13 Best S&P 500 Dividend Stocks To Buy

Published on December 7, 2023 at 9:16 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 13 best S&P 500 dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best S&P 500 Dividend Stocks To Buy.

In the market conditions of 2022, when the S&P 500 Index dropped by over 18%, stocks that paid dividends showed they could give investors some protection on the downside. For instance, among the stocks in the S&P 500, those paying dividends in 2022 decreased by 11.1%, whereas the ones that didn’t pay dividends experienced a larger loss of 38.7%. There was a shift in this pattern in 2023, with dividend stocks falling behind the broader market performance.

Also read: 12 Best Performing S&P 500 Stocks in the Last 10 Years

That said, looking at the track record of dividend stocks, it’s evident that regardless of market conditions, dividends have consistently offered a secure place for investors. To begin with, dividends have been a crucial factor in total market returns over the last 50 years. Looking back to 1960, approximately 69% of the overall return of the S&P 500 Index can be traced back to dividends that were reinvested, harnessing the strength of compounding. As mentioned above, dividend growers are more popular among investors because of their ability to provide regular and growing cash. According to a report by Hartford Funds, companies that either started paying dividends or increased their dividends have seen the most substantial returns compared to other stocks since 1973. Importantly, these stocks have shown considerably less fluctuation and volatility in their performance. The report highlighted that dividend growers and initiators delivered a 10.24% return from 1973 to 2022, compared with a 3.95% return for non-dividend payers.

Analysts often view inflationary periods as a crucial test of stocks’ ability to maintain stability in their performance. During times of inflation, the value of money decreases, leading to rising prices for goods and services. In such periods, stocks that can sustain their performance despite these economic challenges are considered more stable. Fortunately, dividend stocks have demonstrated robust performance in past periods marked by inflation. The S&P U.S. Dividend Growers Index and S&P Global ex-U.S. Dividend Growers Index include companies that have raised dividends for 10 and 7 years respectively. According to a report by S&P Dow Jones Indices, these indices outperformed their usual benchmarks when the annual inflation rate stayed above 3% for six months straight. They also performed exceptionally well during the most severe inflationary times since 2006.

International Business Machines Corporation (NYSE:IBM), The Procter & Gamble Company (NYSE:PG), and Colgate-Palmolive Company (NYSE:CL) are some of the best dividend stocks to consider because of their long dividend growth streaks. In this article, we will further take a look at some of the most prominent S&P 500 dividend stocks.

Our Methodology:

To create this list, we first examined the S&P 500 stocks based on their weight in the index and picked the top 25 stocks that consistently distribute dividends to their shareholders. Among these, we chose 13 stocks that garnered the most attention from hedge fund investors by the conclusion of Q3 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.

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

Number of Hedge Fund Holders: 75

The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation known for a wide range of household and personal care products. In the third quarter of 2023, the company reported a strong cash flow as its operating cash flow came in at $4.9 billion. Moreover, it also distributed $2.3 billion to shareholders through dividends.

The Procter & Gamble Company (NYSE:PG) currently pays a quarterly dividend of $0.9407 per share and has a dividend yield of 2.58%, as of December 6. PG is one of the best dividend stocks on our list as the company has been growing its dividends for the past 67 years.

At the end of Q3 2023, 75 hedge funds in Insider Monkey’s database reported having stakes in The Procter & Gamble Company (NYSE:PG), up from 74 in the previous quarter. The collective value of these stakes is over $5.7 billion. With nearly 10 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.

12. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 76

The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in the US, specializing in selling a wide range of home improvement and construction products, tools, and services. The company declared a quarterly dividend of $2.09 per share on November 16, which was consistent with its previous dividend. Its dividend growth streak currently stands at 13 years, which makes HD one of the best dividend stocks on our list. As of December 6, the stock has a dividend yield of 2.56%.

The number of hedge funds tracked by Insider Monkey owning stakes in The Home Depot, Inc. (NYSE:HD) grew to 76 in Q3 2023, from 68 in the previous quarter. These stakes have a total value of roughly $5.2 billion.

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

Number of Hedge Fund Holders: 85

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based pharmaceutical company engaged in the development, manufacturing, and distribution of pharmaceuticals and other related products. The company has been rewarding shareholders with growing dividends for the past 12 years and it currently pays a quarterly dividend of $0.77 per share. The stock has a dividend yield of 2.91%, as of December 6.

Insider Monkey’s database of Q3 2023 showed that 85 hedge funds owned stakes in Merck & Co., Inc. (NYSE:MRK), up from 78 in the preceding quarter. These stakes are collectively valued at over $5.06 billion. Fisher Asset Management was the largest stakeholder of the company in Q3.

10. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 87

Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor manufacturing company that also specializes in other related products. The company generated nearly $4.6 billion in free cash flow during the third quarter of 2023 and its operating cash flow came in at over $4.7 billion. During the quarter, it returned roughly $2 billion to shareholders through dividends.

Broadcom Inc. (NASDAQ:AVGO) has raised its payouts for 12 consecutive years and it offers a per-share dividend of $4.60 every quarter. As of December 6, the stock has a dividend yield of 2.03%.

Of the 910 hedge funds in Insider Monkey’s database in the third quarter of 2023, 87 funds owned stakes in Broadcom Inc. (NASDAQ:AVGO), jumping from 78 in the previous quarter. The total value of these stakes is nearly $6.2 billion.

9. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 88

Bank of America Corporation (NYSE:BAC) is an American financial services company that offers a wide range of financial products and services. The company has a 24-year run of paying regular dividends to shareholders, which makes BAC one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.24 per share and has a dividend yield of 3.09%, as of December 6.

As of the end of Q3 2023, 88 hedge funds in Insider Monkey’s database owned stakes in Bank of America Corporation (NYSE:BAC), down slightly from 99 in the preceding quarter. These stakes have a total value of over $31.3 billion. With over 1 billion shares, Berkshire Hathaway was the company’s leading stakeholder in Q3.

8. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 102

Eli Lilly and Company (NYSE:LLY) is an Indiana-based multinational pharmaceutical company. It holds one of the longest records of paying dividends to shareholders, spanning over 138 years. The company currently offers a quarterly dividend of $1.13 per share and has a dividend yield of 0.77%, as of December 6.

Insider Monkey’s database of Q3 2023 indicated that 102 hedge funds owned stakes in Eli Lilly and Company (NYSE:LLY), up significantly from 87 in the previous quarter. These stakes have a consolidated value of more than $9 billion.

7. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 104

UnitedHealth Group Incorporated (NYSE:UNH) is next on our list of the best dividend stocks from the S&P 500. The diversified healthcare company has raised its dividends for 13 consecutive years and it currently pays a per-share dividend of $1.88 every quarter. The stock’s dividend yield on December 6 came in at 1.37%.

As of the end of September 2023, 104 hedge funds owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), compared with 111 a quarter earlier. These stakes have a total value of nearly $11 billion. Among these hedge funds, Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.

6. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 109

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American multinational biotech company that offers a wide range of products and services supporting various stages of life sciences research and development. The company offers a quarterly dividend of $0.35 per share for a dividend yield of 0.28%, as recorded on December 6. It is one of the best dividend stocks on our list as the company has been growing its dividends for six consecutive years.

The number of hedge funds tracked by Insider Monkey owning stakes in Thermo Fisher Scientific Inc. (NYSE:TMO) grew to 109 at the end of Q3 2023, from 103 in the previous quarter. The consolidated value of these stakes is roughly $9 billion.

Click to continue reading and see 5 Best S&P 500 Dividend Stocks To Buy.

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