In this article, we discuss 11 best April dividend stocks to invest in. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Best April Dividend Stocks To Invest In.
Income investors have always favored dividend stocks because of their ability to generate consistent streams of income for them. However, with the new investment avenues emerging in the market, dividend stocks occasionally lose their appeal. This was witnessed in 2023 when dividend equities faded into the background because of the tech rally. That said, companies in the S&P 500 still paid record amounts of dividends last year, underscoring the significance of dividend stocks. According to a report by S&P Dow Jones Indices, the index distributed $588.2 billion in dividends to shareholders last year, up from $564.6 billion in 2022. In addition to this, 707 companies in the S&P 500 reported dividend increases in the fourth quarter of the year, totaling $17.5 billion, which also showed growth from $16.3 billion increases during the same period last year.
When investing in dividend stocks, there is a constant battle between dividend yields and dividend growth. While high yields may be attractive, focusing on dividend growth signifies the financial stability and strength of the company. That said, both high-yield stocks and dividend growers have given strong performances over the years in comparison to non-dividend stocks. A research paper published by New York University investigated the significance of dividend yields within dividend investing. The study created portfolios based on dividend yields at the start of every year from 1952 to 2002. The findings indicated that both high and low-dividend stocks delivered consistent performances, with one strategy outperforming the other during different timeframes. For example, from 1952 to 1971, high dividend portfolios outperformed those with low yields by nearly 3%. On the other hand, low-yield dividend stocks surpassed high-dividend stocks between 1971 and 1990.
Due to ongoing market fluctuations, analysts advise investors to keep including dividend stocks in their portfolios. Analysts’ inclination toward dividend stocks also comes from Meta’s announcement of its first-ever dividend, which indicates a growing trend of tech stocks joining the dividend club. With this announcement, financial experts have started examining the potential growth prospects of its dividend. Though Meta’s dividend growth in the coming years is still uncertain, the company is holding onto large cash reserves, which provides a solid foundation for maintaining its dividend payouts. This mainly illustrates the importance of dividend growth as a key factor in dividend investment strategy. Kirsten Cabacungan, an investment strategist in the Chief Investment Office for Merrill and Bank of America Private Bank, spoke about dividend growth stocks in one of the bank’s newsletters. Here is what she said:
“Companies that have consistently increased their dividends tend to be more stable, higher quality businesses, which historically have weathered downturns and are more likely to have the ability to pay dividends consistently.”
She further said:
“One mistake to avoid is to buy a company’s stock simply because it issues a high dividend. Always take into account prospects for both growth and income and how they align with your particular needs and goals.”
Analysts focus on dividend growth due to its potential to provide long-term benefits to shareholders. However, some investors do not seek long-term benefits but rather focus on short-term gains from dividend stocks through a dividend capture strategy. This approach involves purchasing shares of dividend stocks just before they trade ex-dividend, holding them long enough to receive the dividend payments, and then selling them shortly after. To learn more about this strategy, have a look at our article Dividend Capture Strategy: 10 High Yield Stocks To Buy in November. In this article, we will take a look at dividend stocks that will be trading ex-dividend in April 2024.
For this list, we selected dividend stocks that will trade ex-dividend in April 2024. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. These stocks have dividend yields above 2%, as of March 28. We also measured hedge fund sentiment around each stock, according to Insider Monkey’s Q4 2023 data of 933 elite funds. The list is ranked in ascending order of their ex-dividend dates. 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).
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment banking company that serves millions of customers in over 100 global markets. In the fourth quarter of 2023, the company reported revenue of over $38.5 billion, which showed an 11.8% growth from the same period last year. During the quarter, the company distributed $3.1 billion to shareholders through dividends, indicating its strong cash position.
On March 19, JPMorgan Chase & Co. (NYSE:JPM) declared a 10% hike in its quarterly dividend to $1.15 per share. With a dividend yield of 2.30% as of March 28, JPM is one of the best dividend stocks on our list. The stock will be trading ex-dividend on April 4.
