13 best-performing dividend stocks to invest in now

In this article, we’ll discuss the 13 best dividend stocks to invest in. Skip the detailed analysis of dividend stocks and their performance over the years and read directly. The 5 best-performing dividend stocks to invest in now.

Dividend-focused investors continue to struggle to find the right balance between dividend growth and dividend yield. Although many experts warn against falling into a yield trap, historical data suggests that high-yield stocks are performing well. However, combining both increasing dividends and high yields can be a powerful strategy for maximizing profits. One example is the S&P sector-neutral High Yield Dividend Aristocrats (HYDA) index. The index aims to blend dividend growth and higher relative yields while maintaining sector weights similar to the S&P Composite 1500. This index is known for its defensive characteristics. This has historically provided a buffer against market volatility, according to a report from S&P Dow Jones Indices. On average, he said, a measure of market volatility, the index outperformed the benchmark when the VIX level was above 20, with the strongest outperformance seen when the VIX level was above 30. . The report further states that for the period from January 31, 2005 to his July: As of 31/2023, the index’s overall return was similar to the benchmark. That said, his S&P sector-neutral HYDA has lower volatility over time compared to the benchmark, resulting in better risk-adjusted returns. Furthermore, the maximum drawdown experienced during that period decreased by approximately 5%, indicating a more resilient performance during market downturns.

Investors love high-dividend stocks, and given their earnings history, many companies strive to start, maintain, or increase their dividends. In a recent notable move, Meta Platforms, Inc. (NASDAQ:META) has begun paying quarterly cash dividends to shareholders. This move highlights the growing popularity of dividends in the market. In particular, Morningstar analysts have observed a significant increase in funds targeting high-dividend stocks, reaching $1 trillion in total funds. This figure has grown at a rate of 10% annually since 2018, indicating that interest in dividend investing is strong and expanding.

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Dividend stocks have consistently attracted attention due to their resilience and strong performance during past periods of inflation. Over time, dividends have made a significant contribution accounting for approximately 40% of the S&P 500’s total returns since 1930. However, in decades characterized by high inflation rates, such as the 1940s, 1970s, and 1980s, when inflation averaged 5%, dividends accounted for an even larger portion of total returns, at 54%. produces. Naveed Rahman, co-manager of Fidelity Equity Income Strategy, highlighted this trend. He also said that while investors seek the best-performing dividend stocks today, they may also need to look beyond the traditional industries and sectors that have historically dominated such investments. emphasized. The report further notes that companies that consistently pay sustainable and increasing dividends have the ability to grow their cash flows over time, which allows them to continue to manage inflationary pressures. did.

Walmart (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie (NYSE:ABBV) are some of the most prominent dividend stocks, as they have been increasing their dividends for decades. However, in this article, we will take a look at some of the best dividend stocks to invest in.

Our methodology:

For this list, we looked at the list of stocks with 52-week highs and focused on high-dividend stocks whose stock prices rose significantly during this period. We first selected 50 companies, narrowed them down by taking stock price growth into account, and finally selected the top 13 dividend stocks with the highest stock price growth as of February 26th, sorted in descending order of performance. We also mentioned hedge fund sentiment data for these stocks using the Insider Monkey database for Q4 2023. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail).

13. ONEOK, Inc. (NYSE:OKE)

12-month return as of February 26: 8.54%

ONEOK, Inc. (NYSE:OKE) is a diversified energy company operating primarily in the midstream sector of the natural gas industry. On January 17, the company announced a 3.9% increase in its quarterly dividend to $0.99 per share. This was the company’s second consecutive year of dividend increases. The dividend yield of the company’s stock as of February 26 was 5.35%. OKE, with a 12-month return of 8.54%, is one of the best performing stocks on our list.

27 hedge funds tracked by Insider Monkey reported holdings in ONEOK, Inc. (NYSE:OKE) at the end of Q4 2023, compared to 36 in the previous quarter. The total value of these stakes is over $593.2 million. Among these hedge funds, First Eagle Investment Management was the company’s major shareholder in the fourth quarter.

12. Sun Life Financial Co., Ltd. (NYSE:SLF)

12-month return as of February 26: 9.87%

Sun Life Financial Inc. (NYSE:SLF) is a leading Canadian international financial services organization offering a wide range of insurance products, including life, health, disability and critical illness insurance. On February 7, the company announced a quarterly dividend of C$0.78 per share, the same amount as its previous dividend. Overall, SLF has increased its dividend over the past eight years, making SLF one of the best-performing stocks on our list. The dividend yield of the company’s stock as of February 26 was 4.31%.

