In this article, we discuss 14 best NASDAQ dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their returns over the years, and go directly to read 5 Best NASDAQ Dividend Stocks To Buy.
NASDAQ is commonly associated with technology and growth-oriented companies that usually don't pay dividends but there are many dividend-paying stocks listed on the exchange as well. Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) are some of the best dividend stocks listed on the index.
The average dividend yield for stocks in the NASDAQ 100 is currently 1.03%, which is lower than the average dividend yield of 1.6% for companies in the S&P 500. One of the main reasons for NASDAQ’s low dividend yield is that the index primarily consists of companies in the technology and growth sectors, which tend to reinvest their earnings back into the business for research and development, expansion, or acquisitions. These companies often prioritize growth and innovation over distributing dividends to shareholders. As a result, they may have lower dividend payout ratios, resulting in a lower dividend yield for the index as a whole. On the other hand, Dow Jones Industrial Average includes companies from various sectors, including more traditional sectors such as industrials, consumer goods, and utilities that tend to have higher dividend-paying stocks.
Since the start of 2023, there has been a resurgence of interest in growth tech stocks within the market. These stocks, which had faced significant challenges in the previous year, are now experiencing renewed attention and investor enthusiasm. NASDAQ is up 31.69% year-to-date, which represents its biggest increase during the first half of the year since 1983 when it rose by 37%. Moreover, the total value of companies in the Nasdaq 100 has surged by almost $5 trillion so far this year, as we reported in our article 12 Best NASDAQ Penny Stocks to Buy. According to a report by Fortune, the Nasdaq had its best performance since the dotcom bubble peak in late 1999, for either the first or second half of any year. The increased investor interest indicates that technology stocks are expected to continue experiencing growth in the second half of the year.
Tony DeSpirito, BlackRock's CIO for fundamental equities, spoke with Fortune and expressed that the current enthusiasm surrounding AI is more authentic, which has mainly contributed to the growth of the tech sector this year. Here are some comments from the analyst:
“The demand is really real. You can contrast what is going on in AI versus [enthusiasm for] the metaverse or virtual reality a year or two ago. The orders are really there. The earnings growth is coming.”
Dividend-paying stocks, including those on Nasdaq, are often associated with more established companies that have a track record of generating stable earnings and cash flows. This stability can make dividend stocks less volatile than growth stocks, which may attract investors seeking more predictable returns. In this article, we have compiled a list of some of the best dividend stocks listed on NASDAQ.
For this list, we scanned Insider Monkey’s database of 943 hedge funds as of the first quarter of 2023 and selected companies that are trading on the NASDAQ exchange and also pay dividends to shareholders. From that list, we picked 14 stocks with the highest number of hedge fund investors and ranked in ascending order of hedge funds’ sentiment toward them.
Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biopharmaceutical company that specializes in the research and development of antiviral drugs. The company has been growing its dividends for eight years running and currently pays a quarterly dividend of $0.75 per share. With a dividend yield of 3.88% as f July 6, GILD is one of the best dividend stocks on our list.
Other best NASDAQ dividend stocks include Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL).
In the first quarter of 2023, Gilead Sciences, Inc. (NASDAQ:GILD) reported revenue of $6.35 billion, which beat analysts' estimates by $20 million. The company's cash position remained stable as it generated $1.7 billion in operating cash flow during the quarter. It also returned $969 million to shareholders in dividends.
At the end of Q1 2023, 60 hedge funds in Insider Monkey's database reported having stakes in Gilead Sciences, Inc. (NASDAQ:GILD), with a total value of roughly $4 billion. With over 5.2 million shares, Two Sigma Advisors was the company's leading stakeholder in Q1.
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational technology company that designs, manufactures, and sells networking equipment, software, and related services. The company is also known for its cloud and security solutions.
In fiscal Q3 2023, Cisco Systems, Inc. (NASDAQ:CSCO) generated $14.57 billion in revenues, which showed a 13.5% growth from the same period last year. The company's operating cash flow also showed a 43% year-over-year growth at $5.2 billion. During the quarter, it returned $1.6 billion to shareholders in dividends, which makes it one of the best dividend stocks on our list.
Cisco Systems, Inc. (NASDAQ:CSCO) currently offers a quarterly dividend of $0.39 per share and has a dividend yield of 3.03%, as of July 6. The company holds a 12-year streak of consistent dividend growth.
Of the 943 hedge funds tracked by Insider Monkey at the end of Q1 2023, 61 funds owned stakes in Cisco Systems, Inc. (NASDAQ:CSCO), worth collectively $2.5 billion.
CSX Corporation (NASDAQ:CSX) is a Florida-based transportation company that is primarily engaged in rail freight transportation. It is one of the best dividend stocks on our list as it has been growing its dividends consistently for the past 18 years. The company pays a quarterly dividend of $0.11 per share and has a dividend yield of 1.31%, as of July 6.
CSX Corporation (NASDAQ:CSX) reported strong earnings in the first quarter of 2023, driven by volume growth in merchandise and coal. The company's revenue for the quarter came in at $3.71 billion, which showed an 8.8% growth from the same period last year. Its operating cash flow amounted to over $1.25 billion and its free cash flow was $816 million.
