Owning a rental property is a popular method that people consider when looking for ways to generate passive income. That goal has become even more mainstream as platforms like Airbnb have grown.
Yet it takes a lot of effort to create “passive” income from rentals, whether it is performing regular repairs and maintenance, dealing with tenants, or working to keep the property occupied.
Stock market investors have much easier income options in the form of dividend stocks. These investments are truly passive in that you simply lay out cash and then collect quarterly payouts, which tend to rise with each passing year.
With those benefits in mind, let’s look at a few attractive dividend giants that can get you more than $1,000 in annual income combined starting in year 1.
Put some cash into Coca-Cola
Coca-Cola (NYSE: KO) has nearly all the factors that investors look for when seeking steady dividend growth. It is the market share leader in a large, expanding industry. And Coke capitalizes on that premium position, as illustrated by attractive financial metrics like profit margin and cash flow. Compare the beverage giant’s 28% operating profit against rival PepsiCo‘s 14% rate, for example.
Coke is adept at converting most of its earnings into the resources that fund a rising dividend payment. Free cash flow landed at $10 billion last year, translating into nearly 25% of sales.
On the downside, investors are seeing weaker demand trends recently as consumer spending patterns shift back toward pre-pandemic norms. Most Wall Street pros are looking for Coke’s sales to be flat this year, in fact.
In exchange for that short-term pressure, you can own a Dividend King at a relative discount, given that the stock underperformed the Dow Jones Industrial Average over the past year. And with Coke’s 3.2% dividend yield as of this writing, a $20,000 investment in the stock would generate about $640 of annual passive income.
Garmin will lead the way
In the consumer device world, Garmin (NYSE: GRMN) gets relatively little attention compared to massive competitors like Apple. But this GPS device specialist deserves a spot on your dividend watch list all the same.
Garmin is growing faster than Apple, having boosted sales by 8% in 2023 compared to Apple’s modest declines. Garmin’s newest introductions in niches like smartwatches and fitness trackers proved popular even as consumer spending shifted away from these areas. “We are very pleased with our 2023 financial performance,” CEO Cliff Pemble told investors in late February.
The company is highly profitable, even though its margins have contracted from their pandemic records. Garmin converted more than 20% of sales into operating profit last year and is targeting a similarly strong result for 2024. Keep in mind that, unlike Coca-Cola, Garmin isn’t automatic about boosting its dividend with each passing year. Those hikes tend to be modest, given the company’s focus on growth.
You’ll still get a hefty yield from this consumer device stock (2% compared to Apple’s 0.6%). Put roughly $20,000 into this investment, then, and you’ll get $400 in annual passive income to start.
Neither Coke nor Garmin stocks are guaranteed to rise in the next year, and you could see losses simply due to a broader market pullback. However, patient investors can look past volatility like that and focus on the bright outlook for these businesses over the next several years.
In the meantime, electing to have the dividends automatically reinvested will help amplify your returns. And it won’t take any effort on your part.
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Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Airbnb, Apple, and Garmin. The Motley Fool has a disclosure policy.
Forget Buying a Rental Property. Investing $40,000 in These Dividend Stocks Will Make You $1,000 Per Year in Passive Income. was originally published by The Motley Fool
In this article, we discuss 13 best diversified dividend stocks to invest in. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Diversified Dividend Stocks To Invest In.
Diversified stocks mean companies with exposure to a variety of sectors, industries, and geographic regions. These are usually conglomerates that make money operating in a number of businesses (think Warren Buffett’s Berkshire Hathaway). The purpose of diversification is to reduce risk by spreading investments across different assets, thereby minimizing the impact of any single stock or sector performing poorly. In 2023, global stock markets experienced significant growth, with particular attention on Wall Street’s impressive performance. The U.S. stock market, being the largest globally, notably led the way with remarkable gains. The S&P 500 index surged by 24.2% in 2023 and the Nasdaq index witnessed an outstanding increase of 43.4%, achieving its highest annual gain since 2020. Despite initial expectations, the economy managed to evade a recession, and the stock market rally surpassed many predictions. However, analysts hold divergent views on what lies ahead for the stock market in 2024, offering a mixed outlook for the year.
