In this article we present the list of 10 Best November Dividend Stocks To Buy.
Citigroup Inc. (NYSE:C), Starbucks Corporation (NASDAQ:SBUX), and CF Industries Holdings, Inc. (NYSE:CF) are some of the most prominent companies that are making dividend payments in November 2022.
Whether you’re looking to start building out a portfolio of dividend stocks, or fill in some of the monthly gaps in your dividend stocks collection so you have a steady stream of income from them, November is a good month to target.
Some of the best dividend stocks on the market, which boast attractive yields and strong dividend growth rates are paying out in November. All of the stocks on this list make their payments in the second half of the month and have yet to pass their ex-dividend date (as of the time of publication), so it’s not too late to add any of them to your portfolio and collect their November dividend payments.
Among the top November dividend stocks are more than a dozen Dividend Aristocrats, which are companies that have increased their annual dividend payouts for at least 25 straight years. A. O. Smith Corporation (NYSE:AOS), General Dynamics Corporation (NYSE:GD), and Caterpillar Inc. (NYSE:CAT) are just some of the Dividend Aristocrats paying out this month.
There are even some Dividend Kings (50+ consecutive years of annual dividend increases) paying out this month that make great additions to any dividend portfolio. Colgate-Palmolive Company (NYSE:CL) and The Procter & Gamble Company (NYSE:PG) feature prominently on that list. However, all of the aforementioned stocks have passed their ex-dividend date (the date before which one must be a shareholder of the company to receive its next dividend payment), so none of those companies are included in this list.
Even without those major dividend players, the list of best dividend stocks that pay in November isn’t left wanting for strong dividend stocks, as evidenced by the following list. In it, we’ll examine each stock’s dividend history, payout and ex-dividend dates, payout ratio, and other factors so you can make an informed decision about whether or not the stock in question would make a good addition to your dividend portfolio.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
The following November dividend stocks are ranked based on hedge fund sentiment. We follow a select group of hedge funds because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.
All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q2 2022 reporting period.
10 Best November Dividend Stocks To Buy
10. Alexander’s, Inc. (NYSE:ALX)
Number of Hedge Fund Shareholders: 9
November 18 Dividend Payout: $4.50
CF Industries Holdings, Inc. (NYSE:CF), Citigroup Inc. (NYSE:C), and Starbucks Corporation (NASDAQ:SBUX) are some of the major November dividend payers to consider for your portfolio. A lesser known company that also makes its next dividend payment this month is REIT Alexander’s, Inc. (NYSE:ALX).
Alexander’s, Inc. (NYSE:ALX) has paid out dividends for ten straight years, though its quarterly dividend payments have been stalled at $4.50 for the last five years. Nonetheless, the stock boasts an attractive dividend yield of 7.81%. The ex-dividend date for the next payment is November 4.
In addition to its dividend payments, there are other potential ways for investors to make money off ALX, as the company reportedly has an interested buyer willing to take it private at a significant premium according to an open letter to ALX shareholders issued by Lionbridge Capital in July. In the letter, Lionbridge urged the company to consider several other changes that could unlock shareholder value, believing that mismanagement has left the company severely underrated by the market. It estimates Alexander’s Net Asset Value to be over $400 per share, more than 70% greater than the stock’s current price.
Hedge fund ownership of Alexander’s, Inc. (NYSE:ALX) ticked up in Q2 but is down by 31% from its peak reached in the second quarter of 2021. Israel Englander’s Millennium Management and Paul Tudor Jones’ Tudor Investment Corp added ALX to their 13F portfolios during Q2, while Frank Brosens’ Taconic Capital held the largest stake in the company consisting of 142,300 shares.
9. Comfort Systems USA, Inc. (NYSE:FIX)
Number of Hedge Fund Shareholders: 14
November 28 Dividend Payout: $0.15
Comfort Systems USA, Inc. (NYSE:FIX) has grown its dividend at an impressive CAGR of 13.2% over the past five years, though the stock’s yield is still rather light at just 0.49%. Nonetheless, with a payout ratio of just 11%, this is a dividend stock that could continue to grow at a steady rate for years to come. The ex-dividend date for the company’s next payment is November 16. That payment will be one cent higher for the second time this year and 36% higher than it was two years ago.
Comfort Systems USA, Inc. (NYSE:FIX), which provides installation, maintenance, and repair services for heating, air conditioning, and ventilation systems, had a strong Q3 despite warning of cost and input challenges back in July. The company pulled in $1.71 in EPS, which topped estimates by 25%, while its $1.12 billion in revenue also beat estimates. Comfort Systems also has a robust backlog, which should ensure continued organic growth in the quarters to come.
