In this article, we discuss 14 best financial sector dividend stocks to invest in. You can skip our detailed analysis of the financial sector and its outlook for this year, and go directly to read 5 Best Financial Sector Dividend Stocks To Invest In.
2023 didn’t start out very rosy for the financial sector, marked by the sudden collapses of notable regional banks like Silicon Valley Bank, Signature Bank, and First Republic Bank. These downfalls were specifically concerning because of their widespread impacts, affecting various geographical regions. Bank shares remained under pressure throughout 2023, but they experienced a notable surge toward the end of October. This was fueled by growing confidence that the Federal Reserve would conclude its campaign of raising interest rates without causing a recession. Financials ended up finishing the year with positive returns, with the S&P 500 Financials delivering a 12.15% return to shareholders.
That said, since high-interest rates are still at play, the financial sector is not completely out of the dangers it suffered from in the spring of 2023. As CNBC reported, the Federal Reserve hasn’t started lowering its main interest rate, because of which banks still have massive amounts of unrealized losses from bonds and loans with low-interest rates on their financial records. This, along with possible losses from commercial real estate, puts large parts of the banking sector at risk. The report further mentioned that over 280 US banks, collectively holding nearly $900 billion in assets, face potential capital needs due to high levels of exposure to commercial real estate and losses related to interest rates.
Many financial analysts anticipate rate cuts in 2024 that could mainly influence the performance of bank stocks. Wells Fargo Chief Financial Officer Mike Santomassimo discussed the outlooked with Bloomberg and said:
“There are a number of factors that can impact our results, including the ultimate path of rates, the shape of the yield curve, quantitative tightening and fiscal deficits, consumer behavior and competitive behavior, to name just a few. All of which we have little to no control over.”
As a result of this, some of the biggest banks such as Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), and Citigroup Inc. (NYSE:C) have been crystal ball gazing and predicting declines in their net interest income(NII) for 2024. On the other hand, we saw how high-interest rates last year were beneficial for the biggest banks as they managed to amass $253 billion in NII, marking an increase of approximately $80 billion compared to the total in 2021. S&P Global also expects NII to decline in 2024, however, the firm also anticipates that banks will achieve a return on common equity ranging from 10% to 11% and will build their capital reserves by retaining earnings.
Financial companies are also known for paying dividends to shareholders. In fact, if we look at the recent data, we get to know that nearly half of the global increases in dividend payouts in 2023 originated from banks, exceeding their share in the total dividend payments, which is one-sixth, according to a report by Janus Henderson. The report also mentioned that the significant 15% rise, reaching a record $220 billion, primarily came from banks’ improved profitability due to the normalization of interest rates following years of loose monetary policies. In this article, we will take a look at some of the best dividend stocks from the financial sector.
Pixabay/Public Domain
Our Methodology:
For this list, we scanned Insider Monkey’s database of 933 hedge funds as of Q4 2023 and identified dividend stocks from the finance sector. These companies offer a wide range of financial services, including banking, insurance, investment management, and financial planning. From the resultant list, we picked 14 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them. 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.
In addition to covering topics like the best dividend stocks to buy, at Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, artificial intelligence technology is on the cusp of earth-shattering breakthroughs, so we identified the cheapest AI stock that is trading at less than 5 times its market value excluding cash and investments with the potential to deliver 100x returns. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free daily enewsletter on our website. Now, let’s take a look at the best financial sector dividend stocks to invest in.
14. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 48
BlackRock, Inc. (NYSE:BLK) is an American multinational investment management company that provides services to institutional and individual investors. In January this year, the company declared a 2% hike in its quarterly dividend to $5.10 per share. This marked the company’s 14th consecutive year of dividend growth, which makes BLK one of the best dividend stocks on our list from the financial sector. The stock has a dividend yield of 2.67%, as of May 4.
At the end of Q4 2023, 48 hedge funds tracked by Insider Monkey reported having stakes in BlackRock, Inc. (NYSE:BLK), down from 54 in the previous quarter. The consolidated value of these stakes is nearly $3 billion. With over 2 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
13. KeyCorp (NYSE:KEY)
Number of Hedge Fund Holders: 49
KeyCorp (NYSE:KEY) is a retail banking company, based in Ohio. The company offers a wide range of banking and financial products and services to individual investors and businesses. Its quarterly dividend currently comes in at $0.205 per share and has a dividend yield of 5.58%, as of May 4. The company has never missed a dividend payment since 1985, which makes KEY one of the best dividend stocks on our list.
The number of hedge funds tracked by Insider Monkey owning stakes in KeyCorp (NYSE:KEY) jumped to 49 in Q4 2023, from 42 in the previous quarter. These stakes have a total value of nearly $1.2 billion.
12. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 56
Moody’s Corporation (NYSE:MCO) is a New York-based financial services company that offers credit ratings and analytical solutions to investors and businesses. On February 15, the company declared a 10% hike in its quarterly dividend to $0.85 per share. Through this increase, the company stretched its dividend growth streak to 14 years, which places MCO on our list of the best dividend stocks from the financial sector. The stock’s dividend yield on May 4 came in at 0.90%.
As of the close of Q4 2023, 56 hedge funds held stakes in Moody’s Corporation (NYSE:MCO), compared with 58 in the previous quarter, as per Insider Monkey’s database. The total value of these stakes is more than $19 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
11. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 64
American Express Company (NYSE:AXP) is next on our list of the best dividend stocks from the financial sector. The American multinational bank holding and financial services company announced a 17% hike in its quarterly dividend to $0.70 per share on March 6. This was the company’s second dividend growth this year. The stock has a dividend yield of 1.19%, as of May 4.
American Express Company (NYSE:AXP) was a part of 64 hedge fund portfolios at the end of Q4 2023, down from 74 in the previous quarter, according to our database. The stakes held by these hedge funds have a total value of over $31.8 billion.
10. Fidelity National Information Services, Inc. (NYSE:FIS)
Number of Hedge Fund Holders: 66
Fidelity National Information Services, Inc. (NYSE:FIS) is a Florida-based finance company that offers a wide range of financial products and services. On April 25, the company declared a quarterly dividend of $0.36 per share, which was in line with its previous dividend. The stock has a dividend yield of 2.07%, as of May 4.
Fidelity National Information Services, Inc. (NYSE:FIS) reported a strong cash position in the fourth quarter of 2023. The company’s operating cash flow for the quarter came in at $1.5 billion and its free cash flow amounted to $1.1 billion. It also distributed $305 million to shareholders through dividends during the quarter, which makes FIS one of the best dividend stocks on our list.
Fidelity National Information Services, Inc. (NYSE:FIS) was a popular buy among elite funds in Q4 2023 with hedge funds positions jumping to 66, from 55 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $3.2 billion. With over 4.3 million shares, Lyrical Asset Management was the company’s leading stakeholder in Q4.
9. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 69
The Goldman Sachs Group, Inc. (NYSE:GS) is a global investment banking and investment management firm that provides related services to its consumers. On April 15, the company declared a quarterly dividend of $2.75 per share, which was consistent with its previous dividend. The stock has a dividend yield of 2.54%, as of May 4.
Insider Monkey’s database of Q4 2023 indicated that 69 hedge funds held stakes in The Goldman Sachs Group, Inc. (NYSE:GS), up from 68 in the previous quarter. The total value of these stakes is over $6.33 billion.
8. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is a California-based financial services company. The company has been paying regular dividends to shareholders since 1988 and currently offers a quarterly dividend of $0.35 per share. With a dividend yield of 2.33% as of May 4, WFC is one of the best dividend stocks on our list from the financial sector.
According to Insider Monkey’s database of Q4 2023, 72 hedge funds held stakes in Wells Fargo & Company (NYSE:WFC), compared with 77 in the previous quarter. The consolidated value of these stakes is more than $5.5 billion. With over 23 million shares, Harris Associates was the company’s leading stakeholder in Q4.
7. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 81
The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company that offers banking, commercial banking, and investment management services to its consumers. The company currently pays a quarterly dividend of $0.25 per share and has a dividend yield of 1.34%, as of May 4.
The number of hedge funds tracked by Insider Monkey owning stakes in The Charles Schwab Corporation (NYSE:SCHW) grew to 81 in Q4 2023, from 77 in the previous quarter. These stakes are collectively valued at over $5 billion.
6. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 82
S&P Global Inc. (NYSE:SPGI) is an American capital market company that provides services in financial information and analytics. On April 30, the company declared a quarterly dividend of $0.91 per share, which was in line with its previous dividend. Overall, it has been growing its dividends for the past 51 years, which makes SPGI one of the best dividend stocks in the financial sector. The stock has a dividend yield of 0.86%, as of May 4.
The number of hedge funds tracked by Insider Monkey owning stakes in S&P Global Inc. (NYSE:SPGI) grew to 82 in Q4 2023, from 78 in the previous quarter. These stakes have a collective value of over $8.88 billion. Among these hedge funds, TCI Fund Management was the company’s leading stakeholder in Q4.
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Disclosure. None. 14 Best Financial Sector Dividend Stocks To Invest Inis originally published on Insider Monkey.
In this article, we will take a look at the 12 best low-risk investments in April 2024. To skip our analysis of the recent market trends and market activity, you can go directly to see the 5 Best Low-Risk Investments in April 2024.
