5 Best Annual Dividend Stocks To Buy Now

3. Marcus & Millichap Inc (NYSE:MMI)

Number of Hedge Fund Shareholders: 13

Annual Dividend Payout: $0.50

Marcus & Millichap Inc (NYSE:MMI) began making semi-annual dividend payments this year, with each amounting to $0.25 (it also issued a special dividend payment of $1.00 on April 4). That starts the stock off with a decent dividend yield of 1.35% and there’s immense room for future dividend growth given the company’s miniscule payout ratio of just under 6%. The commercial property services provider also authorized a $70 million share repurchase program in August on the heels of record Q2 results.

For the quarter, Marcus & Millichap Inc (NYSE:MMI) grew revenue by 39% year-over-year to nearly $400 million, while net income surged by 34% to $42 million. The company enjoyed strong growth across several of its businesses, with its private client business growing by 33% year-over-year, while its financing business grew by 31%. Lastly, it grew Middle Market and larger transactions by 59% during the quarter.

Since hitting a six-year low in hedge fund ownership during the third quarter of 2020, the number of smart money managers long Marcus & Millichap Inc (NYSE:MMI) has more than doubled. Chuck Royce’s Royce & Associates, which has held a position in the company since early 2014, owned 1.58 million MMI shares on June 30, valued at $58.6 million.