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11 Best Income Stocks To Buy Right Now

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·8 min read
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  • ED
  • CVX
  • WBA
  • KO
  • PBCTP
  • NWN
  • NNN
  • JNJ
  • PEP

In this article, we discuss the 11 best income stocks to buy right now. If you want to skip our detailed analysis of income-generating stocks, go directly to the 5 Best Income Stocks To Buy Right Now.

Income investing is a popular investment strategy, focused on building a portfolio that is carefully structured to generate a passive stream of regular income. Dividend investing is a sought-after technique by seasoned investors like Warren Buffett, Leon Cooperman, Cathie Wood, and John Armitage. For a sizable income from investing, income investors do not just need high yielding stocks, but they should also hold the stocks in their portfolio for a certain length of time to ensure that they can capitalize on the full potential of the returns.

According to AFH Wealth Management, stocks with a yield of more than 4% can allow income investors to generate a sizable amount from their portfolios. It is also wise to select stocks that have been known to constantly grow their dividend yield over the years, despite a bad economy, like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), Johnson & Johnson (NYSE:JNJ), and Chevron Corporation (NYSE:CVX). These stocks are immensely popular with the smart money as well.

11 Best Income Stocks To Buy Right Now
11 Best Income Stocks To Buy Right Now

Photo by Austin Distel on Unsplash

Our Methodology

Let’s dive into the 11 best income stocks to buy right now. We have picked stocks with over 4% yield, and at least five years of consistent dividend yield growth. For each stock we have mentioned its yield, along with the number of hedge funds holding a stake in it, ranking them based on their dividend yields.

Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Best Income Stocks To Buy Right Now

11. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Dividend Yield: 4.02%

Number of Hedge Fund Holders: 41

Number of Years of Consistent Dividend Growth: 46

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a globally recognized retail pharmacy, and is the market leader in the US and European pharmaceutical retail sector. It serves customers across 9 countries, providing them access to best quality medicines.

On October 14, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced earnings for Q3. The EPS was $1.17, beating estimates by $0.15. The revenue also exceeded analysts’ expectations at $34.26 billion by $869.13 million.

Truist analyst David MacDonald kept a Hold rating on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), and raised the price target from $52 to $56 on October 15.

Here is what Ariel Investments has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in their Q4 2020 investor letter:

“Walgreens Boots Alliance, Inc. has been essentially flat during our brief holding period. We have successfully owned Walgreens in the past. Recently, its share price has been pressured on concerns that Amazon may enter the prescription drug distribution business. As recently as 2015, Walgreens was a market favorite, trading at more than 20 times forward earnings. The company was expected to grow in good times and bad. Walgreens’ new clinics, designed to treat day-to-day healthcare needs such as flu shots and children’s ear infections, could be part of the solution for expensive emergency room overcrowding. Finally, trends toward generic pharmaceutics that began in 2015 are still considered a positive, as pharmacies have more influence in directing customers toward particular generics than with a patient seeking a patented drug prescribed by a doctor. Walgreens will face new competition going forward, but with its current depressed valuation, we believe the threats are more than discounted at an attractive stock price.”

10. Consolidated Edison, Inc. (NYSE:ED)

Dividend Yield: 4.06%

Number of Hedge Fund Holders: 30

Number of Years of Consistent Dividend Growth: 47

Consolidated Edison, Inc. (NYSE:ED) is one of the largest energy companies in the world which provides electricity, gas, and steam service to approximately 10 million residents of New York City and Westchester County. Consolidated Edison, Inc. (NYSE:ED) is leveraging the latest innovative tech and moving towards renewable energy for a sustainable future. Consolidated Edison, Inc. (NYSE:ED) is one of the top income stocks to buy now.

At the end of Q2, 30 hedge funds were long Consolidated Edison, Inc. (NYSE:ED), up from 22 in the previous quarter.

On October 21, Consolidated Edison, Inc. (NYSE:ED) declared a dividend of $0.775 per share, payable to shareholders on record as of November 17, on December 15. Consolidated Edison, Inc. (NYSE:ED) has consistently increased its dividends for over 47 years.