As of the close of Q1 2023, 61 hedge funds in Insider Monkey's database reported having stakes in CSX Corporation (NASDAQ:CSX), compared with 66 in the previous quarter. These stakes have a collective value of over $4 billion. Soroban Capital Partners was the company's leading stakeholder with a $1.5 billion worth of stake.
Costco Wholesale Corporation (NASDAQ:COST) is a multinational retail corporation that operates a chain of membership-based warehouse clubs. In fiscal Q3 2023, the company reported revenue of $53.6 billion, which was up 2% from the prior-year period. At the end of May 31, it had $12.5 billion available in cash and cash equivalents, compared with $10.2 billion from the same period last year.
Costco Wholesale Corporation (NASDAQ:COST), one of the best dividend stocks, offers a quarterly dividend of $1.02 per share. The company has raised its dividends for 19 years straight. The stock's dividend yield on July 6 came in at 0.76%.
According to Insider Monkey's database of Q1 2023, 63 hedge funds owned stakes in Costco Wholesale Corporation (NASDAQ:COST), with a total value of over $1.8 billion.
Comcast Corporation (NASDAQ:CMCSA) is next on our list of the best dividend stocks. On May 17, the company declared a quarterly dividend of $0.29 per share, which was in line with its previous dividend. The company maintains a 15-year streak of consistent dividend growth. As of July 6, the stock has a dividend yield of 2.83%.
Comcast Corporation (NASDAQ:CMCSA) is a multinational telecommunications and media conglomerate that operates in various sectors of the industry. The company's primary focus is on cable communications, where it is one of the largest providers of cable television and high-speed internet services in the US.
In the first quarter of 2023, Comcast Corporation (NASDAQ:CMCSA) posted an EPS of $0.92 and revenue of $30 billion, which beat Street's estimates by $0.10 and $350 million, respectively. The company also generated sufficient cash to fulfill its shareholder obligation. Its operating cash flow for the quarter came in at $7.22 billion and its free cash flow amounted to $3.8 billion.
At the end of the March quarter, 68 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA), compared with 72 in the previous quarter. These stakes are collectively worth $3.75 billion.
QUALCOMM Incorporated (NASDAQ:QCOM) is an American tech company that mainly specializes in the manufacturing of semiconductors, software, and services related to wireless technology. The company has raised its payouts for 20 years in a row, which makes it one of the best dividend stocks. It currently pays a quarterly dividend of $0.80 per share and has a dividend yield of 2.79%, as of July 6.
As of the close of Q1 2023, 69 hedge funds tracked by Insider Monkey held stakes in QUALCOMM Incorporated (NASDAQ:QCOM), with a collective value of over $1.744 billion. Among these hedge funds, Citadel Investment Group was the company's leading stakeholder in Q1.
Starbucks Corporation (NASDAQ:SBUX) is a renowned multinational coffee company and retailer. The company operates a vast global network of coffeehouses that serve a wide range of coffee and tea-based beverages, along with an assortment of complementary food items.
On June 21, Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend of $0.53 per share, consistent with its previous dividend. The company's dividend growth streak stands at 12 years, which makes it one of the best dividend stocks on our list. The stock's dividend yield on July 6 came in at 2.20%.
In fiscal Q2 2023, Starbucks Corporation (NASDAQ:SBUX) reported revenue of $8.7 billion, up 14.5% from the same period last year. The company generated $2.3 billion in operating cash flow, up from $2 billion in the prior-year period.
The number of hedge funds tracked by Insider Monkey owning stakes in Starbucks Corporation (NASDAQ:SBUX) grew to 69 in Q1 2023, from 61 in the previous quarter. The collective value of stakes owned by these funds is over $2.05 billion. Ken Griffin and Ray Dalio were the company's most prominent stakeholders in Q1.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational company that specializes in the manufacturing of semiconductors and other software products. The company reported revenue of $8.73 billion in the second quarter of 2023, which showed a 7.8% growth from the same period last year. Its free cash flow for the quarter came in at $4.4 billion.
Broadcom Inc. (NASDAQ:AVGO), one of the best dividend stocks, currently pays a quarterly dividend of $4.60 per share. The company has been rewarding shareholders with growing dividends for the past 12 years. As of July 6, the stock has a dividend yield of 2.17%.
At the end of Q1 2023, 72 hedge funds tracked by Insider Monkey reported having stakes in Broadcom Inc. (NASDAQ:AVGO), the same as in the previous quarter. These stakes are collectively valued at over $3.5 billion.
Analog Devices, Inc. (NASDAQ:ADI) is one of the best dividend stocks trading on NASDAQ along with Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL). The semiconductor company has raised its dividends 20 times in the last 19 years. It currently offers a quarterly dividend of $0.86 per share and has a dividend yield of 1.84%, as of July 6.
As of the close of Q1 2023, 73 hedge funds in Insider Monkey’s database reported having stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 75 in the previous quarter. Their collective stake value is over $4.8 billion.
First Pacific Advisors mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q1 2023 investor letter. Here is what the firm has to say:
“Analog Devices, Inc. (NASDAQ:ADI) stock price declined in the first half of 2022, along with its semiconductor peers. That sector has since rebounded, lifting ADI with it. We believe ADI is a well-run company and a secular grower, which should augur well for its future. However, given that it operates in a cyclical industry, we will not be surprised when its shares periodically trade down.”
