In this article, we discuss 5 best February dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and dividend capture strategy, go directly to read 12 Best February Dividend Stocks To Buy.
6. The Kroger Co. (NYSE:KR)
Ex-Dividend Date: February 14
The Kroger Co. (NYSE:KR) is one of the largest supermarket chains in the US and one of the world’s largest grocery retailers. On January 19, the company announced a quarterly dividend of $0.29 per share, which was in line with its previous dividend. Overall, it maintains a 17-year streak of consistent dividend growth, which makes KR one of the best dividend stocks on our list. The stock’s dividend yield on January 28 came in at 2.51%.
Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 41 funds held investments in The Kroger Co. (NYSE:KR), down from 43 in the previous quarter. These stakes are collectively worth over $3 billion.
Oakmark Funds mentioned The Kroger Co. (NYSE:KR) in its Q4 2023 investor letter. Here is what the firm has to say:
“The Kroger Co. (NYSE:KR) (U.S.) is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons could accelerate the company’s earnings growth and produce additional scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”
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Follow Kroger Co (NYSE:KR)
4. ALLETE, Inc. (NYSE:ALE)
Ex-Dividend Date: March 14
ALLETE, Inc. (NYSE:ALE) is a Minnesota-based electric services company. The company is involved in the generation of electricity through various sources, including renewable energy such as wind and hydroelectric power. The company declared a 4.1% hike in its quarterly dividend to $0.705 per share on January 26. This marked the company’s 14th consecutive year of dividend growth, which makes ALE one of the best dividend stocks on our list. The stock has a dividend yield of 4.59%, as of January 28.
At the end of September 2023, 20 hedge funds in Insider Monkey’s database reported having stakes in ALLETE, Inc. (NYSE:ALE), compared with 21 in the previous quarter. These stakes have a total value of more than $93.3 million. AQR Capital Management was the largest stakeholder of the company in Q3.
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Follow Allete Inc (NYSE:ALE)
3. The J. M. Smucker Company (NYSE:SJM)
Ex-Dividend Date: March 15
An American food and beverage company, The J. M. Smucker Company (NYSE:SJM) is next on our list of the best dividend stocks. The company offers a quarterly dividend of $1.06 per share and has a dividend yield of 3.22%, as recorded on January 28. It has been rewarding shareholders with growing dividends for the past 22 consecutive years.
As of the end of Q3 2023, 33 hedge funds tracked by Insider Monkey owned stakes in The J. M. Smucker Company (NYSE:SJM), growing from 29 in the previous quarter. These stakes are collectively valued at nearly $460 million.
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2. Yum! Brands, Inc. (NYSE:YUM)
Ex-Dividend Date: March 20
Yum! Brands, Inc. (NYSE:YUM) is a multinational corporation that operates as a fast-food restaurant company. The company pays a quarterly dividend of $0.67 per share, having raised it by 10.7% in January this year. Through this increase, the company achieved its seventh consecutive annual dividend growth. As of January 28, the stock has a dividend yield of 2.08%.
The number of hedge funds tracked by Insider Monkey owning stakes in Yum! Brands, Inc. (NYSE:YUM) stood at 32 in Q3 2023, down from 37 in the preceding quarter. The total value of these stakes is more than $478.4 million. Among these hedge funds, D1 Capital Partners was the company’s leading stakeholder in Q3.
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Follow Yum Brands Inc (NYSE:YUM)
1. Lockheed Martin Corporation (NYSE:LMT)
Ex-Dividend Date: March 29
Lockheed Martin Corporation (NYSE:LMT) tops our list of the best dividend stocks. The global aerospace and defense company pays a quarterly dividend of $3.15 per share and has a dividend yield of 2.93%, as of January 28. The company’s dividend growth streak spans over 21 years.
At the end of Q3 2023, 60 hedge funds tracked by Insider Monkey owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 52 in the preceding quarter. The consolidated value of these stakes is over $1.64 billion.
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Follow Lockheed Martin Corp (NYSE:LMT)
You can also take a look at 11 Hyper-Growth Stocks Billionaires Are Loading Up On and 12 Stocks to Buy at a Discount Now
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