5 Best Dividend Stocks To Buy and Hold

In this article, we discuss 5 best dividend stocks to buy and hold. If you want to see more stocks in this selection, check out 14 Best Dividend Stocks To Buy and Hold

5. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 89

Dividend Yield as of January 17: 2.29%

The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. The company was incorporated in 1978 and is based in Atlanta, Georgia. The Home Depot, Inc. (NYSE:HD) has 13 years of consistent dividend increases under its belt. It is one of the best dividend stocks to invest in. 

On December 13, Cowen analyst Max Rakhlenko raised the firm’s price target on The Home Depot, Inc. (NYSE:HD) to $379 from $350 and reiterated an Outperform rating on the shares. The analyst observed that the company exemplifies best-in-class retail execution with top-notch Pro share and a growing flywheel that should serve the company well into a constrained macro environment in 2023.

According to Insider Monkey’s data, 89 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) at the end of Q3 2022, up from 80 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 8.16 million shares worth $2.25 billion. 

Matrix Asset Advisors made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

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4. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 110

Dividend Yield as of January 17: 1.35%

UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified health care company in the United States. It operates through four segments – UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. UnitedHealth Group Incorporated (NYSE:UNH) is one of the best dividend stocks to invest in. On January 13, the company reported that Q4 adjusted EPS increased 19.2% year-over-year to $5.34 and the total revenues grew 12.3% year-over-year to $82.79 billion. The company’s full year 2022 revenues grew 13% from the prior-year quarter to $324.16 billion, with double digit growth at both Optum and UnitedHealthcare, supported primarily by catering to more patients. 

On January 17, Loop Capital analyst Joseph France raised the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $590 from $575 and kept a Buy rating on the shares. The analyst cited the company’s “strong” Q4 results and 2023 outlook. 

According to Insider Monkey’s data, 110 hedge funds were long UnitedHealth Group Incorporated (NYSE:UNH) at the end of Q3 2022, compared to 91 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading stakeholder of the company, with 3.2 million shares worth $1.6 billion. 

Here is what Stewart Asset Management has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2022 investor letter:

“Looking at the Great Recession which began at year-end 2007 and lasted to mid-year 2009 is helpful too. Our four largest current holdings in the portfolio weathered that period well. UnitedHealth’s (NYSE:UNH) earnings were resilient. While it reported modestly down earnings in 2008, its earnings rebounded quickly to record highs in 2010 and the shares responded strongly in anticipation of this.”

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3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 140

Dividend Yield as of January 17: 0.68%

Apple Inc. (NASDAQ:AAPL) is one of the best dividend growth stocks to buy and hold for an income portfolio. Apple Inc. (NASDAQ:AAPL) has increased its quarterly dividend payments for the last 11 years consecutively. Smartphones sales around the world declined during the fourth quarter of 2022, but that did not stop Apple Inc. (NASDAQ:AAPL) from claiming its biggest-ever quarterly share of the smartphone market. 

On January 17, Evercore ISI analyst Amit Daryanani maintained an Outperform rating and a $190 price target on Apple Inc. (NASDAQ:AAPL) shares and added the stock to the firm’s Tactical Outperform List. Apple Inc. (NASDAQ:AAPL) has underperformed the S&P 500 by 16% since it reported third quarter earnings, creating an attractive buying opportunity ahead of fourth quarter earnings, which should be a positive catalyst, the analyst told investors in a research note. 

According to Insider Monkey’s data, 140 hedge funds were long Apple Inc. (NASDAQ:AAPL) at the end of Q3 2022, compared to 128 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company, with approximately 895 million shares worth $123.6 billion. 

TimesSquare Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) designs and manufactures smartphones, personal computers, tablets, and wearable devices. The company reported better than expected revenues, though that came from a lower-than-expected supply chain impact. Apple called out pockets of weakness in wearables as well as home & accessories. Management referenced macroeconomic uncertainty and sounded somewhat guarded when commenting on fourth quarter expectations. In September, Apple introduced four new iPhones with retail prices kept at last year’s levels. Its shares edged forward by 1% in consideration of these developments. We trimmed the position after evaluating the channel which highlighted some consumer demand choppiness.”

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2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Dividend Yield as of January 17: 1.54%

Mastercard Incorporated (NYSE:MA) is an American multinational financial technology company that provides transaction processing and other payment-related products and services in the United States and internationally. On December 6, Mastercard Incorporated (NYSE:MA) declared a $0.57 per share quarterly dividend, a 16.3% increase from its prior dividend of $0.49. The dividend is distributable on February 9, to shareholders of record on January 9. Mastercard Incorporated (NYSE:MA) also announced a new stock buyback program of up to $9 billion of its class A stock.

On January 9, KeyBanc analyst Josh Beck upgraded Mastercard Incorporated (NYSE:MA) to Overweight from Sector Weight with a $425 price target. The analyst noted that his previous travel-related dislocation concerns have faded and new flows beyond consumer cards are improving the company’s diversification and growth. New payment flows should expand the growth runway at Mastercard Incorporated (NYSE:MA), prompting an upgrade for both, the analyst wrote in a research note.

According to Insider Monkey’s third quarter database, Mastercard Incorporated (NYSE:MA) was part of 146 hedge fund portfolios, compared to 137 funds in the prior quarter. Charles Akre’s Akre Capital Management is the biggest stakeholder of the company, with roughly 6 million shares worth $1.6 billion.  

Ensemble Capital made the following comment about Mastercard Incorporated (NYSE:MA) in its 2022 annual investor letter:

“Mastercard Incorporated (NYSE:MA) (8.43%* weight in fund): Mastercard declined just 1.61% during the Fund’s fiscal year, adding 1.30% to relative performance. After worries last year about Buy Now, Pay Later lenders being disruptive to Mastercard’s payment network provided to be misguided, Mastercard avoided much of the decline in the broader stock market this year. In addition, with inflation worries being the main driver of the market selloff, the company’s inflation resistant business model calmed worried investors.”

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1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Dividend Yield as of January 17: 0.81%

Visa Inc. (NYSE:V), an American fintech and payments processing company, is one of the best dividend stocks to invest in. Visa Inc. (NYSE:V) has exhibited consecutive quarterly dividend growth for the last 14 years. 

On January 5, Wolfe Research analyst Darrin Peller raised the price target on Visa Inc. (NYSE:V) to $255 from $240 and kept an Outperform rating on the shares. In the backdrop of higher interest rates and an impending recession, “our criteria for recommending names has increased considerably,” the analyst told investors in a research note. The analyst continues to approach his coverage as a barbell, with select picks across growth, core/GARP, and value. 

According to Insider Monkey’s Q3 data, 165 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 166 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest position holder in the company, with nearly 20 million shares worth $3.5 billion. 

Baron Funds made the following comment about Visa Inc. (NYSE:V) in its Q3 2022 investor letter:

“Shares of global payment network Visa Inc. (NYSE:V) fell despite reporting financial results that beat Street forecasts and sustained volume growth in recent months. Revenue grew 19% and EPS grew 33% in the most recent quarter, and double-digit payment volume growth persisted through August. Share price weakness represented a reversal of outperformance earlier this year and may be due to foreign exchange headwinds and concerns about a potential weakening of consumer spending. We continue to own the stock due to Visa’s long runway for growth and significant competitive advantages.”

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