The number of smart money managers with long positions in Comfort Systems USA, Inc. (NYSE:FIX) fell by 44% between the middle of 2021 and the end of March 2022, hitting its lowest point in five years. Hedge fund ownership of the stock remained flat during Q2. Chuck Royce’s Royce & Associates maintained the largest position in FIX for the tenth straight quarter, owning 383,851 shares as of June 30 after nearly doubling the size of position during the quarter.
8. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Shareholders: 17
November 23 Dividend Payout: $0.50
There’s been a lot of activity surrounding Southern Copper Corporation (NYSE:SCCO)’s dividend payments in recent quarters. The company made six consecutive quarterly hikes to its dividend beginning in Q3 2020, and then raised it by another 25% in the second quarter of this year. However, it’s since had to cut its dividend in each of the last two quarters, paring its payout back to Q4 2020 levels. The stock, which has an ex-dividend date of November 8, still has an attractive yield of over 4%.
Southern Copper Corporation (NYSE:SCCO)’s Q2 revenue and EPS took major year-over-year hits, falling to $2.31 billion and $0.56 respectively from $2.9 billion and $1.21 a year earlier, as demand weakens. With Goldman Sachs predicting copper scarcity in the coming years, the company is well positioned to capitalize given its advantageous cost/curve position and sizable exposure to copper.
Hedge fund ownership of Southern Copper Corporation (NYSE:SCCO) fell by 38% between Q1 2021 and Q2 2022, but did tick up slightly during the second quarter. Billionaire Ken Fisher’s Fisher Asset Management owned the largest stake in SCCO, while fellow billionaire Ken Griffin’s Citadel Investment Group added SCCO to its 13F portfolio during the quarter.
7. Masco Corporation (NYSE:MAS)
Number of Hedge Fund Shareholders: 26
November 28 Dividend Payout: $0.28
Masco Corporation (NYSE:MAS) has nearly tripled the size of its quarterly dividend over the past five years, growing it at an impressive CAGR of 21.9% during that time. That rapid growth has lifted its yield to a respectable 2.38%, and with a payout ratio of just 32%, that yield could push towards 3% in the coming years. The company’s next dividend payment has an ex-dividend date of November 11.
A manufacturer of a wide range of home improvement products, Masco did run into some difficulty in Q3, missing its earnings guidance and cutting its full-year outlook, citing weakness in its plumbing and paints segments. The company could face continued pressure throughout next year amid a weakened housing market, but has a strong balance sheet and cash flows that should see it through the period without any risk to its dividend.
Hedge funds have been bailing on Masco Corporation (NYSE:MAS) this year, as there’s been a 36% decline in the number of funds long MAS through the end of June. Steve Cohen’s Point72 Asset Management and Greg Poole’s Echo Street Capital Management were a couple of the funds to unload their stakes in Masco during the second quarter.
On the other hand, Oakmark Fund believes the market is undervaluing Masco Corporation (NYSE:MAS), as detailed in the fund’s Q2 2022 investor letter:
“We believe the market is failing to properly reward Masco (NYSE:MAS), a leader in home improvement products, for the significant upgrade of its business mix over the past decade. Having previously sold its more cyclical, lower return businesses, such as insulation, windows, and cabinets, what remains are some of the strongest and most recognizable brands in the industry. The company’s portfolio of products-primarily coatings (Behr) and plumbing fixtures (Delta, Hansgrohe)-are more resilient, lower ticket, and higher margin categories. Both segments compete within heavily consolidated industries, exhibit strong pricing power and skew meaningfully toward the less cyclical repair and remodel market. Despite its greatly improved business mix, Masco trades for just 10x next year’s expected earnings, which is a discount to historical levels and comfortably below a market multiple. We believe this dislocation presents an attractive opportunity to invest in a well-managed, high-quality portfolio in a sector that’s currently out of favor.”
6. KB Home (NYSE:KBH)
Number of Hedge Fund Shareholders: 29
November 23 Dividend Payout: $0.15
Another home-related stock closes out the first half of this list in the form of homebuilder KB Home (NYSE:KBH), whose dividend payments have flat lined this year after rising by 400% between 2018 and 2021. The company has a miniscule payout ratio of just 7%, which is impressive for a stock with a decent yield of just over 2%. The ex-dividend date to collect KBH’s next dividend payment is November 9.
