Top 5 High Dividend Stocks To Buy Now

Below we present the list of top 5 high dividend stocks to buy now. For our methodology and a more comprehensive list please see 10 Best High Dividend Stocks To Buy Now.

5. Chevron Corporation (CVX)

We know that investors are excited about Tesla and electric vehicles. This doesn’t change the fact even today electric vehicle sales account for only 3% of global car sales. That means ninety seven percent of cars that are bought in 2020 will probably still need to run on gas in 2030 or 2035. The demand for oil will surely decline as electric vehicles capture more market share, but this is happening slower than what investors perceive. Another reason for the depressed oil prices is the coronavirus pandemic. Believe it or not, this is just temporary. Once a reliable vaccine is produced, the demand for travel come back and energy companies’ values will start to increase. That’s probably why hedge funds with a long-term focus are interested in CVX shares. In its Q1 investor letter Diamond Hill said the following:

“Integrated oil and gas company Chevron Corp. shares meaningfully declined during the quarter as OPEC+ failed to reach a deal, allowing us to establish a position in this lower risk, more diversified company at a sufficient discount to our estimate of intrinsic value.”

CVX shares offer an annualized dividend yield of 7.7% in its ultra-low interest rate environment. There were a total of 50 hedge funds with bullish CVX positions at the end of June.