In this article, we discuss 5 best blue chip dividend stocks to buy in August. If you want to read our detailed analysis of dividend stocks and their importance in the current market environment, go directly to read 10 Best Blue Chip Dividend Stocks to Buy in August.
5. Genuine Parts Company (NYSE:GPC)
Dividend Yield as of August 11: 2.28%
Genuine Parts Company (NYSE:GPC) is a Georgia-based American services company that specializes in the distribution of automotive replacement parts. In Q2 2022, the company reported an operating cash flow of $392 million and its free cash flow came in at $317.2 million. It paid $243 million in dividends during the quarter, which shows that the company’s free cash flow generation is stable to support future dividends.
Genuine Parts Company (NYSE:GPC) has extended its run of dividend increases to 66 years and pays a quarterly dividend of $0.895 per share. As of August 11, the stock’s dividend yield came in at 2.28%.
At the end of Q1 2022, 29 hedge funds tracked by Insider Monkey owned stakes in Genuine Parts Company (NYSE:GPC), the same as in the previous quarter. The collective value of these stakes is over $457 million. Arrowstreet Capital was the company’s leading stakeholder in Q1.
4. Cincinnati Financial Corporation (NASDAQ:CINF)
Dividend Yield as of August 11: 2.68%
Cincinnati Financial Corporation (NASDAQ:CINF) is an Ohio-based insurance company that specializes in property and casualty insurance. In Q2 2022, the company had over $1 billion available in cash and cash equivalents, and its total assets amount to over $29 billion. The company’s operating cash flow came in at $557 million and its free cash flow for the quarter stood at $553 million.
In May, Cincinnati Financial Corporation (NASDAQ:CINF) declared a quarterly dividend of $0.69 per share, raising it by 10% in January. The company maintains a 61-year track record of consistent dividend growth. As of August 11, the stock’s dividend yield came in at 2.68%.
According to Insider Monkey’s data, 21 hedge funds presented a bullish stance on Cincinnati Financial Corporation (NASDAQ:CINF) in Q1 2022 and held stakes worth nearly $172 million in the company. Among these hedge funds, Millennium Management owned the largest stake in the insurance company, worth $55.7 million.
3. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of August 11: 2.98%
Broadcom Inc. (NASDAQ:AVGO), a California-based semiconductor company, reported over $4.15 billion in free cash flow in Q1 2022, up from $3.38 billion in the previous quarter. The company’s operating cash flow grew to $4.2 billion, from $3.48 billion in the preceding quarter. Its cash flow generation is enough for future payouts, as dividend payments represented $1.7 billion of its FCF in Q1.
Broadcom Inc. (NASDAQ:AVGO) pays a quarterly dividend of $4.10 per share, with a dividend yield of 2.98%, as recorded on August 11. The company has been consistently raising its dividends for 11 years.
In July, Deutsche Bank set a $635 price target on Broadcom Inc. (NASDAQ:AVGO) with a Buy rating on the shares. The firm believes that the company is well-positioned to survive the possible supply chain issues.
At the end of Q1 2022, 71 hedge funds tracked by Insider Monkey owned stakes in Broadcom Inc. (NASDAQ:AVGO), up from 62 in the previous quarter. These stakes hold a combined value of over $5.4 billion, compared with $4.8 billion worth of stakes owned by hedge funds in the preceding quarter.
ClearBridge Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here is what the firm has to say:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of August 11: 5.67%
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company that provides data and video services and solutions to its consumers. The company’s cash position remained solid in Q2 2022, as it reported an operating cash flow of over $10.8 billion, up from $6.8 billion in the previous quarter. Its free cash flow came in at $5.7 billion, contributing to smooth shareholder returns during the quarter.
Verizon Communications Inc. (NYSE:VZ) pays a quarterly dividend of $0.64 per share, growing it by 2% in October 2021. The company maintains a 15-year streak of dividend growth and has not declared a single dividend cut since 1985. As of August 11, the stock’s dividend yield stood at 5.67%.
According to BofA, Verizon Communications Inc. (NYSE:VZ) is a forward-thinking company with premium assets as it grew its 5G business over time. The firm set a $51 price target on the stock in July, with a Neutral rating on the shares.
As per Insider Monkey’s Q1 2022 database, 69 hedge funds were bullish on Verizon Communications Inc. (NYSE:VZ), up from 63 in the previous quarter. The stakes owned by these hedge funds are valued at over $4 billion. Fisher Asset Management was the company’s leading shareholder in Q1.
Weitz Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q4 2021 investor letter. Here is what the firm had to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
1. British American Tobacco p.l.c. (NYSE:BTI)
Dividend Yield as of August 11: 8.89%
British American Tobacco p.l.c. (NYSE:BTI) is a London-based cigarette manufacturing company that also deals in tobacco and other nicotine products. In July, BofA called the stock its favorite staples company in the category and lifted its price target on the stock to $54 while maintaining a Buy rating on the shares.
In July, British American Tobacco p.l.c. (NYSE:BTI) declared a quarterly dividend of $0.735 per share and had an attractive dividend yield of 8.89%, as of August 11. The company has been raising its dividend consistently for the past 23 years.
At the end of Q1 2022, 19 hedge funds tracked by Insider Monkey reported owning stakes in British American Tobacco p.l.c. (NYSE:BTI), up from 18 in the previous quarter. These stakes hold a combined value of over $2.2 billion.
Distillate Capital Partners LLC mentioned British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter. Here is what the firm has to say:
“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”
You can also take a look at 10 Best Dividend Stocks of All Time and 10 Best Roth IRA Stocks to Buy and Hold for Long Term