Based on the positive trends observed last year, analysts are optimistic about the stock market’s prospects for the current year, although they anticipate some minor declines along the way. A report from JP Morgan suggested that due to decreasing inflation in the US and the possibility of the Federal Reserve adopting more relaxed policies, there’s growing discussion of a “soft landing” rather than a severe economic downturn or bear market. Leading indicators point to a slowdown in growth but not a complete collapse. Generally, equity markets tend to hit their lowest point well before economic conditions reach their worst, although there have been exceptions such as during the dot-com cycle. While there’s still a risk of recession in the upcoming year, the key takeaway is that even if it does happen, it’s likely to be mild, especially considering the support the Fed is providing to the banking system through increased liquidity. The report further mentioned that in 2023, earnings for the S&P 500 remained stagnant overall. However, they saw a significant increase of 33% for the seven largest companies, while the rest of the S&P 500 experienced a decline of 5%. Looking ahead to 2024, it appears to be a year characterized by slowing GDP growth, single-digit increases in earnings, and single-digit returns for the typical S&P 500 stock.
According to analysts at JP Morgan, investors should consider a diversified portfolio consisting of cash, long-term government bonds, high-quality corporate bonds, and equities. They also find the industrial and energy sectors appealing, particularly due to the industrial policies in the US. Analysts express positivity towards the energy sector primarily because it continues to offer attractive opportunities for earnings yield, dividends, and stock buybacks.
According to Bloomberg’s 2024 Outlook report, numerous analysts are favoring dividend stocks as an investment choice for the current year. The strategists at Capital Group made the following statement:
“With investors swept up in the artificial intelligence fervor, valuations for dividend-paying stocks have quietly drifted toward multi-decade lows compared to the broader market. With growth expected to moderate in 2024, and the potential for recession lingering, dividends may take a more prominent role in driving total returns for investors.”
As previously stated, diversified companies play a crucial role in reducing risk. By investing in a diversified portfolio of dividend-paying companies across various sectors, investors can spread their risk and reduce exposure to any single company or industry’s performance. Furthermore, dividend-paying companies tend to be more mature and financially sound, as they prioritize returning profits to shareholders. General Electric Company (NYSE:GE), Danaher Corporation (NYSE:DHR), and Johnson & Johnson (NYSE:JNJ) are some of the best diversified dividend stocks among others that are discussed below.
Photo by Sharon McCutcheon on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of Q4 2023 and selected conglomerate firms that specialize in several different businesses and pay regular dividends to shareholders. The list is ranked in ascending order of the number of hedge funds having stakes in the companies. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
13. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 25
Unilever PLC (NYSE:UL) is a London-based multinational consumer goods company that operates in various sectors of the consumer goods industry, including food and beverages, cleaning agents, beauty and personal care products. On February 8, the company declared a quarterly dividend of $0.4582 per American Depositary Share (ADS). The stock’s dividend yield on February 21 came in at 3.63%. It is among the best diversified dividend stocks on our list.
At the end of Q4 2023, 25 hedge funds tracked by Insider Monkey reported having stakes in Unilever PLC (NYSE:UL), growing from 21 in the previous quarter. The consolidated value of these stakes is nearly $751 million. With roughly 11 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
12. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Holders: 30
Church & Dwight Co., Inc. (NYSE:CHD) is an American consumer packaged goods company that is primarily engaged in the production, marketing, and distribution of a wide range of household and personal care products. On February 2, the company announced a 4.1% hike in its quarterly dividend to $0.2838 per share. Through this increase, the company achieved its 28th consecutive annual dividend hike, which makes CHD one of the best dividend stocks on our list. The stock’s dividend yield on February 21 came in at 1.15%.
As of the close of Q4 2023, 30 hedge funds in Insider Monkey’s database reported having stakes in Church & Dwight Co., Inc. (NYSE:CHD), down slightly from 33 in the preceding quarter. The overall value of these stakes is over $1.05 billion.
11. Carlisle Companies Incorporated (NYSE:CSL)
Number of Hedge Fund Holders: 35
Carlisle Companies Incorporated (NYSE:CSL) is next on our list of the best dividend stocks. The diversified industrial company operates through multiple segments, serving various industries with a wide range of products and solutions. On January 30, the company announced a quarterly dividend of $0.85 per share, which was in line with its previous dividend. Overall, it holds an impressive dividend growth streak of 47 consecutive years. As of February 21, the stock has a dividend yield of 0.98%.
