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12 Best Diversified Dividend Stocks to Buy Now

In this article, we discuss 12 diversified 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 Diversified Dividend Stocks to Buy Now

Diversified companies can provide investors with diversification across different industries and sectors, which can help reduce the risk of investing in a single industry or sector. In addition to this, by having multiple businesses, companies can generate revenue from different sources, which stabilizes their revenue streams. This can be particularly beneficial in times of economic uncertainty or when one industry or sector is facing challenges. Through multiple businesses, these companies often have strong balance sheets and solid cash flow generation even during volatile times.

After recording one of its worst performances in history last year, the stock market was on the road to recovery in 2023. However, the recent Silicon Valley Bank (SVB) collapse has shaken investors’ confidence in the stock market. A monthly survey conducted by BofA through its self-compiled ‘Financial Market Risk Indicator’ after the fallout of SVB showed that investor worry levels have risen to 7.7, just a little below extreme highs of last year amid the Ukraine War. This financial instability has made investors explore different investment options, with dividend strategies gaining traction over other asset classes.

According to analysts, companies with strong cash flow should be investors’ focus as they pay stable dividends to shareholders. Chris Senyek, chief investment strategist at Wolfe Research, spoke with Barron’s about dividend stocks and the importance of cash flow. He said:

“Many dividend payers have strong balance sheets and lower leverage, and the sustainability of the dividend isn’t in question unless we get a really deep downturn.”

He further added that investors should avoid companies with a lot of debt and turn their attention toward those who are able to smoothly cover their payouts by free cash flow.

PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM) are some companies that have raised their payouts for a long period of time and have strong cash flow generation. Companies like these can provide a reliable source of income and can also help to mitigate the effects of market volatility. To know more about dividend stocks, readers can have a look at 13 Best Long Term Dividend Stocks to Buy Now.

With this in mind, we will discuss the diversified dividend stocks to buy now.

Our Methodology:

For this list, we selected conglomerate firms that specialize in several different businesses and pay regular dividends to shareholders. We gauged hedge fund sentiment for these stocks using Insider Monkey’s database of 943 hedge funds as of Q4 2022. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.

Best Diversified Dividend Stocks to Buy Now

11. Unilever PLC (NYSE:UL)

Number of Hedge Fund Holders: 22

Unilever PLC (NYSE:UL) is a British multinational consumer goods company that specializes in a wide of products. On February 13, the company declared an 8.6% hike in its quarterly dividend to $0.457 per share. The stock has a dividend yield of 3.50%, as of March 28. The company can be added to dividend portfolios alongside some of the best dividend stocks like PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM).

In FY22, Unilever PLC (NYSE:UL) reported revenue of €60 billion, which showed a 14.5% growth from the same period last year. The company’s free cash flow for the year amounted to over €5.2 billion, which was sufficient to pay its dividends worth over €4.3 billion.

At the end of Q4 2022, 22 hedge funds tracked by Insider Monkey reported having stakes in Unilever PLC (NYSE:UL), up from 21 in the previous quarter. The collective value of these stakes is roughly $776.5 million.

Fundsmith mentioned Unilever PLC (NYSE:UL) in its 2022 yearly investor letter. Here is what the firm has to say:

“Last year I wrote about Unilever PLC (NYSE:UL) and attracted a virtual tsunami of comment for my remarks about Unilever, purpose and Hellmann’s mayonnaise. Events soon overtook this commentary insofar as Nelson Peltz’s Trian Partners announced that it had bought a stake in Unilever and he was invited to join the board. We are asked to suspend disbelief that this was in no way linked to the subsequent announcement that Alan Jope will be leaving the CEO role. This explanation sounds like it was lifted from the script of Miracle on 34th Street.

As I have previously pointed out, our Fund has held Unilever shares since inception and was about the 12th largest shareholder when these events happened. Yet for the first eight years of our existence as a shareholder we did not hear from Unilever. The first contact was when we were asked to vote in favour of moving the headquarters and listing to the Netherlands. As I remarked at the time, it is not a good way to manage relationships to ignore people until you need their support…” (Click here to read the full text)

10. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 32

Emerson Electric Co. (NYSE:EMR) is a Missouri-based manufacturing company that specializes in products and services for industrial, commercial, and consumer markets. Morgan Stanley upgraded the stock to Overweight in March and also raised its price target on the stock to $96. The firm mentioned that the company’s fundamentals are accelerating.

Emerson Electric Co. (NYSE:EMR) currently pays a quarterly dividend of $0.52 per share and has a dividend yield of 2.48%, as of March 28. It is one of the best dividend stocks on our list as it has raised dividends for 66 years in a row.

