by hedge funds in the preceding quarter.

8. South Jersey Industries, Inc. (NYSE:SJI)

Dividend Yield as of October 11: 3.68%

South Jersey Industries, Inc. (NYSE:SJI) is an American energy services holding company that provides safe, reliable, and affordable natural gas to its consumers in several different counties. On September 8, the company declared a quarterly dividend of $0.31 per share, consistent with its previous dividend. The company has been raising its dividends for the past 23 years, which makes it one of the best dividend stocks with high yields. As of October 11, the stock’s dividend yield came in at 3.68%. 2022 marked the company’s 71st consecutive year of dividend payments.

In the second quarter of 2022, South Jersey Industries, Inc. (NYSE:SJI) reported an operating cash flow of $323.6 million, up from $241.7 million during the same period last year. The growth primarily reflected improved wholesale marketing and overall consumer behavior. At the end of June, the company had $53.4 million available in cash and cash equivalents, compared with $28.7 million six months ago.

As of the end of Q2 2022, 33 hedge funds tracked by Insider Monkey owned stakes in South Jersey Industries, Inc. (NYSE:SJI), down from 36 in the preceding quarter. These stakes have a total value of $582.5 million.

First Pacific Advisors mentioned South Jersey Industries, Inc. (NYSE:SJI) in its Q2 2022 investor letter. Here is what the firm has to say:

“South Jersey Industries, Inc. (NYSE:SJI) shares rose 40% on Feb. 24, 2022, on news that Infrastructure Investment Funds, a private equity fund managed by JP Morgan Investment Management, would take the company private. The deal is scheduled to close in the fourth quarter of 2022.”

7. WesBanco, Inc. (NASDAQ:WSBC)

Dividend Yield as of October 11: 3.73%

WesBanco, Inc. (NASDAQ:WSBC) is an American multi-state bank holding company that provides a wide variety of financial products and services. The company was a part of 8 hedge fund public portfolios in Q2 2022, compared with 11 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $9.4 million.

In Q2 2022, WesBanco, Inc. (NASDAQ:WSBC) reported an operating cash flow of over $38 million, and its free cash flow came in at $35.8 million. The company’s revenue for the quarter came in at $139.2 million, falling 8.4% from the same period last year. Its net income available to common shareholders amounted to $40.2 million in Q2.

In September, Janey Montgomery initiated its coverage on WesBanco, Inc. (NASDAQ:WSBC) with a Neutral rating and a $37 price target. The firm called the company an emerging regional player with solid fundamental performance and an organic balance sheet.

WesBanco, Inc. (NASDAQ:WSBC) currently pays a quarterly dividend of $0.34 per share, with a dividend yield of 3.73%, as of October 11. The company has raised its dividends 15 times since 2010, coming through as one of the best dividend stocks on our list. Since 2010, it has cumulatively raised its dividend by 143%.

6. Radian Group Inc. (NYSE:RDN)

Dividend Yield as of October 11: 4.13%

Radian Group Inc. (NYSE:RDN) is an American mortgage insurance company that offers related services to its consumers. The company currently pays a quarterly dividend of $0.20 per share and has a dividend yield of 4.13%, as recorded on October 11. It has been raising its dividends consistently for the past three years. The company can be a good addition to dividend portfolios alongside some of the best dividend stocks like Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Kimberly-Clark Corporation (NYSE:KMB).

In the second quarter of 2022, Radian Group Inc. (NYSE:RDN) reported an operating cash flow of $60.1 million and its free cash flow came in at $56.7 million. The company ended the quarter with $135.2 million in cash and cash equivalents, up from $131.8 million. Its total assets amounted to over $7.2 billion.

In August, BofA upgraded Radian Group Inc. (NYSE:RDN) to Neutral and also lifted the stock’s price target to $24. The firm appreciated the company’s capital return in Q2 2022 and its overall performance.

At the end of Q2 2022, 31 hedge funds tracked by Insider Monkey owned stakes in Radian Group Inc. (NYSE:RDN), compared with 37 in the previous quarter. The collective value of these stakes is over $314.1 million. Steve Cohen and Israel Englander were some of the company’s major stakeholders in Q2.

Click to continue reading and see 5 Best High-Dividend Stocks to Buy Now.

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Disclosure. None. 10 Best High-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:

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

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The Hedge Fund Secret That’s Starting to Leak Out

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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…