At the end of December 2023, 35 hedge funds owned stakes in Carlisle Companies Incorporated (NYSE:CSL), compared with 37 in the previous quarter, as per Insider Monkey’s database. The collective value of these stakes is over $765.4 million. Among these hedge funds, Generation Investment Management was the company’s leading stakeholder in Q4.
10. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 37
Corning Incorporated (NYSE:GLW) is an American multinational tech company that operates in several segments and is best known for its expertise in specialty glass, ceramics, and related materials. Corning’s products and solutions are utilized across various industries, including telecommunications, display technologies, environmental technologies, life sciences, and automotive.
Corning Incorporated (NYSE:GLW), one of the best dividend stocks on our list, currently offers a quarterly dividend of $0.28 per share. The company has raised its dividends for the past 13 years in a row. The stock has a dividend yield of 3.49%, as of February 21.
The number of hedge funds tracked by Insider Monkey owning stakes in Corning Incorporated (NYSE:GLW) jumped to 37 in Q4 2023, from 24 in the previous quarter. These stakes are worth over $234 million in total.
9. TE Connectivity Ltd. (NYSE:TEL)
Number of Hedge Fund Holders: 42
TE Connectivity Ltd. (NYSE:TEL) is a global technology company that designs and manufactures a wide range of connectivity and sensor solutions. The company operates in several key segments and serves various industries including automotive, aerospace, defense, industrial, data communications, telecommunications, consumer electronics, energy, and medical.
On February 14, TE Connectivity Ltd. (NYSE:TEL) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. Overall, the company has been growing its dividends for the past nine years, which makes TEL one of the best diversified dividend stocks on our list. The stock’s dividend yield on February 21 came in at 1.69%.
Insider Monkey’s database of Q4 2023 indicated that 42 hedge funds owned stakes in TE Connectivity Ltd. (NYSE:TEL), compared with 46 in the preceding quarter. The consolidated value of these stakes is over $2.03 billion.
8. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 50
Emerson Electric Co. (NYSE:EMR) is a Missouri-based technology and engineering company that provides solutions for industrial, commercial, and residential markets. It is one of the best dividend stocks on our list as the company holds a strong 67-year-long dividend growth streak. Currently, it pays a quarterly dividend of $0.525 per share and has a dividend yield of 2.01%, as recorded on February 21.
According to Insider Monkey’s database of Q4 2023, 50 hedge funds owned stakes in Emerson Electric Co. (NYSE:EMR), down from 53 in the previous quarter. The collective value of these stakes is more than $1.44 billion. With over 3.5 million shares, Adage Capital Management was the company’s leading stakeholder in Q4.
7. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 54
Colgate-Palmolive Company (NYSE:CL) is a multinational consumer goods company that specializes in the production, distribution, and marketing of oral care, personal care, home care, and pet nutrition products. The company offers a quarterly dividend of $0.48 per share for a dividend yield of 2.25%, as of February 21. It is one of the best dividend stocks on our list as the company maintains a 61-year streak of consistent dividend growth.
Insider Monkey’s database of Q4 2023 showed that 54 hedge funds held stakes in Colgate-Palmolive Company (NYSE:CL), up from 52 in the previous quarter. The total value of these stakes is nearly $3 billion.
6. Honeywell International Inc. (NYSE:HON)
Number of Hedge Fund Holders: 55
Honeywell International Inc. (NYSE:HON) is a diversified technology and manufacturing company that operates across various sectors, providing products and services for a wide range of industries and applications. The company has raised its dividends 14 times in 13 consecutive years, which makes it one of the best dividend stocks on our list. Currently, it offers a quarterly dividend of $1.08 per share and has a dividend yield of 2.16%, as of February 21.
Honeywell International Inc. (NYSE:HON) was a part of 55 hedge fund portfolios at the end of Q4 2023, compared with 60 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of $1.6 billion. Among these hedge funds, Adage Capital Management was the company’s leading stakeholder in Q4.
Click to continue reading and see 5 Best Diversified Dividend Stocks To Invest In.
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Disclosure. None. 13 Best Diversified Dividend Stocks To Invest In is originally published on Insider Monkey.
In this article, we discuss 12 best foreign dividend stocks to invest in. You can skip our detailed analysis of the performance of dividend stocks over the years, and go directly to read 5 Best Foreign Dividend Stocks To Invest In.