With home prices deteriorating, particularly in KB Home (NYSE:KBH)’s core West Coast markets, analysts believe the company may need to sacrifice some of its margins to continue driving sales. RBC Capital analyst Mike Dahl slashed his FY23 EPS forecast for the company to $6.97 from $9.57 in September, but noted that near-term risks are already priced into the stock given that it trades at just 0.7x tangible book value.
Hedge fund ownership of KB Home (NYSE:KBH) shot up by 38% during the fourth quarter of 2021 to hit an all-time high, but had since fallen back slightly. Charles Clough’s Clough Capital Partners and Mark Coe’s Intrinsic Edge Capital were some of the funds to add KBH stakes to their portfolios last Q4. Ken Fisher’s Fisher Asset Management held the largest position in KB Home on June 30, owning 2.43 million shares.
Starbucks Corporation (NASDAQ:SBUX), CF Industries Holdings, Inc. (NYSE:CF), and Citigroup Inc. (NYSE:C) are among the top dividend stocks to buy in November, check out the details through the link below.
5. Citizens Financial Group Inc (NYSE:CFG)
Number of Hedge Fund Shareholders: 43
November 16 Dividend Payout: $0.42
Despite its dividend growth stalling in 2021, Citizens Financial Group Inc (NYSE:CFG) has boosted its dividend at a 22.4% CAGR over the last five years, raising it by 350% since 2016. That’s pushed the stock’s yield up to a strong 4.1%, which is still comfortably supported by a 33% payout ratio.
Higher interest rates helped Citizens Financial Group Inc (NYSE:CFG) grow its net interest income and net interest margin during Q3 as the company beat revenue and EPS estimates. Its $2.18 billion in revenue beat estimates by $50 million, while its underlying EPS of $1.30 topped consensus by $0.08. Bank stocks have generally performed poorly this year over fears of how they’ll perform during a recession, but as this isn’t a bank-driven recession per se as it largely was in 2008-2009, those fears may be overblown.
Hedge fund ownership of Citizens Financial Group Inc (NYSE:CFG) has risen for three straight quarters, hitting its highest level in two years during Q2. Nonetheless, smart money ownership remains well below 2015 levels. Ken Griffin’s Citadel Investment Group made a major addition to its CFG holding during Q2, ending the quarter with 2.28 million shares.
4. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Shareholders: 52
November 30 Dividend Payout: $0.40
CF Industries Holdings, Inc. (NYSE:CF)’s dividend doesn’t jump off the page, boasting just a 1.51% yield and a 5-year CAGR of just 3.13%. But after remaining flat for five years, the ammonia producer was able to boost its dividend by 33% this year thanks to enjoying its most profitable year ever in 2021. Thanks to soaring ammonia prices, CF Industries’ average product price jumped by 74% last year, which pushed its free cash flow to $2.17 billion, nearly triple what it was a year earlier. With just a 9% payout ratio and strong demand for its products, the next few years could be good ones for CF’s dividend.
Hedge fund ownership of CF Industries Holdings, Inc. (NYSE:CF) jumped by 34% between the third quarter of 2021 and the first quarter of 2022, hitting an all-time high. However, there was a big smart money sell off of the stock during Q2, with a 21% net decline in the number of funds long CF. Crispin Odey’s Odey Asset Management Group and Jonathan Dawson’s Southport Management were among the funds selling off CF Industries during Q2.
Chartwell Investment Partners also sold off its CF Industries Holdings, Inc. (NYSE:CF), fearing that potential capacity additions would drag down nitrogen pricing, as revealed in the fund’s Q2 2022 investor letter:
“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”
3. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Shareholders: 55
November 25 Dividend Payout: $0.53
Thanks to a 14.4% CAGR over the past five years, Starbucks Corporation (NASDAQ:SBUX)’s dividend is becoming one to watch for investors, with a yield that now stands at 2.43%. Its dividend growth has slowed somewhat over the past few years as the company’s payout ratio pushes 62%, but Starbucks’ 11-year run of dividend growth shouldn’t be in jeopardy any time soon.
The company expects its Reinvention plan, which aims to invest $450 million in existing stores to improve their efficiency and better tailor them to their existing markets, to help grow non-GAAP EPS growth by as much as 20% in the coming years.
Hedge fund ownership of Starbucks Corporation (NASDAQ:SBUX) has trended down over the past two years after peaking during the first quarter of 2020, just as the pandemic was hitting. There’s been a 22% drop in the number of smart money managers long SBUX since then. Ray Dalio’s Bridgewater Associates has added to its SBUX position every quarter since Q3 2020 and owned 3.24 million shares as of June 30.
