12 Best Fortune 500 Dividend Stocks to Buy Now

Published on October 18, 2022 at 9:19 am by Usman Kabir in Hedge Funds, News

In this article, we discuss 12 best Fortune 500 dividend stocks to buy now. If you want to read about some more Fortune 500 dividend stocks, go directly to 5 Best Fortune 500 Dividend Stocks to Buy Now.

United States President Joe Biden has repeatedly stressed that the US economy will avoid a recession despite rising interest rates and soaring inflation, a lethal economic combo, and even predicted that it will resume growth in the coming months. Economic experts do not share his point of view. A recent report by news platform Bloomberg reveals that a recession is effectively certain in the next 12 months. The prediction, based on a new Bloomberg Economics model, forecasts a higher recession probability across all timeframes.

Per the model, the 12-month estimate of a downturn by October 2023 has hit 100%, up from 65% in the previous update. Analysts Anna Wong and Eliza Winger are leading authors of the new report. The model made by the analysts uses a total of 13 macroeconomic and financial indicators to predict the chance of a downturn at horizons of one month to two years. According to the model, the likelihood of a recession within 11 months has climbed to 73% from 30%, and the 10-month probability has risen to 25% from 0%, in the past few months.

Investors can take advantage of the selloff at the stock market due to these economic conditions, which has led to a broad decrease in the share prices of solid businesses like Chevron Corporation (NYSE:CVX), Gilead Sciences, Inc. (NASDAQ:GILD), and Philip Morris International Inc. (NYSE:PM), to reap the rewards later. These firms also have resilient dividend yields and a dependable history of payouts that provide an extra layer of protection against volatile market conditions.

Our Methodology

The companies that feature on the Fortune 500 list and have solid dividend profiles were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Image by Steve Buissinne from Pixabay

Best Fortune 500 Dividend Stocks to Buy Now

12. ONEOK, Inc. (NYSE:OKE)

Number of Hedge Fund Holders: 30

Dividend Yield as of October 18: 6.82%

ONEOK, Inc. (NYSE:OKE) engages in the processing, storage, and transportation of natural gas in the United States. It is one of the best large cap stocks to invest in. On August 8, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.92, beating market estimates by $0.04. The revenue over the period rose 77% year-on-year to $6 billion, above analyst consensus estimates of $5.18 billion.

On July 20, Barclays analyst Theresa Chen maintained an Equal Weight rating on ONEOK, Inc. (NYSE:OKE) stock and lowered the price target to $62 from $71, highlighting that the company reported solid Q2 results.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Citadel Investment Group is a leading shareholder in ONEOK, Inc. (NYSE:OKE), with 695,100 shares worth more than $38.6 million.

Just like Chevron Corporation (NYSE:CVX), Gilead Sciences, Inc. (NASDAQ:GILD), and Philip Morris International Inc. (NYSE:PM), ONEOK, Inc. (NYSE:OKE) is one of the best Fortune 500 dividend stocks to buy according to hedge funds.

In its Q3 2021 investor letter, Miller Howard Investments, an asset management firm, highlighted a few stocks and ONEOK, Inc. (NYSE:OKE) was one of them. Here is what the fund said:

”In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”

11. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 40

Dividend Yield as of October 18: 5.43%

International Business Machines Corporation (NYSE:IBM) provides integrated technology solutions and services worldwide. It is one of the top large cap stocks to invest in. On October 6, IBM said that it would invest $20 billion across the Hudson Valley region over the next 10 years. IBM plans to expand the development and manufacturing of semiconductors, mainframe technology, and artificial intelligence through this investment.

On October 6, Morgan Stanley analyst Erik Woodring maintained an Overweight rating on International Business Machines Corporation (NYSE:IBM) stock and lowered the price target to $152 from $155, noting that continued wage pressure in consulting and expectations for a sub-seasonal mainframe quarter were some of the headwinds for the shares.

At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $948 million in International Business Machines Corporation (NYSE:IBM), compared to 43 in the previous quarter worth $1.2 billion.