Investors have consistently shown a preference for dividend stocks, whether they originate from American or international companies. The primary objective of investing in these stocks is to generate a steady income, making it a top priority for investors. Dividends can serve as indicators of a company’s financial strength. Over time, companies that have initiated or raised their dividends have tended to outperform those that have reduced or eliminated dividend payments. As per findings from Franklin Templeton, companies in the S&P 500 that consistently increased or initiated dividends experienced a positive return of 8.58% over the 30-year period ending in December 2022. In contrast, those that reduced dividends showed a negative return of 2.64%. Additionally, stocks that did not pay any dividends provided a 3.25% return during the same timeframe.
These returns extend beyond solely U.S. stocks; global companies that consistently increase dividends have also demonstrated robust performance over time. There is significant evidence from various equity markets indicating that investment strategies focused on dividends tend to outperform the broader market in the long term. Abrdn referenced data from Factset and disclosed that over the last two decades, companies in the MSCI All Country World Index, that initiated or consistently increased their dividends, yielded a return of 10.68%. In contrast, companies that cut or eliminated dividends experienced a negative return of 2.70%. The report highlighted that within the realm of global equities, the annual return volatility of Dividend Growers and Initiators is notably lower than that of Non-Dividend Payers and Dividend Cutters & Eliminators. Moreover, in comparison to the broader global equities represented by the MSCI ACWI Index, the return volatility of Dividend Growers & Initiators has also been lower, contributing to more favorable risk-adjusted returns.
During periods characterized by elevated inflation and surging interest rates, investors place a higher value on high yields. The prospect of earning additional percentage points on returns becomes particularly appealing. According to a report by Morningstar, as of May 2023, the markets with the highest yields include Norway, Hungary, Romania, and Iceland. On average, Norwegian stocks that provide dividends are anticipated to yield an impressive 17.83%, making them particularly attractive to investors seeking robust returns in such economic conditions.
Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) are some of the most prominent US dividend stocks. However, in this article, we will take a look at some of the best foreign dividend stocks to invest in.
Image Source: Shutterstock
Our Methodology:
For this list, we initially used a stock screener to identify foreign (non-U.S.) stocks that are traded on US stock exchanges. Subsequently, from this dataset, we selected 12 stocks that boasted the highest number of hedge fund investors from Insider Monkey’s database of Q3 2023. The stocks presented in the article were then arranged in ascending order based on the count of hedge fund investors. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
12. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 19
Royal Bank of Canada (NYSE:RY) is one of the largest and most prominent banks in Canada, and it is also a major player in the global financial industry. In November 2023, the company declared a 2% hike in its quarterly dividend to C$1.38 per share. It has raised its dividends every year since 2012, which makes RY one of the best foreign dividend stocks to invest in. The stock has a dividend yield of 4.16%, as of January 26.
RY can be added to dividend portfolios alongside popular US dividend stocks, such as Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV).
At the end of Q3 2023, 19 hedge funds tracked by Insider Monkey reported having stakes in Royal Bank of Canada (NYSE:RY), down slightly from 20 in the previous quarter. The consolidated value of these stakes is over $193.6 million. Among these hedge funds, Israel Englander’s Millennium Management was the largest stakeholder of the company in Q3.
11. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 21
Unilever PLC (NYSE:UL) is a London-based multinational consumer goods company with a broad portfolio of products in various categories. In November 2023, the company declared a quarterly dividend of $0.453 per share, which was consistent with its previous dividend. With a dividend yield of 3.94% as of January 26, UL is one of the best foreign dividend stocks on our list.
The number of hedge funds tracked by Insider Monkey owning stakes in Unilever PLC (NYSE:UL) grew to 21 in Q3 2023, from 19 in the previous quarter. The collective value of these investments is over $628 million.
Artisan Partners mentioned Unilever PLC (NYSE:UL) in its Q2 2023 investor letter. Here is what the firm has to say:
“We made two significant purchases during the quarter: Unilever PLC (NYSE:UL) and Bayer AG. Both companies have been owned in prior years. And the share price of both companies became more attractive at least partially due to the stock market’s recent focus on technology stocks.
Unilever PLC is a manufacturer of consumer goods with a market cap of 100 billion pounds. You will be familiar with some of their products, such as Ben and Jerry’s ice cream, Dove Soap and Hellman’s mayonnaise. The company is a global powerhouse with 60 billion euros in revenue and 14 brands with sales over 1 billion euros. Dove, Knorr and OMO (Old Mother Owl, which is a global detergent brand) generate more than 4 billion euros in sales each. The company is diversified across five global divisions, including beauty and wellbeing, personal care, homecare and nutrition. Each of these businesses generates between 12 billion and 14 billion euros in revenue. Ice cream is the fifth division with close to 5 billion euros in revenue.”
10. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 26
Novartis AG (NYSE:NVS) is a multinational pharmaceutical and healthcare company headquartered in Switzerland. It is one of the largest pharmaceutical companies in the world, and it operates in various segments of the healthcare industry. The company currently offers an annual dividend of CHF 3.20 per share, having raised it by 3.2% in February. This was the company’s 26th consecutive year of dividend growth, which places NVS on our list of the best foreign dividend stocks. As of January 26, the stock offers a dividend yield of 3.27%.
As of the close of Q3 2023, 26 hedge funds tracked by Insider Monkey reported having stakes in Novartis AG (NYSE:NVS), which remained unchanged from the previous quarter. The total value of these stakes is more than $468 million.
9. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 29
Sanofi (NASDAQ:SNY) is a Paris-based multinational pharmaceutical company that is primarily focused on the research, development, manufacturing, and marketing of pharmaceutical products. The company offers an annual dividend of €3.56 per share and has a dividend yield of 3.81%, as of January 26. With a dividend growth streak of 29 years under its belt, SNY is one of the best foreign dividend stocks on our list.
Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 29 funds owned stakes in Sanofi (NASDAQ:SNY), compared with 30 in the preceding quarter. The collective value of these stakes is $1.18 billion. With roughly 15 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.
8. BP plc (NYSE:BP)
Number of Hedge Fund Holders: 35
BP plc (NYSE:BP) is a British multinational oil and gas company with operations across the entire energy spectrum. It provides a dividend of $0.4362 per American Depositary Share (ADS), equating to a dividend yield of 4.86, as of January 10. The company has been paying regular dividends to shareholders since 1998, which makes BP one of the best foreign dividend stocks on our list. The stock’s dividend yield on January 26 came in at 4.82%.
At the end of September 2023, 35 hedge funds owned investments in BP plc (NYSE:BP), down from 36 in the previous quarter, as per Insider Monkey’s database. These stakes are worth over $2.05 billion in total.
7. Barrick Gold Corp (NYSE:GOLD)
Number of Hedge Fund Holders: 36
Barrick Gold Corp (NYSE:GOLD) ranks seventh on our list of the best foreign dividend stocks. The leading international gold mining company is headquartered in Toronto, Canada, and has a significant presence in the global mining industry. The company is primarily engaged in the exploration, development, and operation of gold mines. It currently pays a quarterly dividend of $0.10 per share and has a dividend yield of 2.58%, as of January 26.
As of the end of Q3 2023, 36 hedge funds in Insider Monkey’s database reported having stakes in Barrick Gold Corp (NYSE:GOLD), growing from 32 in the previous quarter. The collective value of these stakes is over $454.4 million. First Eagle Investment Management was the company’s leading stakeholder in Q3, owning over 42 million shares.
6. LyondellBasell Industries NV (NYSE:LYB)
Number of Hedge Fund Holders: 36
LyondellBasell Industries NV (NYSE:LYB) is a multinational chemical industry company, based in the Netherlands. The company operates in the manufacturing and refining of petrochemicals, polymers, and other chemical products. LYB is one of the best foreign dividend stocks on our list as the company maintains a 13-year track record of consistent dividend growth. As of January 26, the stock has a dividend yield of 5.24%.
In addition to popular dividend stocks, such as Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV), LYB van also offer reliable investment options for investors.
The number of hedge funds tracked by Insider Monkey owning stakes in LyondellBasell Industries NV (NYSE:LYB) stood at 36 in Q3 2023, which remained unchanged from the previous quarter. The consolidated value of these stakes is over $687.2 million.
Click to continue reading and see 5 Best Foreign Dividend Stocks To Invest In.
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Disclosure. None. 12 Best Foreign Dividend Stocks To Invest In is originally published on Insider Monkey.
In this article, we will take a detailed look at the 13 High-Growth Canadian Dividend Stocks To Invest In. For a quick overview of such stocks, read our article 5 High-Growth Canadian Dividend Stocks To Invest In.
