16 Best Passive Income Stocks To Buy According to Hedge Funds

Published on March 21, 2024 at 10:00 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 16 best passive income stocks to buy according to hedge funds. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Passive Income Stocks To Buy According to Hedge Funds.

According to a recent survey by the investment platform Magnifi, 49% of Americans engage in investing to secure additional income, a figure that surpasses the 42% who invest specifically for retirement.

Investing in dividend stocks is a popular method for generating passive income. This is largely due to the substantial contribution these stocks make to overall market returns over extended periods. Data from 1926 to July 2023 indicates that dividend income constituted 32% of the monthly total return of the S&P 500, with the remainder attributed to capital appreciation. Moreover, dividends have demonstrated resilience during periods of high inflation. According to a report by S&P Dow Jones Indices, in decades marked by significant inflation, such as the 1940s and 1970s, dividend income accounted for more than half of the total return.

According to a study conducted by Wisdom Tree, dividend-paying stocks have been highlighted as capable of producing significant levels of income. The report indicated that by emphasizing dividends, investors can substantially enhance their dividend earnings and potentially raise the trailing 12-month dividend yield. This strategy becomes particularly valuable in times of low yields and returns, marked by market volatility and uncertainty. Investing in dividend-weighted indexes could offer investors a means to generate essential income in such challenging environments.

Experienced investors, along with regular investors, stress the significance of including dividend-paying stocks in investment portfolios to ensure a steady income stream. Brian Bollinger, the president of Simply Safe Dividends, discussed the role of dividends in generating income during an interview with CNBC. He suggested that for those seeking genuinely passive income, dividend investing is a viable option. While relying on dividends for income is a common practice for retirees or those approaching retirement age, Bollinger emphasized that anyone can construct a portfolio focused on generating income from equities. He further highlighted the importance of building a source of income independent of traditional paychecks.

Broadcom Inc. (NASDAQ:AVGO), Walmart Inc. (NYSE:WMT), and Exxon Mobil Corporation (NYSE:XOM) are some of the most prominent dividend stocks as these companies have a proven track record of consistently increasing their dividends over the years, making them reliable options for shareholders looking to generate income passively. In this article, we will discuss some other best dividend stocks for passive income.

Photo by Nicholas Cappello on Unsplash

Our Methodology:

For this list, we first used a stock screener to pick companies that have raised their dividends for at least 10 consecutive years or more. From that list, we narrowed down our options to companies with dividend yields of at least 1% as of March 20, demonstrating robust financial standings and consistent cash flow, which are indicative of their ability to sustain reliable dividends for passive income. From these companies we picked 16 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 933 hedge funds and their holdings. 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).

16. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is an American retailer that specializes in home improvement products. The company offers a quarterly dividend of $1.10 per share and has a dividend yield of 1.76%, as of March 20. It has been growing its dividends for the past 59 consecutive years. Moreover, the company remained committed to its shareholder return, paying approximately $2.5 billion in dividends in FY23, which makes LOW one of the best dividend stocks for passive income.

The number of hedge funds tracked by Insider Monkey owning stakes in Lowe’s Companies, Inc. (NYSE:LOW) grew to 68 in Q4 2023, from 63 in the previous quarter. The collective value of these stakes is over $3.7 billion.

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

Number of Hedge Fund Holders: 68

Philip Morris International Inc. (NYSE:PM) operates as an international tobacco company engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the US. On March 7, the company announced a quarterly dividend of $1.30 per share, which fell in line with its previous dividend. It is one of the best dividend stocks for passive income as the company has raised its payouts for 14 years in a row. The stock’s dividend yield on March 20 came in at 5.56%.

At the end of Q4 2023, 68 hedge funds in Insider Monkey’s database reported having stakes in Philip Morris International Inc. (NYSE:PM), up from 62 in the previous quarter. The total value of these stakes is more than $5.5 billion. With over 15 million shares, Fundsmith LLP was the company’s leading stakeholder in Q4.

14. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 69

NIKE, Inc. (NYSE:NKE) is an Oregon-based multinational corporation that designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services. In the most recent quarter, the company returned $523 million to shareholders through dividends. In addition to this, it maintains a 22-year streak of consistent dividend growth, which makes NKE one of the best dividend stocks for passive income. The company’s quarterly dividend comes in at $0.37 per share for a dividend yield of 1.49%, as of March 20.

As of the close of Q4 2023, 69 hedge funds tracked by Insider Monkey owned stakes in NIKE, Inc. (NYSE:NKE), which remained unchanged from the previous quarter. The collective worth of these stakes is over $3.53 billion.

