In this article, we discuss 5 dividend stocks better than cryptocurrencies. If you want to see some more stocks in this selection, 10 Dividend Stocks Better Than Cryptocurrencies.
5. Emerson Electric Co. (NYSE:EMR)
Dividend Yield as of March 24: 2.10%
Number of Hedge Fund Holders: 43
Headquartered in Ferguson, Missouri, Emerson Electric Co. (NYSE:EMR) is a multinational corporation that offers complex engineered electrical equipment, such as process control systems, industrial automation tools, electric motors, and storage systems.
On February 2, Emerson Electric Co. (NYSE:EMR) declared a quarterly dividend of $0.515 per share. The dividend was paid on March 10. The company delivers a yield of 2.10% as of March 24. Emerson Electric Co. (NYSE:EMR) is a notable dividend king, having increased its dividend consistently for 65 years. This makes the stock a dependable investment for those who do not wish to dabble in the risky crypto universe.
Oppenheimer analyst Christopher Glynn upgraded Emerson Electric Co. (NYSE:EMR) on March 9 to Outperform from Perform with a $110 price target. The analyst cited the “excellent persistent capital preservation characteristics” in shares, Emerson Electric Co. (NYSE:EMR)’s “strong global leadership position” in automation solutions, and a “multi-faceted backdrop of cyclical and secular drivers” for the upgrade.
A total of 43 hedge funds held long positions in Emerson Electric Co. (NYSE:EMR) at the end of December 2021, up from 41 funds in the earlier quarter. Two Sigma Advisors held the largest stake in Emerson Electric Co. (NYSE:EMR), owning 2.6 million shares worth over $250 million.
4. Linde plc (NYSE:LIN)
Dividend Yield as of March 24: 1.48%
Number of Hedge Fund Holders: 45
Linde plc (NYSE:LIN) is a multinational chemical corporation that is a leading provider of industrial gasses such as oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, acetylene, and carbon monoxide, among others.
On March 9, Linde plc (NYSE:LIN) shares rose 8.5% as the CEO Sanjiv Lamba disclosed his purchase of 3,750 ordinary shares, priced between $268.54 to $269.27. The transaction was worth approximately $1 million.
Linde plc (NYSE:LIN), a reliable dividend aristocrat, announced on February 28 a $1.17 per share quarterly dividend, a 10% increase from its prior dividend of $1.06. The dividend is payable on March 25, to shareholders of record on March 11. The company also disclosed a share repurchase program of up to $10 billion common shares. The maximum share capital repurchase amount will be 15% of outstanding shares and the program’s expiration date is July 31, 2024.
HSBC analyst Martin Evans raised the price target on Linde plc (NYSE:LIN) to $382 from $366 and kept a Buy rating on the shares on February 18. The company reported a “strong increase” in Q4 performance and has strategic long-term contracts that will enable growth, the analyst told investors in a bullish thesis.
Of the 45 hedge funds that held long positions in Linde plc (NYSE:LIN), Impax Asset Management is the leading shareholder of the company, with approximately $3 million shares worth over $1 billion.
3. General Dynamics Corporation (NYSE:GD)
Dividend Yield as of March 24: 2.09%
Number of Hedge Fund Holders: 48
General Dynamics Corporation (NYSE:GD) is an American aerospace and defense company operating via four segments — Aerospace, Marine Systems, Combat Systems, and Technologies.
On March 2, General Dynamics Corporation (NYSE:GD) declared a $1.26 per share quarterly dividend, a 5.9% increase from its previous dividend of $1.19. The dividend is payable on May 6, to shareholders of the company as of April 8. 2022 marks the 25th year of consistent dividend hikes by General Dynamics Corporation (NYSE:GD), which should assure investors about the dependability of the income stock.
General Dynamics Information Technology, a business unit of General Dynamics Corporation (NYSE:GD), reported on March 18 that it has been assigned the User Facing and Data Center Services contract by the National Geospatial-Intelligence Agency. This contract has a budget of $4.5 billion and a 10-year timeline.
Wells Fargo analyst Matthew Akers on March 7 raised the price target on General Dynamics Corporation (NYSE:GD) to $282 from $235 and maintained an Overweight rating on the shares. The analyst expects valuation to remain high for the foreseeable future, given escalated geopolitical tensions.
In Q4 2021, General Dynamics Corporation (NYSE:GD) was found in 48 hedge fund portfolios as per Insider Monkey’s records, up from 36 funds in the prior quarter. Longview Asset Management is the biggest shareholder of the company, owning more than 30 million shares worth $6.2 billion.
Here is what Oakmark Global Fund has to say about General Dynamics Corporation (NYSE:GD) in their Q1 2021 investor letter:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated products. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
2. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of March 24: 4.21%
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is headquartered in Irving, Texas. The company operates as a producer and supplier of crude oil, natural gas, petroleum products, and petrochemicals. Exxon Mobil Corporation (NYSE:XOM) delivers a dividend yield of 4.21%.
On January 26, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.88 per share, in line with previous. The dividend was distributed among shareholders on March 10. This is the 39th year of dividend increases for Exxon Mobil Corporation (NYSE:XOM) shareholders, and the oil crisis makes it a hot investment in the current environment for income investors.
Exxon Mobil Corporation (NYSE:XOM) announced on March 24 a pilot program that will utilize natural gas from North Dakota oil wells to power cryptocurrency mining activities. The company also entered an agreement with Crusoe Energy Systems to access gas from a location in the Bakken shale basin to supply power for generators used to mine Bitcoin on site. This program might be expanded to four countries by Exxon Mobil Corporation (NYSE:XOM).
Barclays analyst Jeanine Wai lifted the price target on Exxon Mobil Corporation (NYSE:XOM) on March 9 to $98 from $91 and maintained an Overweight rating on the shares. The analyst updated her model to reflect the current gas prices and account for Permian production/capex assumptions.
Elite hedge funds were exceedingly bullish on Exxon Mobil Corporation (NYSE:XOM). In Q4 2021, 71 funds were long Exxon Mobil Corporation (NYSE:XOM), up from 64 funds in the previous quarter. GQG Partners is the biggest shareholder of the company, with 32.3 million shares worth close to $2 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
1. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of March 24: 3.52%
Number of Hedge Fund Holders: 82
AbbVie Inc. (NYSE:ABBV) is an American pharmaceutical retailer, focusing on multiple therapeutic areas including immunology, oncology, neuroscience, and virology. The stock yields 3.52% as of March 24.
On February 17, AbbVie Inc. (NYSE:ABBV) declared a quarterly per share dividend of $1.41. The dividend will be paid on May 16, to shareholders of record on April 15. AbbVie Inc. (NYSE:ABBV) has increased its dividend by more than 250 percent since its inception in 2013, and the company is a notable dividend aristocrat.
Citi analyst Andrew Baum on March 1 raised the price target on AbbVie Inc. (NYSE:ABBV) to $170 from $155 and reiterated a Buy rating on the shares. The analyst boosted estimates given higher optimism for AbbVie Inc. (NYSE:ABBV)’s Rinvoq across all indications and the projected delay of generic biosimilars in the U.S. until at least 2032.
According to the Q4 database of Insider Monkey, 82 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV), compared to 81 funds in the earlier quarter. Diamond Hill Capital is a significant shareholder of the company, with 2.2 million shares worth $299.4 million.
Here is what Miller Howard Investments had to say about AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
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