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Dividend Stock Portfolio: 15 Stocks To Buy According to Reddit

In this article, we discuss 15 dividend stocks to buy according to Reddit. You can skip our detailed analysis of dividend stocks and the role of retail investors in today’s stock market, and go directly to read Dividend Stock Portfolio: 5 Stocks To Buy According to Reddit

While tech stocks outperformed dividend stocks in the first half of the year, there’s a shift happening now as investors are increasingly showing interest in dividend-paying investments. The tech-heavy NASDAQ has dropped by more than 4% this month as of September 20, suggesting that the strong performance of tech stocks may be slowing down, potentially opening up opportunities for dividend stocks. Additionally, the recent CPI report, which shows an increase in inflation during August, has redirected investors’ focus towards dividend stocks because these investments can provide them with consistent income during volatile times.

Global dividend payments are also on track this year. A recent report by Janus Henderson revealed that companies worldwide are on course to pay investors a record-breaking $1.64 trillion in dividends for the year, showing over 6% increase in the second quarter. The report also indicated that 88% of global companies either raised or maintained their dividend payouts in the second quarter, resulting in a total of $568.1 billion in dividends paid out since the beginning of the year. The report further mentioned that in the US, 98% of the companies that were monitored either increased their dividend payments or kept them unchanged, a rate significantly higher than the global average.

Ben Lofthouse, Head of Global Equity Income at Janus Henderson, spoke about dividend growth and outlook this year. Here are some comments from the analyst:

“We do expect dividend growth to continue. A weaker economic environment is typically negative for banks,” Lofthouse said. But the positive effect on bank margins from the end of years of ultra-low interest rates is very powerful and is driving dividend payouts”.

Not only seasoned investors but also retail investors are showing interest in dividend stocks as a way to generate consistent income. Reddit forums like r/dividends highlight the importance of dividend investing to boost overall returns. Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT) are some of the most popular stocks on Reddit to be added to dividend stock portfolios. In this article, we have further discussed top dividend stocks according to Reddit.

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Our Methodology:

For this list, we carefully examined popular Reddit trading forums such as r/dividends, r/WallStreetBets, r/stocks, and r/trading, where everyday investors discuss and exchange investment ideas. After conducting comprehensive research and analysis, we selected 20 dividend stocks that were getting a lot of attention on Reddit as of September 21. From this group, we chose 15 stocks that had the most hedge fund investors, as tracked by Insider Monkey, during the second quarter of 2023.

15. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 24

Realty Income Corporation (NYSE:O) is an American real estate investment trust company that primarily focuses on investing in commercial real estate properties. The stock is favored by the Reddit community as the company pays monthly dividends to shareholders. Not only this, the company has been raising its dividends consistently for the past 29 years. The stock has a dividend yield of 5.71%, as of September 20. It is one of the best stocks to add to a dividend stock portfolio.

In addition to O, Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT) are some other dividend stocks popular among Redditors.

At the end of Q2 2023, 24 hedge funds in Insider Monkey’s database reported having stakes in Realty Income Corporation (NYSE:O), up from 22 in the previous quarter. The collective value of these stakes is over $243.6 million. Among these hedge funds, Marshall Wace LLP was the company’s leading stakeholder in Q2.

14. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 45

Chubb Limited (NYSE:CB) is a large multinational insurance company that provides a wide range of insurance and reinsurance products and services to individuals and businesses worldwide. According to the Reddit community, the company has a strong cash generation which benefits its shareholders in the form of dividends. This stayed true in its most recent quarter when the company generated $2.52 billion in operating cash flow and paid $1.08 billion to shareholders through dividends and share repurchases. It is among the stocks to be added to the dividend stock portfolio.

Chubb Limited (NYSE:CB) currently pays a quarterly dividend of $0.86 per share and has raised its payouts for 30 years running. The stock’s dividend yield on September 20 came in at 1.61%.

The number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited (NYSE:CB) grew to 50 in Q2 2023, from 45 in the previous quarter. The overall value of these stakes is over $1.73 billion.

13. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 49

3M Company (NYSE:MMM) is next on our list of stocks reliable for dividend stock portfolio. The multinational conglomerate is known for its diversified portfolio of products and solutions across various industries. Redditors believe that the company makes money in various ways through its different businesses, and these businesses are set up to perform well even when the economy is not doing great. Its strong cash generation throughout the years has resulted in the company growing its dividends for 65 years in a row. It currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 6.06%, as of September 20.

As of the close of Q2 2023, 49 hedge funds tracked by Insider Monkey reported having stakes in 3M Company (NYSE:MMM), compared with 51 in the previous quarter. The collective value of these stakes is over $726.7 million. AQR Capital Management was one of the company’s leading stakeholders in Q2.

12. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50

Caterpillar Inc. (NYSE:CAT) is an American multinational corporation that primarily operates in the heavy equipment and machinery industry. The stock has delivered solid returns in the past, with its 5-year returns standing at 78.1%. The Reddit community appreciated the company’s strong performance in the past and its revenue growth over the years.

