In this article, we will be looking at the 5 best dividend kings to buy now according to hedge funds. To see our detailed analysis of dividend investing, you can go directly to the 10 Best Dividend Kings to Buy Now According to Hedge Funds.
5. Colgate-Palmolive Company (NYSE: CL)
Number of Hedge Fund Holders: 48
Number of Years of Consistent Dividend Growth: 58
Dividend Yield: 2.18%
Colgate-Palmolive Company (NYSE: CL) deals with consumer products and their sale across the globe. Some of its major brands include the Colgate, Palmolive, and Protex brands, and it ranks 5th on our list of the best dividend kings to buy now according to hedge funds.
This June, UBS initiated coverage of Colgate-Palmolive Company (NYSE: CL) shares with a Buy rating and a $95 price target. Credit Suisse upgraded the company’s shares to Outperform in the same month, with a $95 price target as well. Analyst Kaumil Gajrawala commented that Colgate-Palmolive Company (NYSE: CL) is performing better than its peers because its sales are closer to category growth, and the company seems capable of handling the incoming inflation.
In the first quarter of 2021, Colgate-Palmolive Company (NYSE: CL) had an EPS of $0.80, beating estimates by $0.01. The company’s revenue was $4.34 billion, up 6.03% year over year and it beat estimates by $80.51 million as well. Colgate-Palmolive Company (NYSE: CL) has gained 0.85% in the past 6 months.
By the end of the first quarter of 2021, 48 hedge funds out of the 866 tracked by Insider Monkey held stakes in Colgate-Palmolive Company (NYSE: CL) worth roughly $2.30 billion. This is compared to 46 hedge funds in the previous quarter with a total stake value of about $1.51 billion.
First Eagle Investment Management, an investment management firm, mentioned Colgate-Palmolive Company (NYSE: CL) in its first-quarter 2021 investor letter. Here‘s what they said:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
4. Lowe’s Companies, Inc. (NYSE: LOW)
Number of Hedge Fund Holders: 61
Number of Years of Consistent Dividend Growth: 59
Dividend Yield: 1.65%
Lowe’s Companies, Inc. (NYSE: LOW) is a home improvement retailer in the US and internationally. The company provides customers with construction, maintenance, repair, remodeling, and decorating products, and ranks 4th on our list of the best dividend kings to buy now according to hedge funds.
This May, Truist, Morgan Stanley, and Credit Suisse raised their price targets on Lowe’s Companies, Inc. (NYSE: LOW). Truist raised it to $217 with a Buy rating, while Morgan Stanley and Credit Suisse raised their targets to $230 with an Overweight rating and $205 with an Outperform rating respectively.
In the fiscal first quarter of 2022, Lowe’s Companies, Inc. (NYSE: LOW) had an EPS of $3.21, beating estimates by $0.62. The company’s revenue was $24.42 billion, up 24.13% year over year and beating estimates by $667.62 million. Lowe’s Companies, Inc. (NYSE: LOW) has gained 14.02% in the past 6 months and 21.14% year to date.
By the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in Lowe’s Companies, Inc. (NYSE: LOW) worth roughly $5.17 billion. This is compared to 71 hedge funds in the previous quarter with a total stake value of about $5.19 billion.
Pershing Square Holdings Ltd, an investment management firm, mentioned Lowe’s Companies, Inc. (NYSE: LOW) in its fourth-quarter 2020 investor letter. Here‘s what they said:
“Lowe’s is a high-quality business with significant long-term earnings growth potential. We initiated our investment in the company in April 2018 largely because we believed that the hiring of a new high-caliber management team could dramatically improve the business and close the performance gap to its closest competitor, Home Depot. Marvin Ellison became CEO in July 2018, and immediately began working on a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities.
