Markets

Insider Trading

Hedge Funds

Retirement

Opinion

16 Best Income Stocks To Buy According to Analysts

In this article, we discuss 16 best income stocks to buy according to analysts. You can skip our detailed analysis of income-generating stocks and their performance over the years, and go directly to read 5 Best Income Stocks To Buy According to Analysts

Dividends have played a significant role in the overall returns of the S&P 500 since 1930, contributing approximately 40% of the total return. However, during periods of high inflation, such as the 1940s, 1970s, and 1980s, when inflation rates averaged 5% or more, dividends accounted for an even larger portion, around 54% of the total return. This insight came from Naveed Rahman, who serves as a co-manager of the Fidelity Equity-Income Strategy. The Fidelity report further elaborated on the performance of dividend stocks during inflationary periods, highlighting that during the 1930s and 2000s when the stock prices of the S&P 500 declined, dividends nearly offset those losses. Moreover, in the 1940s and 1970s, characterized by significant inflation spikes, dividends contributed substantially to the S&P 500’s return, accounting for 65% and 71% respectively.

Dividend-paying stocks have become a cornerstone of many individual investor portfolios due to their ability to generate substantial income over time. This income component is essential as it can significantly contribute to the overall return on investment, helping investors achieve the necessary portfolio growth to meet their financial goals. A study conducted by Eagle Investment Management sheds light on the income potential of dividend-paying stocks. The study compared the income generated by a theoretical $1,000,000 investment made on December 31, 2012, in the S&P 500 Dividend Aristocrats Index, consisting of companies that have consistently increased their dividends for 25 years, with the broader S&P 500 Index, assuming reinvestment of dividends. According to the report, the initial investment of $1,000,000 in 2012 in the dividend aristocrats would have generated an income of $93,212 by 2022. In contrast, the income from the same investment in the S&P 500 during the same period would have been $55,726. This stark difference highlights the significant income potential offered by dividend aristocrats compared to the broader market index. Although historical, this example serves to demonstrate the importance of not just prioritizing dividends but also considering the growth of dividends. This dual focus is crucial for enhancing a portfolio’s income stream gradually over time.

Throughout the years, stocks belonging to companies that begin and consistently increase their dividend payouts have shown superior performance compared to the overall market. Conversely, stocks of companies that reduce or fail to pay dividends have notably underperformed. According to findings from a report by RMB Capital, from 1972 to 2018, dividend-growing companies and those initiating dividends delivered an average annual return of 9.62%, while stocks of companies cutting dividends experienced a negative return of 0.79%. During this period, non-dividend companies returned 2.40%, significantly underperforming dividend growers.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are considered some of the best dividend stocks for regular income as these companies hold strong dividend growth track records. In this article, we will further discuss some other income-generating stocks according to analysts.

Image by Steve Buissinne from Pixabay

Our Methodology:

To compile this article, we first scanned Insider Monkey’s database of Q4 2023 and picked stocks known for their consistent dividend track records and sustained shareholder payouts over an extended period. This group reflects stability and long-term performance in dividend payouts. From this list, we further refined our selection criteria by identifying stocks with a projected upside potential of over 15% based on analyst price targets. The stocks are ranked according to their upside potential, as of February 17. 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). That’s why we pay very close attention to this often-ignored indicator.

16. Starbucks Corporation (NASDAQ:SBUX)

Upside Potential as of February 17: 15.7%

Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain that offers a wide range of hot and cold beverages, including various coffee drinks, teas, hot chocolates, and other specialty beverages. The company offers a quarterly dividend of $0.57 per share, having raised it by 7.5% in September 2023. This marked the company’s 13th consecutive year of dividend growth, which makes SBUX one of the best dividend stocks on our list. The stock has a dividend yield of 2.45%, as of February 17.

At the end of Q4 2023, 59 hedge funds tracked by Insider Monkey reported having stakes in Starbucks Corporation (NASDAQ:SBUX), compared with 60 in the previous quarter. The collective value of these stakes is nearly $3.3 billion. With over 11.3 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.

15. Bristol-Myers Squibb Company (NYSE:BMY)

Upside Potential as of February 17: 15.91%

With an upside potential of 15.9%, Bristol-Myers Squibb Company (NYSE:BMY) is next on our list of the best dividend stocks for income investors. The global pharmaceutical company has been rewarding shareholders with growing dividends for the past 18 consecutive years. It currently offers a quarterly dividend of $0.60 per share and has a dividend yield of 4.81%, as of February 17.

Bristol-Myers Squibb Company (NYSE:BMY) was a part of 60 hedge fund portfolios at the end of Q4 2023, down slightly from 65 in the preceding quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $2.07 billion.

14. Mondelez International, Inc. (NASDAQ:MDLZ)

Upside Potential as of February 17: 15.97%

Mondelez International, Inc. (NASDAQ:MDLZ) is a multinational food and beverage company that focuses on manufacturing and marketing snacks, confectionery, and beverage products. The company ended the fourth quarter with 51 hedge fund positions, which remained unchanged from the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a collective value of more than $1.14 billion.

On February 2, Mondelez International, Inc. (NASDAQ:MDLZ) declared a quarterly dividend of $0.425 per share, which was in line with its previous dividend. Overall, the company has been growing its dividends for the past 10 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on February 17 came in at 2.36%.

13. Microsoft Corporation (NASDAQ:MSFT)

Upside Potential as of February 17: 16.18%

An American multinational tech company, Microsoft Corporation (NASDAQ:MSFT) has raised its payouts for 11 consecutive years. Currently, it offers a quarterly dividend of $0.75 per share and has a dividend yield of 0.74%, as recorded on February 17. With an upside potential of 16.18%, MSFT is one of the best dividend stocks for income investors according to analysts.