Caterpillar Inc. (NYSE:CAT) can be a reliable addition to a dividend stock portfolio as the company has been growing its dividends consistently for the past 29 years. It currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 1.87%, as of September 20. Moreover, the company has raised its dividend at an annual average rate of 8.6% over the past five years.

At the end of June 2023, 50 hedge funds in Insider Monkey’s database reported having stakes in Caterpillar Inc. (NYSE:CAT), worth collectively over $2.55 billion.

11. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 51

International Business Machines Corporation (NYSE:IBM) is a multinational tech company with a diverse range of business activities and offerings. The company is appreciated by Redditors because of its artificial intelligence potential considering the market’s inclination toward such stocks this year. Moreover, the company has a strong dividend growth history of 28 years, which makes it one of the best stocks to add to a dividend stock portfolio. It currently pays a quarterly dividend of $1.66 per share and has a dividend yield of 4.43%, as of September 20.

According to Insider Monkey’s database of 910 hedge funds, 51 funds owned stakes in International Business Machines Corporation (NYSE:IBM) at the end of Q2 2023, up from 49 a quarter earlier. The consolidated value of these stakes is nearly $814 million.

10. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 52

Lockheed Martin Corporation (NYSE:LMT) is a global aerospace, defense, security, and advanced tech company. They are one of the world’s largest and most well-known defense contractors. The stock is popular among Redditors because of its stable payout ratio and dividend growth over the years. The company’s payout ratio currently stands at 42%. Moreover, it has raised its dividends by 9% at an annual average rate over the past five years, which makes it a reliable addition to the dividend stock portfolio.

Lockheed Martin Corporation (NYSE:LMT) offers a quarterly dividend of $3 per share and has a dividend yield of 2.83%, as of September 20. The company has raised its dividends consistently for the past 20 years.

As of the end of the June quarter of 2023, 52 hedge funds in Insider Monkey’s database reported having stakes in Lockheed Martin Corporation (NYSE:LMT), worth collectively roughly $2 billion.

9. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 56

Texas Instruments Incorporated (NASDAQ:TXN) is next on our list of stocks best for dividend stock portfolios. The multinational semiconductor company specializes in designing and manufacturing a wide range of analog and embedded processing products. According to Redditors, the company’s cash generation is strong, which helps it to meet shareholder returns smoothly.

Texas Instruments Incorporated (NASDAQ:TXN) has been raising its dividends for 11 years in a row. It pays a quarterly dividend of $1.24 per share and has a dividend yield of 3.05%, as of September 20.

Insider Monkey’s database of Q2 2023 indicated that 56 hedge funds owned investments in Texas Instruments Incorporated (NASDAQ:TXN), up from 52 in the previous quarter. The stakes owned by these hedge funds have a collective value of over $2.34 billion.

Diamond Hill Capital mentioned Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2023 investor letter. Here is what the firm has to say:

“Other bottom contributors included SunOpta, Bank of America Corporation and Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments’ end markets are facing some near-term headwinds where demand is concerned. We expect these trends to be transitory and continue to have a favorable view of the company’s long-term prospects and superior competitive positioning.”

8. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 61

An American beverage company, The Coca-Cola Company (NYSE:KO) is one of the most reliable stocks for dividend stock portfolios. Retail investors appreciated the company’s double-digit dividend growth this year, which took its dividend growth streak to 61 years. The company offers a quarterly dividend of $0.46 per share and has a dividend yield of 3.17%, as of September 20.

Warren Buffett’s Berkshire Hathaway was the largest stakeholder of The Coca-Cola Company (NYSE:KO) at the end of Q2 2023, owning 400 million shares. Overall 61 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2 2023, worth collectively $27.2 billion.

7. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 71

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest energy companies. The Reddit community believes that though oil prices can be volatile, XOM still has the potential to grow due to its stable profit margins. The company has raised its payouts for 40 years running and currently pays a quarterly dividend of $0.91 per share. The stock’s dividend yield on September 20 came in at 3.14%.

At the end of Q2 2023, 71 hedge funds tracked by Insider Monkey reported having stakes in Exxon Mobil Corporation (NYSE:XOM), down slightly from 73 in the previous quarter. The consolidated value of these stakes is over $3 billion.

6. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73

Pfizer Inc. (NYSE:PFE) is an American multinational biotech and pharmaceutical company. The company’s Covid revenue has been declining this year but it expects its upcoming product releases until mid-2024 to bring in roughly $20 billion in extra revenue by 2030. The Reddit community sees potential in the company’s future releases. PFE can be added to dividend stock portfolios because of its dividend growth of 13 consecutive years. The company offers a quarterly dividend of $0.41 per share and has a dividend yield of 4.92%.

Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT) are some other popular dividend stocks among the Reddit community.

The number of hedge funds tracked by Insider Monkey owning stakes in Pfizer Inc. (NYSE:PFE) stood at 73 in Q2 2023. The collective value of these stakes is over $1.5 billion.

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Disclosure. None. Dividend Stock Portfolio: 15 Stocks To Buy According to Reddit is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

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  • 175 Teslas
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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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