5 Best Stocks to Increase Your Dividend Income

In this article, we discuss the 5 Best Stocks to To Increase Your Dividend Income. If you want to read about some more dividend stocks, go directly to 10 Best Stocks to To Increase Your Dividend Income. 

5. BHP Group (NYSE:BHP)

Number of Hedge Fund Holders: 20     

Dividend Yield: 11.09%   

BHP Group (NYSE:BHP) is a diversified metals and mining firm. On April 6, the company announced that it had secured enough renewable energy supply to power three nickel mine operations in Australia from 2024. For two of these operations, the power supply comes from a wind energy deal with Enel Green Power of Italy. Last year, the company had signed an agreement with EV maker Tesla to supply the latter with nickel from mining operations in Western Australia. 

On April 21, Citi analyst Ephrem Ravi upgraded BHP Group (NYSE:BHP) stock to Buy from Neutral and raised the price target to GBP 3,200 from GBP 2,750, noting that the cash flow generation of the firm was up strongly and backing it to continue outperforming the market.

In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:

“Our purchase of Australian mining company BHP Group (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP Group (NYSE:BHP) from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”