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

Number of Hedge Fund Holders: 70

An American multinational home improvement company, The Home Depot, Inc. (NYSE:HD) is next on our list of the best dividend stocks for passive income. The company pays a quarterly dividend of $2.25 per share, having raised it by 7.7% in February this year. Through this increase, the company stretched its dividend growth streak to 14 years. As of March 20, the stock has a dividend yield of 2.36%.

At the end of December 2023, 70 hedge funds in Insider Monkey’s database held stakes in The Home Depot, Inc. (NYSE:HD), compared with 76 in the previous quarter. These stakes have a total value of roughly $6 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.

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

Number of Hedge Fund Holders: 71

The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation that operates in various sectors including health care, beauty, grooming, and household care. The company offers a quarterly dividend of $0.9407 per share and has a dividend yield of 2.33%, as of March 20. It holds one of the longest track records of dividend growth, spanning over 67 years. PG is one of the best dividend stocks on our list for passive income.

Insider Monkey’s database of Q4 2023 indicated that 71 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG), down from 75 in the previous quarter. These stakes are worth nearly $6 billion in total.

11. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 71

Chevron Corporation (NYSE:CVX) is one of the world’s largest multinational energy corporations, engaged in various aspects of the energy sector. The company was included in 71 hedge fund portfolios at the end of Q4 2023, compared with 72 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of $21.6 billion.

Chevron Corporation (NYSE:CVX), one of the best dividend stocks for passive income, has been growing its dividends for the past 37 years consistently. The company offers a quarterly dividend of $1.63 per share and has a dividend yield of 3.37%, as of March 20.

10. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 74

Linde plc (NASDAQ:LIN) is a multinational industrial gases and engineering company that offers a wide range of products and services to various industries. Recently, the company declared a 9% hike in its quarterly dividend, which stretched its dividend growth streak to 29 years. It now offers a quarterly dividend of $1.39 per share for a dividend yield of 1.19%, as of March 20.

As of the end of the December quarter of 2023, 74 hedge funds owned stakes in Linde plc (NASDAQ:LIN), compared with 71 in the previous quarter. These stakes have a collective value of roughly $4 billion. Among these hedge funds, Scopus Asset Management was the company’s leading stakeholder in Q4.

9. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 76

AbbVie Inc. (NYSE:ABBV) is next on our list of the best dividend stocks for passive income as the company has been rewarding shareholders with growing dividends for the past 51 years. The American multinational pharmaceutical company currently offers a quarterly dividend of $1.55 per share and has a dividend yield of 3.51%, as of March 20.

Insider Monkey’s database of Q4 2023 showed that 76 hedge funds held stakes in AbbVie Inc. (NYSE:ABBV), growing from 73 in the preceding quarter. Their collective stake value is over $3.5 billion.

8. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 78

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading multinational semiconductor and telecommunications equipment company. The company currently offers a quarterly dividend of $0.85 per share, growing it by 6.3% on March 5. This marked the company’s 20th consecutive annual dividend hike, which makes QCOM one of the best dividend stocks for passive income. Moreover, it returned $895 million to shareholders through dividends during the first quarter of fiscal 2024. The stock’s dividend yield on March 20 came in at 1.91%.

The number of hedge funds tracked by Insider Monkey holding stakes in QUALCOMM Incorporated (NASDAQ:QCOM) grew to 78 in Q4 2023, from 67 in the previous quarter. The consolidated value of these stakes is nearly $3 billion. With 3 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q4.

7. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 79

With 79 hedge funds tracked by Insider Monkey holding stakes in the company in Q4 2023, Pfizer Inc. (NYSE:PFE) is next on our list of the best dividend stocks for passive income. The number of funds has grown from 73 in the previous quarter and their collective stake value for the current quarter is over $2.2 billion.

The American multinational pharmaceutical company has been growing its dividends for the past 14 years and it currently offers a per-share dividend of $0.42 every quarter. The stock has a dividend yield of 6.06%, as of March 20.

6. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) ranks sixth on our list of the best dividend stocks for passive income. The multinational healthcare industry company has raised its payouts for 61 years in a row and offers a quarterly dividend of $1.19 per share. As of March 20, the stock has a dividend yield of 3.06%.

As of the end of Q4 2023, 81 hedge funds held stakes in Johnson & Johnson (NYSE:JNJ), compared with 84 in the previous quarter, as per Insider Monkey’s database. The collective value of these stakes is roughly $4 billion. With over 6.3 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.

Click to continue reading and see 5 Best Passive Income Stocks To Buy According to Hedge Funds.

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