Like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), Johnson & Johnson (NYSE:JNJ), and Chevron Corporation (NYSE:CVX), Consolidated Edison, Inc. (NYSE:ED) is a top income stock to invest in.

9. People's United Financial, Inc. (NASDAQ:PBCT)

Dividend Yield: 4.08%

Number of Hedge Fund Holders: 24

Number of Years of Consistent Dividend Growth: 29

People's United Financial, Inc. (NASDAQ:PBCT) is a bank holding company that owns People’s United Bank, which is a financial services company with an asset portfolio of over $60 billion. The bank offers commercial and retail banking, in addition to wealth management services. People’s United Bank is the main subsidiary of People's United Financial, Inc. (NASDAQ:PBCT), with over 400 branches across Connecticut, New York, Massachusetts, Vermont, New Hampshire, and Maine. People's United Financial, Inc. (NASDAQ:PBCT) is one of the top income stocks to buy now, with a dividend yield of 4.08%.

At the end of June, 24 hedge funds tracked by Insider Monkey were bullish on People's United Financial, Inc. (NASDAQ:PBCT), up from 20 in the previous quarter.

8. Northwest Natural Holding Company (NYSE:NWN)

Dividend Yield: 4.24%

Number of Hedge Fund Holders: 11

Number of Years of Consistent Dividend Growth: 65

Northwest Natural Holding Company (NYSE:NWN) is a natural gas and energy company that caters to the residents of the Pacific Northwest region. The company is committed to providing clean energy and using innovative technology for a sustainable supply of gas in the years to come. Northwest Natural Holding Company (NYSE:NWN) is one of the top income stocks to buy now, with a dividend yield of 4.24%, and consistent dividend growth over 65 years.

At the end of June, 11 hedge funds were bullish on Northwest Natural Holding Company (NYSE:NWN), up from 10 in the previous quarter.

On October 14, it was reported that Northwest Natural Holding Company (NYSE:NWN) has raised the quarterly dividend to $0.4825 per share, which will be payable on November 15 to common shareholders as of October 29.

7. National Retail Properties, Inc. (NYSE:NNN)

Dividend Yield: 4.57%

Number of Hedge Fund Holders: 19

Number of Years of Consistent Dividend Growth: 32

National Retail Properties, Inc. (NYSE:NNN) is a Florida-based REIT owning a number of freestanding retail stores across the US. National Retail Properties, Inc. (NYSE:NNN) has over 3195 properties and more than 370 tenants, with an occupancy rate of 98.6%.

Of the 873 elite hedge funds tracked by Insider Monkey, 19 funds reported owning stakes in National Retail Properties, Inc. (NYSE:NNN) at the end of June, down from 22 in Q1.

Like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), Johnson & Johnson (NYSE:JNJ), and Chevron Corporation (NYSE:CVX), National Retail Properties, Inc. (NYSE:NNN) is one of the best income stocks to invest in.

6. Chevron Corporation (NYSE:CVX)

Dividend Yield: 4.72%

Number of Hedge Fund Holders: 50

Number of Years of Consistent Dividend Growth: 34

Chevron Corporation (NYSE:CVX) is a multinational energy giant and the second largest oil company in the US. Operating in more than 180 countries, Chevron Corporation (NYSE:CVX) is engaged in the oil and gas sector, exploring hydrocarbon exploration, chemical manufacturing, and power generation. Some of the most recognized brands by Chevron Corporation (NYSE:CVX) are Chevron, Caltex, and Texaco. Chevron Corporation (NYSE:CVX) is one of the best income stocks to buy now.

At the end of June, 50 hedge funds were bullish on Chevron Corporation (NYSE:CVX), up from 41 in the previous quarter.

Here is what ClearBridge Investments has to say about Chevron Corporation (NYSE:CVX) in its Q1 2021 investor letter:

“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”

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Disclosure: None. 11 Best Income Stocks To Buy Right Now is originally published on Insider Monkey.