12 Best Quality Dividend Stocks To Invest In

Published on February 13, 2024 at 2:10 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 12 best quality dividend stocks to invest in. You can skip our detailed analysis of quality dividend companies and their performance over the years, and go directly to read 5 Best Quality Dividend Stocks To Invest In.

In a volatile stock market, income-generating stocks hold a significant position. While tech stocks seemed to take the spotlight last year, it doesn’t necessarily indicate the downfall of dividend stocks, which have long held their allure. As we progress through 2024, the stock and bond market outlook fluctuates regularly, influenced by economic updates, statements from the Federal Reserve, and shifts in interest rate expectations. Initially, investors anticipated multiple interest rate cuts by the Federal Reserve throughout the year, with expectations of the first cut in March. However, following a series of positive economic indicators, the Fed has hinted that a rate cut in March is improbable. Consequently, investors are adjusting their valuations of stocks and bonds, awaiting fewer rate cuts to commence later than previously projected. During uncertain times, it’s recommended for investors to focus on dividend stocks. These stocks typically offer good value and can provide consistent income, especially in sectors where there’s potential for growth in stock prices.

Analysts’ preference for dividend stocks isn’t a recent trend; it’s largely based on the historical performance of these stocks. Companies that have consistently increased their dividends over time have proven to be reliable investments, delivering strong returns in the past. These stocks have been particularly resilient during periods of high inflation. For instance, the S&P 500 High Dividend Growth Index, which tracks companies in the S&P 500 known for consistent or increasing dividends and high forecast dividend yield growth, saw its dividends grow at an annual rate of 13.8% from 2010 to 2022, as reported by S&P Dow Jones Indices. This growth rate has surpassed the long-term U.S. inflation rate, even amidst recent spikes in inflation over the past few years. The report also noted that historical data comparing the performance of the S&P 500 High Dividend Growth Index to the S&P 500 indicated that the index has displayed somewhat defensive traits, with a downside capture ratio of 94.5%. Additionally, over time, the index has typically captured 96% of the market’s returns during upward market trends.

As previously mentioned, dividend stocks took a backseat during the tech surge in 2023, but reliable dividend-paying companies are poised for a strong resurgence. Analysts express optimism that investors will acknowledge the strength of these stocks this year. According to strategists at Lord Abbett, a subset of stocks they view as high quality is dividend-growth stocks—companies with a track record of consistently raising their dividends over time. With the economic cycle showing signs of slowing down, they believe companies with solid balance sheets, robust cash flows, and dependable dividends will be well-prepared to maintain their performance.

Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some of the best dividend stocks with decades-long dividend growth streaks under their belt. In this article, we will further take a look at some quality dividend stocks.

Daily newspaper economy stock market chart

Our Methodology:

For this list, we scanned Insider Monkey’s database of 910 hedge funds as of Q3 2023 and identified blue-chip dividend companies with strong balance sheets. From this initial selection, we refined our choices to include only those companies that have continuously raised their dividend payouts for 25 years or more and currently offer yields above 3% as of February 13. Our goal in highlighting these companies is to underscore their excellence and longstanding dedication to providing returns to shareholders. The stocks are ranked in ascending order 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. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 23

Dividend Yield as of February 13: 5.98%

Realty Income Corporation (NYSE:O) is an American real estate investment trust company that primarily invests in commercial properties. Specifically, it focuses on retail and commercial real estate, leasing its properties to tenants under long-term lease agreements. It is one of the best quality dividend stocks on our list as the company pays monthly dividends to shareholders. Moreover, the company has been raising its dividends for the past 104 consecutive quarters. It currently pays a monthly dividend of $0.2565 per share and has a dividend yield of 5.98%, as of February 13.

At the end of Q3 2023, 23 hedge funds in Insider Monkey’s database reported having stakes in Realty Income Corporation (NYSE:O), compared with 24 in the previous quarter. The collective value of these stakes is nearly $150 million.

