In this article, we discuss 5 best dividend-paying stocks to buy now. If you want to read our detailed analysis of dividend stocks and their returns over the years, go directly to read 11 Best Dividend-Paying Stocks To Buy Now.
5. Genuine Parts Company (NYSE:GPC)
Dividend Yield as of July 5: 2.69%
Genuine Parts Company (NYSE:GPC) is an American company that is engaged in the distribution of automotive replacement parts, office products, and related electronic materials.
Genuine Parts Company (NYSE:GPC) went public in 1948 and has been paying dividends since then. In February 2022, the company marked its 66th consecutive year of dividend growth. In the first quarter of 2022, the company generated $320.7 million in free cash flow, up from $252.5 million during the same period last year. Genuine Parts Company (NYSE:GPC) currently offers a quarterly payout of $0.895 per share, with a yield of 2.69%, recorded on July 5.
In May, BofA upgraded Genuine Parts Company (NYSE:GPC) to Neutral with a $133 price target, highlighting the stock’s fair valuation. The firm further appreciated the company’s business and a very long track of dividend growth.
As of the quarter ended March 2022, 29 hedge funds held positions in Genuine Parts Company (NYSE:GPC), the same as in the previous quarter. The collective value of stakes owned by these hedge funds is over $457 million.
4. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of July 5: 2.99%
Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturing company that specializes in industrial tools, household, and other security products.
Stanley Black & Decker, Inc. (NYSE:SWK) is one of the best dividend-paying stocks to buy now as it hasn’t missed a dividend payment since 1876 and holds a 54-year track record of consistent dividend growth. The company’s payout ratio stands at 33%, which is expected to average 26% over the next three years. In Q1 2022, it generated $246.1 million in free cash flow and for FY22, the company expects its FCF to fall between $1.0 to $1.5 billion. Stanley Black & Decker, Inc. (NYSE:SWK) currently offers a quarterly dividend of $0.79 per share. As of July 5, the stock’s dividend yield was 2.99%.
Appreciating the company’s FY22 guidance, Baird set a $160 price target on Stanley Black & Decker, Inc. (NYSE:SWK) in April, with an Outperform rating on the shares.
With stakes worth over $922 million, 38 hedge funds in Insider Monkey’s database held positions in Stanley Black & Decker, Inc. (NYSE:SWK) in Q1, down from 48 in the previous quarter. Gates Capital Management was the company’s largest stakeholder in Q1.
Saturna Capital mentioned Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2021 investor letter. Here is what the firm has to say:
“Stanley Black &Decker performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”
3. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of July 5: 2.99%
An American multinational pharmaceutical company, Merck & Co., Inc. (NYSE:MRK) surpassed Pfizer in its Covid-19 pill in Australia, Japan, and Italy. The company expects its molnupiravir sales for the year to fall between $5 billion and $5.5 billion, as the demand for the pill is still low in the US.
In 2021, Merck & Co., Inc. (NYSE:MRK) generated $14.1 billion in net operating cash flow, up 37.6% from the previous year. The company currently pays a quarterly dividend of $0.69 per share and has raised its dividend consecutively for the past 11 years. On July 5, the stock’s yield was recorded at 2.99%, one of the highest among pharmaceutical companies.
In June, Cowen raised its price target on Merck & Co., Inc. (NYSE:MRK) to $102 with a Market Perform rating on the shares, highlighting the company’s recent acquisition of Seagen.
As of the quarter ended March 2022, Merck & Co., Inc. (NYSE:MRK) was in 84 hedge funds’ portfolios, according to Insider Monkey’s database. The collective value of these stakes was nearly $5.9 billion. Fisher Asset Management was the company’s leading shareholder in Q1, with over 11.8 million shares.
ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm had to say:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
2. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of July 5: 4.09%
Exxon Mobil Corporation (NYSE:XOM) offers a quarterly dividend of $0.88 per share. The energy company holds a 39-year track record of consistent dividend growth. The stock’s dividend yield came in at 4.09% on July 5. Exxon Mobil Corporation (NYSE:XOM) generated over $10.9 billion in free cash flow in Q1 2022, with an expectation of taking its FCF to $50 billion by the end of the year, which presents a good outlook for dividends and buybacks.
As Exxon Mobil Corporation (NYSE:XOM) started investing in some important oil and gas projects, compared with its counterparts, Credit Suisse raised its price target on the stock in June to $125, with an Outperform rating on the shares.
As per Insider Monkey’s database for Q1, Exxon Mobil Corporation (NYSE:XOM) experienced growth in hedge fund positions, as 83 elite funds owned stakes in the company, up from 71 in the previous quarter. The consolidated value of these stakes is over $8.5 billion. Rajiv Jain’s GQG Partners owned a stake worth over $4.2 billion in the Texas-based company, becoming its largest shareholder in Q1.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
1. AT&T Inc. (NYSE:T)
Dividend Yield as of July 5: 5.21%
AT&T Inc. (NYSE:T) is a Texas-based multinational telecommunications holding company, providing mobile telephone services in the US. The stock gained 9.27% in 2022 while delivering a 6% return in the past six months, as of the close of July 5.
On June 28, AT&T Inc. (NYSE:T) announced a quarterly dividend of $0.2775 per share, consistent with its previous dividend. The company has been raising its dividend consistently for the past 23 years. The stock’s dividend yield came in at 5.21% on July 5. In the first quarter of 2022, AT&T Inc. (NYSE:T) generated $733 million in free cash flow and expects to take it to $20 billion by 2023.
In June, Scotiabank initiated its coverage of AT&T Inc. (NYSE:T) with a Sector Perform rating and a $22.50 price target. The firm expects companies dealing in the wireless business to gain momentum in the coming years.
At the end of Q1 2022, 74 hedge funds in Insider Monkey’s database owned stakes in AT&T Inc. (NYSE:T), up from 70 in the previous quarter. The collective value of these stakes is over $4 billion.
Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has 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).”
You can also take a look at Jim Cramer Recommends These 10 Stocks For Recession and Michael Burry is Buying These 10 Stocks As Recession Fears Mount.
