10 Highest Dividend Stocks on Cash App
In this article, we discuss 10 highest dividend stocks on Cash App. You can skip our detailed analysis of investing through Cash App and the previous performance of dividend stocks, and go directly to read 5 Highest Dividend Stocks on Cash App.
In this digital age, our lives have seamlessly integrated with technology, transforming various facets—including finances. The transition from physical wallets to digital platforms has become increasingly prevalent. Cash App has emerged as a significant player in the realm of digital financial solutions, steadily gaining popularity and traction among users. The mobile payment service allows users to send, receive, and request money from friends, family, or businesses. Developed by Block, Inc. (NYSE:SQ), it offers a straightforward platform for peer-to-peer transactions, enabling individuals to link their bank accounts or debit cards to the app for seamless money transfers.
The growth of Cash App has been nothing short of impressive, showcasing its rapid ascent in the digital finance arena. Company statistics revealed that as of September 2023, Cash App boasted over 2 million active pay monthly users, marking a substantial doubling of its user base since June of the same year. This surge in active users highlights the app's increasing popularity and the growing trust users place in its services. Moreover, the numbers surrounding Cash App's Card product are equally remarkable, with a reported 22 million monthly users in the same month. The Cash App Card has evidently struck a chord with users, becoming a favored choice among millions seeking a convenient and versatile financial tool.
Also Read: 12 Best Cash App Stocks To Buy Now
The pandemic acted as a catalyst, accelerating the already growing trend of app usage, particularly in the realm of finance. With the limitations imposed by lockdowns and social distancing measures, people turned to online platforms for their shopping needs, emphasizing the significance of contactless payment methods. This shift in consumer behavior propelled the surge in app usage, allowing individuals to seamlessly adapt to a contactless and remote way of conducting transactions. The statistics speak volumes about this transition. The Bureau's estimation of an $893 billion transaction volume on these apps last year highlights the substantial reliance on digital payment methods. Moreover, their projection of this figure soaring to $1.6 trillion by 2027 signifies the sustained growth and prominence of these platforms in the coming years. Pew Research Center's findings further underscore this trend, revealing that more than three-quarters of American adults have embraced the convenience offered by popular payment apps.
Across various investment platforms, the fundamental priority for investors consistently revolves around generating cash flow. This emphasis on cash generation steers investors toward dividend stocks, renowned for their ability to provide regular income to shareholders. AT&T Inc. (NYSE:T), Pfizer Inc. (NYSE:PFE), and 3M Company (NYSE:MMM) are some of the best Cash App stocks that pay dividends to shareholders and have high yields. In this article, we will further discuss high-dividend stocks on Cash App.
Image by Steve Buissinne from Pixabay
Our Methodology:
For this list, we checked out a bunch of websites and videos that talk about dividend stocks you can find on Cash App. We wanted to see which stocks kept popping up as good choices across these credible websites and analyst reports. After looking through all that info, we picked out 10 stocks that stood out because their yields are more than 4%, as of December 18. The stocks are ranked in ascending order of their dividend yields.
10. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of December 18: 4.02%
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company primarily focused on developing and commercializing therapies and drugs to address various medical conditions. In the third quarter of 2023, the company posted revenue of roughly $14 billion, which beat analysts' estimates by $220 million. Its net interest expense for the quarter came in at $398 million.
AbbVie Inc. (NYSE:ABBV), one of the best Cash App stocks, currently pays a quarterly dividend of $1.55 per share, having raised it by 4.7% in October this year. This marked the company's 51st consecutive year of dividend growth. As of December 18, the stock has a dividend yield of 4.02%.
At the end of Q3 2023, 73 hedge funds tracked by Insider Monkey reported having stakes in AbbVie Inc. (NYSE:ABBV), compared with 74 in the previous quarter. The collective value of these stakes is over $3.27 billion.
Carillon Tower Advisers mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2023 investor letter. Here is what the firm has to say:
“AbbVie Inc. (NYSE:ABBV) reported strong, broad-based second-quarter performance that exceeded analysts’ expectations. The company’s raised guidance was a nice recovery after its mildly disappointing first-quarter report.”
9. International Business Machines Corporation (NYSE:IBM)
Dividend Yield as of December 18: 4.09%
International Business Machines Corporation (NYSE:IBM) is a multinational technology and consulting company that offers a wide range of products and services across various sectors of the tech industry. The company's dividend growth streak currently stands at 28 years and it pays a quarterly dividend of $1.66 per share. The stock's dividend yield on December 18 came in at 4.09%.
