Markets

Insider Trading

Hedge Funds

Retirement

Opinion

12 Best ESG Dividend Stocks to Buy According to Hedge Funds

In this article, we discussed 12 best ESG dividend stocks according to hedge funds. You can skip our detailed analysis of ESG investing and its prospects, and go directly to read 5 Best ESG Dividend Stocks to Buy According to Hedge Funds

The concept of ESG, which stands for Environmental, Social, and Governance, was initially introduced in a 2004 United Nations report titled “Who Cares Wins.” The term was coined with the intention of offering recommendations to the financial sector on how to effectively incorporate environmental, social, and governance factors into investment decisions, recognizing their potential to significantly influence the value of investments.

Climate change remains a top priority for the majority of countries, investors, and international organizations. With the approach of 2050 and the increasing emphasis on globally agreed ‘net-zero’ commitments, addressing climate issues will become even more crucial. This agenda item is expected to gain significance, not only driven by public markets but also by the private sector. The significant focus on addressing climate issues has led to a notable increase in ESG-focused investments in recent times. According to a widely cited survey conducted by Morgan Stanley, over half of individual investors, approximately 54%, intend to boost their sustainable investments in 2024. Additionally, the survey indicated that more than three-quarters of individuals, around 77%, express interest in sustainable investing. The report provided the following observation regarding the trend in ESG investments over the years:

“Even investors who know or assume that their sustainable investments underperformed their traditional investments in 2022 report growing interest in sustainable investing. This suggests that sustainability-focused investors tend to be more focused on long-term investment horizons and may not be deeply concerned by short-term fluctuations.”

However, investors lacked confidence in their ESG-focused investments in 2023, withdrawing a total of $5 billion from these funds in the fourth quarter, which contributed to a yearly outflow of $13 billion. This decline was attributed to poor performance, ongoing political scrutiny in the US, and challenges faced by an iShares fund, according to a report by Morningstar. While the outflows may seem concerning at the moment, they don’t necessarily paint a grim picture of ESG investing overall. Despite these outflows and the fact that sustainable equity funds often trailed behind conventional peers in terms of returns for 2023, market appreciation helped bolster sustainable fund assets by the end of the year. The total assets in sustainable funds reached $323 billion by the close of 2023. This figure reflects a decrease of nearly 12% from the peak recorded at the end of 2021, but it marks an increase of 18% from the recent low point observed in the third quarter of 2022.

One prime example illustrating unwavering confidence in ESG investing can be seen through BlackRock’s steadfast commitment to sustainable investment practices. Despite facing criticism from Republican circles, experiencing relatively modest returns, and observing a decline in client interest within the US, BlackRock Inc. has been discreetly expanding its influence in ESG investing. Data from Morningstar Direct reveals that BlackRock’s assets under management linked to ESG surged by 53% from the beginning of 2022 to the end of the previous year. In comparison, the broader ESG fund market experienced only an 8% growth during the same period. Currently, BlackRock manages approximately $320 billion in ESG funds, surpassing any other investment firm in Europe, the US, or globally.

Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Visa Inc. (NYSE:V) are some of the best ESG dividend stocks to invest in among others that are discussed below.

vovan/Shutterstock.com

Our Methodology:

For this list, we scanned the holdings of Vanguard ESG U.S. Stock ETF, which is a market capitalization-weighted index composed of large-, mid-, and small-cap stocks of companies located in the US that are screened for certain environmental, social, and corporate governance (ESG) criteria by the index provider, which is independent of Vanguard. From the index, we picked 12 stocks that pay dividends and have garnered the most attention from hedge fund investors by the conclusion of Q4 2023, using data from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds having stakes in them. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 71

The Procter & Gamble Company (NYSE:PG) is an Ohio-based multinational consumer goods company that manufactures a wide range of related products across various categories. The company has committed to various environmental sustainability initiatives, including reducing its carbon footprint, conserving water, and minimizing waste generation throughout its supply chain.

The Procter & Gamble Company (NYSE:PG) currently offers a quarterly dividend of $0.9407 per share and has a dividend yield of 2.36%, as of February 28. It is one of the best ESG dividend stocks on our list as the company has been growing its dividends for 67 consecutive years.

At the end of Q4 2023, 71 hedge funds tracked by Insider Monkey reported having stakes in The Procter & Gamble Company (NYSE:PG), compared with 75 in the previous quarter. The total value of these stakes is roughly $6 billion.

11. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 76

AbbVie Inc. (NYSE:ABBV) is next on our list of the best ESG dividend stocks to buy. The global biopharmaceutical company is known for its commitment to advancing healthcare and improving patient outcomes. The company places a strong emphasis on social responsibility, particularly in terms of improving access to healthcare, promoting patient well-being, and supporting underserved communities.

On February 15, AbbVie Inc. (NYSE:ABBV) declared a quarterly dividend of $1.55 per share, which was in line with its previous dividend. In 2023, the company achieved its 51st annual consecutive dividend growth. The stock’s dividend yield on February 28 came in at 3.46%.

The number of hedge funds tracked by Insider Monkey owning stakes in AbbVie Inc. (NYSE:ABBV) grew to 76 in Q4 2023, from 73 in the preceding quarter. The overall value of these stakes is over $3.5 billion. With over 3.1 million shares, Marshall Wace LLP was the company’s leading stakeholder in Q4.

10. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 91

Broadcom Inc. (NASDAQ:AVGO) is a multinational technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company pays a quarterly dividend of $5.25 per share and has a dividend yield of 1.62%, as of February 28. Its dividend growth streak currently spans over 13 years, which makes AVGO one of the best dividend stocks on our list.

Broadcom Inc. (NASDAQ:AVGO) prioritizes social responsibility by promoting diversity, equity, and inclusion within its workforce and supporting initiatives that benefit communities where it operates. In addition to this, the company upholds high standards of corporate governance, transparency, and ethical conduct.

As of the close of Q4 2023, 91 hedge funds in Insider Monkey’s database reported having stakes in Broadcom Inc. (NASDAQ:AVGO), up from 87 in the previous quarter. The total value of these stakes is over $8.8 billion.

9. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 98

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company known for its contributions to healthcare and innovation. While the primary focus of Merck remains on pharmaceutical research, development, and manufacturing, the company has taken steps to integrate ESG considerations into its practices. The company currently offers a quarterly dividend of $0.77 per share and has a dividend yield of 2.39%, as of February 28. With a dividend growth streak of 13 years, MRK is one of the best ESG dividend stocks on our list.

Merck & Co., Inc. (NYSE:MRK) was a part of 98 hedge fund portfolios at the end of Q4 2023, up significantly from 85 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $7.16 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.

8. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 102

An American pharmaceutical company, Eli Lilly and Company (NYSE:LLY) invests in initiatives to reduce greenhouse gas emissions, conserve water resources, manage waste responsibly, and improve energy efficiency. Eli Lilly may also engage in sustainable sourcing practices and invest in eco-friendly technologies to mitigate environmental impact.

Eli Lilly and Company (NYSE:LLY) offers a quarterly dividend of $1.30 per share, having raised it by 15% in December 2023. Through this increase, the company achieved its growth streak of 10 years, which makes LLY one of the best dividend stocks on our list. The stock’s dividend yield came in at 0.68%, as of February 28.

At the end of December 2023, 102 hedge funds in Insider Monkey’s database reported having stakes in Eli Lilly and Company (NYSE:LLY), the same as in the previous quarter. The collective value of these stakes is over $11.1 billion.

7. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 103

JPMorgan Chase & Co. (NYSE:JPM) provides a wide range of banking services to individuals, businesses, and institutions. The company has committed to environmental sustainability by setting goals to reduce its own carbon footprint and mitigate climate-related risks. Currently, it pays a quarterly dividend of $1.05 per share and has a dividend yield of 2.29%, as of February 28.

Insider Monkey’s database of Q4 2023 indicated that 103 hedge funds owned stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 109 in the preceding quarter. The consolidated value of these stakes is over $9 billion.

6. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 113

UnitedHealth Group Incorporated (NYSE:UNH) ranks sixth on our list of the best ESG dividend stocks to invest in. The diversified healthcare company is committed to environmental sustainability and reducing its environmental footprint. The company has been growing its dividends for the past 13 years and offers a per-share dividend of $1.88 every quarter. As of February 28, the stock has a dividend yield of 1.52%.

UnitedHealth Group Incorporated (NYSE:UNH) ended the fourth quarter with 113 hedge fund positions, up from 104 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these funds have a total value of over $11 billion.

Click to continue reading and see 5 Best ESG Dividend Stocks to Buy According to Hedge Funds

Suggested articles:

Disclosure. None. 12 Best ESG Dividend Stocks to Buy According to Hedge Funds is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

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.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

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.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

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

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!