In 2020, Lowe’s experienced unprecedented demand driven by consumers nesting at home, higher home asset utilization and a reallocation of discretionary spend. Lowe’s earlier decision to modernize the company’s online offering allowed it to meet consumers’ surging demand. Further, its commitment to improve the company’s retail fundamentals allowed Lowe’s to showcase its enhanced merchandising, greater in-stock-levels, and excellent customer service. In the fourth quarter, the company completed 95% of its store layout resets which include a more intuitive shopping experience complete with a more Pro-centric layout (by “Pro” we refer to the professional tradesmen that perform repair and maintenance, remodeling and construction services). The company is also rolling out a new Pro CRM tool, which should improve Lowe’s Pro market share…” (Click here to see the full text)
3. The Coca-Cola Company (NYSE: KO)
Number of Hedge Fund Holders: 61
Number of Years of Consistent Dividend Growth: 59
Dividend Yield: 3.05%
The Coca-Cola Company (NYSE: KO) is a beverage company operating globally. The company’s major brands include the Coca-Cola and Fanta brands, among others, and it ranks 3rd on our list of the best dividend kings to buy now according to hedge funds.
This July, Deutsche Bank raised its price target on The Coca-Cola Company (NYSE: KO) shares from the previous $57 to $58. Morgan Stanley also raised its price target on the company’s shares to $64 in June, keeping an Overweight rating on the stock. Analyst Dara Mohsenian commented that the company can be expected to undergo recovery in sales throughout 2022, surpassing consensus forecasts.
In the first quarter of 2021, The Coca-Cola Company (NYSE: KO) had an EPS of $0.55, beating estimates by $0.05. The company’s revenue for the quarter was $9.02 billion, up 5.2% year over year and beating estimates by $388.98 million. The Coca-Cola Company (NYSE: KO) has gained 11.76% in the past 6 months and 4.28% year to date.
By the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Coca-Cola Company (NYSE: KO) worth roughly $24.9 billion. This is compared to 62 hedge funds in the previous quarter with a total stake value of about $24.6 billion.
2. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 70
Number of Years of Consistent Dividend Growth: 65
Dividend Yield: 2.54%
The Procter & Gamble Company (NYSE: PG) is a consumer goods company providing products in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. The company’s brands include Gillette, Venus, Old Spice, and Olay, among others, and it ranks 2nd on our list of the best dividend kings to buy now according to hedge funds.
This June, UBS began covering The Procter & Gamble Company (NYSE: PG) with a Neutral rating and a $138 price target. In April, the company also stated that it has maintained its fiscal 2021 outlook and it expects its revenue to grow by 5-6% for the year.
In the fiscal third quarter of 2021, The Procter & Gamble Company (NYSE: PG) had an EPS of $1.26, beating estimates by $0.07. The company’s revenue was $18.11 billion, up 5.2% year over year and beating estimates by $147.79 million. The Procter & Gamble Company (NYSE: PG) has gained 0.86% in the past 6 months as well.
By the end of the first quarter of 2021, 70 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Procter & Gamble Company (NYSE: PG) worth roughly $8.53 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of about $10.42 billion.
1. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Number of Years of Consistent Dividend Growth: 58
Dividend Yield: 2.5%
Johnson & Johnson (NYSE: JNJ) is a healthcare company selling products such as baby care essentials, skin health or beauty care products, and allergy products among a range of relates items in the healthcare sector. The company ranks 1st on our list of the best dividend kings to buy now according to hedge funds.
This July, Johnson & Johnson (NYSE: JNJ) commended the US government’s move to distribute about 12 million doses of the company’s vaccine against the coronavirus. Cantor Fitzgerald analyst Louise Chen has also reiterated the firm’s Overweight rating on Johnson & Johnson (NYSE: JNJ) shares alongside a $200 price target. Chen has cited the company’s reports that its vaccine seems to be effective against the Delta variant as positive news.
In the first quarter of 2021, Johnson & Johnson (NYSE: JNJ) had an EPS of $2.59, beating estimates by $0.24. The company’s revenue was $22.32 billion, up 7.88% year over year and beating estimates by $308.14 million. Johnson & Johnson (NYSE: JNJ) has also gained 5.37% in the past 6 months and 8.16% year to date.
By the end of the first quarter of 2021, 81 hedge funds out of the 866 tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE: JNJ) worth roughly $6.91 billion. This is compared to 81 hedge funds in the previous quarter with a total stake value of about $5.82 billion.
You can also take a peek at 10 Extreme Dividend Stocks with Huge Upside and 30 Dividend Kings of 2021 (Part I).