International Business Machines Corporation (NYSE:IBM) reported strong cash generation year-to-date with its operating cash flow coming in at $9.5 billion and its free cash flow for the period amounted to $5.1 billion. In the third quarter of 2023, the company returned approximately $1.5 billion to shareholders through dividends.
According to Insider Monkey's database of Q3 2023, 53 hedge funds owned stakes in International Business Machines Corporation (NYSE:IBM), up from 51 in the previous quarter. These stakes are collectively valued at more than $843 million.
8. Citigroup Inc. (NYSE:C)
Dividend Yield as of December 18: 4.25%
Citigroup Inc. (NYSE:C) is a global financial services company that operates in multiple segments of the financial industry, providing a broad range of financial products and services. The company's cash position remained strong in the third quarter of 2023 as it returned $1.5 billion to shareholders through dividends and share repurchases. In addition to this, its payout ratio came in at 48%.
One of the best Cash App stocks, C has a dividend yield of 4.25%, as of December 18. Citigroup Inc. (NYSE:C) currently pays a quarterly dividend of $0.53 per share and has been making regular dividend payments since 1990.
As of the close of Q3 2023, 79 hedge funds tracked by Insider Monkey reported having investments in Citigroup Inc. (NYSE:C), growing from 75 in the preceding quarter. These stakes are worth nearly $7 billion in total.
Silver Beech Capital mentioned Citigroup Inc. (NYSE:C) in its Q3 2023 investor letter. Here is what the firm has to say:
“Citigroup (“Citi”) is a large-capitalization global diversified financial services holding company that primarily serves multinational institutional and high net worth consumer clients. Citi is one of three large American banks to be designated in “bucket 3 or 4” of the “global systemically important bank” (“G-SIB”) framework by The Basel Committee on Banking Supervision. The other banks in this group are J.P. Morgan and Bank of America.
As a G-SIB, Citi is subjected to increased regulatory supervision by global bank regulators and central banks. Enhanced regulatory supervision was an important post-crisis reform to strengthen the global financial system by increasing bank capital ratios, transparency, and decreasing risk-taking. These reforms resulted in the largest G-SIBs moving away from risk-oriented banking activities such as advisory, high-yield lending, and trading, towards lower-risk activities. Indeed, Citi’s most valuable, high-growth segment, Treasury and Trade Solutions, is in lower-risk and entrenched activities such as liquidity and cash management, payments, trade solutions, and automated receivables processing. In our view, somewhat unintuitively, Citi’s increased regulatory supervision contributes to the company’s less risky banking business model, and thus its attractiveness as a downside-oriented investment opportunity. (Click here to see the full text)
7. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of December 18: 4.72%
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company renowned for its contributions to healthcare. The company declared a quarterly dividend of $0.60 per share on December 6, having raised it by 5.3%. This marked the company's 18th consecutive year of dividend growth, which makes BMY one of the best Cash App stocks on our list that pay dividends. As of December 18, the stock has a dividend yield of 4.72%.
In the third quarter of 2023, Bristol-Myers Squibb Company (NYSE:BMY) reported revenue of nearly $11 billion, which was in line with analysts' consensus. The company ended the quarter with over $7.5 billion available in cash and cash equivalents.
At the end of September 2023, 65 hedge funds owned stakes in Bristol-Myers Squibb Company (NYSE:BMY), compared with 66 in the previous quarter, according to our database. The collective value of these stakes is over $1.8 billion. With over 6.6 million shares, Two Sigma Advisors was the company's leading stakeholder in Q3.
6. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of December 18: 4.76%
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based retailer specializing in consumer electronics, technology products, and services. In the third quarter of 2023, the company reported a strong cash position as it had over $636 million available in cash and cash equivalents. In addition to this, it generated $290 million in operating cash flow. During the quarter, the company returned $603 million to shareholders through dividends.
Best Buy Co., Inc. (NYSE:BBY), one of the best Cash App stocks, currently pays a quarterly dividend of $0.92 per share. The company has been rewarding shareholders with growing dividends for the past 10 years. The stock's dividend yield on December 18 came in at 4.76%.
Insider Monkey's database of Q3 2023 showed that 28 hedge funds owned stakes in Best Buy Co., Inc. (NYSE:BBY), compared with 31 in the previous quarter. These stakes have a total value of more than $311.8 million.
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Disclosure. None. 10 Highest Dividend Stocks on Cash App is originally published on Insider Monkey.