The stock market in 2024 presents a stark contrast to the landscape investors encountered at the onset of the coronavirus pandemic and in its immediate aftermath. Pre-pandemic, global stocks exhibited robust performance, fueling speculation that America’s reign as a global economic powerhouse might be waning, with emerging players like China poised to challenge U.S. dominance. More prevalently, inflation continued to rise in February, maintaining the Federal Reserve’s trajectory to delay any interest rate cuts until at least the summer.
In addition, a string of concerning developments began on March 11 with a New York Federal Reserve survey revealing an acceleration in consumer expectations over the longer term in February, with additional reports showing a 3.2% year-over-year increase in consumer prices. Finally, on March 14, concerns heightened further with the release of data indicating rising pipeline pressures at the wholesale level. The U.S. Bureau of Labor Statistics report added to the inflation worries, revealing a 0.6% increase in the producer price index for February, double the Dow Jones estimate.
However, given the American economy’s continued outperformance compared to global peers, the Federal Reserve has greater flexibility to maintain higher rates. This strategy aims to temper Wall Street’s reliance on easy money, a trend that emerged following the 2008 Great Recession and the recent coronavirus pandemic. In February 2024, the flagship Wall Street stock index, comprising the pinnacle of the American stock market, reached a milestone by surpassing 5,000 points for the first time. This marks a significant departure from late 2022 when widespread speculation suggested an impending recession, prompting cautious preparations from investors.
That said, committed long-term investors tend not to focus too much on sudden changes like these. Rather than being swayed by rapid changes and uncertainties, they opt to invest in shares of reliable companies known for their consistent performance, assessed over extended periods often spanning years or even decades. While the allure of investing in entirely risk-free stocks may be enticing, the reality is that no stock can guarantee 100% safety. However, it’s worth noting that certain stocks, including names like Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B), are notably more secure than others, thus making them some of the best low-risk investments out these.
A close-up of a computer monitor displaying real-time financial data on the stock market.
Our Methodology
Our process for shortlisting stocks for April 2024 involved several criteria: we looked for stocks with a beta value of less than 1.0, strong fundamentals, positive analyst ratings, and positive analyst price targets as of March 27. We then narrowed down our selection by excluding midcap or lower companies and stocks lacking stable and resilient dividend payouts. The remaining stocks were evaluated using Insider Monkey’s database of elite hedge funds tracked as of the fourth quarter of 2023. The top 12 stocks based on hedge fund sentiment, ranked in ascending order of hedge fund shareholders, have been included on our list.
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.
12. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 40
Beta Value: 0.14
General Mills, Inc. (NYSE:GIS) is a prominent American multinational company renowned for its production and marketing of branded processed consumer foods, widely distributed through retail channels. The company’s origins can be traced back to its establishment near Saint Anthony Falls in Minneapolis, along the Mississippi River, where it initially gained prominence as a significant flour milling operation.
As of the end of Q4 2023, Insider Monkey’s database indicated that 40 hedge fund investors had allocated their investments to General Mills, Inc. (NYSE:GIS). The largest shareholder of General Mills, Inc. (NYSE:GIS) was John Overdeck And David Siegel’s Two Sigma Advisors, holding approximately 3.48 million shares valued at about $226.99 million.
Much like Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B), General Mills, Inc. (NYSE:GIS) is one of the best low-risk investments in April 2024.
11. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 54
Beta Value: 0.41
Colgate-Palmolive Company (NYSE:CL) is a multinational corporation headquartered in Midtown Manhattan, New York City, situated on Park Avenue. The company specializes in manufacturing, distributing, and providing a diverse array of household, healthcare, personal care, and veterinary products.
With a dividend growth streak extending over 61 years, CL stands out as one of the premier low-risk investments in the market. Presently, it offers a quarterly dividend of $0.50 per share, boasting a dividend yield of 2.22% as recorded on March 27.
As of the close of Q4 2023, 54 hedge funds tracked by Insider Monkey reported having stakes in Colgate-Palmolive Company (NYSE:CL), up from 52 in the previous quarter. These stakes are worth nearly $3 billion in total. First Eagle Investment Management owned roughly 11 million CL shares, becoming the company’s leading stakeholder in Q4.
10. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 57
Beta Value: 0.77
Costco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses, primarily under the “Costco Wholesale” brand, offering high-quality, brand-name products at significantly lower prices compared to traditional wholesale or retail outlets.
As of March 27, Costco Wholesale Corporation (NASDAQ:COST) offers a quarterly dividend of $1.02 per share, resulting in a dividend yield of 0.56%. The company has demonstrated a consistent commitment to rewarding shareholders by increasing its dividend for the past 19 years.
According to data from Insider Monkey, Costco Wholesale Corporation (NASDAQ:COST) was included in 57 hedge fund portfolios at the end of Q4 2023, compared with 65 in the previous quarter. The stakes held by these hedge funds have a combined value of over $4 billion.
