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

In this article, we discuss 5 best 5% dividend stocks to buy according to hedge funds. If you want to read our detailed analysis of dividend stocks and their historical performance, go directly to read 12 Best 5% Dividend Stocks To Buy According To Hedge Funds. 

5. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 62
Dividend Yield as of March 15: 5.86%

3M Company (NYSE:MMM) is an American conglomerate that operates in various sectors such as industrial, healthcare, safety and graphics, electronics and energy, and consumer products. The company currently offers a quarterly dividend of $1.51 per share, having raised it by 0.7% in February this year. This marked the company’s 66th consecutive annual dividend hike, which makes MMM one of the best dividend stocks on our list. The stock has a dividend yield of 5.86%, as of March 15.

At the end of Q4 2023, 62 hedge funds tracked by Insider Monkey held stakes in 3M Company (NYSE:MMM), up from 54 in the preceding quarter. These stakes are collectively worth over $1.75 billion.

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 63
Dividend Yield as of March 15: 6.69%

Verizon Communications Inc. (NYSE:VZ) is a New York-based multinational tech company operates primarily in the areas of wireless communications, wireline communications, and digital services. The company pays a quarterly dividend of $0.665 per share and has been growing its dividends for the past 17 consecutive years. With a dividend yield of 6.69%, VZ is one of the best dividend stocks on our list with high yields.

Verizon Communications Inc. (NYSE:VZ) was a part of 63 hedge fund portfolios at the end of Q4 2023, up from 61 in the previous quarter, as per Insider Monkey’s database. Among these hedge funds, Cliff Asness’ AQR Capital Management was the company’s largest stakeholder in Q4.

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

Number of Hedge Fund Holders: 66
Dividend Yield as of March 15: 6.53%

AT&T Inc. (NYSE:T) is next on our list of the best dividend stocks with dividend yields above 5%. The multinational telecommunications has been making regular dividend payments to shareholders since 1995. Currently, it offers a quarterly dividend of $0.2775 per share and has a dividend yield of 6.53%, as of March 15.

As of the end of Q4 2023, 66 hedge funds in Insider Monkey’s database held stakes in AT&T Inc. (NYSE:T), growing from 52 in the previous quarter. The consolidated value of these stakes is nearly $3 billion.

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

Number of Hedge Fund Holders: 68
Dividend Yield as of March 15: 5.53%

Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company that is primarily engaged in the manufacturing, marketing, and sale of cigarettes, tobacco, and other nicotine-containing products. On March 7, the company declared a quarterly dividend of $1.30 per share, which as consistent with its previous dividend. In 2023, the company stretched its dividend growth streak to 14 years, which makes PM one of the best dividend stocks with high yields. As of March 15, the stock has a dividend yield of 5.53%.

The number of hedge funds in Insider Monkey’s database owning stakes in Philip Morris International Inc. (NYSE:PM) grew to 68 in Q4 2023, from 62 in the previous quarter. These stakes are worth over $5.5 billion in total. With over 15 million shares, Fundsmith LLP was the company’s largest stakeholder in Q4.

1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 79
Dividend Yield as of March 15: 5.97%

Pfizer Inc. (NYSE:PFE) tops our list of the best dividend stocks with high yields. The multinational biotech and pharmaceutical company has been growing its dividends for the past 14 consecutive years and offers a quarterly dividend of $0.42 per share. The stock’s dividend yield on March 15 came in at 5.97%.

As per Insider Monkey’s database of Q4 2023, 79 hedge funds owned stakes in Pfizer Inc. (NYSE:PFE), up from 73 in the previous quarter. These stakes are collectively valued at more than $2.2 billion.

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