In this article, we discuss 10 best March dividend stocks to buy.

Dividend-paying companies have historically been a popular choice for income-seeking investors. These stocks have provided higher returns to shareholders along with a growing stream of income. In 2022, dividend stocks recorded their best performance, with companies in the S&P 500 distributing over $561 billion worth of dividends to shareholders, up from $511.2 billion in 2021, as reported by Wall Street Journal. Analysts expect the figure to grow this year as well, as companies are steadily raising their payouts.

Dividend stocks are often considered good investments during inflationary periods. A Fidelity’s report highlighted the performance of dividends in the 1940s and the 1970s when inflation was at its highest. During these decades, dividends represented 65% and 71% of the S&P 500’s total return, respectively.

Over the years, growth in dividend stocks has outpaced inflation. According to a report by Wisdom Tree, dividends have grown by an average of 5.73% from 1957 to 2022, compared with a 3.68% growth in inflation. The report further mentioned that dividends and reinvested dividends represented nearly 69% of the US stock market’s return since 1978. In this regard, dividend growers like Merck & Co., Inc. (NYSE:MRK), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are particularly popular among investors.

When investing in dividend stocks, investors often purchase stocks before the company’s ex-dividend date. Through this, investors seek to capture the dividend payout while eliminating exposure to the stock’s price movements. This strategy also allows them to potentially generate a higher yield than by simply holding a stock for the long term. To know more about this, readers can also have a look at Dividend Capture Strategy: 10 High-Yield Stocks to Buy in February, which discussed the dividend capture strategy in detail. The article also mentioned some high-yield stocks to buy before their ex-dividend date.

In this article, we will discuss the best March dividend stocks to buy.

Our Methodology:

For this list, we selected stocks that will trade ex-dividend in March. These stocks have dividend yields above 2%, as of February 17. We also measured hedge fund sentiment around each stock, according to Insider Monkey’s Q3 2022 data of 920 elite funds. The list is ranked according to their ex-dividend dates.

Best March Dividend Stocks To Buy

10. Stanley Black & Decker, Inc. (NYSE:SWK)

Ex-Dividend Date: March 6

Dividend Yield as of February 17: 3.55%

Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturing company that specializes in the production of industrial tools and household hardware. In Q4 2022, the company reported revenue of $4 billion, which fell by 1.5% from the same period last year but beat analysts’ estimates by $120 million. During the quarter, the company generated over $520 million in free cash flow.

On February 15, Stanley Black & Decker, Inc. (NYSE:SWK) declared a quarterly dividend of $0.80 per share, which fell in line with its previous dividend. The company has been raising its dividends consistently for the past 54 years and has distributed dividends for 146 years in a row. The stock will be trading ex-dividend on March 6.

SWK is a good dividend investment option alongside Merck & Co., Inc. (NYSE:MRK), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX).

Following the company’s strong quarterly earnings, Barclays raised its price target on Stanley Black & Decker, Inc. (NYSE:SWK) to $110 in February with an Overweight rating on the shares. The firm also highlighted the company’s earnings recovery.

At the end of Q3 2022, 26 hedge funds tracked by Insider Monkey owned stakes in Stanley Black & Decker, Inc. (NYSE:SWK), worth over $447 million collectively. Greenhaven Associates was the company’s leading stakeholder, with stakes worth roughly $100 million.

9. The Kraft Heinz Company (NASDAQ:KHC)

Ex-Dividend Date: March 9

Dividend Yield as of February 17: 4.02%

The Kraft Heinz Company (NASDAQ:KHC) is an American multinational food and beverage company. In February, Piper Sandler noted the company’s retail sales growth momentum and raised its price target on the stock to $43 with a Neutral rating on the shares.

The Kraft Heinz Company (NASDAQ:KHC), one of the best dividend stocks, has been making regular dividend payments to shareholders before the merger of Kraft and Heinz in 2015. The company declared a quarterly dividend of $0.40 per share, which will go ex-dividend on March 9. The stock has a dividend yield of 4.02%, as of February 17.

In the fourth quarter of 2022, The Kraft Heinz Company (NASDAQ:KHC) reported revenue of $7.3 billion, which showed a 10% growth from the same period last year. Year-to-date, the company’s operating cash flow came in at $2.5 billion and its free cash flow amounted to over $1.6 billion during this period.

At the end of Q3 2022, 40 hedge funds tracked by Insider Monkey owned investments in The Kraft Heinz Company (NASDAQ:KHC), compared with 41 in the previous quarter. These investments are worth over $11.8 billion collectively.

8. Eastman Chemical Company (NYSE:EMN)

Ex-Dividend Date: March 14

Dividend Yield as of February 17: 3.64%

Eastman Chemical Company (NYSE:EMN) is an American chemical industry company that deals in specialty chemicals and other advanced materials. The company recently announced a quarterly dividend of $0.79 per share, which was consistent with its previous dividend. It is one of the best dividend stocks on our list as the company has been raising its payouts consecutively for the past 13 years. The stock has a dividend yield of 3.64%, as of February 17. EMN will trade ex-dividend on March 14.

