5 Best Dividend Paying Stocks To Buy Now

In this article, we will discuss 5 best dividend-paying dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 5 Best Dividend Paying Stocks To Buy Now. 

5. Activision Blizzard, Inc. (NASDAQ:ATVI)

Number of Hedge Fund Holders: 129
Dividend Yield as of March 14: 0.60%

Activision Blizzard, Inc. (NASDAQ:ATVI) is an American multinational video game holding company. The company remained popular among elite funds in Q4 2022, as 129 hedge funds tracked by Insider Monkey owned stakes in the company, up from 96 in the previous quarter. These stakes have a total value of over $9.52 billion. It is among the best dividend-paying stocks on our list.

Activision Blizzard, Inc. (NASDAQ:ATVI) currently pays an annual dividend of $0.47 per share. The stock has a dividend yield of 0.60%, as of March 14.

In February, Deutsche Bank upgraded Activision Blizzard, Inc. (NASDAQ:ATVI) to Buy from Hold and also lifted its price target on the stock to $90. The firm appreciated the company’s business model.

Cooper Investors mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q2 2022 investor letter. Here is what the firm has to say:

“Activision Blizzard, Inc. (NASDAQ:ATVI) – our investment preceded news that the company was under investigation for workplace bullying. When it became clear management had misled the market on the extent of the problem we sold, led by our principles of Responsible Investing. We did not benefit from the subsequent M&A premium paid by Microsoft.”

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135
Dividend Yield as of March 14: 0.61%

An American multinational tech company, Apple Inc. (NASDAQ:AAPL) is next on our list of the best dividend-paying stocks to buy. On February 2, the company declared a quarterly dividend of $0.23 per share and has a dividend yield of 0.61%, as of March 14. It has been raising its dividends consistently for the past nine years.

Goldman Sachs initiated its coverage on Apple Inc. (NASDAQ:AAPL) with a Buy rating in March with a $199 price target, appreciating the company’s installed base growth and secular growth in services.

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.”

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 139
Dividend Yield as of March 14: 0.66%

Mastercard Incorporated (NYSE:MA) is a New York-based financial services company that provides a wide range of related services to its consumers. The company’s recent quarterly earnings were lauded by Street analysts. In January, both Mizuho and Barclays raised their price targets on the stock to $405 and $437, respectively.

Mastercard Incorporated (NYSE:MA), one of the best dividend-paying stocks on our list, currently pays a quarterly dividend of $0.57 per share and has a dividend yield of 0.66%, as of March 14. In 2022, the company extended its dividend growth streak to 10 years.

At the end of the December quarter 2022, 139 hedge funds owned stakes in Mastercard Incorporated (NYSE:MA), compared with 146 a quarter earlier. The collective value of these stakes is over $15.6 billion.

Baron Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q4 2022 investor letter. Here is what the firm has to say:

“Shares of global payment network Mastercard Incorporated (NYSE:MA) increased after reporting strong quarterly results, with 15% revenue growth and 13% EPS growth despite significant headwinds from currency movements and the suspension of operations in Russia. Payment volume grew 21% in local currency (excluding Russia) as consumer spending remained resilient and the international travel recovery continued as border restrictions were lifted. We continue to own the stock due to Mastercard’s long runway for growth and significant competitive advantages.”

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 177
Dividend Yield as of March 14: 0.84%

Visa Inc. (NYSE:V) is a California-based financial services company that deals in electronic funds transfers throughout the world. The company currently pays a quarterly dividend of $0.45 per share for a dividend yield of 0.84%, as of March 14. It maintains a 16-year streak of consistent dividend growth.

Visa Inc. (NYSE:V) remained committed to its shareholders, returning nearly $3 billion to its investors through dividends.

At the end of Q4 2022, 177 hedge funds in Insider Monkey’s database owned stakes in Visa Inc. (NYSE:V), compared with 165 in the previous quarter. These stakes are worth over $26.4 billion collectively.

Vulcan Value Partners mentioned Visa Inc. (NYSE:V) in its Q4 2022 investor letter. Here is what the firm has to say:

“Mastercard and Visa Inc. (NYSE:V) both delivered strong top and bottom-line results during the quarter. MasterCard grew its revenues and operating profits approximately 23% and 27% respectively. Visa grew its revenues and operating profits approximately 19% and 19% respectively. Both companies also produced strong free cash flow.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259
Dividend Yield as of March 14: 1.07%

Microsoft Corporation (NASDAQ:MSFT) is an American tech giant, currently paying a quarterly dividend of $0.68 per share. The company has been rewarding shareholders with regular increased dividends for the past 16 years, which makes it one of the best dividend-paying stocks on our list. The stock’s dividend yield on March 14 came in at 1.07%.

At the end of Q4 2022, 259 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), down from 269 in the previous quarter. These stakes have a total value of over $58.6 billion. Ken Griffin and Terry Smith were some of the company’s leading stakeholders in Q4.

Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) outperformed despite a mixed fiscal first quarter due to macro challenges that negatively impacted results and guidance, including foreign exchange headwinds, weakening PC demand, and a cyclical slowdown in advertising spending. Total revenue beat Street expectations at 16% constant-currency growth (vs. estimates of 14%), but its Azure cloud computing business missed analyst projections by 1% for the second straight quarter, though it still grew a robust 42% year-over-year, as Microsoft helped its customers optimize existing workloads due to the macro backdrop. While the optimization of workloads is a short-term headwind, we believe it is the right thing to do and should help drive more consumption with customers over time. Our research continues to indicate that the longer-term secular trend of cloud computing remains healthy and intact. For example, in its fourth quarter CIO survey report, Morgan Stanley showed, among other things, that cloud computing was the second highest CIO spending priority (behind only security software), that cloud application workloads were expected to increase from 27% of total workloads today to 46% by the end of 2025, and that Azure was listed as the preferred cloud vendor and likely to take share over the short and long term.9 Additionally, Microsoft is positioned to be a prime beneficiary of ChatGPT. Microsoft invested $1 billion in OpenAI in 2020 and is rumored to be considering investing an additional $10 billion for a 49% stake in the company. Moreover, ChatGPT runs on Microsoft’s Azure platform, and Microsoft recently announced the general availability of its Azure OpenAI Service enabling Azure customers to access advanced AI models, including ChatGPT itself soon. We remain bullish on Microsoft’s long-term opportunity in the cloud, and believe AI has the potential to be additive to growth for years to come.”

You can also take a look at 10 Best Stocks to Buy for the Next 10 Years and 15 Under-the-Radar High Dividend Stocks to Buy

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