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 62
Beta Value: 0.59
Widely recognized as one of the best low-risk investments, The Coca-Cola Company (NYSE:KO) stands as a renowned multinational American corporation renowned for its production of the iconic beverage, Coca-Cola. Beyond its flagship product, the company actively participates in the manufacturing, distribution, and promotion of a diverse range of non-alcoholic beverage concentrates, syrups, and notably, alcoholic beverages within the beverage industry.
On December 13, investment advisory firm Citi maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $67 from $65.
As of the end of the fourth quarter of 2023, 62 hedge funds had stakes in Coca-Cola Co (NYSE:KO).
Hayden Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its third 2023 investor letter:
“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.
Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.
I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.
But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”
Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”
8. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 64
Beta Value: 0.53
Headquartered in Purchase, Harrison, New York, PepsiCo, Inc. (NASDAQ:PEP) stands as a leading American multinational corporation operating in the food, snack, and beverage sector. Renowned for its financial resilience, the beverage giant has maintained a consistent pattern of dividend growth for over 51 years. Presently, it offers a quarterly dividend of $1.27 per share, translating to a dividend yield of 2.89% as of March 27.
According to Insider Monkey’s database of Q4 2023, 64 hedge funds reported holding stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the preceding quarter. These stakes have a combined value of nearly $4.55 billion.
Along with Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B), PepsiCo, Inc. (NASDAQ:PEP) is a top low-risk investments in April 2024.
7. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 67
Beta Value: 0.50
CVS Health Corporation (NYSE:CVS) is a prominent healthcare entity with an extensive network of retail pharmacies and clinics across the nation. Operating under various brands, including CVS Pharmacy (a retail pharmacy chain), CVS Caremark (a pharmacy benefits manager), and Aetna (a health insurance provider), the organization plays a crucial role in the healthcare industry.
In the fourth quarter alone, CVS Health Corporation (NYSE:CVS) announced total revenues of $93.8 billion, representing a notable 11.9% increase from the previous year. The net income for the quarter amounted to $2 billion. Additionally, the company experienced a substantial 72.8% surge in operating income for the fiscal year 2023.
As of the conclusion of the fourth quarter in 2023, data from Insider Monkey’s database, which monitors 933 hedge funds, indicated that 67 hedge funds held positions in CVS Health Corporation (NYSE:CVS). Notably, Marshall Wace LLP, led by Paul Marshall and Ian Wace, emerged as a significant investor with a substantial stake in the company valued at $382.67 million.
6. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
Beta Value: 0.43
Established in 1837 by William Procter and James Gamble, The Procter & Gamble Company (NYSE:PG) stands as a global consumer goods corporation headquartered in Cincinnati, Ohio. Renowned for its extensive range of branded consumer packaged goods, the company distributes its products globally across segments that include Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. Presently, The Procter & Gamble Company (NYSE:PG) offers a quarterly dividend of $0.94 per share, equating to a yield of 2.32% as of March 27.
According to Insider Monkey’s database of Q4 2023, 71 hedge funds in Insider Monkey’s database reported having stakes in The Procter & Gamble Company (NYSE:PG), compared with 75 in the previous quarter. The total value of these stakes is roughly $6 billion. With over 10.5 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
The Procter & Gamble Company (NYSE:PG) joins the ranks of Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B) as one of the best low-risk investments in April 2024.
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Disclosure. None. 12 Best Low-Risk Investments in April 2024 is originally published on Insider Monkey.
In this piece, we will take a look at the 12 best single digit stocks to invest in. If you want to skip our coverage of affordable stocks and how they, like all other stocks such as small cap and large cap stocks, benefit and suffer from the broader macroeconomic environment, then you can take a look at the 5 Best Single Digit Stocks To Invest In.
Stocks can broadly be classified into three categories based on their market capitalization. Each of these represents firms whose shares operate with different dynamics within the broader market climate. The three primary stock categories are small, mid, and large caps, with the passage of time that has seen trillion dollar valuations the likes of NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) has also created new categories commonly called mega cap stocks.
Similarly, the proliferation of computing products across the financial industry has made stock trading easier, leading to thousands of firms in categories such as micro and nano cap stocks. These stocks, which include firms whose shares trade in the single digits, are on the more ‘affordable’ end of the spectrum in literal terms. Single digit stocks are a small upgrade over the broader category of well known stocks that are called penny stocks. Typically, these stocks refer to firms whose shares trade below $5, and when we consider the general benefits and drawbacks of investing, single digit stocks, and penny stocks follow the same rules.
