5 Best Consumer Cyclical Dividend Stocks To Buy Now

In this article, we discuss 5 best consumer cyclical dividend stocks to buy now. If you want to read our detailed analysis of consumer cyclical stocks and their outlook, go directly to read 12 Best Consumer Cyclical Dividend Stocks To Buy Now. 

5. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 62

The Home Depot, Inc. (NYSE:HD) is an American home improvement company, based in Georgia. In February, Truist maintained a Buy rating on the stock with a $352 price target, mentioning that the company’s sales trends remained strong in Q4.

The Home Depot, Inc. (NYSE:HD) is one of the best dividend stocks on our list as it has raised its payouts for consecutive 13 years. It currently pays a quarterly dividend of $2.09 per share and has a dividend yield of 2.95%, as of March 27.

According to Insider Monkey’s Q4 2022 database, 62 hedge funds owned stakes in the company, with a total value of over $4.8 billion. With over 4 million shares, Citadel Investment Group was the company’s leading stakeholder in Q4.

Matrix Asset Advisors mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

4. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is an American home improvement company. It currently offers a quarterly dividend of $1.05 per share and has a dividend yield of 2.20%, as recorded on march 27. The company is one of the best dividend stocks on our list as it maintains a 59-year streak of consistent dividend growth.

Lowe’s Companies, Inc. (NYSE:LOW) remained popular among elite funds, as 68 funds in Insider Monkey’s database owned stakes in the company, up from 61 in the preceding quarter. The stakes owned by these hedge funds have a total value of nearly $5.7 billion.

3. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 69

The TJX Companies, Inc. (NYSE:TJX) is an American multinational off-price department store corporation. On February 22, the company announced a 12.7% hike in its quarterly dividend to $0.3325 per share. The stock has a dividend yield of 1.57%, as of March 27. Throughout the year, the company returned $3.6 billion to shareholders in dividends and share repurchases, which makes it one of the best dividend stocks on our list.

Baird presented a positive outlook of The TJX Companies, Inc. (NYSE:TJX) and lifted its price target on the stock to $90 in February, and maintained an Outperform rating on the shares.

The number of hedge funds tracked by Insider Monkey owning stakes in The TJX Companies, Inc. (NYSE:TJX) grew to 69 in Q4 2022, from 55 in the previous quarter. The collective value of these stakes is over $2.55 billion.

Artisan Partners mentioned The TJX Companies, Inc. (NYSE:TJX) in its Q4 2022 investor letter. Here is what the firm has to say:

“Also, shares of The TJX Companies, Inc. (NYSE:TJX), an off-price retailer of apparel and home goods across North America, Europe and Australia, rose on strong Black Friday sales and market share gains as shoppers searched for deals in physical stores. The company showed that it is maintaining margins and beating earnings estimates on strong sales and by selectively raising prices. TJX’s business model is to sell brand name and designer merchandise in limited quantities at every day discounted prices in stores with flexible, low-cost layouts. Its strategy is to tap into shoppers’ psychological need to “treasure hunt,” as the company describes it, to find unique, branded items at deep discounts. TJX buyers opportunistically purchase merchandise from vendors at deep discounts to keep the cost of goods low for stores. As the largest off-price retailer, the company has used its channel power to its advantage in recent months to gain steep discounts on merchandise as other retailers struggle to clear their inventory. We appreciate the company’s inventory management and pricing  prowess. This holding is an example of our broad universe of companies that we consider for the portfolio and one that we believe is well-positioned for the current market environment.”

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 71

NIKE, Inc. (NYSE:NKE) is an Oregon-based footwear manufacturing company that also produces other accessories as well. Following the company’s recent quarterly earnings, Jefferies raised its price target on the stock to $160 in March and maintained a Buy rating on the shares.

NIKE, Inc. (NYSE:NKE), one of the best dividend stocks, currently pays a quarterly dividend of $0.34 per share. The company maintains a 21-year streak of consistent dividend growth. The stock has a dividend yield of 1.15%, as of March 27.

At the end of Q4 2022, 71 hedge funds tracked by Insider Monkey owned stakes in NIKE, Inc. (NYSE:NKE), up from 70 in the previous quarter. These stakes have a collective value of over $4 billion.

RiverPark Advisors mentioned NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter. Here is what the firm has to say:

“NIKE, Inc. (NYSE:NKE) shares were a top contributor for 4Q as the company reported solid 2Q23 results and raised its annual guidance. Nike reported 17% revenue growth (27% on a currency neutral basis) and $0.85 EPS, both significantly greater than expectations. Management raised its F23 outlook to low teens currency-neutral revenue growth.

Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $46 billion in revenue, $6 billion in 2021 annual free cash flow, and over $4 billion of excess cash. We believe that the continued global secular growth trend towards active wear will continue to aid Nike’s top-line growth, while we expect gross and operating margin improvements as it shifts its product mix to more premium products and adopts a more direct to consumer approach, driving long-term mid-teens or higher annual EPS growth for the foreseeable future.”

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

An American multinational tech giant, Apple Inc. (NASDAQ:AAPL) ranks first on our list of the best dividend stocks from the consumer cyclical sector. The company has been raising its dividends consistently for the past nine years and currently pays a quarterly dividend of $0.23 per share. The stock has a dividend yield of 0.58%, as of March 27.

As of the close of Q4 2022, 135 hedge funds tracked by Insider Monkey reported having stakes in Apple Inc. (NASDAQ:AAPL), with a total value of over $136 billion.

Distillate Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2022 investor letter. Here is what the firm has to say:

“The largest new purchase was Apple Inc. (NASDAQ:AAPL), which after underperforming saw its valuation improve significantly. Over the course of the last year, Apple’s consensus estimated forward free cash flows rose modestly, while its enterprise value fell by around 30%. Apple ranks below the 25th most attractive name in the portfolio and so its weight is capped at 4% vs. 6% for names in the top quartile.”

You can also take a look at 10 Best Used Car Stocks to Buy and Jeff Bezos Stock Portfolio

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