In this article, we discuss top 5 high dividend stocks to buy according to hedge funds. If you want to read our detailed analysis of dividend stocks, go directly to read Top 13 High Dividend Stocks to Buy According to Hedge Funds.
5. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 71
Dividend Yield as of October 6: 3.93%
AbbVie Inc. (NYSE:ABBV) is an American biotech company that specializes in pharmaceuticals and other treatments for patients with serious illnesses. The company reported strong results in Q2 2022, posting revenue of $14.5 billion, which showed a 4.4% growth from the same period last year. Its operating cash flow for the quarter came in at over $5 billion, up from $4.9 billion in the previous quarter. The free cash flow of $4.8 billion was enough to support its dividends during the quarter.
AbbVie Inc. (NYSE:ABBV) has been raising its dividends consistently since its spin-off in 2013. Since then, the company has raised its dividend by 250%, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $1.41 per share, with a dividend yield of 3.93%, as of October 6.
In September, JPMorgan raised its price target on AbbVie Inc. (NYSE:ABBV) to $180 with an Overweight rating on the shares, as the firm sees a strong case for multiple expansions. The firm also called ABBV one of its favorite large-cap ideas.
At the end of Q2 2022, 71 hedge funds in Insider Monkey’s database owned stakes in AbbVie Inc. (NYSE:ABBV), compared with 76 in the previous quarter. The collective value of these stakes is over $2.8 billion. With over 4.2 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q2.
ClearBridge Investments mentioned AbbVie Inc. (NYSE:ABBV) in its Q2 2022 investor letter. Here is what the firm has to say:
“We added to our health care exposure in the quarter with the purchases of Straumann Holding (OTCPK:SAUHF), a Swiss manufacturer of medical instruments, implants and related supplies for dental procedures, in the secular bucket and U.S. pharmaceutical maker AbbVie Inc. (NYSE:ABBV) in the structural bucket. Straumann is the global market leader in dental implants with 29% overall share, a meaningful position within premium implants and smaller share in value implants. The company is also involved in clear aligners through a series of acquisitions as well as peripheral capital equipment around those businesses.
Growth will come from increasing share in both value implants and clear aligners through expansion in emerging markets on top of market growth in its premium implant business. AbbVie is undergoing a transition in anticipation of loss of exclusivity for its blockbuster Humira in the next several years with several commercial therapeutics, led by Skyrizi for psoriasis and Rinvoq for rheumatoid arthritis.”
