In this article, we discuss 15 best NASDAQ dividend stocks to buy. You can skip our detailed analysis of NASDAQ stocks and the performance of dividend stocks over the years, and go directly to read 5 Best NASDAQ Dividend Stocks To Buy.
The NASDAQ, which primarily consists of technology-related stocks, has been experiencing upward momentum since the previous year. In 2023, it saw remarkable growth, achieving its strongest performance since 2020 with an increase of over 43%. As of March 7, it has gained 10.21%, surpassing the broader market’s gain of 8.72% this year so far. Notably, according to Jonathan Krinsky, a leading market analyst at BTIG, the NASDAQ-100, which is heavily concentrated in tech, has endured 303 consecutive trading sessions without experiencing a decline of 2.5% or more as of March 5, marking it as the third-longest period without such a significant pullback since 1990. Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) are some of the best dividend stocks listed on the index.
The impressive performance of NASDAQ can be largely attributed to the excitement surrounding artificial intelligence, which has driven up the prices of major technology stocks and boosted the overall market throughout 2023 and into the current year. Additionally, the easing of inflation and the Federal Reserve’s indication of potential rate cuts later in 2024 have further supported NASDAQ’s rebound from the challenges it faced in 2022. Despite the prevalence of technology companies in the NASDAQ index, many companies offer dividends to shareholders. A notable recent addition to the list of dividend-paying companies in the index is Meta Platforms, Inc. (NASDAQ:META), which made headlines in February of this year by declaring its inaugural dividend. This move marks a significant milestone for the technology sector, which has long been dominated by a select few companies for more than a decade.
Meta’s decision to offer a dividend serves as evidence that investors are increasingly interested in dividend-paying stocks for their capacity to provide consistent and reliable income. This trend was evident in 2023 when companies in the US distributed record dividends to their shareholders. According to a report by Janus Henderson, the S&P 500 paid out an all-time high of $70.30 per share last year, a notable increase from $66.92 in 2022. This resulted in a total payment to shareholders reaching a record $588.2 billion, surpassing the previous year’s figure of $564.6 billion. The report also mentioned that there were 707 instances of dividend increases reported in the fourth quarter of 2023. These increases amounted to a total of $17.5 billion for the quarter, showing an uptick from the $16.3 billion recorded in the fourth quarter of 2022.
Furthermore, dividend-paying stocks have historically delivered robust returns. Since 1960, dividends have contributed to approximately one-third of the market’s total return. Dividend stocks offer a degree of stability during periods of increased market volatility. According to a report by Perkins Coie, a Washington-based law firm, dividend-paying stocks exhibit 30%-33% lower volatility compared to non-dividend-paying stocks. This stability has been particularly notable during turbulent decades like the 1930s and 2000s, where dividend-paying stocks served as a buffer against significant declines in market prices. In addition to this, dividend-paying companies that consistently increase their dividends can provide better protection against inflation than bonds in an inflationary environment.
In view of this, we will take a look at some of the best dividend stocks listed on NASDAQ.
Photo by nick chong on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of 933 hedge funds as of the fourth quarter of 2023 and selected companies that are trading on the NASDAQ exchange and also pay dividends to shareholders. From that list, we picked 15 stocks with the highest number of hedge fund investors and ranked in ascending order of hedge funds’ sentiment toward 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).
15. Automatic Data Processing, Inc. (NASDAQ:ADP)
Number of Hedge Fund Holders: 54
Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that specializes in human capital management solutions, offering a wide range of services and software to help businesses manage their workforce efficiently. On January 10, the company declared a quarterly dividend of $1.40 per share, which was in line with its previous dividend. In 2023, the company achieved its 49th consecutive annual dividend growth, making ADP one of the best dividend stocks listed on NASDAQ. The stock offers a dividend yield of 2.31%, as of March 10.
The number of hedge funds tracked by Insider Monkey owning stakes in Automatic Data Processing, Inc. (NASDAQ:ADP) grew to 54 in Q4 2023, from 50 in the previous quarter. The collective value of these stakes is over $3.13 billion.
14. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 55
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that focuses on the development, manufacturing, and commercialization of innovative medicines, especially in areas of unmet medical need. The company was included in 55 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of nearly $2.3 billion.
Gilead Sciences, Inc. (NASDAQ:GILD), one of the best dividend stocks on our list, announced a 2.7% hike in its quarterly dividend at $0.77 per share on February 6. This was the company’s ninth consecutive year of dividend growth. As of March 10, the stock has a dividend yield of 4.10%.
13. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 57
Costco Wholesale Corporation (NASDAQ:COST) is next on our list of the best dividend stocks listed on NASDAQ. The multinational retail corporation holds a 19-year track record of consistent dividend growth and offers a quarterly dividend of $1.02 per share. The stock’s dividend yield on March 10 came in at 0.56%.
At the end of Q4 2023, 57 hedge funds in Insider Monkey’s database reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST), compared with 65 a quarter earlier. These stakes have a collective value of more than $4 billion. With roughly 3 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
12. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 59
Starbucks Corporation (NASDAQ:SBUX) is a multinational chain of coffeehouses and roastery reserves. The company’s current quarterly dividend comes in at $0.57 per share for a dividend yield of 2.50%, as recorded on March 10. With a dividend growth streak spanning over 13 years, SBUX is one of the best dividend stocks listed on NASDAQ.
According to Insider Monkey’s database of Q4 2023, 59 hedge funds invested in Starbucks Corporation (NASDAQ:SBUX), down slightly from 60 in the previous quarter. These stakes are worth over $3.6 billion in total.
11. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based tech company that primarily operates in the networking and communications technology sector. On February 1, the company declared a 2.6% increase in its quarterly dividend to $0.40 per share. Through this hike, the company stretched its dividend growth streak to 17 years, which makes CSCO one of the best dividend stocks on our list. The stock has a dividend yield of 3.23%, as of March 10.
As of the end of Q4 2023, 60 hedge funds in our database held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), compared with 64 in the previous quarter. The overall value of these stakes is over $2.7 billion. AQR Capital Management owned the largest stake in the company in Q4.
10. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 61
CSX Corporation (NASDAQ:CSX) is an American transportation company that primarily operates in the railroad industry, providing rail-based freight transportation services. In February 2024, the company increased its dividend for the 19th consecutive year to $0.12 per share. With a dividend yield of 1.26% as of March 10, CSX is one of the best dividend stocks listed on NASDAQ.
At the end of the fourth quarter of 2023, 61 hedge funds owned stakes in CSX Corporation (NASDAQ:CSX), compared with 62 in the preceding quarter. The total value of these stakes is $3.7 billion.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 62
An American semiconductor company, Analog Devices, Inc. (NASDAQ:ADI) specializes in the design, manufacturing, and marketing of analog, mixed-signal, digital signal-processing integrated circuits. The company grew its quarterly dividend by 7% to $0.92 per share on February 21. This marked the company’s 21st consecutive year of dividend growth. The stock offers a dividend yield of 1.88%, as of March 10. It is among the best dividend stocks on our list.
At the end of December 2023, 62 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 64 in the previous quarter, as per Insider Monkey. The collective value of these stakes is over $4.44 billion. With over 4.3 million shares, Generation Investment Management was the company’s leading stakeholder in Q4.
8. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 63
Comcast Corporation (NASDAQ:CMCSA) is a multinational telecommunications and media conglomerate with a diverse range of operations. The company’s dividend growth streak currently spans over 16 years, which makes it one of the best dividend stocks on our list. It offers a quarterly dividend of $0.31 per share and has a dividend yield of 2.91%, as of March 10.
Insider Monkey’s database for Q4 2023 indicated that 63 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA), down from 68 in the previous quarter. These stakes hold a value of over $4.27 billion in total.
7. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 64
With a dividend growth track record spanning over 52 years, PepsiCo, Inc. (NASDAQ:PEP) is next on our list of the best dividend stocks. The American beverage and snack company offers a quarterly dividend of $1.265 per share and has a dividend yield of 3.10%, as of March 10. The company has also announced a yearly dividend of $5.42 per share, marking a 7.1% rise from the previous dividend of $5.06 per share. This increase will take effect for the dividend anticipated to be distributed in June 2024.
As of the end of Q4 2023, 64 hedge funds in Insider Monkey’s database reported having stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The total value of these stakes is over $4.55 billion. Among these hedge funds, Fundsmith LLP was the company’s leading stakeholder in Q4.
6. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 69
Amgen Inc. (NASDAQ:AMGN) ranks sixth on our list of the best dividend stocks from the NASDAQ Composite. The multinational biopharmaceutical company has been growing its dividends for the past 11 years and currently offers a quarterly dividend of $2.25 per share. The stock’s dividend yield on March 10 came in at 3.29%.
Amgen Inc. (NASDAQ:AMGN) remained popular among elite funds at the end of Q4 2023, with 69 hedge funds investing in the company, up from 60 in the previous quarter. The stakes held by these funds are worth nearly $1.8 billion in total.
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Disclosure. None. 15 Best NASDAQ Dividend Stocks To Buy is originally published on Insider Monkey.
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