In this article, we discuss the 10 safe dividend stocks with a yield above 3%. If you want to skip our detailed analysis of these stocks, go directly to 5 Sure Dividend Stocks Yielding Over 3%.
Investors are flocking to dividend stocks this year amid the broader bloodbath crushing growth stocks. Dividend stocks that are used to increasing their payouts have become attractive because they offer a kind of safety for investors hungry for certainty, as the Fed has no intention of slowing interest rate hikes.
Earlier this year, the Wall Street Journal cited Credit Suisse analysts, who said high-dividend stocks have continued to outperform companies with lower payouts since 2020. The WSJ report also quoted Max Wasserman, the founder of Miramar Capital, who said:
“If I have a choice between buying more of your stock from you or giving me the money…I’d rather have the money.”
Analysts believe the popularity of dividend-paying stocks is set to continue over the next year as investors now prefer stocks that pay stable payouts to growing companies that promise earnings far into the future, which is anything but. certain. The same WSJ article mentioned that as of May 24, the S&P 500 High Dividend Index was up 3.6% this year, compared to a 13% decline for the S&P 500 Buyback Index over the same period.
Beginner investors who are budget constrained are also crowding into dividend ETFs, which offer more diversification and risk mitigation.
For this article, we have selected dividend-paying stocks that are yielding more than 3% as of October 26. We also mentioned the number of hedge funds with holdings in these companies based on the Insider Monkey database of 865 hedge funds tracked at the end of the second quarter of this year. Our analysis also indicated that hedge funds prefer dividend stocks this year. They are also establishing large stakes in defensive players to prepare for a possible recession.
Dividend safe stocks with a yield above 3%
10. Real Estate Income Corporation (New York stock market :O)
Realty Income Corporation (NYSE:O) has become perhaps one of the most attractive dividend plays in 2022 for several reasons, the most important being the company’s monthly payouts. This monthly dividend stock, whose yield was more than 4% as of October 26, has increased its dividend for 26 years now. The current macroeconomic uncertainty and inflation did not prevent the company from breaking its dividend growth streak, as it announced a 0.2% increase in its dividend in October. Realty Income Corporation (NYSE:O) also recently announced that it invested approximately $1.8 billion in properties and properties under development or expansion in the third quarter, bringing its total investments to $5 billion.
Of the 895 hedge funds tracked by Insider Monkey, 19 held stakes in the company at the end of the June quarter, up from 22 in the previous quarter.
Stuart J. Zimmer’s Zimmer Partners was the company’s largest shareholder at the end of June with a stake worth more than $51 million.
9. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a high-yielding, dividend-paying stock that has seen its payout rise steadily over the past 47 years. The stock’s dividend yield is around 5.4% as of October 26. In October, the stock surged after the company reported strong fourth quarter results and also released guidance for fiscal year 2023. Fourth quarter revenue was $32.45 billion. dollars, exceeding estimates. . Walgreens Boots Alliance, Inc. (NASDAQ:WBA) increased its fiscal 2025 U.S. healthcare sales target to $11 billion to $12 billion, from the previous target from $9 billion to $10 billion. The segment is expected to achieve positive adjusted EBITDA by fiscal 2024.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) also reiterated its expectation of achieving teen-adjusted EPS growth in fiscal year 2025.
Hedge funds continue to pile on this strong stock despite macro volatility. 40 elite funds in the Insider Monkey database were WBA long at the end of the second quarter, up from 38 funds in the previous quarter. Stephen Dubois’ Camber Capital Management was the company’s largest shareholder at the end of the June quarter, as it held a $107 million stake in the company.
