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Top 15 Dividend Stocks To Buy According to Billionaires

In this article, we discuss top 15 dividend stocks according to billionaires. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read Top 5 Dividend Stocks To Buy According to Billionaires

Dividend stocks hold a universal appeal, capturing the interest of both everyday investors and billionaires. Take Warren Buffett, for example. He’s a strong advocate for dividend stocks and consistently incorporates a wide range of these equities into his investment portfolio each quarter. According to a Wall Street Journal article, Berkshire Hathaway is projected to get $5.7 billion in dividends for 2023. It’s a given that when companies experience surging profits, it translates into immense wealth for the wealthiest individuals. Ownership of shares tends to be concentrated among those with higher incomes. For instance, in the US, the richest 1% own more than half of all shares. Sometimes, these prosperous companies are owned and managed by a small cluster of billionaire individuals and families. As profits grow, so does their wealth. Consider the Walton family, who controls half of Walmart, a major US retailer. In 2022 alone, they received a staggering $8.5 billion from dividends and buybacks, contributing significantly to their already substantial wealth, according to a paper published by Oxfam.

Billionaires’ keen interest in dividend stocks stems from the impressive track record these stocks have displayed in the past. Their performance has been robust, showcasing consistent growth and stability over time. Dividends have been a significant part of investors’ gains over the last 50 years. Looking at the period since 1960, about 69% of the total profit from the S&P 500 Index comes from reinvested dividends and the multiplying effect of compound interest.

Dividend stocks have caught investors’ interest primarily because of their enticing dividend yield, which is the percentage of annual dividends compared to a stock’s price. However, some studies have revealed an intriguing trend that stocks boasting high dividend yields haven’t performed as well over the long term as those consistently increasing their dividends. As per a ProShares report, in the last five periods of increasing interest rates since 2005, dividend growth has consistently performed better than high dividend yield by an average of around 4%. This suggests that focusing on companies with a history of steadily increasing their dividends might be a reliable strategy across various market conditions, regardless of changes in interest rates.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks with dividend growth.  In this article, we will further discuss prominent dividend stocks among billionaires.

Our Methodology:

For this article, we first scanned the database of billionaire-owned stocks maintained by Insider Monkey as of Q3 2023. From this list, we picked the top 15 dividend stocks with a dividend yield of over 4%, as of December 10. The companies mentioned below have strong dividend histories. We also measured hedge fund sentiment around each stock from our database of 910 hedge funds at the end of Q3. The stocks are ranked in ascending order of the number of billionaire investors having stakes in them.

15. Crown Castle Inc. (NYSE:CCI)

Number of Billionaire Investors: 13

Dividend Yield as of December 10: 5.39%

Crown Castle Inc. (NYSE:CCI) is a real estate investment trust company that specializes in owning, operating, and leasing shared communications infrastructure. The company was a part of 13 billionaire portfolios in Q3 2023, with prominent investors like Ken Fisher and Cliff Asness holding stakes in it. It is one of the best dividend stocks on our list as the company maintains an eight-year streak of consistent dividend growth. It currently pays a quarterly dividend of $1.565 per share and has a dividend yield of 5.39%, as of December 10.

At the end of Q3 2023, 45 hedge funds tracked by Insider Monkey reported having stakes in Crown Castle Inc. (NYSE:CCI), up from 41 in the previous quarter. The collective value of these stakes is over $886.2 million.

14. Morgan Stanley (NYSE:MS)

Number of Billionaire Investors: 13

Dividend Yield as of December 10: 4.13%

Morgan Stanley (NYSE:MS) is a New York-based investment banking company that operates in various segments of the finance industry. The company offers a wide range of related services to its consumers. On October 18, the company declared a quarterly dividend of $0.85 per share, which was in line with its previous dividend. As of December 10, the stock has a dividend yield of 4.13%.

As of the end of Q3 2023, 59 hedge funds in Insider Monkey’s database owned stakes in Morgan Stanley (NYSE:MS), growing from 54 in the preceding quarter. These stakes are collectively valued at more than $2.5 billion. Billionaires Mario Gabelli and Israel Englander were some of the company’s leading stakeholders in Q3.

13. Duke Energy Corporation (NYSE:DUK)

Number of Billionaire Investors: 14

Dividend Yield as of December 10: 4.34%

Duke Energy Corporation (NYSE:DUK) is an American power holding company, based in North Carolina. The company primarily generates, transmits, distributes, and sells electricity to residential, commercial, industrial, and wholesale customers. It holds one of the longest streaks of paying regular dividends to shareholders, spanning over 97 years. In addition to this, the company has been raising its dividends consistently for the past 12 years, which makes DUK one of the best dividend stocks on our list. The stock’s dividend yield on December 10 came in at 4.34%.

At the end of September 2023, 39 hedge funds tracked by Insider Monkey held stakes in Duke Energy Corporation (NYSE:DUK), which remained the same in the previous quarter. These stakes have a total value of over $428.5 million. Ken Griffin and Cliff Asness were the company’s most prominent shareholders in Q3.

12. International Business Machines Corporation (NYSE:IBM)

Number of Billionaire Investors: 14

Dividend Yield as of December 10: 4.10%

An American multinational tech giant, International Business Machines Corporation (NYSE:IBM) is next on our list of the best dividend stocks to consider. The company has been raising its dividends for 28 consecutive years and pays a quarterly dividend of $1.66 per share. As of December 10, the stock has a dividend yield of 4.10%.

