In this article, we will list the 5 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds. Please visit 10 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. Prudential Financial, Inc. (NYSE:PRU)
Dividend Yield: 5.27%
Levered Free Cash Flow: $10.38 billion
Number of Hedge Fund Holders: 40
Prudential Financial, Inc. (NYSE:PRU) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 24, Piper Sandler raised its price target on Prudential Financial, Inc. (NYSE:PRU) to $110 from $105, while maintaining a Neutral rating. The firm noted that its revised model incorporates recent company commentary, seasonal factors, and expectations for variable investment income, according to the analyst’s research note.
Copyright: mozakim / 123RF Stock Photo
On June 9, Argus downgraded Prudential Financial to a Hold from a Buy, citing challenges the company is facing in Japan. The company has already suspended all new policies in Japan due to internal misconduct involving employees misappropriating customer funds. Amid the suspension, the company has also begun overhauling its management, compliance, and governance structures.
The research firm plans to return Prudential Financial to its buy list once there is clarity in the ongoing standoff in Japan. Likewise, it remains confident about the long-term outlook given the company’s long-term above-average return on equity and high dividend yield.
Earlier this year, the company already raised its quarterly dividend by 4%, affirming its commitment to shareholder value despite the challenges. Additionally, it continues to strengthen its product portfolio with the launch of Elevate, a suite of retirement products targeting the independent marketing organization channel.
Prudential Financial, Inc. (NYSE:PRU) is a global insurance and investment management company that helps individuals and institutions grow and protect their wealth. They offer life insurance, retirement planning, mutual funds, and asset management services.
4. VICI Properties Inc. (NYSE:VICI)
Dividend Yield: 6.74%
Levered Free Cash Flow: $1.29 billion
Number of Hedge Fund Holders: 51
VICI Properties Inc. (NYSE:VICI) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 15, VICI Properties Inc. (NYSE:VICI) announced plans to expand its portfolio by acquiring the iconic Carambola Beach Resort in St. Croix, US Virgin Islands. The company has also entered into a long-term triple-net agreement with Club Med as part of a planned redevelopment effort. The company is to fund the comprehensive redevelopment of the 150 key properties, with a view to transforming them to meet Club Med Exclusive Collection standards.
The redevelopment effort is to begin in the summer with a planned reopening in the fourth quarter of 2027. Once renovated, the resort is to become part of the Club Med Exclusive collection brand of premium all-inclusive resorts.
VICI Properties Inc. (NYSE:VICI) is an experiential Real Estate Investment Trust (REIT) that owns and acquires market-leading destination assets, including casinos, hotels, and entertainment facilities. It acts as a landlord rather than an operator, collecting highly predictable rental income from tenants under long-term leases.
3. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield: 6.18%
Levered Free Cash Flow: $4.63 billion
Number of Hedge Fund Holders: 59
United Parcel Service Inc. (NYSE:UPS) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 22, CNBC reported that United Parcel Service Inc. (NYSE:UPS) is poised to invest $48 million in 27 temperature-controlled facilities. The investment comes as the logistics powerhouse seeks to capitalize on a boom in healthcare logistics.
Consequently, the investments will allow the company to handle products that require strict temperature controls during transit. There is a growing demand for medicines that require strict temperature ranges of 15 to 25 degrees Celsius and frozen storage.
By upgrading the 27 temperature-controlled facilities, UPS strengthens its cold chain network and therefore stays ahead of a boom in medicines and pharmaceutical logistics across the Americas, Europe, and Asia. The market for temperature-sensitive biologics is poised to grow at a 8.3% compound annual growth rate through 2033, reaching $39.1 billion.
United Parcel Service, Inc. (NYSE:UPS) is a global package delivery and supply chain management company. It operates a massive fleet of ground vehicles and is one of the largest cargo airlines, providing domestic and international shipping, freight transportation, warehousing, contract logistics, and customs clearance services.
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield: 6.20%%
Levered Free Cash Flow: $19.61 billion
Number of Hedge Fund Holders: 75
Verizon Communications Inc. (NYSE:VZ) is one of the best dividend stocks yielding at least 5% to buy according to hedge funds.
On June 27, Verizon Communications Inc. (NYSE:VZ) secured nearly $3.2 billion worth of wireless licenses in a Federal Communications Commission (FCC) auction for mid‑band spectrum. The auction raised about $3.5 billion in total, with other winners including AT&T, T‑Mobile, and SpaceX. According to the FCC, AT&T successfully bid $278 million, T‑Mobile $121 million, and SpaceX $8.5 million for spectrum licenses.
On June 4, Verizon Communications’ board approved a quarterly dividend of $0.71 a share, in line with the previous quarter’s rate. The dividend is to be paid on August 3, 2026, to shareholders of record as of July 10, 2026. According to CEO Dan Schulman, the dividend offering affirms the company’s commitment to long-term shareholder value.
Verizon continues to prioritize building trust and staying in line with its capital allocation strategy. The ability to hike dividends for 20 consecutive years underscores the cash-generating nature of the core business. Last year, the company returned close to $11.5 billion to shareholders through dividend payouts.
Verizon Communications Inc. (NYSE:VZ) is a global telecommunications company that provides wireless, broadband, and internet services. It operates one of the largest mobile networks in the United States, offering mobile phone plans, home internet, and enterprise network solutions.
1. Pfizer Inc. (NYSE:PFE)
Dividend Yield: 7.15%
Levered Free Cash Flow: $12.38 billion
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best dividend stocks to buy, according to hedge funds. On June 24, the US Food and Drug Administration approved the use of Pfizer Inc. (NYSE:PFE)’s Ibrance in combination with trastuzumab as a maintenance option for patients with HR-positive, HER2-positive locally advanced or metastatic breast cancer after induction treatment. With the approval, Ibrance becomes the first and only CDK4/6 inhibitor indicated for patients with HR+ metastatic breast cancer.
The approval comes at the backdrop of topline results from the phase 3 Patina study that showed Ibrance reduced the risk of disease progression or death by 24% in the specific patient population. Additionally, the approval asserts Pfizer’s ongoing leadership in delivering meaningful advances for people with breast cancer.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, and manufactures prescription medicines, vaccines, and consumer healthcare products. It operates internationally to address critical health challenges across major therapeutic areas, including infectious diseases and immunology, oncology, and rare diseases.
While we acknowledge the potential of PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the cheapest AI stock.
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