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

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 62
Dividend Yield as of November 28: 6.69%

Verizon Communications Inc. (NYSE:VZ) offers voice, data, and video streaming services to its consumers through its wide range of networks and platforms. The company is one of the best dividend stocks on our list as it has raised its payouts consistently for the past 16 years. It currently pays a quarterly dividend of $0.6525 per share for a dividend yield of 6.69%, as of November 28.

Verizon Communications Inc. (NYSE:VZ) has shown a strong cash position this year so far. In the first nine months, the company’s operating cash flow came in at $28.2 billion while its free cash flow for the period stood at $12.4 billion. It generated $34.2 billion in revenue in Q3 2022, which showed a 4% growth from the same period last year.

In October, Morgan Stanley appreciated the growth in Verizon Communications Inc. (NYSE:VZ)’s wireless and postpaid segments. In view of this, the firm maintained an Equal Weight rating on the stock with a $41 price target.

Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion. Citadel Investment Group is the company’s leading stakeholder in Q3.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”