Published on 3 Feb 2023 on Insider Monkey via Yahoo Finance

15 Best Dividend Leaders to Buy According to Hedge Funds

In this article, we discuss 15 best dividend leaders to buy according to hedge funds. If you want to see more stocks in this selection, check out 5 Best Dividend Leaders to Buy According to Hedge Funds. 

First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL) is based on the 100 highest yielding stocks that have a history of consistently paying dividends and the ability to continue doing so in the future. The stocks in the Index are weighted based on the total dividends available to investors, and ESG criteria is not considered in the Index calculation. 

In a world with higher and unpredictable interest rates and inflation, it is likely that investors will seek more stability and return on investment, making dividend-paying stocks more attractive. As a result, the appeal of dividends may increase as investors move away from riskier investments. This shift toward a focus on dividends could be driven by the desire for a steady and reliable source of income, given the uncertain economic conditions. Value stocks are typically associated with established industries, and the focus is on current cash flow and dividends rather than capital growth. Consequently, dividends can play a significant role in driving returns for value stocks, often more so than capital gains.