Both offer a higher potential for larger percentage returns via share price appreciation. Similarly, since penny stocks and single digit stocks belong to companies that receive little media coverage, the potential of scammers exploiting unwitting investors is high. This is because during the initial stage of a ‘pump’ during a typical scam, the shares of a single digit or penny stock appreciate much faster than the media can respond to determine if the performance is driven by underlying fundamentals or other legitimate tailwinds. Then, as more investors pile on, should the price drop, then most people end up losing their money.
However, where there’s risk there’s a reward, and one key advantage that single digit stocks have over penny stocks is that since they also include firms whose shares trade between $5 and $10, the opportunities from profiting also increase with the growing comfort of a heftier share price. Additionally, another key benefit that is rather exclusive to single digit stocks is that they can often involve the shares of well established and sizeable foreign entities who also make their American Depository Receipts (ADRs) available for trading on American stock markets.
This trend is present predominantly in the banking sector, with foreign or ex-US banks such as Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), Lloyds Banking Group plc (NYSE:LYG), and Banco Santander, S.A. (NYSE:SAN) being apt examples. Each of these is a major player in the financial systems of their countries, with a role similar to U.S. banking giants such as JPMorgan Chase & Co. (NYSE:JPM) and The Goldman Sachs Group, Inc. (NYSE:GS).
Therefore, investing in single digit stocks offers a chance of stability as well as profit taking. Continuing with our example of single digit banking stocks, MUFJ’s shares are up by a respectable 16% year to date, despite the fact that Japan’s economy, like other developed peers such as the United Kingdom and Germany, is not performing well. Similarly, even though Britain is officially in recession territory, Lloyd’s stock has shed just 6% over the past twelve months and had the shares not dropped in January, then just like the British economy, the stock would also be nearly flat in growth terms.
Before we head to our list of the best single digit stocks, it’s important to also keep in mind recent stock market and economic news. With NVIDIA Corporation (NASDAQ:NVDA)’s blockbuster earnings out of the way, investors will now focus on interest rates and U.S. GDP growth – both of which are quite interlinked. Starting with the latter, S&P Global Inc. (NYSE:SPGI), ahead of its flagship S&P 500 crossing the coveted 5,000 point barrier and setting a new record, also upgraded its forecasts for U.S. economic growth in 2024. The ratings agency now believes that the American economy will grow by 2.4% in 2024, for a significant upward revision over the previous estimate of 1.5%. As this would hint on its own, the Federal Reserve’s latest meeting minutes also show that the central bank is worried about cutting rates too soon rather than too late.
So, with single digit stocks offering the promise of returns and stability, we decided to look at what stocks hedge funds are buying. Some notable picks are Southwestern Energy Company (NYSE:SWN), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Transocean Ltd. (NYSE:RIG).
A close up of hands counting a vast stack of money in a bank vault.
Our Methodology
To make our list of the best single digit stocks to buy, we ranked the 60 most valuable single digit stocks in terms of market capitalization by the number of hedge funds that had bought the shares as of December 2023. Out of these, the single digit stocks with the highest number of hedge fund investors were chosen.
For these best single digit stocks, we have also 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.
12 Best Single Digit Stocks To Invest In
12. Garrett Motion Inc. (NASDAQ:GTX)
Number of Hedge Fund Investors In Q4 2023: 32
Garrett Motion Inc. (NASDAQ:GTX) is an American car parts manufacturer that sells performance products like turbos for cars and air compressors for industrial use. It marks a slow start to our list of the best single digit stocks by having beaten analyst EPS estimates in only one of its four latest quarters.
Insider Monkey dug through 933 hedge funds for their fourth quarter of 2023 shareholdings to find out that 32 had invested in the firm. The largest Garrett Motion Inc. (NASDAQ:GTX) shareholder in our database is Howard Marks’s Oaktree Capital Management courtesy of its $426 million stake.
Along with, Warner Bros. Discovery, Inc. (NASDAQ:WBD), Southwestern Energy Company (NYSE:SWN)and Transocean Ltd. (NYSE:RIG), Garrett Motion Inc. (NASDAQ:GTX) is a top single digit stock that hedge funds are piling into.
11. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Investors In Q4 2023: 32
Marqeta, Inc. (NASDAQ:MQ) is an American software company that provides financial technology products to help users to issue cards and run other functions. Amidst a tumultuous run on the earnings front that has seen the firm miss estimates several times, the shares received a boost in February 2024 when Bank of America upgraded them to Buy from Neutral and cited the potential for Marqeta, Inc. (NASDAQ:MQ)’s top line to grow by 20%.
By the end of 2023’s December quarter, 32 out of the 933 hedge funds profiled by Insider Monkey had bought a stake in Marqeta, Inc. (NASDAQ:MQ). Jim Simons’ Renaissance Technologies was the firm’s biggest hedge fund shareholder since it owned $76 million worth of shares.
10. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Investors In Q4 2023: 33
Newell Brands Inc. (NASDAQ:NWL) is a diversified consumer goods firm that sells products like coffee and cleaning items. Unlike Marqeta, whose shares soared in 2024, Newell Brands Inc. (NASDAQ:NWL)’s fell to record lows in February 2024 after its full year earnings guidance disappointed investors.
As of December 2023 end, 33 out of the 933 hedge funds covered by Insider Monkey’s research had held a stake in the firm. Newell Brands Inc. (NASDAQ:NWL)’s largest stakeholder among these is Richard S. Pzena’s Pzena Investment Management due to its $469 million investment.
9. Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Investors In Q4 2023: 33
Clarivate Plc (NYSE:CLVT) is a sizeable British technology company that allows researchers and others to consolidate, analyze, and work with their data. A key stock to watch amidst the current AI wave, its shares are rated Buy on average but the average analyst share price target offers no upside.
For their fourth quarter of 2023 shareholdings, 33 out of the 933 hedge funds tracked by Insider Monkey had bought and owned Clarivate Plc (NYSE:CLVT)’s shares. Leonard Green’s Leonard Green & Partners was the biggest investor since it owned $1 billion worth of shares.
8. BGC Group, Inc. (NASDAQ:BGC)
Number of Hedge Fund Investors In Q4 2023: 34
BGC Group, Inc. (NASDAQ:BGC) is an American brokerage that deals in a wide variety of investment products and securities. It’s one of the more interesting stocks on our list of the best single digit stocks since while the shares soared after BGC Group, Inc. (NASDAQ:BGC) announced record earnings results in February 2024, they ended up reversing all the gains a week later.
During December 2023, 34 out of the 933 hedge funds covered by Insider Monkey’s research held a stake in BGC Group, Inc. (NASDAQ:BGC).
7. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Investors In Q4 2023: 36
Kinross Gold Corporation (NYSE:KGC) is a Canadian gold company with operations in the U.S., Canada, and other countries. With gold seeing increased demand all over the world over the past twelve months, Kinross Gold Corporation (NYSE:KGC) has done well on the earnings front by having beaten analyst EPS estimates in all four of its latest quarters.
By the end of 2023’s final quarter, 36 out of the 933 hedge funds profiled by Insider Monkey were the firm’s shareholders. Kinross Gold Corporation (NYSE:KGC)’s largest hedge fund stakeholder is Jim Simons’ Renaissance Technologies due to its $178 million stake.
6. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Investors In Q4 2023: 37
Grab Holdings Limited (NASDAQ:GRAB) is a Singaporean software company whose app provides users with a unified platform to order goods, and rides, and avail of other services. Even though the firm sought to woo investors with a share repurchase program, its full year 2023 earnings report still led to a sizeable share price drop due to a $2.75 billion 2024 revenue guidance that fell short of analyst estimates.
After digging through 933 hedge fund portfolios for last year’s fourth quarter, Insider Monkey found that 37 had bought and owned Grab Holdings Limited (NASDAQ:GRAB)’s shares. Chase Coleman and Feroze Dewan’s Tiger Global Management LLC was the biggest investor since it owned $172 million worth of shares.
Southwestern Energy Company (NYSE:SWN), Grab Holdings Limited (NASDAQ:GRAB)Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Transocean Ltd. (NYSE:RIG) are some top hedge fund single digit stock picks.
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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.
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In this piece, we will take a look at the 14 best medical stocks to invest in according to hedge funds. If you want to skip our overview of the medical and healthcare industry, then you can take a look at the 5 Best Medical Stocks To Invest In According to Hedge Funds.
The medical and healthcare industry is one of the biggest in the world. The medical industry is assured of a steady demand for its products and services simply due to the fact that human beings are biological creatures. This means that medical stocks such as Pfizer Inc. (NYSE:PFE) and hospital stocks such as Tenet Healthcare Corporation (NYSE:THC) are some of the biggest in the world. It also means that these stocks have the potential to capitalize on trends that can suddenly appear due to crises such as the coronavirus pandemic. While the fast paced nature of news cycles in the 21st century means that public focus quickly changes focus, in the immediate aftermath of the pandemic’s rapid spread in 2020, investors were fretting and would have given an arm and a leg to prod the crystal ball into telling them which medical stock would be the right bet when it came to navigating the global healthcare prices.
As time would tell, medical stocks like Pfizer and the Cambridge, Massachusetts based biotechnology company Moderna, Inc. (NASDAQ:MRNA) were some of the hottest due to their vaccines. During the roughly year and a half between December 2019 and September 2021, Moderna’s shares appreciated by a whopping 429% on the stock market – a result that shows that even small bets made at just the right time can yield juicy profits for investors from all walks of life. Pfizer’s stock gained a more modest 50% during the same time period; but the difference between these gains is one that is understandable since Pfizer’s current market capitalization of $155 billion is more than four times of Moderna’s.
