Dividend Stock Portfolio: Top 10 Stock Picks By Hedge Funds

Published on November 3, 2022 at 9:12 am by Hamna Asim in Hedge Funds, News

In this article, we discuss the top 10 dividend stock picks of elite hedge funds. If you want to see more stocks in this selection, check out Dividend Stock Portfolio: Top 5 Stock Picks By Hedge Funds.

High bond yields have been a positive addition to the portfolios of income investors after years of nominal fixed-income returns. However, dividend stocks still provide essential balance and additional income to an asset portfolio, and they help combat the high inflation effectively. Jenny Harrington, CEO of Gilman Hill Asset Management, told Barron’s on October 29:

“You need capital appreciation of the share price and growth of the dividend in an inflationary environment.”

Dividend stocks have comparatively outperformed in the market selloff this year. Dividend-paying entities in the S&P 500 have dropped 11%, compared to the 19% decline in the S&P 500 benchmark and the 23% drop in non-dividend stocks so far this year. Income stocks are attractive amid market volatility since they protect investors against plummeting share prices. Stephanie Link, the chief investment strategist and portfolio manager at Hightower Advisors, advised investors to focus on dividend growth prospects rather than high yields alone. She further said:

“If companies are going to continue to increase their dividends, then I feel good about them.”

Similarly, David Katz, chief investment officer at Matrix Advisors, noted that although Treasury yield has risen which means that bond payout is attractive at about 4%, dividend stocks provide the potential for increasing payouts while bond payments remain fixed. Some of the best entities for a dividend stock portfolio include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Mastercard Incorporated (NYSE:MA).

Our Methodology

We selected the following dividend stocks based on their popularity among elite hedge funds tracked by Insider Monkey in the second quarter of 2022. We have also mentioned the latest analyst coverage, underlying business fundamentals, and recent dividend payouts by the companies for additional context for readers. The dividend yields are mentioned as of November 2.

Photo by Mirza Babic on Unsplash

Dividend Stock Portfolio: Top Stock Picks By Hedge Funds

10. S&P Global Inc. (NYSE:SPGI)

Number of Hedge Fund Holders: 84

Dividend Yield as of November 2: 1.08%

S&P Global Inc. (NYSE:SPGI) is a New York-based provider of credit ratings, benchmarks, data analytics, and workflow solutions in the global capital and commodity markets. The company operates through six divisions – S&P Global Ratings, S&P Dow Jones Indices, S&P Global Commodity Insights, S&P Global Market Intelligence, S&P Global Mobility, and S&P Global Engineering Solutions. S&P Global Inc. (NYSE:SPGI) declared on September 28 a $0.85 per share quarterly dividend, in line with previous. The dividend is payable on December 12, to shareholders of record on November 18.

As of October 27, S&P Global Inc. (NYSE:SPGI) has completed $11 billion of its $12 billion accelerated share repurchase program year-to-date, and it expects to launch the remaining $1 billion of the authorized repurchase units in December.

Argus analyst John Eade on November 1 maintained a Buy recommendation on S&P Global Inc. (NYSE:SPGI) but lowered the price target on the shares to $365 from $420. The company has almost concluded a multi-year restructuring and is now focused on its rapidly growing financial businesses, including the lucrative and not very competitive business of rating bonds, the analyst told investors in a research note. The analyst also added that he believes S&P Global Inc. (NYSE:SPGI) management can pull through the tough inflation and high interest rate environment.

According to Insider Monkey’s database, 84 hedge funds were bullish on S&P Global Inc. (NYSE:SPGI) at the end of June 2022, compared to 97 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest position holder in the company, with 8.76 million shares worth nearly $3 billion.

In addition to Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Mastercard Incorporated (NYSE:MA), S&P Global Inc. (NYSE:SPGI) is one of the top picks of elite investors for a dividend stock portfolio.

Here is what Baron Durable Advantage Fund has to say about S&P Global Inc. (NYSE:SPGI) in its Q2 2022 investor letter:

“Another example is S&P Global (NYSE:SPGI), the leading rating agency and data provider, whose stock declined 29.0% year-to-date and 17.5% during the second quarter as a result of growing investor concerns over the slowdown in debt issuance. While debt issuance volumes have seen a dramatic decline – the worst quarterly decline in a decade (down 41% year-over-year in the second quarter based on Goldman Sachs estimates), – and this led management to withdraw its 2022 guidance in early June, we do not believe it would result in a permanent loss of capital.

First, ratings represent only about 30% of S&P Global’s total revenues. Second, despite inherent volatility in quarterly or annual issuance, over the long-term issuance volumes follow the trends in levels of debt outstanding, which has compounded in the mid-single digits for many years. Lastly, we believe that S&P Global’s strong competitive positioning will enable it to continue benefiting from pricing power, while taking advantage of secular tailwinds such as the growth in passive and ESG investing, international expansion, and the growing demand for data analytics.”

9. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

Dividend Yield as of November 2: 0.12%

NVIDIA Corporation (NASDAQ:NVDA), the American multinational technology and semiconductor firm, is one of the most popular picks of hedge funds for a dividend stock portfolio. At the end of October, NVIDIA Corporation (NASDAQ:NVDA) stock gained as investors turned their attention towards the semiconductor industry in the midst of the Intel and Mobileye spin-off.

On October 24, Barclays analyst Blayne Curtis maintained an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) but lowered the price target on the shares to $140 from $190. The analyst is “actively looking for a bottom to get more positive” on the semiconductor sector and sees it closer in some end markets than others, but still believes “it is too early to pull the trigger across the board.”

According to Insider Monkey’s data, NVIDIA Corporation (NASDAQ:NVDA) was part of 84 hedge fund portfolios at the end of June 2022, compared to 102 in the prior quarter. Ken Fisher’s Fisher Asset Management is a significant position holder in the company, with 7.6 million shares worth $1.15 billion.

Here is what Baron Funds specifically said about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company and a leader in gaming and accelerated computing. NVIDIA is powering the growth of AI from the data center to the edge. Shares detracted due to inventory right sizing in NVIDIA’s gaming segment coupled with the broader market sell-off in growth stocks. Given NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, we believe the company can sustain its growth trajectory. See further discussion of NVIDIA in the top net purchases section below.

During the third quarter, we took advantage of its stock sell-off to add to NVIDIA Corporation, a fabless semiconductor mega cap that is a global leader in gaming cards and accelerated computing hardware and software. The sell-off was driven by a near-term inventory correction in gaming as a result of a COVID-related pull forward in demand as well as the shift in the Ethereum cryptocurrency from proof-of-work to proof-of-stake. Additionally, investors are concerned over the potential slowdown in data center revenues as a result of a weaker macroeconomic environment as well as the recently announced limitations on semiconductor shipments to China. Despite the near-term uncertainty, we believe that NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, would enable the company to benefit from durable growth for years to come and therefore view the stock price where we added shares as a compelling value for long-term investors. With demand for computing power doubling every one to two years, and Moore’s Law slowing down, there is more need for computing than ever. At the same time, “near free” supply growth (that was possible thanks to Moore’s Law) has slowed dramatically. NVIDIA’s accelerated architecture, with parallel computing at scale, answers that need.”

8. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 91

Dividend Yield as of November 2: 1.20%

UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified health care company in the United States. The company specializes in health insurance, Medicaid plans, and healthcare programs. On October 14, UnitedHealth Group Incorporated (NYSE:UNH) reported a Q3 non-GAAP EPS of $5.79 and a revenue of $80.9 billion, outperforming market estimates by $0.35 and $360 million, respectively. There was a double digit growth at both Optum and UnitedHealthcare segments.

The company raised its full-year 2022 net earnings outlook to $20.85 to $21.05 per share and adjusted net earnings to $21.85 to $22.05 per share, versus a consensus of $21.89 and prior view of $21.4 to $21.9.

On October 18, Deutsche Bank analyst George Hill raised the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $615 from $569 and maintained a Buy rating on the shares. The company reported robust Q3 results as membership growth remains resilient and value-based arrangements continue to expand, the analyst told investors in a research note.

According to Insider Monkey’s data, 91 hedge funds were long UnitedHealth Group Incorporated (NYSE:UNH) at the end of June 2022, compared to 103 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest position holder in the company, with 3.11 million shares worth $1.60 billion.

In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and United Group Incorporated (NYSE:UNH) was one of them. Here is what the fund said:

“UnitedHealth Group Incorporated (NYSE:UNH) reported solid quarterly results and raised 2022 guidance modestly. Additionally, managed care is another industry that is viewed as defensive in the current environment, which helped support UnitedHealth and its peer group.”

7. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 93

Dividend Yield as of November 2: 0.24%

Thermo Fisher Scientific Inc. (NYSE:TMO) is a Massachusetts-based provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. As per elite hedge funds, Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the premier picks for a dividend stock portfolio.

On October 31, Thermo Fisher Scientific Inc. (NYSE:TMO) announced that it is acquiring the UK-based diagnostic products maker, The Binding Site, for $2.6 billion from private equity firm Nordic Capital in an all-cash transaction. Thermo Fisher Scientific Inc. (NYSE:TMO) also said that throughout Q4, it expects to execute a $1 billion share buyback program, bringing the total capital spent on buybacks in 2022 to $3 billion.

