Dividend stocks are best known for their stability and income, but some of the world’s most sophisticated investors see them as more than just yield plays.
Hedge funds, typically associated with fast-moving strategies, often build positions in high-quality dividend payers that combine consistent cash flow with strong long-term fundamentals.
By tracking where hedge funds are allocating capital, investors can uncover which dividend stocks are earning institutional conviction, and why.
Here are 5 dividend stocks that hedge funds are quietly accumulating today.
| Company Name (Ticker) | Dividend Yield | Analyst Upside |
| Coca-Cola (KO) | 3.5% | 18% |
| Microsoft (MSFT) | 0.7% | 18% |
| Walmart (WMT) | 0.9% | 10% |
| Exxon Mobil (XOM) | 3.6% | 9% |
| Broadcom (AVGO) | 0.8% | 7% |
Unlock our Free Report: 5 undervalued compounders with upside based on Wall Street’s growth estimates that could deliver market-beating returns (Sign up for TIKR, it’s free) >>>
Here are 3 stocks that analysts think are most undervalued today:
Coca-Cola (KO)
Coca-Cola (KO) is one of the world’s largest beverage companies, with a portfolio that spans soft drinks, juices, teas, coffees, and water brands. Its key offerings include Coca-Cola, Sprite, Fanta, Minute Maid, Costa Coffee, and smartwater, distributed through an extensive global network of bottling partners.
The company has achieved steady growth over the last five years, with an average annual revenue increase of around 5% to 6%. Its 3-year average return on equity (ROE) stands at approximately 42%, reflecting strong profitability and efficient capital allocation.
Coca-Cola maintains a dividend payout ratio of roughly 75% of earnings and offers a dividend yield of about 3%. Supported by powerful global brands and consistent free cash flow generation, the company remains a stable and defensive holding within the consumer staples sector.
Value stocks like Coca-Cola in under a minute with TIKR’s new Valuation Model (It’s free) >>>
Microsoft (MSFT)
Microsoft (MSFT) is a global leader in software, cloud computing, and artificial intelligence solutions. The company operates through three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
Its consistent shift toward subscription-based models, particularly in Office 365 and Azure, has driven strong top-line and earnings growth. Over the past five years, Microsoft’s revenue has increased by roughly 14% to 15% annually on average.
The company’s 3-year average return on equity (ROE) is about 37% to 39%, highlighting exceptional profitability and operating efficiency. Microsoft maintains a dividend payout ratio of approximately 25% and a dividend yield near 0.65%. Its strong balance sheet, expanding recurring revenue base, and leadership in cloud and AI continue to position it as one of the most resilient and high-quality companies in the technology sector.
Track Microsoft’s financials, growth trends, and analyst forecasts on TIKR (it’s free)>>>
Walmart (WMT)
Walmart (WMT) is the world’s largest retailer, serving millions of customers each week through its vast network of stores and growing e-commerce platforms. The company offers a wide range of products, including groceries, household goods, and apparel, while continuing to invest in digital transformation and logistics efficiency.
Over the last five years, Walmart has delivered average annual revenue growth of about 5.4%, supported by strong performance in its core grocery segment and omnichannel expansion. Its Trailing Twelve Months (TTM) return on equity (ROE) stands at approximately 22% to 24.5%, reflecting strong and consistent profitability.
Walmart maintains a dividend payout ratio of around 33% and a forward dividend yield of roughly 0.9%. With stable cash flows, a strong market presence, and a long history of steady dividend increases (a Dividend Aristocrat), Walmart remains a dependable choice for investors seeking long-term defensiveness in the retail sector.
See if top investors & hedge funds are buying or selling Walmart right now (It’s free) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
