5 Best Income Stocks To Invest In

In this article, we discuss 5 best income stocks to invest in. If you want to read our detailed analysis of income stocks and the performance of dividend stocks over the years, go directly to read 14 Best Income Stocks To Invest In. 

5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 72

Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor manufacturing company that also specializes in infrastructure software products. Benchmark initiated its coverage on a stock with a Buy rating in April with a $770 price target, highlighting the company’s diverse set of products.

On March 2, Broadcom Inc. (NASDAQ:AVGO) declared a quarterly dividend of $4.60 per share, which was in line with its previous dividend. The company has a 12-year run of raising its dividends consistently, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 2.96%, as of April 25.

At the end of December 2022, 72 hedge funds tracked by Insider Monkey reported having stakes in Broadcom Inc. (NASDAQ:AVGO), compared with 74 in the previous quarter. The collective value of these stakes is roughly $4 billion.

Aristotle Atlantic Partners, LLC mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the quarter following the company’s solid fourth quarter 2022 results. This was driven by better-than-expected results in both its semiconductor solutions, networking and storage segments. The company also provided first quarter guidance that was ahead of consensus as well as 2023 commentary that expects earnings momentum to continue due to a strong product cycle.”

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 75

Pfizer Inc. (NYSE:PFE) is a New York-based multinational pharmaceutical and biotechnology company. It currently offers a quarterly dividend of $0.41 per share for a dividend yield of 4.17%, as of April 25. The company has been making uninterrupted dividend payments to shareholders for the past 337 quarters with a 13-year streak of consistent dividend growth. The company is among the best dividend stocks on our list.

BofA mentioned Pfizer Inc. (NYSE:PFE) in its April investors’ note and highlighted that the company’s outlook for the year remains to be ‘solid’. The firm maintained a Neutral rating on the stock with a $45 price target.

As per Insider Monkey’s Q4 2022 database, 75 hedge funds were long Pfizer Inc. (NYSE:PFE), owning stakes with a total value of over $2.5 billion.

Diamond Hill Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter. Here is what the firm has to say:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 75

Analog Devices, Inc. (NASDAQ:ADI) specializes in semiconductor manufacturing and data conversion. The company has raised its dividend 20 times in the past 19 years, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.86 per share for a dividend yield of 1.90%, as of April 25.

The number of hedge funds tracked by Insider Monkey owning stakes in Analog Devices, Inc. (NASDAQ:ADI) grew to 75 in Q4 2022, from 66 a quarter earlier. These stakes have a collective value of roughly $5 billion.

Giverny Capital mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q4 2022 investor letter. Here is what the firm has to say:

“Ashtead Group and Analog Devices, Inc. (NASDAQ:ADI) were new purchases, made in May. They both performed well from our original purchase prices and I believe we upgraded the quality of our portfolio by adding them.

We established four new positions during the year, each of about 2%: Analog Devices, Ashtead Group, Floor & Décor, and Installed Building Products. We discussed these in prior letters and I’m pleased to report that Ashtead and Analog were among our best performing positions for the year.”

2. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 77

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company. In April, BofA lifted its price target on the stock to $130 and maintained a Buy rating on the shares, appreciating the company’s plans to acquire Prometheus Biosciences.

Merck & Co., Inc. (NYSE:MRK), one of the best dividend stocks, currently pays a quarterly dividend of $0.73 per share, having raised it by 6% in December 2022. With this dividend hike, the company took its dividend growth streak to 12 years. The stock’s dividend yield on April 25 came in at 2.51%.

At the end of December 2022, 77 hedge funds tracked by Insider Monkey owned stakes in Merck & Co., Inc. (NYSE:MRK), with a total value of over $5 billion. Citadel Investment Group was the company’s largest shareholder in Q4.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter. Here is what the firm has to say:

“Merck & Co., Inc. (NYSE:MRK) is a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Shares have benefited from investors seeking safety in areas with less economic and interest rate sensitivity. With about one third of its sales generated by blockbuster oncology drug Keytruda, the key issue for investors is the success of its large R&D pipeline to replace those sales when Keytruda comes off patent in 2028. However, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”

1. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 82

QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational semiconductor company, based in California. On March 8, the company declared a 7% hike in its quarterly dividend to $0.80 per share. This marked the company’s 20th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The company’s shares boast a yield of 2.81%, as recorded on April 25.

The number of hedge funds tracked by Insider Monkey owning stakes in QUALCOMM Incorporated (NASDAQ:QCOM) grew to 82 in Q4 2022, from 80 in the preceding quarter. The consolidated value of these stakes is roughly $2.4 billion.

Madison Investment Management mentioned QUALCOMM Incorporated (NASDAQ:QCOM) in its Q4 2022 investor letter. Here is what the firm has to say:

“QUALCOMM Incorporated (NASDAQ:QCOM) continues to be challenged by headwinds in the smartphone supply chain with an expected decline in units for 2022. Despite solid gains in the Internet of Things and Auto segments, Qualcomm’s dominant business remains the smartphone market. We expect to see stabilization of the smartphone market in 2023, including a recovery in China.”

You can also take a look at 10 Cheap Canadian Stocks to Buy and 11 Best Diversified Stocks to Buy Now

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