Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds’ 5 Favorite Dividend Stocks With 4%+ Yields

With the ten-year treasury yield having risen at a brisk pace in the last year, dividend stocks have lost some momentum as investors diversify their portfolios away from income stocks. The SPDR S&P Dividend (ETF) (NYSEARCA:SDY) has gained just 4% in 2018 and was down for much of the year. That is good news for dividend investors, as selling pressure has pushed down the price of numerous dividend stocks while pushing up their yields.

Dividend investors could also look to Insider Monkey’s flagship “Best Performing Hedge Funds Strategy”, which has returned 107.5% since its May 2014 inception, crushing the S&P 500 by over 40 percentage points during that time. Among the stock picks recommended to our subscribers this year (stocks which delivered over 17% gains between mid-February and the end of July) were dividend-paying stocks like Peabody Energy Corporation (NYSE:BTU) and Hyatt Hotels Corporation (NYSE:H). Check out a detailed analysis of Insider Monkey’s past performance and quarterly stock picks for all the details. Our newest picks were just released this month, don’t miss out!

Below, we’ll check out the five most popular dividend stocks among hedge funds which have an annual dividend yield of at least 4%.

booths, trade show, smau 2011, show tech, tech, people fair, milano editorial, people trade show, fair, hi tech show, exhibition, persons trade show, stands, smau, visitin

Adriano Castelli / Shutterstock.com

5. IBM Common Stock (NYSE:IBM)

Hedge Funds Long IBM as of June 30: 46

IBM Dividend Yield: 4.30%

With a 4.30% dividend yield, IBM Common Stock (NYSE:IBM) ranks fifth on our list, being owned by 46 hedge funds in our system on June 30. Seth Klarman‘s Baupost Group opened a $300 million position (9.48 million shares) in IBM during the second-quarter, while James Dinan’s York Capital Management also opened a large new position during that time (1.34 million shares).

In an effort to keep its employees alert, IBM Common Stock (NYSE:IBM) has filed a patent for a drone-based coffee delivery system that could recognize when employees need a mental boost based on various signals such as pupil dilation. The proposed system could also factor in employees’ sleep and meeting schedules to determine the ideal potency of coffee required for the situation.

Follow International Business Machines Corp (NYSE:IBM)
Trade (NYSE:IBM) Now!

4. Verizon Communications Inc. (NYSE:VZ)

Hedge Funds Long VZ as of June 30: 48

VZ Dividend Yield: 4.32%

Verizon Communications Inc. (NYSE:VZ) ranks fourth with 48 hedge funds being shareholders of the telecommunications giant at the end of June. Phill Gross and Robert Atchinson’s Adage Capital Management (6.23 million shares), Ken Griffin’s Citadel Investment (4.68 million shares), and Cliff Asness’ AQR Capital Management (2.64 million shares) were among the top Verizon shareholders.

Verizon Communications Inc. (NYSE:VZ) has enjoyed strong EPS growth in 2018 and remains the leading mobile carrier in the U.S with over 150 million subscribers. On the other hand, its Fios video service shed a net total of 37,000 pay TV subscribers in Q2. Verizon was criticized this week for throttling the internet speeds of California wildfire responders, which lead to calls to re-institute net neutrality. Verizon has contended that the throttling wasn’t actually due to net neutrality, though its actions likely would have violated the old net neutrality rules nonetheless.

Follow Verizon Communications Inc (NYSE:VZ)
Trade (NYSE:VZ) Now!

On the next page we’ll look at the three high-yield dividend stocks that hedge funds can’t live without.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...