In this article, we discuss the 5 blue-chip stocks with dividends. If you want to read our comprehensive analysis of the blue-chip stocks that pay dividends, go directly to 10 Blue Chip Stocks with Dividends.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
Dividend Yield (as of March 21): 2.31%
The Procter & Gamble Company (NYSE:PG) is a blue-chip stock that has been paying and growing its dividend yield to shareholders for 65 years in a row and offers a 2.31% yield as of March 21. The firm provides a range of consumer products, including personal, healthcare, beauty, and feminine products.
In March, Deutsche Bank analyst Steve Powers maintained a ‘Buy’ rating on The Procter & Gamble Company (NYSE:PG) shares and set a price target of $173, down from $179. Morgan Stanley analyst Dara Mohsenian in January maintained an ‘Overweight’ rating on The Procter & Gamble Company (NYSE:PG) stock and increased the price target to $177 from $161. Mohsenian sees P&G as the leading name in the Household Products segment and forecasts sustained revenue growth for the company.
Out of all the hedge funds tracked by Insider Monkey in the fourth quarter, 67 held stakes in The Procter & Gamble Company (NYSE:PG) with a combined value of $6.61 billion. Of these 67, GQG Partners was the largest shareholder of The Procter & Gamble Company (NYSE:PG), with 7.53 million shares worth $1.23 billion.
The Procter & Gamble Company (NYSE:PG) posted an EPS of $1.66 in the fourth quarter, which came in above estimates by $0.01. Revenue for Q4 2021 was recorded at $20.95 billion, showing an increase of 6.12% year-over-year and beating analysts’ estimates by $617.36 million.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
Dividend Yield (as of March 21): 2.90%
Then there’s The Coca-Cola Company (NYSE:KO), a dividend aristocrat which has raised its dividend payout for 60 consecutive years. The Atlanta-based firm’s namesake Coca-Cola soft drink beverage is a staple around the world.
The Coca-Cola Company (NYSE:KO) disclosed earnings per share of $0.45 for the fourth quarter, beating consensus estimates by $0.04. Revenue for the fourth quarter came in at $9.47 billion, outperforming analysts’ estimates by $579.32 million and signaling a 10.08% jump from the year-ago period.
Investors realize the value of holding blue-chip stocks such as The Coca-Cola Company (NYSE:KO) which have a history of paying dividends, as 70 hedge funds were long on the company shares in the fourth quarter, as compared to 61 hedge funds in Q3 2021. Warren Buffett’s Berkshire Hathaway is a long-time shareholder of The Coca-Cola Company (NYSE:KO), holding 400 million shares valued at $23.68 billion during the fourth quarter.
On February 15, Evercore ISI analyst Robert Ottenstein kept an ‘Outperform’ rating on The Coca-Cola Company (NYSE:KO) shares, and bumped the price target to $70 from $63, noting that he sees the firm continuing to improve its long-term outlook and business model.
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Dividend Yield (as of March 21): 4.33%
Exxon Mobil Corporation (NYSE:XOM) is an oil and natural gas company based in Texas, United States. Founded in 1870, the firm has increased its dividend payment to shareholders for 38 consecutive years, and offers a yield of 4.33% as of March 21.
BMO Capital analyst Phillip Jungwirth kept a ‘Market Perform’ rating on Exxon Mobil Corporation (NYSE:XOM) shares in March and increased the price target to $86 from $73. The analyst sees the company well-positioned to drive further operating cost and capital efficiency gains and notes that its ‘industry-leading pipeline of projects will enable strong earnings and cash flow growth.
Exxon Mobil Corporation (NYSE:XOM) posted an EPS of $2.05 in Q4 2021, which was above consensus estimates by $0.11. Quarterly revenue at the end of December stood at $84.97 billion, surpassing analysts’ estimates by $6.24 billion and showing an increase of 82.56% year-on-year.
Hedge fund sentiment was up on Exxon Mobil Corporation (NYSE:XOM) stock in the fourth quarter, were 71 hedge funds reported bullish bets on the company shares. This is in contrast to 64 hedge funds with stakes in Exxon Mobil Corporation (NYSE:XOM) in the third quarter. GQG Partners was the leading shareholder in the energy firm over the fourth quarter, with 32.4 million shares worth $1.98 billion, representing a 22% increase in holding over Q3 2021.
Investment firm Saturna Capital talked about Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here’s what the hedge fund said:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Dividend Yield (as of March 21): 2.95%
Pfizer Inc. (NYSE:PFE) is a biopharmaceutical firm that offers a range of medical treatments and vaccines. It manufactured the popular BioNTech-Pfizer Covid-19 vaccine used around the world, which garnered $36 billion in sales for the firm in 2021.
Pfizer Inc.’s (NYSE:PFE) oral pill for Covid-19 called Paxlovid has also been approved by The United States Food and Drug Administration (FDA), and 35 generic drug manufacturers around the world have recently agreed to produce cheap versions of this medicine, so it could be made available for use of more than 53% of the global population.
Hedge funds were seen buying up on Pfizer Inc. (NYSE:PFE) in the fourth quarter of 2021, where 83 hedge funds reported holding stakes in the firm. In comparison, 74 hedge funds held stakes in the biopharmaceutical firm in the previous quarter. Coatue Management owned 10.31 million shares of Pfizer Inc. (NYSE:PFE) in the fourth quarter, worth almost $609 million and representing a 2.7% slice of the fund’s total holdings, making it the top shareholder of Pfizer Inc. (NYSE:PFE).
In the fourth quarter, Pfizer Inc. (NYSE:PFE) posted an EPS of $1.08, beating consensus estimates by $0.21. Revenue for the quarter was recorded at $23.84 billion, up 104.02% year-on-year but falling below analysts’ forecasts by $362.61 million.
Here is what Saturna Capital, an investment firm, had to say about Pfizer Inc. (NYSE:PFE) in its Q3 2021 investor letter:
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer Inc. (NYSE:PFE). The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield (as of March 21): 2.41%
Johnson & Johnson (NYSE:JNJ) is a biopharmaceutical firm that offers a range of healthcare and medical products around the globe and ranks 1st on our list of blue-chip stocks that pay dividends. The New Jersey-based firm has grown its dividend for 59 years in a row and offers a 2.41% yield as of March 21.
BofA analyst Geoff Meacham in early March noted that he was bullish on Johnson & Johnson’s (NYSE:JNJ) growth prospects in the near term, and liked its ‘safe haven’ status given the current macro and geopolitical environment. He reinstated coverage of the firm with a ‘Neutral’ rating and a $185 price target.
In the fourth quarter, 83 hedge funds held positions in Johnson & Johnson (NYSE:JNJ) with a combined value of $7.38 billion. Fundsmith LLP was the top shareholder in the biopharmaceutical firm in Q4 2021, holding 7.21 million shares worth $1.23 billion.
Johnson & Johnson (NYSE:JNJ) reported earnings per share of $2.13 in Q4 2021, exceeding consensus estimates by $0.01. Revenue for the fourth quarter was recorded at $24.80 billion, signaling a jump of 10.36% year-on-year, but falling below analysts’ forecasts by $485.39 million.
Distillate Capital talked about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. The fund said:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
You can also take a look at Bill Gates’ Stock Portfolio: Top 15 Picks and 10 Best Healthcare Dividend Stocks.