At the end of Q4 2023, 103 hedge funds tracked by Insider Monkey reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 109 in the previous quarter. The overall value of these stakes is over $9 billion.
Carillon Tower Advisers mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2023 investor letter. Here is what the firm has to say:
“PNC Financial and JPMorgan Chase & Co. (NYSE:JPM) performed well due to more benign inflation data, which the market likely interpreted as a sign that a recession is now less likely to occur. Recall that historically speaking, banks are hyper-cyclical stocks and typically will trade lower if investors foresee a recession, because recessions tend to trigger loan losses.”
McCormick & Company, Incorporated (NYSE:MKC) is a Maryland-based food company that manufactures a wide range of spices, condiments, seasonings, and other flavoring products. The company currently pays a quarterly dividend of $0.42 per share, having raised it by 7.7% in November 2023. That was the company's 38th consecutive year of dividend growth, which makes MKC one of the best dividend stocks on our list. As of March 28, the stock has a dividend yield of 2.18%.
The number of hedge funds tracked by Insider Monkey owning stakes in McCormick & Company, Incorporated (NYSE:MKC) grew to 38 in Q4 2023, from 33 in the previous quarter. The consolidated value of these stakes is roughly $1.5 billion. With over 15 million shares, Fundsmith LLP was the company's leading stakeholder in Q4.
9. John Wiley & Sons, Inc. (NYSE:WLY)
Ex-Dividend Date: April 8
Next on our list of the best dividend stocks is John Wiley & Sons, Inc. (NYSE:WLY), which will be going ex-dividend on April 8. Commonly known as Wiley, the American publishing company specializes in academic publishing and instructional materials. On March 27, the company announced a quarterly dividend of $0.35 per share, which was in line with its previous dividend. In 2023, the company achieved its 30th consecutive year of dividend growth. The stock's dividend yield on March 28 came in at 3.69%.
John Wiley & Sons, Inc. (NYSE:WLY) ended the fourth quarter of 2023 with 27 hedge fund positions, growing significantly from 19 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of over $84.3 million.
Darden Restaurants, Inc. (NYSE:DRI) is a Florida-based restaurant company that owns and operates several casual dining restaurant brands. The company has raised its dividends multiple times since reinstating its payouts in 2020 and currently offers a quarterly dividend of $1.31 per share. The stock has a dividend yield of 3.13%, as of March 28.
As of the close of Q4 2023, 31 hedge funds in Insider Monkey's database held stakes in Darden Restaurants, Inc. (NYSE:DRI), which remained unchanged from the previous quarter. The collective worth of these stakes is nearly $567 million. Among these hedge funds, Steadfast Capital Management was the company's leading stakeholder in Q4.
The Buckle, Inc. (NYSE:BKE) is an American retail company that sells a wide selection of apparel, accessories, and footwear for men, women, and children. The company's quarterly dividend comes in at $0.35 per share and has a dividend yield of 3.50%, as recorded on March 28. Though the company's fourth-quarter revenue of $382.3 million fell by nearly 5% from the same period last year, its cash position remained strong. The company ended the year with over $268.2 million available in cash and cash equivalents, up from $252 million in the prior-year period.
Insider Monkey's database of Q4 2023 indicated that 20 hedge funds owned investments in The Buckle, Inc. (NYSE:BKE), compared with 22 in the previous quarter. These stakes are collectively valued at over $144.4 million. Ken Griffin's Citadel Investment Group was the largest stakeholder of the company in Q4.
American Tower Corporation (NYSE:AMT) ranks sixth on our list of the best dividend stocks. The American real estate investment trust company has raised its payouts for 13 years running. It currently pays a per-share dividend of $1.62 every quarter for a dividend yield of 3.29%, as of March 28.
According to Insider Monkey's Q4 2023 database of 933 hedge funds, 56 funds held stakes in American Tower Corporation (NYSE:AMT), down from 60 in the previous quarter. These stakes are worth over $3.2 billion in total.
