In this article, we will be looking at the 5 best dividend stocks for long term. To see our detailed analysis of dividend investing, you can go directly to the 10 Best Dividend Stocks for Long Term.
5. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Dividend Yield: 2.5%
Johnson & Johnson (NYSE: JNJ) is a researcher, developer, and manufacturer of a range of products in the healthcare sector, and it operates across the world. The company has three segments: Consumer Health, Pharmaceutical, and Medical Devices. It is also one of the major contributors to the fight against the coronavirus pandemic, with the issuance of its own vaccines. The stock ranks 5th on our list of the best dividend stocks for long term.
The FDA has approved J&J vaccines from the Emergent plant this July, while the EMA has also approved a scale-up at the J&J vaccine plant in the Netherlands. This June, Cantor Fitzgerald reiterated its Overweight rating on Johnson & Johnson (NYSE: JNJ) with a $200 price target, and analyst Louise Chen commented that the potential for peak sales held by Johnson & Johnson (NYSE: JNJ) has not been appreciated at it should have been. 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, and its gross profit margin is 66.38%. Johnson & Johnson (NYSE: JNJ) has gained 5.85% in the past 6 months and 8.25% year to date, and it has retained its dividend for about 59 years as well.
As of 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.
4. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 70
Dividend Yield: 2.54%
The Procter & Gamble Company (NYSE: PG) is a provider of branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. The company’s brands include Pantene, Old Spice, Olay, and a range of others, and it ranks 4th on our list of the best dividend stocks for long term.
The Procter & Gamble Company (NYSE: PG) was among the 6 consumer staples stocks mentioned by UBS this June as being top picks for investors based on its screening process which analyzed stocks on their pricing power, margin momentum, and input cost exposure. The stock also fared well in a Nielson report this June, where Wells Fargo commented that it “felt better” about higher estimates for stocks like The Procter & Gamble Company (NYSE: PG). JP Morgan has an Overweight rating on the stock and a price target of $148.
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 stock has gained 11.48% in the past year and it has also retained its dividend for about 65 years, earning it a spot among the dividend kings for 2021.
As of 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.
3. PepsiCo, Inc. (NASDAQ: PEP)
Number of Hedge Fund Holders: 61
Dividend Yield: 2.87%
PepsiCo, Inc. (NASDAQ: PEP) is a global food and beverage company. The company’s brands and products include Doritos, Lay’s Ruffles, Aunt Jemima products, and a range of others spread across the food and beverage sector. It ranks 3rd on our list of the best dividend stocks for long term.
This May, PepsiCo, Inc. (NASDAQ: PEP) inked a partnership with FAT Brands and also launched its new sparkling water beverage, Soulboost. The company has also received positive responses from Morgan Stanley, which has an Overweight rating and a $165 price target on PepsiCo, Inc. (NASDAQ: PEP) shares. Analyst Dara Mohsenian has commented that the firm is expecting robust Q2 earnings from the company, which will act as a catalyst for the stock. Deutsche Bank also raised its price target on PepsiCo, Inc. (NASDAQ: PEP) from $147 to $149 this June, while in April, UBS upgraded the shares from Neutral to Buy with a $165 price target as well.
In the first quarter of 2021, PepsiCo, Inc. (NASDAQ: PEP) had an EPS of $1.21, beating estimates by $0.09. The company’s revenue was $14.82 billion, up 6.76% year over year and beating estimates by $275.81 million, and it has a gross profit margin of 54.73%. The stock has gained 3.89% in the past 6 months and 3.83% year to date. PepsiCo, Inc. (NASDAQ: PEP) has regularly made dividend payments for about 49 years, resulting in the stock being considered as a dividend champion.
As of the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in PepsiCo, Inc. (NASDAQ: PEP) worth roughly $4.88 billion. This is compared to 56 hedge funds in the previous quarter with a total stake value of about $4.28 billion.
2. The Coca-Cola Company (NYSE: KO)
Number of Hedge Fund Holders: 61
Dividend Yield: 3.09%
The Coca-Cola Company (NYSE: KO) is a beverage company that manufactures and sells a range of non-alcoholic beverages across the world. The company’s brands include Coca-Cola, Diet Coke/Coca-Cola Light, Fanta, Fresca, and a range of others. It ranks 2nd on our list of the best dividend stocks for long term.
This June, The Coca-Cola Company (NYSE: KO) was among the consumer staples stocks mentioned by UBS as being good investment options based on a screening test that analyzed stocks on their pricing power, margin momentum, and input cost exposure. Argus also reiterated its Buy rating on the stock in its defense after a snub by Cristiano Ronaldo at the European soccer championships. The firm has a $63 price target on the stock, with analyst Chris Graja commenting that the company’s earnings are expected to improve with reopening economies and returning consumers. Credit Suisse has an Outperform rating on the shares as well, with a $62 price target as of the same month.
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 was $9.02 billion, up 5.2% year over year and beating estimates by $388.98 million, and it has a gross profit margin of 59.42%. The stock has gained 6.34% in the past 6 months and 2.96% year to date, while The Coca-Cola Company (NYSE: KO) has also regularly made dividend payments for the past 59 years.
As of 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.
1. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 63
Dividend Yield: 7.32%
AT&T Inc. (NYSE: T) is a telecommunications, media, and technology services provider operating worldwide. The company has three segments: Communications, WarnerMedia, and Latin America. It ranks 1st on our list of the best dividend stocks for long term.
Scotiabank has upgraded AT&T Inc. (NYSE: T) to Sector Perform with a $31 price target as of this June, and on June 30th, it was revealed that AT&T Inc. (NYSE: T) would be moving its 5G mobile network to Microsoft Corporation’s (NASDAQ: MSFT) Azure for Operator’s cloud in a strategic move. The company’s WarnerMedia segment is also bringing in $1.4 billion through the sale of Playdemic to Electronic Arts Inc. (NASDAQ: EA). In the first quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.86, beating estimates by $0.08. The company’s revenue was $43.94 billion, up 2.71% year over year and beating estimates by $1.27 billion, and it has a gross profit margin of 52.68%. The stock has a forward PE ratio of 9.17 and has consistently paid out dividends for 36 years.
By the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T), worth about $2.7 billion. This is compared to 58 hedge fund holders in the previous quarter, holding stakes worth roughly $1.04 billion.
You can also take a peek at 14 Best European Dividend Stocks To Buy and 10 Best Technology Stocks That Pay Dividends.