Dividend investing took a backseat in 2023 as an unending optimism prevailed the market thanks to the AI-led rally that kept buoying tech stocks higher and higher, defying recession forecasts and inflation-related worries. But can the 2023 rally continue through 2024? US Bank in its 2024 outlook report titled “The Year of It Ain’t Over ’til it’s Over” said that its experts forecast slower growth at least during the first half of 2024 as consumer savings dissipate and effects of rate hikes become visible.
“Inflation, interest rates and earnings are interrelated keys to equity price movements, with inflation levels persisting above the Fed’s price stability target entrenching a period of higher interest rates. Higher interest rates increase competition from bond investments, which pressures valuation measures such as the price-to-earnings ratio (the share price equity investors are willing to pay for realized or future earnings). Additional cautionary factors likely to weigh on equity returns in the new year include narrow equity sector performance leadership in 2023, the potential for economic and corporate earnings pressures to emerge in 2024, already-elevated prices of technology- related companies and geopolitical issues including ongoing conflicts between Russia/Ukraine and Israel/Hamas as well as tensions between the U.S. and China.”
The Pendulum is Swinging in Favor of Dividend Stocks
The latest inflation report showed the Fed’s long battle against inflation might not be over after all and we are not out of the woods yet. Geopolitical risks, diminishing household savings and persistent inflation have made dividend stocks like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) relevant again. Matt Powers, managing partner at Powers Advisory Group, said in a program on CNBC earlier this month that the “pendulum is swinging” in favor of dividend stocks as he advised investors to load up on dividend-paying companies with a strong history of dividend growth.
Methodology For this article used manual research and stock screeners to pick Canadian dividend stocks with high sales growth reported over the past five years and in the most recent quarters. With each stock we have mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Image: Depositphotos
13. Vox Royalty Corp (NASDAQ:VOXR)
Number of Hedge Fund Investors: 5
With over 2% dividend yield and high revenue growth, Vox Royalty Corp (NASDAQ:VOXR) ranks 13th in our list of the high-growth Canadian dividend stocks to invest in.
As of the end of the third quarter of 2023, five hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Vox Royalty Corp (NASDAQ:VOXR).
12. Centerra Gold Inc. (NYSE:CGAU)
Number of Hedge Fund Investors: 10
Centerra Gold Inc. (NYSE:CGAU) ranks 12th in our list of the high-growth Canadian dividend stocks. In November, Desjardins started covering the stock with a Buy rating and a C$12 price target. The financial service company praised Centerra Gold Inc’s (NYSE:CGAU) strong cash flow.
As of the end of the third quarter of 2023, 10 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Centerra Gold Inc. (NYSE:CGAU). The biggest hedge fund stakeholder of Centerra Gold Inc. (NYSE:CGAU) during this period was Ryan Schedler and Bradley Shisler’s Condire Investors which owns a $46 million stake in Centerra Gold Inc. (NYSE:CGAU).
Heartland Value Fund stated the following regarding Centerra Gold Inc. (NYSE:CGAU) in its fourth quarter 2023 investor letter:
“Early last year, we highlighted Centerra Gold Inc. (NYSE:CGAU), a producer of gold and copper. With the recent pivot by the Federal Reserve to an easy money policy, we thought an update of this underappreciated hard asset was timely.
Centerra continues to make progress in increasing production while lowering costs. During the third quarter, the Oksut mine restarted, resulting in earnings per share of $0.20 while throwing off cash flow in excess of $100 million. Centerra remains debt free with cash soaring to $492 million, or $2.28 per share. A new management team is focused on optimizing a diverse portfolio of assets, including a strategy to boost the value of its molybdenum business for eventual sale. With an admirable balance sheet, Centerra has the resources to fund an aggressive exploration program in North America, pay a 3.3% dividend, and embark on an 8.5% repurchase of shares outstanding.
Trading below stated book value, approximately 60% of NAV, and less than 3X EV/EBITDA, we believe Centerra remains an outstanding small cap value.”
11. Bank of Nova Scotia (NYSE:BNS)
Number of Hedge Fund Investors: 11
With a dividend yield of 6.8% as of January 11, Bank of Nova Scotia (NYSE:BNS) is a notable dividend stock. Over the past decade, Bank of Nova Scotia (NYSE:BNS) has increased its dividend at a CAGR of 5.75%.
In November Bank of Nova Scotia (NYSE:BNS) posted fiscal Q4 results. Adjusted EPS in the quarter came in at C$1.26. Revenue in the period jumped 8.9% year over year to C$8.31 billion.