In the fourth quarter of 2022, Eastman Chemical Company (NYSE:EMN) reported an operating cash flow of $457 million, up from $430 million in the same period last year. The company remained committed to its shareholder obligation in FY22, as it returned over $1.4 billion to stakeholders in dividends and share repurchases.

UBS presented a positive outlook on the company’s earnings this year and raised its price target on the stock to $108, with a Buy rating on the shares.

At the end of Q3 2022, 32 hedge funds in Insider Monkey’s database owned stakes in Eastman Chemical Company (NYSE:EMN), up from 29 in the previous quarter. The collective value of these stakes is over $258 million. Among these hedge funds, Millennium Management was the company’s leading stakeholder in Q3.

7. Extra Space Storage Inc. (NYSE:EXR)

Ex-Dividend Date: March 14

Dividend Yield as of February 17: 3.78%

Extra Space Storage Inc. (NYSE:EXR) is a Utah-based real estate investment trust that mainly invests in self-storage facilities. In January, Raymond James upgraded the stock to Outperform with a $170 price target. The firm mentioned that the stock’s valuation is ‘attractive’.

Extra Space Storage Inc. (NYSE:EXR), one of the best dividend stocks, announced an 8% hike in its quarterly dividend on February 16 to $1.62 per share. Through this increase, the company extended its dividend growth streak to 13 years. The stock’s dividend yield on February 17 came in at 3.78% and it will be trading ex-dividend on March 14.

As of the end of September 2022, 27 hedge funds tracked by Insider Monkey reported owning stakes in Extra Space Storage Inc. (NYSE:EXR), the same as in the previous quarter. The collective value of these stakes is roughly $148 million.

Baron Funds mentioned Extra Space Storage Inc. (NYSE:EXR) in its Q2 2022 investor letter. Here is what the firm has to say:

“Following a sharp correction in its share price during the second quarter, we acquired shares in Extra Space Storage Inc. This REIT has assembled the second-largest self-storage portfolio in the country and has the largest portfolio of third-party managed self-storage facilities. In our opinion, Extra Space’s management team is excellent. Over the last decade, management has delivered strong occupancy gains, rent growth, and expense control that has led to a cost of capital advantage relative to its peers. Management has capitalized on its cost of capital advantage by tripling its owned self-storage count since 2010. We believe the long-term growth opportunity for the company remains strong.”

6. Telephone and Data Systems, Inc. (NYSE:TDS)

Ex-Dividend Date: March 14

Dividend Yield as of February 17: 6.47%

Telephone and Data Systems, Inc. (NYSE:TDS) is a Chicago-based telecommunications company that provides wireless products and services to its consumers. At the end of December 31, the company had over $832 million in operating cash flow, up from $802 million in the prior-year period. Its revenue for Q4 2022 came in at $1.36 billion.

On February 16, Telephone and Data Systems, Inc. (NYSE:TDS) declared a 2.8% hike in its quarterly dividend to $0.185 per share. This was the company’s 48th consecutive year of dividend growth, which places it as one of the best dividend stocks. The stock has a dividend yield of 6.47%, as of February 17. It will go ex-dividend on March 14.

Due to its solid dividend growth track record, Telephone and Data Systems, Inc. (NYSE:TDS) is popular among investors alongside Merck & Co., Inc. (NYSE:MRK), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX).

Telephone and Data Systems, Inc. (NYSE:TDS) was a part of 13 hedge fund public portfolios at the end of Q3 2022, as per Insider Monkey’s data. The stakes owned by these hedge funds have a total value of roughly $46.3 million.

5. Medical Properties Trust, Inc. (NYSE:MPW)

Ex-Dividend Date: March 15
Dividend Yield as of February 17: 9.01%

Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based real estate investment trust company that invests in healthcare facilities. In December, Mizuho maintained a Buy rating on the stock with an $18 price target. The firm highlighted the company’s performance in the past year.

On February 16, Medical Properties Trust, Inc. (NYSE:MPW) declared a quarterly dividend of $0.29 per share, which fell in line with its previous dividend. The company maintains a 9-year streak of consistent dividend growth, which places it as one of the best dividend stocks on our list. As of February 17, the stock has a dividend yield of 9.01%. It will be trading ex-dividend on March 15.

Medical Properties Trust, Inc. (NYSE:MPW) was a popular buy among elite funds in Q3 2022, with hedge funds positions growing to 23, from 15 in the previous quarter. The stakes owned by these funds have a total value of nearly $340 million.

4. Fidelity National Financial, Inc. (NYSE:FNF)

Ex-Dividend Date: March 16
Dividend Yield as of February 17: 4.19%

Fidelity National Financial, Inc. (NYSE:FNF) is an American insurance company, based in Florida. The company provides insurance-related and settlement services to its consumers. In January, Barclays raised its price target on the stock to $53 with an oVerweight rating on the shares. The firm gave a neutral stance on the US consumer finance sector.