Additionally, another key difference between Moderna and Pfizer also applies to the broader categories of medical stocks that include high growth sectors such as biotechnology and somewhat more stable ones like medical device manufacturers and hospital operators. Pfizer, like its peers Eli Lilly and Company (NYSE:LLY), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK), benefits from one of the classic principles of business management, a.k.a, diversification. These medical stocks have the luxury of sizeable balance sheets that allow them to participate in markets for simple medicines that can be produced at mass scale like blood thinners, as well as medical industry segments requiring massive capital expenditure and research capabilities such as biotechnology and genetic engineering.
However, with genetic engineering having entered the conversation, this particular area of medicine benefits from smaller companies that are able to laser focus on being able to change the very ‘code’ of the human body. At the same time, while the glitzy and glamorous nature of high technology areas such as artificial intelligence means that the bulk of public and media attention remains focused on them, recent months have also seen medical stocks involved in the genomics industry make strides. If you’re interested, you can check out 12 Best Genomics Stocks To Buy Now for a detailed look at these stocks.
So what’s big in genomics? Well, medical stocks Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and BridgeBio Pharma, Inc. (NASDAQ:BBIO) scored big wins in December 2023 when the Food and Drug Administration (FDA) approved the first therapies for sickle cell disease that use gene therapy. According to Yale Medicine, Vertex’s Casgevy essentially ‘slices’ a patient’s DNA to improve odds of fighting sickle cell disease while BBIO’s Lyfgenia introduces substances that improve blood health.
Yet, mega medical stocks Eli Lilly and Novo Nordisk A/S (NYSE:NVO) are also all the hype these days as their medications finally provide an off the shelf solution to lose weight. So much so that Eli Lilly’s shares are up by a whopping 380% since 2020 while Novo Nordisk’s stock has gained 275% over the same time period. Weight loss drugs are now a no longer a thing of the future, and investors have baked in their potential into medical stocks as well. You can read 11 Best Weight Loss Stocks To Invest In for more details.
With these details, let’s look at some top medical stocks. Some notable picks are Thermo Fisher Scientific Inc. (NYSE:TMO), Danaher Corporation (NYSE:DHR), and UnitedHealth Group Incorporated (NYSE:UNH).
A veterinarian conducting a physical exam on a four-legged patient in a veterinary hospital, highlighting the company’s work in veterinary health.
Our Methodology
To make our list of the best medical stocks to buy, we ranked the forty most valuable healthcare stocks by the number of hedge funds that had bought the shares as of Q4 2023 end. Out of these, the top stocks were selected as the best medical stocks.
For these best medical stocks, we used 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.
14 Best Medical Stocks To Invest In According to Hedge Funds
14. Boston Scientific Corporation (NYSE:BSX)
Number of Q4 2023 Hedge Fund Shareholders: 71
Boston Scientific Corporation (NYSE:BSX) is a medical devices company whose products help with disease diagnosis, disease management, imaging, and other areas. The shares are rated Strong Buy on average, and the average analyst share price target is $70.82.
As of Q4 2023 end, 71 out of the 933 hedge funds profiled by Insider Monkey had held a stake in Boston Scientific Corporation (NYSE:BSX). Ken Griffin’s Citadel Investment Group was the biggest Boston Scientific Corporation (NYSE:BSX) shareholder through its $519 million investment.
13. HCA Healthcare, Inc. (NYSE:HCA)
Number of Q4 2023 Hedge Fund Shareholders: 72
HCA Healthcare, Inc. (NYSE:HCA) serves as the customer facing end of the medical supply chain since it owns and operates hospitals all over the U.S. It’s been performing well on the financial front as of late by having beaten analyst EPS estimates in three out of its four latest quarters. To wit, the shares are also rated Strong Buy on average, and the average analyst share price target is $324.
During Q4 2023, 72 out of the 933 hedge funds part of Insider Monkey’s database had bought and owned HCA Healthcare, Inc. (NYSE:HCA)’s shares. Jean-Marie Eveillard’s First Eagle Investment Management was the biggest investor in our database as it owned $1.2 billion worth of shares.
HCA Healthcare, Inc. (NYSE:HCA) joins Danaher Corporation (NYSE:DHR), Thermo Fisher Scientific Inc. (NYSE:TMO), and UnitedHealth Group Incorporated (NYSE:UNH) in our list of the best medical stocks to buy.