Baird analyst Catherine Ramsey Schulte on November 1 reiterated an Outperform rating on Thermo Fisher Scientific Inc. (NYSE:TMO) but lowered the price target on the shares to $665 from $695. The analyst noted that Thermo Fisher Scientific Inc. (NYSE:TMO)’s Specialty Diagnostics segment typically gets the least investor attention and interest, but she forecasts the deal to be accretive to both overall revenue growth and margins. She also updated her model to factor in the acquisition, Q4 and full-year buyback assumptions, and 2023 forex headwinds.

According to Insider Monkey’s data, 93 hedge funds were bullish on Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of June 2022, compared to 101 funds in the prior quarter. Thomas Steyer’s Farallon Capital is a prominent stakeholder of the company, with 1.2 million shares worth $675 million.

Here is what Baron Funds specifically said about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q3 2022 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Shares fell due to the rotation out of life sciences tools stocks, driven by concerns about a possible global recession, foreign currency exposure, COVID-related lockdowns in China, and reduced levels of biotechnology funding. We continue to believe Thermo Fisher has a strong long-term growth outlook given a large and growing addressable market coupled with its industry-leading scale, commercial infrastructure, e-commerce platform, supply-chain capabilities, and R&D investment.”

6. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99

Dividend Yield as of November 2: 2.42%

Bank of America Corporation (NYSE:BAC) is an American multinational company that provides banking and financial products and services. The bank operates through Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets segments. On October 17, Bank of America Corporation (NYSE:BAC) reported earnings for the third quarter of 2022, announcing earnings per share of $0.81 and a revenue of $24.50 billion, topping market estimates by $0.04 and $1.05 billion, respectively.

On October 19, Bank of America Corporation (NYSE:BAC) declared a quarterly dividend of $0.22 per share, in line with previous. The dividend is distributable on December 30, to shareholders of record on December 2. Bank of America Corporation (NYSE:BAC) delivers a dividend yield of 2.42% as of November 2.

BMO Capital analyst James Fotheringham raised the price target on Bank of America Corporation (NYSE:BAC) on October 18 to $42 from $41 but kept a Market Perform rating on the shares. The analyst cited Bank of America Corporation (NYSE:BAC)’s “impressive” Q3 top-line beat and “meaningful” operating leverage as its pre-provision net revenue grew 24% compared to Q2 2022. However, the analyst added that it remains too early to purchase bank stocks, and he believes that Bank of America Corporation (NYSE:BAC) stock will struggle until the economic backdrop stabilizes.

Among the hedge funds tracked by Insider Monkey, 99 funds were bullish on Bank of America Corporation (NYSE:BAC) at the end of Q2 2022, with collective stakes worth $36 billion. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with more than 1 billion shares worth $31.4 billion.

Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Mastercard Incorporated (NYSE:MA), Bank of America Corporation (NYSE:BAC) is one of the premier stocks to consider for a robust dividend stock portfolio.

Here is what Artisan Partners specifically said about Bank of America Corporation (NYSE:BAC) in its Q2 2022 investor letter:

“We made only one new purchase during the quarter, initiating a position in Bank of America (BAC). As one of America’s largest banks, Bank of America Corporation (NYSE:BAC) is second only to JPMorgan Chase (JPM) in size and is probably its closest peer. Both are well-run banks, but compared to JPM, since the GFC, BAC has retired more shares, grown EPS faster and currently has more capital and a lower dividend payout. We are attracted to BAC’s strong capital base, high capital generation capacity, large loan loss reserve, low (~50%) loan/deposit ratio, short duration investment securities book, and low dividend payout that provides financial flexibility. BAC has a less volatile earnings stream than JPM with lower capital market sensitive exposures. Additionally, BAC is rigorously stress tested by the Fed every year in quantitative and qualitative fashion. Warren Buffett’s Berkshire Hathaway, which we hold in the portfolio, owns 12% of BAC. He petitioned the Fed to own more than 10%, so he clearly likes it. Bank stocks were strong gainers in 2021 on the prospects of higher rates boosting net interest margins, but the stocks pulled back in the first half of 2022 on economic concerns. We believe BAC has massive scale advantages, should benefit from increasing interest rates, particularly in the 2-year part of the yield curve, and should grow over time with the economy. The economic environment is highly uncertain, but current consensus includes the provision for losses more than doubling and capital markets activity slowing. Against that backdrop, our purchase price equated to about 8.5X our estimates of “mid-cycle” earnings. With leading businesses, a double-digit ROE, a prudent capital return strategy and a strong balance sheet, we believe this entry point offers a solid long-term value.”

Click to continue reading and see Dividend Stock Portfolio: Top 5 Stock Picks By Hedge Funds.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up