As of the close of Q4 2023, 302 hedge funds tracked by Insider Monkey reported having stakes in Microsoft Corporation (NASDAQ:MSFT), down slightly from 306 in the preceding quarter. Among these hedge funds, Bill & Melinda Gates Foundation Trust was the company’s leading stakeholder in Q4.

12. 3M Company (NYSE:MMM)

Upside Potential as of February 17: 16.4%

3M Company (NYSE:MMM) is a multinational conglomerate that produces a wide range of medical and healthcare products, including medical tapes, wound dressings, sterilization products, dental materials, and infection prevention solutions. The company recently raised its quarterly dividend by 0.7% to $1.51 per share. Through this hike, the company achieved its 66th annual dividend growth, which makes MMM one of the best dividend stocks on our list. The stock offers a dividend yield of 6.62%, as recorded on February 17.

The number of hedge funds tracked by Insider Monkey owning stakes in 3M Company (NYSE:MMM) grew to 62 in Q4 2023, from 54 in the previous quarter. The collective value of these stakes is more than $1.75 billion.

11. S&P Global Inc. (NYSE:SPGI)

Upside Potential as of February 17: 16.5%

S&P Global Inc. (NYSE:SPGI) is a leading provider of financial information and analytics, as well as data and research services for businesses, investors, and governments worldwide. On January 24, the company declared a 1.1% hike in its quarterly dividend to $0.91 per share. This was the company’s 51st consecutive year of dividend growth. As of February 17, the stock has a dividend yield of 0.86%. It is among the best dividend stocks on our list with an upside potential of 16.5%.

Insider Monkey’s database of Q4 2023 indicated that 82 hedge funds owned stakes in S&P Global Inc. (NYSE:SPGI), growing from 78 in the previous quarter. The consolidated value of these investments is over $8.8 billion. Among these hedge funds, TCI Fund Management was the company’s leading stakeholder in Q4.

10. Honeywell International Inc. (NASDAQ:HON)

Upside Potential as of February 17: 16.55%

Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company that operates across multiple sectors. The company pays a quarterly dividend of $1.08 per share and has a dividend yield of 2.19%, as of February 17. It has raised its dividends 14 times over the past 13 consecutive years, which makes HON one of the best dividend stocks for income investors.

According to Insider Monkey’s database of Q4 2023, 55 hedge funds owned stakes in Honeywell International Inc. (NASDAQ:HON), compared with 60 in the previous quarter. Adage Capital Management owned the largest stake in the company at the end of Q4.

9. Philip Morris International Inc. (NYSE:PM)

Upside Potential as of February 17: 16.8%

Philip Morris International Inc. (NYSE:PM) primarily manufactures and sells cigarettes and other tobacco products under various brands. In recent years, the company has been focusing on developing and commercializing reduced-risk alternatives to traditional cigarettes. Its dividend growth streak currently spans over 14 years and it offers a quarterly dividend of $1.30 per share. As of February 17, the stock has a dividend yield of 5.80% and its upside potential comes in at 16.8%.

Philip Morris International Inc. (NYSE:PM) ended Q4 2023 with 68 hedge fund positions, up from 62 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a consolidated value of more than $5.5 billion.

8. Archer-Daniels-Midland Company (NYSE:ADM)

Upside Potential as of February 17: 17.4%

Archer-Daniels-Midland Company (NYSE:ADM) is a global food processing and commodities trading corporation. The company produces a wide range of nutritional products for human and animal consumption, including specialty ingredients, functional food ingredients, dietary supplements, and animal feed products. In January this year, the company achieved its 51st consecutive annual dividend growth. Currently, it offers a quarterly dividend of $0.50 per share and has a dividend yield of 3.73%, as of February 17. With an upside potential of 17.4%, ADM is one of the best dividend stocks for income investors.

As per Insider Monkey’s database of Q4 2023, 34 hedge funds reported having stakes in Archer-Daniels-Midland Company (NYSE:ADM), compared with 37 in the preceding quarter. The collective value of these stakes is nearly $820 million. With roughly 2.2 million shares, AQR Capital Management was the company’s leading stakeholder in Q4.

7. Becton, Dickinson and Company (NYSE:BDX)

Upside Potential as of February 17: 18.17%

A global medical technology company, Becton, Dickinson and Company (NYSE:BDX) is next on our list of the best dividend stocks for income investors. On January 23, the company declared a quarterly dividend of $0.95 per share, which was in line with its previous dividend. It has raised its dividends for 52 consecutive years. The stock has a dividend yield of 1.58%, as of February 17.

Of the 933 hedge funds tracked by Insider Monkey at the end of Q4 2023, 60 funds owned stakes in Becton, Dickinson and Company (NYSE:BDX), up from 57 in the preceding quarter. These stakes have a total value of over $2.42 billion.

6. NIKE, Inc. (NYSE:NKE)

Upside Potential as of February 17: 18.8%

NIKE, Inc. (NYSE:NKE) is a multinational corporation that designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company has been raising its dividends for the past 22 years and currently offers a quarterly dividend of $0.37 per share. With a dividend yield of 1.43%, as of February 17, NKE is one of the best dividend stocks on our list.

At the end of December 2023, 69 hedge funds in Insider Monkey’s database reported having stakes in NIKE, Inc. (NYSE:NKE), which remained unchanged from the previous quarter. These stakes are collectively worth over $3.53 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.

Click to continue reading and see 5 Best Income Stocks To Buy According to Analysts

Suggested articles:

Disclosure. None. 16 Best Income Stocks To Buy According to Analysts 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!