Fidelity National Financial, Inc. (NYSE:FNF) currently pays a quarterly dividend of $0.45 per share, which has a dividend yield of 4.19%, as of February 17. The company has been raising its dividends for nearly a decade now. The stock will go ex-dividend on March 16 and will be payable to shareholders of record on March 17.

At the end of September 2022, 30 hedge funds tracked by Insider Monkey reported owning stakes in Fidelity National Financial, Inc. (NYSE:FNF), with a total value of roughly $874 million.

Third Avenue Management mentioned Fidelity National Financial, Inc. (NYSE:FNF) in its Q3 2022 investor letter. Here is what the firm has to say:

“Fidelity National Financial, Inc. (NYSE:FNF) (2.4% of Fund Assets), which is planning to distribute a 15% stake in its wholly-owned life-insurance subsidiary (F&G Annuities & Life) having now established the segment at significant scale with approximately $40 billion of assets under management. This transaction will leave the FNF Group with a listed proxy for the value of its retained 85% stake in F&G, as well as a “net cash” balance sheet and market leading position in US title insurance (and other transaction-related activity) through its wholly-owned Fidelity National Financial subsidiary.”

3. The Coca-Cola Company (NYSE:KO)

Ex-Dividend Date: March 16
Dividend Yield as of February 17: 2.97%

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) is next on our list of the best dividend stocks. The company hiked its quarterly dividend by 4.5% on February 16, taking its dividend growth streak to 61 years. It pays a quarterly dividend of $0.46 per share and has a dividend yield of 2.97%, as of February 17. The stock will trade ex-dividend on March 16 and is payable to shareholders of record on March 17.

In the fourth quarter of 2022, The Coca-Cola Company (NYSE:KO) reported revenue of over $10 billion, up 6.3% from the same period last year. For FY22, the company generated over $11 billion in operating cash flow and its free cash flow amounted to over $9.5 billion. Its cash flow generation was sufficient to fulfill $7.6 billion worth of dividends.

Citigroup appreciated the gross margin improvement of The Coca-Cola Company (NYSE:KO) and raised its price target on the stock to $68 with a Buy rating on the shares.

At the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned investments in The Coca-Cola Company (NYSE:KO), worth over $25 billion.

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”

2. Illinois Tool Works Inc. (NYSE:ITW)

Ex-Dividend Date: March 30
Dividend Yield as of February 17: 2.21%

Illinois Tool Works Inc. (NYSE:ITW) is an Illinois-based manufacturing company that deals in a wide range of specialty products. Following the company’s Q4 earnings, UBS raised its price target on the stock to $245 in February and maintained a Neutral rating on the shares.

Illinois Tool Works Inc. (NYSE:ITW) will trade ex-dividend on March 30. The company announced a quarterly dividend of $1.31 per share on February 10. It holds a 50-year streak of consistent dividend growth, which places it as one of the best dividend stocks on our list. As of February 17, the stock’s dividend yield came in at 2.21%.

At the end of September, 27 hedge funds tracked by Insider Monkey reported owning stakes in Illinois Tool Works Inc. (NYSE:ITW), worth roughly $630 million. Fisher Asset Management was the company’s leading stakeholder in Q3.

1. Cardinal Health, Inc. (NYSE:CAH)

Ex-Dividend Date: March 31
Dividend Yield as of February 17: 2.52%

Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare services company, based in Ohio. The company currently pays a quarterly dividend of $0.4957 per share and has a dividend yield of 2.52%, as of February 17. The stock will be trading ex-dividend on March 31. The company has been raising its dividends regularly for 36 years.

At the end of Q3 2022, 45 hedge funds in Insider Monkey’s database owned stakes in Cardinal Health, Inc. (NYSE:CAH), up from 44 a quarter earlier. The stakes owned by these hedge funds have a total value of over $1.03 billion.

Ariel Investments mentioned Cardinal Health, Inc. (NYSE:CAH) in its Q3 2022 investor letter. Here is what the firm has to say:

“Additionally, distributor of pharmaceutical and medical products Cardinal Health, Inc. (NYSE:CAH) advanced in the period as leadership changes were viewed to be a positive for shares. Management provided a new profit outlook for Fiscal 2023 and announced an improvement plan for the medical segment. We are encouraged by these changes and think CAH’s underlying fundamentals and competitive advantages around preventative maintenance screenings and medication management will continue to improve. We believe valuations of health care companies like CAH that focus on cost optimization and promote technological efficiency across the supply chain will be rewarded over the long term.”

You can also take a look at Early Retirement Portfolio: 15 Stocks to Live Off Dividends and Value Investor Joel Greenblatt’s Dividend Stocks

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Disclosure. None. 10 Best March Dividend Stocks To Buy is originally published on Insider Monkey.