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Top 5 High Dividend Stocks To Buy According To Hedge Funds

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 high-yield dividend stocks and their previous performance, go directly to read Top 10 High Dividend Stocks To Buy According To Hedge Funds

5. British American Tobacco p.l.c. (NYSE:BTI)

Number of Hedge Fund Holders: 22
Dividend Yield as of March 29: 9.61%

British American Tobacco p.l.c. (NYSE:BTI) is a British multinational tobacco company that offers a wide range of related products, with a presence in global markets. The company offers a quarterly dividend of $0.7431 per share, having raised it by 6.1% in February this year. This marked the company’s 26th consecutive year of dividend growth, which makes BTI one of the best dividend stocks on our list. In its FY23 report, the company announced that it expects to generate £40 billion of free cash flow before dividends over the next five years.

British American Tobacco p.l.c. (NYSE:BTI) was a part of 22 hedge fund portfolios at the end of Q4 2023, up from 17 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of nearly $400 million. With roughly 8 million shares, Orbis Investment Management was the company’s leading stakeholder in Q4.

Follow British American Tobacco Plc (NYSE:BTI)

4. Leggett & Platt, Incorporated (NYSE:LEG)

Number of Hedge Fund Holders: 24
Dividend Yield as of March 29: 9.62%

Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturing company that produces various engineered components, mainly found in homes and automobiles. On February 27, the company declared a quarterly dividend of $0.46 per share, which was consistent with its previous dividend. Overall, it maintains a 52-year streak of consistent dividend growth, which makes LEG one of the best dividend stocks on our list. The stock has a dividend yield of 9.62%, as of March 29.

At the end of the fourth quarter of 2023, 24 hedge funds tracked by Insider Monkey held stakes in Leggett & Platt, Incorporated (NYSE:LEG), growing from 19 in the previous quarter. These stakes have a total value of more than $123.6 million.

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3. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 34
Dividend Yield as of March 29: 8.05%

Energy Transfer LP (NYSE:ET) is next on our list of the best dividend stocks with high yields. The American midstream energy company has raised its dividends for nine consecutive quarters and offers a quarterly dividend of $0.315 per share. The stock’s dividend yield on March 29 came in at 8.05%.

As per Insider Monkey’s database of Q4 2023, 34 hedge funds invested in Energy Transfer LP (NYSE:ET), the same as in the previous quarter. These stakes are worth over $824.4 million in total. Among these hedge funds, David Abrams’ Abrams Capital Management was the company’s leading stakeholder in Q4.

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2. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 34
Dividend Yield as of March 29: 10.38%

Vale S.A. (NYSE:VALE) is a multinational mining company, headquartered in Brazil. The company is involved in the extraction of nickel, iron ore, copper, and other minerals. It currently offers a semi-annual dividend of $0.5519 per share and has a dividend yield of 10.38%, as of March 29. The company has been making regular dividend payments to shareholders since 2002, which makes VALE one of the best dividend stocks on our list.

Vale S.A. (NYSE:VALE) was included in 34 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to our database. The stakes held by these hedge funds are collectively valued at over $1 billion.

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1. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 42
Dividend Yield as of March 29: 8.99%

Altria Group, Inc. (NYSE:MO) tops our list of the best dividend stocks with high yields. The American multinational tobacco company currently pays a quarterly dividend of $0.98 per share and has a dividend yield of 8.99%, as recorded on March 29. It holds a 54-year track record of consistent dividend growth.

At the end of Q4 2023, 42 hedge funds in Insider Monkey’s database reported having stakes in Altria Group, Inc. (NYSE:MO), growing from 40 in the previous quarter. The collective value of these stakes is over $1.08 billion.

Should you invest $1,000 in Altria Group right now?

Before you buy stock in MO, consider this:

The Insider Monkey Quarterly Newsletter just identified what we believe are the 14 best stocks for investors to buy now… and MO wasn’t one of them. The 14 stocks that made the cut could produce monster returns in the next few months.

Quarterly Newsletter is your easy-to-follow blueprint for building a winning portfolio.  It includes stock picks from billionaires, regular updates from hedge fund investor letters, and 14 fresh stock picks each quarter. The Quarterly Newsletter service has more than doubled the return of S&P 500 since 2014.

See the 14 stocks

Follow Altria Group Inc. (NYSE:MO)

You can also take a look at 13 Most Undervalued Retail Stocks To Buy Now and 13 High Growth Value Stocks to Invest in According to Seth Klarman

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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