In this article, we discuss 5 best long term dividend stocks to buy now. If you want to see more best long term dividend stocks to buy now, the risk/reward, and methodology of this list, go directly to 13 Best Long Term Dividend Stocks to Buy Now.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Dividend Yield as of 3/22: 2.99%
Johnson & Johnson (NYSE:JNJ) is a leading healthcare company that has an annual dividend of $4.52 per share, versus TTM EPS of $6.74 per share according to FINVIZ.com. In terms of its dividend, Johnson & Johnson (NYSE:JNJ) has increased its annual dividend for 61 consecutive years, making it one of the more consistent annual dividend raisers in the market. Although inflation is a headwind like it has been for many other companies given higher costs, Johnson & Johnson (NYSE:JNJ) nevertheless is investing for the long term and many analysts believe inflation in the United States will decrease to a fairly acceptable range within a few years.
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/22: 3.15%
JPMorgan Chase & Co. (NYSE:JPM) is a leading bank that ranks #4 on our list of 13 Best Long Term Dividend Stocks to Buy Now given 100 hedge funds in our database owned shares of the stock at the end of Q4. According to analysts at JPMorgan, around $1 trillion of deposits have left the ‘most vulnerable’ U.S. banks since last year, with half going to government money market funds and half going to larger U.S. banks such as JPMorgan Chase & Co. (NYSE:JPM). Although shares of JPMorgan Chase & Co. (NYSE:JPM) could have near term downside if there are more bank failures or if companies like Deutsche Bank face substantial difficulty, the largest U.S. bank by assets will likely benefit in the long term with more deposit gains and more market share.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Dividend Yield as of 3/22: 3.18%
Bank of America Corporation (NYSE:BAC) is the second largest U.S. bank by assets that Barron’s describes, “Bank of America is sitting on the largest losses among the country’s biggest banks in a key portion of its bond portfolio. Bank of America (ticker: BAC), like other banks, invests in Treasury securities and mortgage-backed securities in addition to making loans. Banks have seen the value of those bond portfolios decline in value as interest rates have risen since the start of 2022.” If interest rates don’t rise that much further, Bank of America Corporation (NYSE:BAC) may not that much of a problem, especially since it so big, systemically important, and also has other businesses such as a leading investment bank that also generates income. Nevertheless, Bank of America Corporation (NYSE:BAC) could have near term downside if the financial sector faces more headwinds. As of 3/22, Bank of America Corporation (NYSE:BAC) has a dividend yield of 3.18%.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Dividend Yield as of 3/22: 0.58%
Apple Inc. (NASDAQ:AAPL) is a leading tech giant that makes iPhones, iPads, and personal computers. Over the years, Apple Inc. (NASDAQ:AAPL) has grown substantially by making quality products and selling them at relatively premium prices given its strong brand. As a result of its scale and relatively premium prices, Apple Inc. (NASDAQ:AAPL) has fairly high margins for a company in its industry. With its strong free cash flow, Apple returned more than $25 billion to shareholders during the latest December quarter including $3.8 billion in dividends and equivalents.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of 3/22: 1%
Microsoft Corporation (NASDAQ:MSFT) is a software giant with a dividend yield of 1% as of 3/22. Given 259 hedge funds in our database owned shares of the stock at the end of Q4, Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 13 Best Long Term Dividend Stocks to Buy Now. Microsoft Corporation (NASDAQ:MSFT) is currently one of the leading AI companies thanks to it incorporating AI into Bing even though AI still makes mistakes. In the future, Microsoft Corporation (NASDAQ:MSFT) has an opportunity at making its Microsoft 365 productivity software even more useful with further AI incorporation.
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