5 Best Dow Jones Dividend Stocks According to Hedge Funds

In this article, we discuss 5 best Dow Jones dividend stocks according to hedge funds. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 11 Best Dow Jones Dividend Stocks According to Hedge Funds. 

5. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 100

JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services company that has operations worldwide. On March 22, the company declared a quarterly dividend of $1.00 per share, which was in line with its previous dividend. The stock’s dividend yield on March 29 came in at 3.01%.

In the fourth quarter, JPMorgan Chase & Co. (NYSE:JPM) posted revenue of $34.5 billion, which showed an 18% growth from the same period last year. The company distributed nearly $3 billion to shareholders in dividends during the quarter, which makes it one of the best dividend stocks on our list.

At the end of Q4 2022, 100 hedge funds tracked by Insider Monkey reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 110 in the previous quarter. These stakes have a collective value of over $5.1 billion. Citadel Investment Group was the company’s largest stakeholder in Q4.

4. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 110

UnitedHealth Group Incorporated (NYSE:UNH) is a Minnesota-based multinational managed healthcare and insurance company that offers related services to its consumers. In January, Deutsche Bank raised its price target on the stock to $617 with a Buy rating on the shares, following the company’s Q4 earnings.

UnitedHealth Group Incorporated (NYSE:UNH), one of the best dividend stocks, currently offers a quarterly dividend of $1.65 per share. The company has been making regular dividend payments to shareholders since 1990. As of March 29, the stock has a dividend yield of 1.40%.

At the end of Q4 2022, 110 hedge funds in Insider Monkey’s database owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), the same as in the previous quarter. These stakes have a collective value of over $11.4 billion.

Ruane, Cunniff & Goldfarb mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2022 investor letter. Here is what the firm has to say:

“UnitedHealth Group Incorporated (NYSE:UNH) was among Sequoia’s best performing stocks this year, thanks to typically strong financial results and increased appreciation for the business’ relative insensitivity to the broader economy. For the full year 2022, United’s revenues and EPS are expected to be up approximately 13% and 17%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of approximately 10% and 14%, respectively.

UnitedHealth Group may not be a particularly beloved company, but it is one of the more entrenched businesses we’ve come across. Managed care, in its various forms-commercial risk, commercial fee, Medicare Advantage, and managed Medicaid- is an utterly essential component of our healthcare system. And in managed care, no one is bigger, more diversified or better run than United. In addition to its managed care business, United owns and operates the country’s third largest pharmacy benefit manger and is also the single largest owner by a wide margin of non-hospital care assets, including physician practices, urgent care centers, and ambulatory surgical centers…” (Click here to read the full text)

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc. (NASDAQ:AAPL) is an American multinational tech giant, based in California. The company manufactures a wide range of computer gadgets and accessories. It is one of the best dividend stocks on our list as it was a part of 135 hedge funds in Q4 2022, as per Insider Monkey’s database. The stakes owned by these funds have a total value of over $136 billion.

On February 2, Apple Inc. (NASDAQ:AAPL) declared a quarterly dividend of $0.23 per share, which was consistent with its previous dividend. The company maintains a nine-year streak of consistent dividend growth. The stock’s dividend yield came in at 0.58% on March 29.

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.”

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 177

Visa Inc. (NYSE:V) specializes in electronic funds transfers throughout the world. The company is headquartered in California, US. In March, Jefferies raised its price target on the stock to $303 with a Buy rating on the shares, presenting a positive stance on the company’s international transaction fees and data processing.

Visa Inc. (NYSE:V) currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 0.82%, as of March 29. The company is one of the best dividend stocks on our list as it has been raising its payouts consistently for the past 16 years.

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. With nearly 20 million shares, TCI Fund Management was the company’s leading stakeholder in Q4.

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

Microsoft Corporation (NASDAQ:MSFT) is one of the world’s largest companies in computer software. The company also provides cloud computing services to its consumers. In March, BMO Capital presented a positive outlook on the company’s performance and raised its price target on MSFT to $305. The firm maintained its Market Perform rating on the stock.

Microsoft Corporation (NASDAQ:MSFT) is one of the best dividend stocks on our list as it holds a 16-year track record of dividend growth. The company currently pays a per-share dividend of $0.68 every quarter and has a dividend yield of 0.99%, as of March 29.

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.”

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