11. Consolidated Edison, Inc. (NYSE:ED)

Number of Hedge Fund Holders: 27

Dividend Yield as of February 13: 3.80%

Consolidated Edison, Inc. (NYSE:ED) is a diversified energy company primarily operating in the regulated electric, gas, and steam utility sectors. The company is responsible for supplying electricity and gas to millions of customers in its service territory, maintaining the infrastructure necessary for the reliable delivery of these services, and responding to customer needs.

On January 18, Consolidated Edison, Inc. (NYSE:ED) declared a quarterly dividend of $0.83 per share, up from its previous dividend of $0.81 per share. Through this increase, the company stretched its dividend growth streak to 50 consecutive years, which makes ED one of the best quality dividend stocks to invest in. The stock’s dividend yield on February 13 came in at 3.80%.

As of the close of Q3 2023, 27 hedge funds in Insider Monkey’s database owned stakes in Consolidated Edison, Inc. (NYSE:ED), down from 30 in the previous quarter. These stakes are collectively worth over $350.3 million. With roughly 1 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.

10. Air Products and Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 43

Dividend Yield as of February 13: 3.22%

Air Products and Chemicals, Inc. (NYSE:APD) is a global industrial gases company that supplies atmospheric gases, process and specialty gases, performance materials, equipment, and technology. On January 25, the company announced a 1.1% hike in its quarterly dividend to $1.77 per share. This marked the company’s 42nd consecutive annual dividend increase. With a dividend yield of 3.22% as of February 13, APD is one of the best quality dividend stocks to invest in.

At the end of September 2023, 43 hedge funds tracked by Insider Monkey held stakes in Air Products and Chemicals, Inc. (NYSE:APD), the same as in the preceding quarter. The total value of these stakes is over $952.3 million.

9. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 53

Dividend Yield as of February 13: 3.62%

With a dividend growth streak of 28 consecutive years, International Business Machines Corporation (NYSE:IBM) is next on our list of the best quality dividend stocks to invest in. The multinational tech company currently offers a quarterly dividend of $1.66 per share and has a dividend yield of 3.62%, as of February 13.

The number of hedge funds in Insider Monkey’s database owning stakes in International Business Machines Corporation (NYSE:IBM) grew to 53 in Q3 2023, from 51 in the previous quarter. These stakes have a collective value of roughly $843 million. Among these hedge funds, Marshall Wace LLP was the company’s leading stakeholder in Q3.

8. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 54

Dividend Yield as of February 13: 6.53%

3M Company (NYSE:MMM) is a Minnesota-based multinational conglomerate corporation that operates in various industries and is known for its diverse range of products. Recently, the company declared its 66th consecutive annual dividend hike, which makes MMM one of the best quality dividend stocks to invest in. Currently, it offers a quarterly dividend of $1.51 per share and has a dividend yield of 6.53%, as of February 13.

3M Company (NYSE:MMM) ended the third quarter of 2023 with 54 hedge fund positions, up from 49 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of more than $818.6 million.

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

Number of Hedge Fund Holders: 57

Dividend Yield as of February 13: 3.08%

The Coca-Cola Company (NYSE:KO) is an American beverage company that is involved in the production, marketing, and distribution of non-alcoholic beverages. The company holds a 61-year track record of consistent dividend growth and pays a quarterly dividend of $0.61 per share. The stock’s dividend yield on February 13 came in at 3.08%.

The Coca-Cola Company (NYSE:KO) was a part of 57 hedge fund portfolios at the end of Q3 2023, down from 61 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of more than $25 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company worth over $22.3 billion.

6. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 58

Dividend Yield as of February 13: 3.36%

NextEra Energy, Inc. (NYSE:NEE) ranks sixth on our list of the best quality dividend stocks to invest in. The renewable energy company has raised its payouts for 27 consecutive years and offers a quarterly dividend of $0.4675 per share. As of February 13, the stock has a dividend yield of 3.36%.

According to Insider Monkey’s database of Q3 2023, 58 hedge funds owned stakes in NextEra Energy, Inc. (NYSE:NEE), down slightly from 59 in the preceding quarter. The collective value of these stakes is over $1.4 billion.

Click to continue reading and see 5 Best Quality Dividend Stocks To Invest In.

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