Top 30 Dividend Stocks That Hedge Funds Love
Published Apr 14, 2011 on Seeking Alpha

Hedge funds usually don’t invest in dividend stocks because these are generally defensive stocks with little growth and they are generally efficiently priced. Hedge funds invest in misunderstood securities that are mispriced by the market. They view dividend stocks as long-term treasury bond substitutes. However, sometimes dividend stocks are mispriced and that’s when hedge funds start investing in these stocks. We gathered the holdings of the top 175 equity hedge funds and analyzed their investments in high dividend large-cap stocks. Here are the hedge funds’ top 30 dividend stocks that yield at least 4% and have a dividend payout ratio of at most 67%. The dividend data is sourced from Fidelity. Company Name Symbol Dividend Yield HF Holdings (Millions) Number of Hedge Funds LORILLARD INC (LO) 5.3 670 20 VODAFONE GROUP PLC (VOD) 4.6 584 23 MERCK & CO INC. (MRK) 4.5 491 19 GLAXOSMITHKLINE PLC (GSK) 6.1 348 11... Read more