here Aristotle Capital Management Global Equity has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q1 2022 Letter to Investors:
“We first invested in Walgreens Boots Alliance in early 2013. During our ownership period, Walgreens merged with UK-based Boots Alliance, establishing itself as one of the leading retail pharmacy chains in the world. world. CEO Stefano Pessina has set the company on a path of pursuing strategic partnerships (as opposed to vertical integration agreements) to increase in-store traffic and, over time, transform the company into a health destination of neighborhood around a more modern pharmacy. Thanks to its strong generation of FREE cash flow, the company has stepped up its investments in technology, aimed at accelerating the digitization of health information. Mr. Pessina, however, failed to turn around the company’s U.S. retail segment and faced mounting pressure on reimbursement for prescription drugs. He stepped down as CEO in 2020 and in 2021 Roz Brewer took over as CEO. We admire Ms. Brewer’s impressive track record at companies such as Starbucks (NASDAQ:SBUX) and Walmart (Sam’s Club). However, given management’s decision to divest core cash-generating businesses and redeploy capital to embryonic healthcare startups, we prefer to step aside while we monitor the company’s progress. »
8. Telephone and Data Systems, Inc. (New York stock market :TD)
Telephone and Data Systems, Inc. (NYSE:TDS) is a United States-based telecommunications services company. Although the company has a market capitalization of only $1.8 billion, its dividend yield stands at 4.48% and it has steadily increased its dividend for the past 48 years. In September, Citi included the stock among its top buys in the communications sector.
Over the past 30 days, the stock is up 11%, as of October 26. Telephone and Data Systems, Inc. (NYSE:TDS) saw a spike in hedge fund sentiment in the second quarter. Of the 895 funds tracked by Insider Monkey, 16 funds reported holdings in the company at the end of the quarter, up from 12 funds in the prior quarter.
Several notable hedge funds are major players in TDS, as of the end of the second quarter. For example, the company’s largest stakeholder in our database was Mario Gabelli’s GAMCO, who reported holding a $27 million stake in the company at the end of June this year.
7. Stanley Black & Decker, Inc. (New York stock market :SWK)
Stanley Black & Decker, Inc. (NYSE: SWK) is a Fortune 500 company that sells household and hardware products. The stock has a dividend yield of 4% as of October 26. This company has increased its dividend for 55 years without interruption. Stanley Black & Decker, Inc. (NYSE: SWK) operates in the power tool market and is exposed to cyclical trends. It also has huge exposure to international markets, which creates problems when foreign currency headwinds are strong. The stock has lost 57% in value since the start of the year. However, analysts believe that the company could perform well when inflation starts to decline around the world.
At the end of the second quarter, 32 hedge funds tracked by Insider Monkey held stakes in Stanley Black & Decker, Inc. (NYSE: SWK). The total value of these interests was approximately $497 million. This is compared to 38 funds in the prior quarter that had holdings worth $922 million. Billionaire DE Shaw had a $99 million stake in the company at the end of the June quarter, according to the Insider Monkey database.
here what Saturna Capital Sextant Funds has to say about Stanley Black & Decker, Inc. in its Q3 2021 Letter to Investors:
“Stanley Black & Decker performed well during the first part of the year, but struggled over the summer. China accounts for a large portion of its production, and its zero-tolerance approach to measures security in the event of a pandemic has led to disruptions, compounded by difficulties in shipping and increased expenditure on materials. We continue to believe that one of the results of the pandemic will be a buoyant home improvement market, given that you never know when the next pandemic lockdown might happen.
6. Northwest Natural Holding Company (New York stock market :NWN)
Northwest Natural Holding Company (NYSE: NWN) is an Oregon-based natural gas supplier. The company is a non-fancy, headline-less dividend stock that has been increasing its payouts for 67 years. Its dividend yield is 4.16% as of October 26. In the second quarter, Northwest Natural Holding Company (NYSE: NWN) GAAP EPS came in at $0.05, beating street consensus by $0.07. Revenue for the period jumped 30.9% year over year to $37.75 million. Northwest Natural Holding Company (NYSE:NWN) reiterated its 2022 earnings forecast. It expects EPS to be between $2.45 and $2.65 per share against the consensus of $2.52.
More importantly, the utility company also reaffirmed its earnings per share growth rate target of 4% to 6% compounded annually from 2022 to 2027.
However, Northwest Natural Holding Company (NYSE:NWN) has recently seen a decline in interest in hedge funds. Only 10 funds in our database of 895 funds reported holdings in the company at the end of the second quarter, down from 22 in the first quarter.
Click to continue reading and view 5 Sure Dividend Stocks Yielding Over 3%.
Disclosure: none. 10 Sure Dividend Stocks Yielding Above 3% is originally published on Insider Monkey.