Like BNS, hedge funds are also loading up on The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
10. Manulife Financial Corp (NYSE:MFC)
Number of Hedge Fund Investors: 13
Canadian insurance company Manulife Financial Corp (NYSE:MFC) has a dividend yield of about 5% as of January 11. Manulife Financial Corp (NYSE:MFC) posted a strong third quarter in November thanks to strong growth from Asia segment and positive results from Global Wealth and Asset Management division.
As of the end of the third quarter of 2023, 13 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Manulife Financial Corp (NYSE:MFC). The most significant stakeholder of Manulife Financial Corp (NYSE:MFC) during this period was Joseph Sirdevan’s Galibier Capital Management which owns a $37.4 million stake in Manulife Financial Corp (NYSE:MFC).
9. Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Investors: 14
Toronto-Dominion Bank (NYSE:TD) is a high-yield dividend stock. The stock’s dividend yield is over 4.8% as of January 11. In November, Toronto-Dominion Bank (NYSE:TD) increased its dividend by 6.3%.
As of the end of the third quarter of 2023, 14 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Toronto-Dominion Bank (NYSE:TD). The most notable hedge fund stakeholder of Toronto-Dominion Bank (NYSE:TD) was Joseph Sirdevan’s Galibier Capital Management which owns a $28 million stake in Toronto-Dominion Bank (NYSE:TD).
8. Open Text Corp (NASDAQ:OTEX)
Number of Hedge Fund Investors: 16
Enterprise software company Open Text Corp (NASDAQ:OTEX) shares have gained about 31% over the past one year. In November Open Text Corp (NASDAQ:OTEX) declared a quarterly dividend of $0.25 per share. Forward dividend yield came in at 2.9%. The dividend was payable on December 20.
As of the end of the third quarter of 2023, 16 hedge funds tracked by Insider Monkey had stakes in Open Text Corp (NASDAQ:OTEX). The most notable hedge fund stakeholder of Open Text Corp (NASDAQ:OTEX) during this period was Natixis Global Asset Management’s Harris Associates which owns a $404 million stake in Open Text Corp (NASDAQ:OTEX).
FPA Crescent Fund made the following comment about Open Text Corporation (NASDAQ:OTEX) in its Q2 2023 investor letter:
“Open Text Corporation (NASDAQ:OTEX)t was a relatively short-lived holding in comparison to our typical time frame. We were attracted to this Canadian-based provider of enterprise software due to its stable revenue stream. More than 80% of Open Text’s revenue was recurring, which helped deliver attractive mid-30s EBITDA margins. We considered the business to have a sticky customer base that included 97 of the 100 largest companies in the world. Purchased at a low double-digit multiple to after-tax free cash flow, we expected to own the company for years, with capital deployment going towards dividends, buybacks, and small bolt-on acquisitions, as it had in the past. Unfortunately, to our surprise, while we owned the stock, Open Text announced a relatively large acquisition in the form of UK-based Micro Focus. Familiar with the target, we were unenthused about both the asset and increased debt on the balance sheet from funding the purchase, so we chose to exit stage left rather than try to re-write our investment thesis.”
7. Canadian Imperial Bank of Commerce (NYSE:CM)
Number of Hedge Fund Investors: 17
With a dividend yield of 5.8% and high revenue growth, Canadian Imperial Bank of Commerce (NYSE:CM) ranks 7th in our list of the high-growth Canadian dividend stocks to buy now. In November, Canadian Imperial Bank of Commerce (NYSE:CM) upped its dividend by 3.4%.
During the same month Canadian Imperial Bank of Commerce (NYSE:CM) posted fiscal fourth quarter results. Adjusted EPS in the period came in at C$1.57. Revenue in the quarter jumped 8.3% year over year to C$5.84 billion.
6. B2Gold Corp (NYSE:BTG)
Number of Hedge Fund Investors: 19
Canadian-based mining company B2Gold Corp (NYSE:BTG) is among the high-yield dividend stocks popular among hedge funds. A total of 19 hedge funds tracked by Insider Monkey reported having stakes in B2Gold Corp (NYSE:BTG). The biggest hedge fund stakeholder of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34.3 million stake in B2Gold Corp (NYSE:BTG). In addition to BTG, hedge funds are also piling into The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
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Disclosure. None. 13 High-Growth Canadian Dividend Stocks To Invest In was initially published on Insider Monkey.