As of the end of the fourth quarter of 2023, 13 hedge funds tracked by Insider Monkey reported holdings in Sun Life Financial (NYSE:SLF), up from 12 in the previous quarter. It increased from The consolidated value of these shares is more than $98.6 million.

11.MPLX LP (NYSE:MPLX)

12-month return as of February 26: 13.01%

MPLX LP (NYSE:MPLX) is a diversified energy infrastructure company principally engaged in the transportation, storage, and distribution of energy products. With a 12-month return of 13.01%, MLPX is one of the best-performing stocks on our list. The company currently pays a quarterly dividend of $0.85 per share, with a dividend yield of 8.62% as of February 26th. It has consistently increased its dividend over the past 10 years.

At the end of December 2023, 9 hedge funds in Insider Monkey’s database reported owning shares of MPLX LP (NYSE:MPLX), the same as last quarter. The total value of these stakes is more than $56.8 million. Appaloosa Management LP held the largest stake in the company during the 4th quarter.

10. Energy Transfer LP (NYSE:ET)

12-month return as of February 26: 15.13%

Energy Transfer LP (NYSE:ET) operates a vast network of natural gas pipelines and storage facilities. These pipelines transport natural gas from production regions to market hubs, distribution points, and end users such as power plants, industrial facilities, and residential consumers. The company has increased its dividend for nine consecutive quarters and currently pays a quarterly dividend of $0.315 per share. The dividend yield as of February 26th is 8.57%.

According to Insider Monkey’s database, Energy Transfer LP (NYSE:ET) was part of 34 hedge fund portfolios at the end of Q4 2023, unchanged from the previous quarter. The total value of the stocks held by these hedge funds is over $824.3 million.

9. Wells Fargo & Company (NYSE:WFC)

12-month return as of February 26: 16.67%

Wells Fargo & Company (NYSE:WFC) comes next on the list of best-performing stocks with a 12-month return of 16.67%. The American diversified financial services company offers a quarterly dividend of $0.35 per share as of February 26, for a dividend yield of 2.56%.

According to Insider Monkey’s Q4 2023 database, 72 hedge funds own Wells Fargo & Company (NYSE:WFC) stock, compared to 77 in the previous quarter. . The consolidated value of these shares is more than $5.54 billion. Harris Associates held more than 23 million shares of his stock and was the company’s major shareholder in the fourth quarter.

8. Abbott Laboratories (NYSE:ABT)

12-month return as of February 26: 19.08%

Abbott Laboratories (NYSE:ABT) is a global healthcare company with operations in multiple sectors of the healthcare industry. The company paid a quarterly dividend of $0.55 per share, increasing by 7.8% in December 2023. This was the company’s 52nd consecutive annual dividend hike. The stock has delivered a return of 19.08% over the past 12 months, making ABT one of the best-performing stocks on our list. As of February 26, the stock’s dividend yield is 1.85%.

According to Insider Monkey’s Q4 2023 database, 64 hedge funds tracked by Insider Monkey reported holding shares in Abbott Laboratories (NYSE:ABT), compared to 69 in the previous quarter. Met. The total value of these shares is approximately $2.5 billion.

7. Union Pacific Corporation (NYSE:UNP)

12-month return as of February 26: 20.3%

Union Pacific Corporation (NYSE:UNP) is one of the largest railroad companies in the United States, operating an extensive rail network primarily in the western part of the country. The company pays a quarterly dividend of $1.30 per share as of February 26, giving it a dividend yield of 2.05%. With a trailing 12-month return of 20.3%, UNP is one of the best-performing stocks on our list of dividend-paying stocks.

At the end of Q4 2023, 90 hedge funds in Insider Monkey’s database held shares of Union Pacific Corporation (NYSE:UNP), unchanged from the previous quarter. The total value of these stakes is over $6.66 billion. Among these hedge funds, Soroban Capital Partners was the company’s largest shareholder in the fourth quarter.

6. CSX Corporation (NASDAQ:CSX)

12-month return as of February 26: 23.6%

CSX Corporation (NASDAQ:CSX) ranks No. 6 on our list of best-performing stocks. Large transportation and logistics companies primarily operate in the rail industry. We also provide intermodal transportation services that combine rail and trucks to move cargo containers and trailers. On February 14, the company announced a 9.1% increase in its quarterly dividend to $0.12 per share. With this dividend increase, the company achieved its 19th consecutive annual dividend increase. The stock’s dividend yield as of February 26 is 1.27%.

According to Insider Monkey’s Q4 2023 database, there are 61 hedge funds holding shares in CSX Corporation (NASDAQ:CSX), compared to 62 in the previous quarter. These shares are valued at $3.7 billion.

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Disclosure. none. 13 The best performing dividend stocks to invest in now Originally published on Insider Monkey.