In this article, we will take a look at the 5 best debt free dividend stocks to buy. To read our analysis of the recent trends, and market activity, you can go to the 10 Best Debt Free Dividend Stocks to Buy.
5. Garmin Ltd. (NASDAQ:GRMN)
Number of Hedge Fund Holders: 23
Dividend Yield as of April 19: 2.94%
Based in Olathe, Kansas, Garmin Ltd. (NASDAQ:GRMN) is a technology company focused on wireless devices. Its portfolio serves five primary markets: fitness, outdoor, aviation, marine, and auto, and includes hand-held, wearable, portable, and fixed-mount GPS-enabled products and other navigation, communications, sensor-based and information products.
On February 22, Garmin Ltd. (NASDAQ:GRMN) reported the financial results for Q4 2022. The company had a strong quarterly performance with $1.3 billion revenues and $293 million in net income. It currently pays a quarterly dividend of $0.73 per share which translates to a dividend yield of 2.94% as of April 19.
According to the Insider Monkey data on 943 leading hedge funds, 23 hedge funds were long Garmin Ltd. (NASDAQ:GRMN) shares as of Q4 2022, with the total shares held by hedge funds valued at $449 million. Robert Joseph Caruso’s Select Equity Group was the largest shareholder on record with ownership of 0.9 million shares valued at $83 million. The hedge fund increased its shareholding in the company by 41% during the quarter.
4. Gentex Corporation (NASDAQ:GNTX)
Number of Hedge Fund Holders: 26
Dividend Yield as of April 19: 1.77%
Founded in 1974, Gentex Corporation (NASDAQ:GNTX) is a supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, dimmable aircraft windows for aviation markets, and fire protection products to the fire protection market.
Gentex Corporation (NASDAQ:GNTX) managed to secure solid financial results in Q4 2022. Its revenue increased by 18% y-o-y to $494 million while it generated a net income of $86 million. The company returned $227 million to shareholders during 2022 in the form of dividends and share repurchases.
On April 6, Baird designated Gentex Corporation (NASDAQ:GNTX) as a new Fresh Pick ahead of Q1 earnings and maintained its ‘Outperform’ rating and $35 price target.
As of Q4 2022, Gentex Corporation (NASDAQ:GNTX) shares were held by 26 hedge funds with a total value of $511 million. Notable hedge funds including Renaissance Technologies, and Ray Dalio’s Bridgewater Associates, significantly increased their exposure to Gentex Corporation (NASDAQ:GNTX) during the quarter.
3. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 27
Dividend Yield as of April 19: 1.76%
Mueller Industries, Inc. (NYSE:MLI) is a leading manufacturer of copper, brass, aluminum, and plastic products for a broad range of industries including plumbing, heating, ventilation, air conditioning and refrigeration (HVACR), industrial manufacturing, appliance, transportation, medical, military and defense and electrical.
On April 25, Mueller Industries, Inc. (NYSE:MLI) released its financial results for Q1 2023. Its net revenue declined by 4% y-o-y to $971 million while net income increased by 9% y-o-y to $173 million. The company generated a normalized EPS of $3.07 for the quarter which exceeded consensus estimates by $1.20.
Earlier in February, the board of directors of Mueller Industries, Inc. (NYSE:MLI) increased the regular quarterly dividend by 20% to $0.30 per share which marked the third consecutive double digit increase to the company’s quarterly dividend.
2. Silicon Motion Technology Corp. (NASDAQ:SIMO)
Number of Hedge Fund Holders: 35
Dividend Yield as of April 19: 3.10%
Taiwan-based Silicon Motion Technology Corp. (NASDAQ:SIMO) is a leading developer of NAND flash controllers for SSDs and other solid state storage devices. Its customers include most of the NAND flash vendors, storage device module makers and leading OEMs.
In May 2022, Silicon Motion Technology Corp. (NASDAQ:SIMO) announced that it had entered into a definitive agreement with MaxLinear, Inc. (NYSE:MXL) under which MaxLinear, Inc. (NYSE:MXL) will acquire Silicon Motion Technology Corp. (NASDAQ:SIMO) in a stock and cash transaction that implies a $3.8 billion for the company.
As part of the transaction, MaxLinear, Inc. (NYSE:MXL) will pay a cash consideration of $93.54 and a stock consideration of 0.388 common shares of the company per each American Depositary Share (ADS) of Silicon Motion Technology Corp. (NASDAQ:SIMO).
Based on the share price of MaxLinear, Inc. (NYSE:MXL) as of April 26, this represents a total consideration of $104.93 per ADS of Silicon Motion Technology Corp. (NASDAQ:SIMO) which is 67.4% more than the current price of one ADS.
1. Accenture Plc (NYSE:ACN)
Number of Hedge Fund Holders: 63
Dividend Yield as of April 19: 1.60%
Based in Dublin, Ireland, Accenture Plc (NYSE:ACN) is a global professional services company with leadership positions in providing digital, cloud and security. Accenture Plc (NYSE:ACN) employs more than 700,000 people and serves clients across more than 40 industries in more than 120 countries.
On March 24, RBC Capital raised the price target on Accenture Plc (NYSE:ACN) shares to $340 from $335 but maintained an ‘Outperform’ rating for its shares. The target price raise followed a stronger than expected performance in Q2 for the company as well as the rebounding of bookings growth.
As of Q4 2022, 63 out of the 943 hedge funds tracked by Insider Monkey were long Accenture Plc (NYSE:ACN) shares, for a total value of $2.9 billion. Nikolai Tangen’s Ako Capital is the largest shareholder with ownership of 1.9 million shares valued at $512 million.
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