The number of hedge funds in Insider Monkey’s database owning stakes in International Business Machines Corporation (NYSE:IBM) grew to 53 in Q3 2023, from 51 in the preceding quarter. These stakes have a total value of more than $843 million. Billionaire Cliff Asness’ AQR Capital Management owned one of the largest stakes in the company worth $101.5 million.

11. United Parcel Service, Inc. (NYSE:UPS)

Number of Billionaire Investors: 14

Dividend Yield as of December 10: 4.15%

United Parcel Service, Inc. (NYSE:UPS) is a Georgia-based package delivery and supply chain management company that offers a wide range of logistics services. It currently pays a quarterly dividend of $1.62 per share and has a dividend yield of 4.15%, as of December 10. It is one of the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 21 years.

Insider Monkey’s database of Q3 2023 showed that 42 hedge funds owned stakes in United Parcel Service, Inc. (NYSE:UPS), worth collectively over $1.83 billion. Among these stakeholders, billionaires Ken Griffin and D. E. Shaw owned the most prominent stake in the company.

10. The Kraft Heinz Company (NASDAQ:KHC)

Number of Billionaire Investors: 14

Dividend Yield as of December 10: 4.42%

The Kraft Heinz Company (NASDAQ:KHC) is an American multinational food and beverage company. It is one of the best dividend stocks on our list as the company has been paying regular dividends to shareholders since its merger in 2015. It currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 4.42%, as of December 10.

As of the close of the third quarter of 2023, 40 hedge funds in Insider Monkey’s database owned investments in The Kraft Heinz Company (NASDAQ:KHC), up from 39 in the previous quarter. These stakes are collectively worth nearly $12 billion. Billionaire Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.

9. AT&T Inc. (NYSE:T)

Number of Billionaire Investors: 15

Dividend Yield as of December 10: 6.56%

AT&T Inc. (NYSE:T) is a leading provider of telecommunications services, offering wireless communication services to consumers and businesses. They provide mobile phone services, data plans, and internet connectivity through their extensive network infrastructure. The company’s quarterly dividend currently stands at $0.2775 per share for a dividend yield of 6.56%, as recorded on December 10. It is among the best dividend stocks on our list.

AT&T Inc. (NYSE:T) was a part of 52 hedge fund portfolios at the end of Q3 2023, compared with 56 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.7 billion. Ken Griffin, D. E. Shaw, and Cliff Asness were some of the most prominent billionaire stakeholders of the company in Q3.

8. 3M Company (NYSE:MMM)

Number of Billionaire Investors: 16

Dividend Yield as of December 10: 5.80%

3M Company (NYSE:MMM) is an American diversified conglomerate known for innovation in various industries. The company saw growth in hedge fund investors in the third quarter of 2023, with 54 funds owning stakes in it, up from 49 in the previous quarter, as per Insider Monkey’s database. Billionaires Ken Griffin and Cliff Asness were the most prominent stakeholders of the company in Q3.

3M Company (NYSE:MMM), one of the best dividend stocks on our list, holds a 65-year streak of consistent dividend growth. The company pays a quarterly dividend of $1.50 per share and has a dividend yield of 5.80%, as of December 10.

7. ConocoPhillips (NYSE:COP)

Number of Billionaire Investors: 16

Dividend Yield as of December 10: 4.11%

ConocoPhillips (NYSE:COP) is one of the world’s largest independent exploration and production (E&P) companies primarily focused on the energy sector. The company has raised its dividends for the past nine years in a row and it currently pays a quarterly dividend of $0.58 per share. With a dividend yield of 4.11%, as of December 10, COP is one of the best dividend stocks on our list.

At the end of the third quarter of 2023, 62 hedge funds tracked by Insider Monkey reported having stakes in ConocoPhillips (NYSE:COP), the same as in the previous quarter. The collective value of these stakes is more than $3.68 billion. According to our billionaires database, 16 billionaires owned stakes in ConocoPhillips (NYSE:COP), including Ken Fisher and Israel Englander.

6. Philip Morris International Inc. (NYSE:PM)

Number of Billionaire Investors: 17

Dividend Yield as of December 10: 5.69%

Philip Morris International Inc. (NYSE:PM) is a Connecticut-based multinational tobacco company that specializes in the manufacturing and sale of cigarettes and other tobacco-related products. On December 7, the company announced a quarterly dividend of $1.30 per share, which was consistent with its previous dividend. Overall, it has been growing its payouts for 15 consecutive years, which makes PM one of the best dividend stocks on our list. The stock has a dividend yield of 5.67%, as of December 10.

The number of hedge funds in Insider Monkey’s database owning stakes in Philip Morris International Inc. (NYSE:PM) jumped to 62 in Q3 2023, from 54 in the preceding quarter. The consolidated value of these stakes is over $4.7 billion. Billionaire Ken Griffin was one of the company’s most prominent stakeholders in Q3.

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Disclosure. None. Top 15 Dividend Stocks To Buy According to Billionaires is originally published on Insider Monkey.

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

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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?

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The “Toll Booth” Operator of the AI Energy Boom

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A New Dawn is Coming to U.S. Stocks

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Should I put my money in Artificial Intelligence?

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Click to continue reading…