As of the close of Q4 2022, 32 hedge funds tracked by Insider Monkey owned stakes in Emerson Electric Co. (NYSE:EMR), worth roughly $781 million collectively. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q4.

9. Church & Dwight Co., Inc. (NYSE:CHD)

Number of Hedge Fund Holders: 36

A New Jersey-based multinational company, Church & Dwight Co., Inc. (NYSE:CHD) is next on our list of the best dividend stocks to buy now. The company specializes in personal care, household, and other specialty products. Deutsche Bank presented a positive stance on the consumer staples industry and raised its price target on the stock to $92 in March, while maintaining a Buy rating on the shares.

Church & Dwight Co., Inc. (NYSE:CHD) has been making regular dividend payments to shareholders for 122 years. Moreover, the company holds a 27-year streak of consistent dividend growth. It currently offers a quarterly dividend of $0.2725 per share for a dividend yield of 1.26%, as of March 28.

At the end of December 2022, 36 hedge funds tracked by Insider Monkey owned stakes in Church & Dwight Co., Inc. (NYSE:CHD), with a total value of over $1.4 billion.

8. Corning Incorporated (NYSE:GLW)

Number of Hedge Fund Holders: 39

Corning Incorporated (NYSE:GLW) is an American multinational tech company that deals in specialty glass, ceramics, and other related materials. The company also specializes in technologies including advanced optics, for industrial and scientific applications. It currently pays a quarterly dividend of $0.38 per share. The company is one of the best dividend stocks on our list as it maintains a 10-year streak of consistent dividend growth. The stock’s dividend yield on March 28 came in at 3.35%.

In March, Deutsche Bank upgraded Corning Incorporated (NYSE:GLW) to Buy and also lifted its price target on the stock to $38. The firm appreciated the company’s growing revenue in its most recent quarter.

As of the end of the December quarter of 2022, 39 hedge funds in Insider Monkey’s database reported owning stakes in Corning Incorporated (NYSE:GLW), up from 38 in the previous quarter. These stakes have a consolidated value of $348.5 million. With over 2 million shares, Citadel Investment Group was the company’s leading stakeholder in Q4.

7. Carlisle Companies Incorporated (NYSE:CSL)

Number of Hedge Fund Holders: 41

Carlisle Companies Incorporated (NYSE:CSL) is an American diversified company, based in Arizona. The company manufactures and markets a wide range of products including optical fibers and defense electronics. BMO Capital maintained an Outperform rating on the stock in March with a $335 price target, highlighting the company’s long-term performance.

Carlisle Companies Incorporated (NYSE:CSL), one of the best dividend stocks, currently pays a quarterly dividend of $0.75 per share. The company has raised its dividends consistently for the past 46 years. As of March 28, the stock has a dividend yield of 1.37%.

At the end of December 2022, 41 hedge funds in Insider Monkey’s database owned stakes in Carlisle Companies Incorporated (NYSE:CSL), worth roughly $8 billion collectively.

Madison Funds mentioned Carlisle Companies Incorporated (NYSE:CSL) in its Q4 2022 investor letter. Here is what the firm has to say:

“The bottom five detractors for the quarter were Carlisle Companies Incorporated (NYSE:CSL), Brown & Brown, Brookfield, CarMax, and Armstrong World Industries. Following robust outperformance during the first three quarters of the year, Carlisle shares took a step back this quarter as investors worried about commercial roofing demand in a potentially slowing economy.”

6. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 44

Honeywell International Inc. (NASDAQ:HON) is a North Carolina-based company that specializes in a wide range of products, including alarms, building controls, medical instruments, and space systems. In 2022, the company stretched its dividend growth streak to 13 years and currently pays a quarterly dividend of $1.03 per share. The stock has a dividend yield of 2.18%, as of March 28.

In addition to Honeywell International Inc. (NASDAQ:HON), investors also pay attention to some other best dividend stocks, including PepsiCo, Inc. (NASDAQ:PEP), Merck & Co., Inc. (NYSE:MRK), and Exxon Mobil Corporation (NYSE:XOM).

As per Insider Monkey’s Q4 2022 database, 44 hedge funds owned stakes in Honeywell International Inc. (NASDAQ:HON), with a total value of roughly $698 million. Diamond Hill Capital was the company’s leading stakeholder among these hedge funds.

Click to continue reading and see 5 Best Diversified Dividend Stocks to Buy Now

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Disclosure. None. 12 Best Diversified 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:

“AI will run out of electricity by next year.”

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.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

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

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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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…