In this article, we discuss 5 best stocks for dividends. If you want to read our detailed discussion on the best dividend stocks and their historical performance, go directly to read 10 Best Stocks for Dividends.
5. Pentair plc (NYSE:PNR)
Dividend Yield as of September 27: 2.07%
Pentair plc (NYSE:PNR) is a Minnesota-based water treatment company that specializes in industrial water management. In July, Cowen reiterated its Outperform rating on the stock with a $65 price target, following the company’s Q2 results. The firm expects the company to maintain its performance in the upcoming quarters as well.
In Q2 2022, Pentair plc (NYSE:PNR) reported an operating cash flow of $308 million and its free cash flow came in at $284.4 million. The company paid nearly $70 million in dividends to shareholders, which were covered within its free cash flow. Its revenue for the quarter stood at $1.02 billion, up 8.4% from the same period last year.
Pentair plc (NYSE:PNR) holds a long dividend growth track record of 46 consecutive years. The company currently pays a quarterly dividend of $0.21 per share and has a yield of 2.07%, as of September 27.
At the end of Q2 2022, 31 hedge funds in Insider Monkey’s database owned stakes in Pentair plc (NYSE:PNR), down from 38 a quarter earlier. These stakes hold a collective value of nearly $947 million. Impax Asset Management was the company’s leading stakeholder in Q2.
4. Sysco Corporation (NYSE:SYY)
Dividend Yield as of September 27: 2.66%
Sysco Corporation (NYSE:SYY) is a Texas-based multinational corporation that is involved in the distribution and marketing of food products and different kitchen equipment. In fiscal Q4 2022, the company generated over $1 billion in operating cash flow, up from $424 million during the same period last year. Its free cash flow for the quarter came in at over $740 million, compared with $204.5 million in the prior-year quarter. During the year, the company paid over $1.5 billion to shareholders, of which $959 million represented dividend payments.
Sysco Corporation (NYSE:SYY) is a Dividend King, having raised its dividends consistently for the past 53 years. It currently offers $0.49 per share in quarterly dividends and has a dividend yield of 2.66%, as recorded on September 27.
In September, Stephens appreciated Sysco Corporation’s (NYSE:SYY) investments in its brand, inventory, and technology tools as compared to the broader industry. In view of this, the firm initiated its coverage with an Overweight rating and a $90 price target.
As of the close of Q2 2022, 32 hedge funds reported owning stakes in Sysco Corporation (NYSE:SYY), up from 31 a quarter earlier, according to Insider Monkey’s data. These stakes hold a consolidated value of over $1.5 billion.
3. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of September 27: 3.76%
United Parcel Service, Inc. (NYSE:UPS) is a multinational shipping & receiving and supply chain management company. It is one of the most trusted shipping and logistics companies globally. The company is one of the best dividend stocks on our list as it maintains a 12-year streak of dividend growth. Moreover, it has raised its payouts at a CAGR of 11.28% in the past five years. The company currently pays a quarterly dividend of $1.52 per share for a yield of 3.76%, as of September 27.
In Q2 2022, United Parcel Service, Inc. (NYSE:UPS) reported revenue of $24.8 billion, which showed a 6% growth from the same period last year. Its operating cash flow and free cash flow fell in line with the prior-year quarter at $3.8 billion and $2.97 billion, respectively. For FY22, the company expects to pay approximately $5.2 billion in dividend payments.
In July, Evercore ISI initiated its coverage of United Parcel Service, Inc. (NYSE:UPS) with an Outperform rating and a $227 price target, appreciating its pricing momentum and its focus on costs.
The number of hedge funds tracked by Insider Monkey owning stakes in United Parcel Service, Inc. (NYSE:UPS) stood at 38 in Q2 2022. The stakes owned by these hedge funds hold a collective value of over $613 million. Bill & Melinda Gates Foundation Trust was one of the company’s major stakeholders in Q2.
Mayar Capital mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q2 2022 investor letter. Here is what the firm has to say:
“UPS has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”
2. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of September 27: 4.91%
Federal Realty Investment Trust (NYSE:FRT) is an American real estate investment trust company that mainly invests in shopping centers. On August 4, the company announced a 1% hike in its quarterly dividend to $1.08 per share. This was the company’s 55th consecutive year of dividend growth, the longest dividend growth track record in the REIT sector. As of September 27, the stock’s dividend yield came in at 4.91%.
In Q2 2022, Federal Realty Investment Trust (NYSE:FRT) generated over $157.4 million in operating cash flow, up from $103 million in the previous quarter. The company’s free cash flow came in at $48 million, compared with $18 million in the preceding quarter. Its revenue was $264 million, which showed a 14% growth from the same period last year.
In August, BofA upgraded Federal Realty Investment Trust (NYSE:FRT) to Buy while lifting its price target on the stock to $130. The firm believes that the company has reached an inflection point to deliver future growth as pandemic-related hindrances are removed.
At the end of Q2 2022, 24 hedge funds tracked by Insider Monkey were bullish on Federal Realty Investment Trust (NYSE:FRT), up from 23 in the previous quarter. The stakes owned by these hedge funds have a total value of roughly $200 million.
1. V.F. Corporation (NYSE:VFC)
Dividend Yield as of September 27: 5.71%
V.F. Corporation (NYSE:VFC) is a Colorado-based global apparel and footwear company that manages over 13 brands. In September, JPMorgan maintained a Neutral rating on the stock with a $44 price target as growth is expected in the consumer and retail sectors after the pandemic.
V.F. Corporation (NYSE:VFC) has been raising its dividends consistently for the past 48 years and its five-year dividend CAGR stood at 4.81%. Currently, the company pays a quarterly dividend of $0.50 per share, with a dividend yield of 5.71%, as recorded on September 27.
At the end of June 2022, 29 hedge funds in Insider Monkey’s database owned stakes in V.F. Corporation (NYSE:VFC), compared with 28 a quarter earlier. These stakes hold a consolidated value of over $316.3 million. With roughly 7 million shares, Diamond Hill Capital owned the largest position in the company in Q2.
Ave Maria mentioned V.F. Corporation (NYSE:VFC) in its Q2 2022 investor letter. Here is what the firm has to say:
“One stock was eliminated from the Fund, V.F. Corporation (NYSE:VFC) (apparel & footwear). Deteriorating fundamentals and sustained weakness in some of the company’s core brands led us to liquidate the position.”
You can also take a look at 10 Best Dogs of the Dow to Invest In and 10 Under-The-Radar Dividend Stocks to Buy Now