In its Q1 2022 investor letter, St. James Investment Company, an asset management firm, highlighted a few stocks and International Business Machines Corporation (NYSE:IBM) was one of them. Here is what the fund said:

“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available. (read more)

10. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Number of Hedge Fund Holders: 40

Dividend Yield as of October 18: 5.82%

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) operates as a pharmacy-led health and beauty retail company. It is one of the premier large cap stocks to invest in. On October 11, Walgreens Boots Alliance said that it would buy the remaining 45% stake it does not own in post-acute and home care services provider CareCentrix for about $392 million. On September 2, Walgreens and CVS Health Corporation announced that the redesigned COVID-19 booster shots developed by Pfizer and Moderna will now be available nationwide for eligible individuals aged 12 years and above.

On October 13, investment advisory Mizuho maintained a Neutral rating on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) stock and lowered the price target to $36 from $49. Analyst Ann Hynes issued the ratings update.

At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $599 million in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), compared to 38 in the previous quarter worth $737 million.

In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was one of them. Here is what the fund said:

“We first invested in Walgreens Boots Alliance in early 2013. Over our holding period, Walgreens merged with U.K.-based Boots Alliance, establishing itself as a global leading retail pharmacy chain. CEO Stefano Pessina set the company on a path of pursuing strategic partnerships (as opposed to vertical integration deals) to increase store traffic and to, over time, transform the business into a neighborhood health destination around a more modern pharmacy. Using its strong FREE cash flow generation, the company ramped up its investments in technology, aiming to accelerate the digitalization of health information. Mr. Pessina was not successful, however, at turning around the firm’s U.S. retail segment and had to deal with increasing prescription drug reimbursement pressures. He stepped down as CEO in 2020, and in 2021, Roz Brewer took the reins of the firm. We admire Ms. Brewer’s impressive track record at companies that include Starbucks (NASDAQ:SBUX) and Walmart (Sam’s Club). However, given management’s decision to divest core cash-generative businesses and redeploy capital to embryonic healthcare startups, we prefer to step aside while we follow the company’s progress.”

9. Kinder Morgan, Inc. (NYSE:KMI)

Number of Hedge Fund Holders: 41

Dividend Yield as of October 18: 6.34%

Kinder Morgan, Inc. (NYSE:KMI) operates as an energy infrastructure company in North America. It is one of the major large cap stocks to invest in. On August 11, Kinder Morgan said that it had acquired North American Natural Resources and its seven landfill gas to power facilities in Michigan and Kentucky for $135 million. On September 27, Kinder Morgan disclosed that it sold a 25.5% equity interest in Elba Liquefaction to an undisclosed financial buyer for approximately $565 million.

On September 7, Goldman Sachs analyst Michael Lapides upgraded Kinder Morgan, Inc. (NYSE:KMI) to Neutral from Sell with a $19 price target, noting that the company is benefiting from incremental natural gas pipeline growth.

Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in Kinder Morgan, Inc. (NYSE:KMI), with 21.7 million shares worth more than $363 million.

8. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 42

Dividend Yield as of October 18: 14.53%

Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company that provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands. It is one of the most prominent large cap stocks to invest in. On October 3, Lumen Technologies, Inc. (NYSE:LUMN) said that it has closed the sale of its Incumbent Local Exchange Carrier business in 20 states to Brightspeed. Lumen Technologies retains its ILEC assets in 16 states, where it plans to continue to invest in bringing Quantum Fiber broadband to more communities.

On October 13, Citi analyst Michael Rollins maintained a Neutral rating on Lumen Technologies, Inc. (NYSE:LUMN) stock and lowered the price target to $8 from $11, noting that the company is going through a tougher Q3 expense environment due to higher inflation and seasonal pressures.

In its Q1 2022 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE:LUMN) was one of them. Here is what the fund said:

“Lumen – Lumen reported weak organic revenue growth and guided more weakness for 2022. We expect revenue growth to kick back in towards the end of 2022, and the huge FCF coupon helped offset value decline from the weaker guidance. The other factor weighing on the stock price was largest shareholder Temasek’s partial sale of its 10% position in the quarter, creating uncertainty and a share price overhang. We have a 13D filed and continue to urge the company to take steps to address the significant price-to-value gap, including continued share buybacks.”

7. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 48

Dividend Yield as of October 18: 8.43%

Altria Group, Inc. (NYSE:MO) manufactures and sells smokable and oral tobacco products in the United States. It is one of the elite large cap stocks to invest in. On September 30, Altria Group unveiled in an SEC filing that it was planning to end its noncompete agreement with JUUL Labs, a vaping company. Altria may develop its own vaping products and JUUL will be freed up to work a buyout deal with another company.

At the end of the second quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Altria Group, Inc. (NYSE:MO), compared to 47 the preceding quarter worth $1.96 billion.

In its Q2 2021 investor letter, Broyhill Asset Management, an asset management firm, highlighted a few stocks and Altria Group, Inc. (NYSE:MO) was one of them. Here is what the fund said:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”

6. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 53

Dividend Yield as of October 18: 2.16%

Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer in the United States and internationally. It is one of the best large cap stocks to invest in. On September 8, Lowe’s Companies, Inc. (NYSE:LOW) announced that it has partnered up with home improvement retailer Instacart to launch same day delivery. Same day delivery is now available from more than 1700 Lowe’s stores. Lowe’s Companies, Inc. (NYSE:LOW) will be one of the first retailers on Instacart App to roll out same day delivery for large items up to 3x3x5 feet and 60 pounds.

On October 3, Jefferies analyst Jonathan Matuszewski maintained a Buy rating on Lowe’s Companies, Inc. (NYSE:LOW) stock and raised the price target to $259 from $255, noting that the company’s home improvement outlays had slowed due to under-appreciated downside cushion.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pershing Square is a leading shareholder in Lowe’s Companies, Inc. (NYSE:LOW), with 10 million shares worth more than $1.8 billion.

Alongside Chevron Corporation (NYSE:CVX), Gilead Sciences, Inc. (NASDAQ:GILD), and Philip Morris International Inc. (NYSE:PM), Lowe’s Companies, Inc. (NYSE:LOW) is one of the best Fortune 500 dividend stocks to buy according to hedge funds.

Here is what Pershing Square Holdings specifically said about Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2022 investor letter:

“Lowe’s Companies, Inc. (NYSE:LOW)’s is a high-quality business with significant long-term earnings growth potential underpinned by a superb management team that is successfully executing a multi-faceted business transformation.

COVID-19 was a transformational event for the US housing market, causing homeowners to invest significantly in their homes as they shifted nearly all their daily activities to the home environment, including work, school, and leisure. The increased use of the home during COVID, in turn, increased the need for repair, maintenance and remodel activity, which significantly benefited Lowe’s same-store sales. As consumers return to spending more time and money on out-of-the home activities the near-term demand for certain Do-It-Yourself (“DIY”) categories has decreased. Moderation in DIY demand combined with increased mortgage rates and decreased housing affordability has caused many market participants to become concerned that the home improvement industry may give up a significant part of their COVID pandemic sales gains.

While we expect that there will be some near-term volatility and continued moderation of DIY demand, growth remains strong for projects requiring professional installation (the “Pro” business) due to a substantial backlog of projects undertaken during COVID, which should support industry growth in the near-term. In addition, we believe the medium[1]term growth outlook for the home improvement industry remains strong as demand is likely to normalize at a materially higher level as compared to the pre-COVID era. For the decade prior to COVID, home improvement industry sales were notably depressed relative to their long-term averages as a percentage of overall consumer spend and GDP and have only now returned to their longer-term historical levels. Moreover, we believe COVID has permanently renewed consumers’ focus, appreciation, and utilization of their homes, which combined with higher home equity values, strong consumer balance sheets, low levels of home inventory for sale and an aging housing stock that requires an increasing level of maintenance, will likely result in a structurally higher level of ongoing home industry spending in the future. In the most recent quarter demand strengthened throughout the quarter as DIY consumers returned from summer vacations and focused on less seasonal home improvement projects…” (Click here to read the full text)

Click to continue reading and see 5 Best Fortune 500 Dividend Stocks to Buy Now.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

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!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

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 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

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

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
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.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

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:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
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.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

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

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

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…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up