RiverPark Wedgewood Fund exited its Starbucks Corporation (NASDAQ:SBUX) position in Q2 and laid out some of the challenges the company has faced since the pandemic hit in its Q2 2022 investor letter:
“We exited our position in Starbucks during the second quarter. We do not mind admitting that there was a heated internal debate over this position, as there were several conflicting issues to weigh in our decision. Before the pandemic, we had been quite happy with the Company’s execution and the stock’s performance, and we were likewise happy with strategic decisions made during and immediately after the initial pandemic-related lockdowns in 2020, as we have written previously.
Despite our appreciation for the Company’s execution during this period, it was dealing with some concerning issues. First, as a business reliant upon stores being open, the Company faced continuing risks from rolling pandemic-related lockdowns, particularly in China, which is the Company’s second largest and fastest-growing market. A second and related issue was employee illness; even as stores were open, various pandemic waves (Omicron, for example) caused many employees to miss shifts, making it very difficult and expensive for Starbucks to keep its stores staffed properly…”
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Shareholders: 58
November 25 Dividend Payout: $0.22
The Charles Schwab Corporation (NYSE:SCHW)’s dividend is another one that’s growing fast, rising at a CAGR of 20.9% over the last five years. While its yield of 1.1% doesn’t pop off the page, the company’s 22% payout ratio indicates its dividend could be grown at a sustained pace in the years to come.
As with Citizens Financial, growing net interest income was also a big boon for Charles Schwab during Q2, as the company’s revenue rose by 13% year-over-year. The financial services company expects to perform even better in Q3, driving revenue to as much as 19% year-over-year.
The Charles Schwab Corporation (NYSE:SCHW) is an under-the-radar stock that hedge funds love, as it ranked as their 44th most popular stock at the end of Q1. Ownership of the stock did slip by 11% during Q2, but many of the company’s biggest bulls added to their positions during the quarter, including David Blood and Al Gore’s Generation Investment Management and John Armitage’s Egerton Capital Limited.
The RiverPark Large Growth Fund was impressed with The Charles Schwab Corporation (NYSE:SCHW)’s Q2 performance, as it discussed in its Q3 2022 investor letter:
“SCHW reported solid 2Q business metrics in July, with revenue up 13% year over year, and net income up 42% year over year. Schwab and TD Ameritrade (which Schwab acquired in October 2020) have been the leading share gainers in the discount brokerage industry over the last decade, with both generating substantial organic asset growth while also growing operating margins and remaining amongst the price leaders on all products. With these two businesses now combined, revenue and expense synergies should accelerate in 2023, and we believe the company will be in an even stronger position to gather assets and drive long-term margins and free cash flow in the years to come. Moreover, the combination of steadily rising short-term rates (which should benefit net interest income), plus acquisition synergies from the AMTD deal, gives us confidence that SCHW is poised to generate continued double-digit earnings growth for the foreseeable future.”
1. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Shareholders: 82
November 23 Dividend Payout: $0.51
Topping the list of best dividend stocks to buy in November is another investment bank, Citigroup Inc. (NYSE:C). Citigroup has one of the most intriguing dividends on the market right now, with a yield that has reached 4.42% coupled with an outstanding five-year CAGR of 20.59%. Should that growth rate persist, the stock’s yield could be pushing 7% within a couple of years barring a subsequent equivalent rise in the stock price (which of course would also be fine for shareholders).
Citigroup’s transformation plan under new CEO Jane Fraser is well underway, with as many as 10,000 employees working on it. The company has sold or is in the process of several of its international consumer banking units, with the intention of focusing on its wealth management, payments, and investment banking operations. The company expects to be able to deliver a return of tangible equity of between 11% and 12% in the years to come, compared to an 8.2% mark in Q3 of this year.
Citigroup Inc. (NYSE:C) was the 29th most popular stock among hedge funds during Q2, though ownership of the investment banking giant remains well below historical levels. Warren Buffett maintained the largest position in C during Q2, owning a sizable 55.2 million shares worth $2.54 billion at the end of the quarter.
The Diamond Hill Long-Short Fund shared its thoughts on Citigroup Inc. (NYSE:C)’s Q1 share price drop (they fell by 16% during the quarter) in its Q1 2022 investor letter:
“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”
For more of the latest companies worth considering for your portfolio, check out the 15 Biggest Indian Companies by Market Cap and 15 Biggest Internet Companies in the World.
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Disclosure: None. 10 Best November Dividend Stocks To Buy is originally published at Insider Monkey.
