In this article, we discuss the 5 best dividend stocks for retirement. If you want to read our detailed and historical analysis of the dividend stocks, go directly to read Early Retirement Portfolio: 15 Stocks to Live Off Dividends.
5. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 33
Dividend Yield as of January 27: 4.43%
The Kraft Heinz Company (NASDAQ:KHC), an American food company, was recently lauded at Morgan Stanley due to its strategic acquisitions of other companies in the sector. The firm assumed its coverage on the stock with an Equal Weight rating and a $37 price target.
In Q3, The Kraft Heinz Company (NASDAQ:KHC) posted an EPS of $0.65, which beat the consensus by $0.07. The company’s revenue of $6.32 billion also exceeded analysts’ estimates by $240 million. After posting solid Q3 results, The Kraft Heinz Company (NASDAQ:KHC) raised its full-year guidance and now expects adjusted EBITDA of at least $6.2 billion. Currently, the company pays a quarterly dividend of $0.40 per share, with a dividend yield of 4.43%.
As per Insider Monkey’s Q3 data, 33 hedge funds tracked by Insider Monkey held a $12.3 billion worth of stake in The Kraft Heinz Company (NASDAQ:KHC). In the previous quarter, the number of hedge funds owning stakes in the company was the same. Warren Buffett’s Berkshire Hathaway was the company’s largest shareholder in Q3, holding a stake worth roughly $12 billion.
4. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 29
Dividend Yield as of January 27: 4.16%
This December, Deutsche Bank propounded a promising outlook on energy, putting a specific preference on brent oil and lifting its price target to $75 per barrel in 2022. In this regard, the firm’s analyst upgraded BP p.l.c. (NYSE:BP), a British multinational oil and gas company, to Buy from Hold.
Currently, BP p.l.c. (NYSE:BP) pays an annual dividend of $1.29 per share. The stock’s dividend yield stands at 4.16%. In its recently announced Q3 report, BP p.l.c. (NYSE:BP) posted an EPS of $0.99, beating the consensus by $0.07. Moreover, the company’s revenue for the quarter also saw a 37.5% year-over-year growth at $36.1 billion.
As of Q3, 29 hedge funds tracked by Insider held positions in BP p.l.c. (NYSE:BP), down from 30 in the previous quarter. These stakes are valued at over $1 billion. Ken Fisher’s hedge fund, Fisher Asset Management, was the company’s largest shareholder in Q3, owning over 12.6 million shares, worth $345.3 million.
3. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Dividend Yield: 5.00%
An American wireless network company, Verizon Communications Inc. (NYSE:VZ) recently collaborated with Amazon’s low earth orbit satellite network program to enhance connectivity solutions across remote areas in the U.S. Following the company’s latest strategic developments, in October, Cowen raised its price target on the stock to $71, with an Outperform rating on the shares.
Currently, Verizon Communications Inc. (NYSE:VZ) pays an annual dividend of $2.56 per share, with a dividend yield of 5.00%. The company has been increasing its dividend for the past 17 years. In Q3, Verizon Communications Inc. (NYSE:VZ) posted an EPS of $1.41, beating consensus by $0.04. The earnings beat led the company to raise its full-year guidance, expecting a 4% growth in its wireless network revenue.
At the end of Q3 2021, 57 hedge funds tracked by Insider Monkey reported owning stakes in Verizon Communications Inc. (NYSE:VZ), compared with 63 in the previous quarter. These stakes hold a consolidated value of over $10.3 billion. With roughly 160 million shares, Berkshire Hathaway was the largest stakeholder of Verizon Communications Inc. (NYSE:VZ) in Q3.
Miller/Howard Investments mentioned Verizon Communications Inc. (NYSE:VZ) in its Q1 2021 investor letter. Here is what the firm has to say:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
2. Medical Properties Trust, Inc. (NYSE:MPW)
Number of Hedge Fund Holders: 18
Dividend Yield as of January 27: 5.10%
Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust that invests in healthcare facilities. The company is well-positioned to grow due to its higher margins amidst concerns regarding rising labor costs, asserted Joshua Dannerlein of BofA, who recently upgraded Medical Properties Trust, Inc. (NYSE:MPW) to Buy, with a $24 price target.
As per Insider Monkey’s Q3 data, 18 hedge funds tracked by Insider Monkey reported owning stakes in Medical Properties Trust, Inc. (NYSE:MPW), compared with 19 in the previous quarter. The consolidated value of these stakes is more than $365.5 million, up significantly from $266.8 million in Q2.
In its Q3 earnings, Medical Properties Trust, Inc. (NYSE:MPW) reported revenue of $390.7 million, which beat the consensus by $3.54 million. With a 5.10% yield and nine years of consistent dividend growth, Medical Properties Trust, Inc. (NYSE:MPW) remains one of the best dividend stocks for retirement.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 66
Dividend Yield as of January 27: 8.62%
AT&T Inc. (NYSE:T), an American telecommunications holding company, holds a 35-year track record of consistent dividend growth, making it one of the best dividend stocks for retirement. The company pays a quarterly dividend of $0.52 per share, with a dividend yield of 8.62%.
Though AT&T Inc. (NYSE:T) plunged recently due to the slower user growth in the wireless space, analysts still remain bullish on the company as it expects postpaid phone and fiber growth in the coming quarters. Recently, Barclays set a $30 price target on the stock, while maintaining an Equal Weight rating on the shares. In Q3, AT&T Inc. (NYSE:T) added 928,000 postpaid phones, while the total number of prepaid phones added during the quarter stood at 249,000.
As of Q3 2021, 66 hedge funds tracked by Insider Monkey held stakes in AT&T Inc. (NYSE:T), compared with 68 in the previous quarter. The total value of these stakes is over $3.2 billion, up noticeably from $2.8 billion in Q2. Among these hedge funds, Citadel Investment Group was the company’s largest shareholder in Q3, owning over 34.7 million shares.
Nelson Capital Management mentioned AT&T Inc. (NYSE:T) in its Q1 2021 investor letter. Here is what the firm has to say:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
You can also take a look at 10 Best Cryptocurrencies to Buy for Early Retirement and 15 Dividend Stocks People Buy for Early Retirement
