5 Best 5% Dividend Stocks To Buy According To Hedge Funds

In this article, we will discuss 5 best dividend stocks according to hedge funds with over 5% yield. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 10 Best 5% Dividend Stocks To Buy According To Hedge Funds.

5. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 61
Dividend Yield as of November 28: 5.81%

AT&T Inc. (NYSE:T) is a Texas-based multinational telecommunications company that mainly provides mobile telephone services to its consumers. Raymond James upgraded the stock to Strong Buy in October with a $24 price target, appreciating the company’s current operating performance.

In the third quarter of 2022, AT&T Inc. (NYSE:T) reported growth in nearly its all segments. The company’s wireless service revenues and broadband revenues were up by 5.6% and 6.1% from the same period last year, respectively. Its operating cash flow for the quarter came in at $10.1 billion and its free cash flow stood at $3.8 billion. The company’s dividend payout ratio came in at a healthy 52.3%, which makes it one of the best dividend stocks on our list.

AT&T Inc. (NYSE:T) currently pays a quarterly dividend of $0.2775 per share and has a dividend yield of 5.81%, as of November 28. The company has been raising its dividends consistently for the past 23 years.

At the end of Q3 2022, 61 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), up from 55 a quarter earlier. The collective value of these stakes is over $1.53 billion.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”