In this article, we will be looking at the 5 best large cap dividend stocks to buy now. If you want to see our detailed analysis of large-cap stocks, and dividend investing, go directly to the 10 Best Large Cap Dividend Stocks to Buy Now.
5. Kinder Morgan, Inc. (NYSE: KMI)
Number of Hedge Fund Holders: 38
Dividend Yield: 5.8%
Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company that owns and operates interstate and intrastate natural gas pipelines, underground storage systems, among other related facilities. It ranks 5th on our list of the best large cap dividend stocks to buy now.
Pearce Hammond, a Piper Sandler analyst, raised his price target on Kinder Morgan, Inc. (NYSE: KMI) shares from $17 to $19 this June, retaining a Neutral rating on the shares.
In the first quarter of 2021, Kinder Morgan, Inc. (NYSE: KMI) had an EPS of $0.60, beating estimates by $0.35. The company’s revenue was $5.21 billion, up 67.77% year over year and beating estimates by $2.17 billion. Kinder Morgan, Inc. (NYSE: KMI) has also gained 14.48% in the last 6 months and 28.83% year to date.
By the end of the first quarter of 2021, 38 hedge funds out of the 866 tracked by Insider Monkey held stakes in Kinder Morgan, Inc. (NYSE: KMI) worth roughly $1.19 billion. This is compared to 42 hedge funds in the previous quarter with stakes worth approximately $1.03 billion.
4. PPL Corporation (NYSE: PPL)
Number of Hedge Fund Holders: 25
Dividend Yield: 5.9%
PPL Corporation (NYSE: PPL) is a utility holding company that works to deliver electricity and natural gas in the US and the UK. It ranks 4th on our list of the best large cap dividend stocks to buy now.
Anthony Crowdell, an analyst at Mizuho, raised his price target on PPL Corporation (NYSE: PPL) shares this March to $30, commenting that PPL Corporation (NYSE: PPL) is “fairly valued.”
In the first quarter of 2021, PPL Corporation (NYSE: PPL) had an EPS of $0.28, missing estimates by $0.36. The company’s revenue was $1.50 billion, also missing estimates by $710.31 million. PPL Corporation (NYSE: PPL) has however gained 1.59% in the last 6 months and 2.25% year to date.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in PPL Corporation (NYSE: PPL) worth roughly $152 million. This is compared to 21 hedge funds in the previous quarter with stakes worth approximately $152 million.
Miller/Howard Investments, an investment management firm, mentioned PPL Corporation (NYSE: PPL) in its first-quarter 2021 investor letter. Here’s what they said:
“PPL Corp. (PPL) announced the sale of its UK utility business to National Grid (NGG). In a separate transaction, PPL acquired NGG’s Rhode Island utility business. Once the dust settles, we expect PPL to rerate toward US peers.”
3. The Williams Companies, Inc. (NYSE: WMB)
Number of Hedge Fund Holders: 34
Dividend Yield: 6.1%
The Williams Companies, Inc. (NYSE: WMB) is an energy infrastructure company operating in the oil and gas storage and transportation industry in the US. It operates natural gas pipelines in the Gulf of Mexico and also deals with the production of crude oil in the Gulf Coast. The company ranks 3rd on our list of the best large cap dividend stocks to buy now.
In May, Argus analyst Bill Selesky upgraded The Williams Companies, Inc. (NYSE: WMB) shares to Buy with a $30 price target. Selesky has stated that The Williams Companies, Inc. (NYSE: WMB) may benefit from the increasing demand for natural gas as an energy source.
In the first quarter of 2021, The Williams Companies, Inc. (NYSE: WMB) had an EPS of $0.35, beating estimates by $0.06. The company’s revenue was $2.61 billion, up 36.54% year over year and beating estimates by $642.17 million. The Williams Companies, Inc. (NYSE: WMB) has also gained 15.51% in the last 6 months and 24.53% year to date.
By the end of the first quarter of 2021, 34 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Williams Companies, Inc. (NYSE: WMB) worth roughly $475 million. This is compared to 38 hedge funds in the previous quarter with stakes worth approximately $563 million.
ClearBridge Investments, an investment management firm, mentioned The Williams Companies, Inc. (NYSE: WMB) in its first-quarter 2021 investor letter. Here’s what they said:
“U.S. energy infrastructure company Williams Companies also performed well. Williams owns and operates natural gas pipelines and associated midstream assets in the U.S. Shares continued to rebound driven by the strong cyclical recovery, which has benefited energy stocks. Williams also delivered resilient fourth-quarter earnings despite energy demand pressure from COVID-19.”
2. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 63
Dividend Yield: 7.1
AT&T Inc. (NYSE: T) is a communications services company offering wireless voice and data communications services, broadband, wireline telecom services, handsets, wireless data cards, and a range of other telecommunication, media, and technology products and services across the globe. It ranks 2nd on our list of the best large cap dividend stocks to buy now.
AT&T Inc. (NYSE: T) shares have a Buy rating and a 12-month target price of $36 at Tigress Financial, set by analyst Ivan Feinseth, in light of the company’s refocusing on organic communication subscriber growth.
In the first quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.86, beating estimates by $0.08. The company’s revenue was $43.94 billion, up 2.71% year over year and beating estimates by $1.27 billion.
By the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.701 billion. This is compared to 58 hedge funds in the previous quarter with stakes worth approximately $1.04 billion.
1. Altria Group, Inc. (NYSE: MO)
Number of Hedge Fund Holders: 38
Dividend Yield: 7.2%
Altria Group, Inc. (NYSE: MO) is a tobacco company that manufactures cigarettes and other oral tobacco products in the US. The company ranks 1st on our list of the best large cap dividend stocks to buy now.
Altria Group, Inc.’s (NYSE: MO) Buy rating and $56 price target was reiterated at Stifel this July, while in June, Redburn initiated coverage of the stock with a Neutral rating.
In the first quarter of 2021, Altria Group, Inc. (NYSE: MO) had an EPS of $1.07, beating estimates by $0.02. The company’s revenue was $4.88 billion, missing estimates by $108.51 million. Altria Group, Inc. (NYSE: MO) has also gained 12.57% in the last 6 months and 15.6% year to date.
By the end of the first quarter of 2021, 38 hedge funds out of the 866 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $1.10 billion. This is compared to 37 hedge funds in the previous quarter with stakes worth approximately $1.08 billion.
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