12. AbbVie Inc. (NYSE:ABBV)
Number of Q4 2023 Hedge Fund Shareholders: 76
AbbVie Inc. (NYSE:ABBV) is a healthcare and pharmaceutical company headquartered in Chicago, Illinois. It scored a win in February 2024 when its medicine for Parkinson’s disease was cleared for sale in Canada.
As of December 2023 end, out of the 910 hedge funds covered by Insider Monkey’s research, 76 had invested in AbbVie Inc. (NYSE:ABBV). Paul Marshall and Ian Wace’s Marshall Wace LLP was the biggest investor as it owned 3.1 million shares that were worth $491 million.
11. The Cigna Group (NYSE:CI)
Number of Q4 2023 Hedge Fund Shareholders: 76
The Cigna Group (NYSE:CI) marks the entry of the financial domain into our list of the best medical stocks since it is a healthcare plan provider. It’s also one of the stronger stocks on our list when it comes to dividends as the firm announced a $1.40 dividend per share for a 1.50% yield in February 2024.
Insider Monkey scanned 933 hedge fund portfolios for their December quarter of 2023 shareholdings to discover that 76 had invested in the firm. The largest The Cigna Group (NYSE:CI) stakeholder is Larry Robbins’s Glenview Capital due to its $641 million stake.
10. Pfizer Inc. (NYSE:PFE)
Number of Q4 2023 Hedge Fund Shareholders: 79
Pfizer Inc. (NYSE:PFE) is one of the biggest pharmaceutical companies in the world. The firm expanded its social credibility earlier this month when it teamed up with the American Cancer Association (ACA) as part of an impressive $15 million initiative to increase awareness about cancer screenings.
Insider Monkey dug through 933 hedge fund portfolios for their fourth quarter of 2023 investments and found that 79 were the firm’s investors. The largest Pfizer Inc. (NYSE:PFE)’s shareholder out of these is D. E. Shaw’s D E Shaw due to its $418 million investment.
9. Johnson & Johnson (NYSE:JNJ)
Number of Q4 2023 Hedge Fund Shareholders: 81
Johnson & Johnson (NYSE:JNJ) is the iconic American personal wellness and healthcare company with a storied past. The firm is having an eventful February 2024 as its CEO was grilled by U.S. Senators on the sensitive issue of high drug prices for working class Americans.
81 out of the 933 hedge funds covered by Insider Monkey’s Q4 2023 research had bought Johnson & Johnson (NYSE:JNJ)’s shares. Ken Fisher’s Fisher Asset Management was the biggest investor, owning 6.3 million shares that are worth $996 million.
Thermo Fisher Scientific Inc. (NYSE:TMO), Johnson & Johnson (NYSE:JNJ), Danaher Corporation (NYSE:DHR), and UnitedHealth Group Incorporated (NYSE:UNH) are some top medical stocks that hedge funds are piling into.
8. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Q4 2023 Hedge Fund Shareholders: 82
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the most advanced medical stocks in the world since it is among a handful of companies with a successful surgical robot. The fourth quarter of 2023 saw the firm maintain its growth trajectory as the DaVinci platform grew procedures by 21%.
For their fourth quarter of 2023 investments, 82 out of the 933 hedge funds tracked by Insider Monkey were the firm’s shareholders. Intuitive Surgical, Inc. (NASDAQ:ISRG)’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management through its $1.5 billion stake.
7. Elevance Health, Inc. (NYSE:ELV)
Number of Q4 2023 Hedge Fund Shareholders: 83
Elevance Health, Inc. (NYSE:ELV) provides healthcare coverage plans and is one of the older medical stocks on our list since it was set up in 1944. Like other healthcare plan providers, while it managed to beat analyst EPS estimates for 2023’s first three quarters, the fourth quarter ended up being an inevitable miss in hindsight.
During December 2023, 83 out of the 933 hedge funds part of Insider Monkey’s database were the firm’s investors. Elevance Health, Inc. (NYSE:ELV)’s largest stakeholder among these is Jean-Marie Eveillard’s First Eagle Investment Management as it owns $838 million worth of shares.
6. Humana Inc. (NYSE:HUM)
Number of Q4 2023 Hedge Fund Shareholders: 86
Humana Inc. (NYSE:HUM) is another healthcare plan provider. The firm was out with some bad news for investors in February 2024 when it revealed that federal rates for its products had disappointed. However, the firm did maintain guidance for 2025.
By the end of last year’s fourth quarter, 86 out of the 933 hedge funds covered by Insider Monkey’s research had bought a stake in Humana Inc. (NYSE:HUM). Ken Griffin’s Citadel Investment Group owned the biggest stake which was worth $688 million.
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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.
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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).
Click to continue reading and see the 5 High-Growth Canadian Dividend Stocks To Invest In.
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Disclosure. None. 13 High-Growth Canadian Dividend Stocks To Invest In was initially published on Insider Monkey.