In this article we present the list of 10 Best November Dividend Stocks To Buy. Click to skip ahead and see the 5 Best November Dividend Stocks To Buy.
Whether you’re looking to start building out a portfolio of dividend stocks, or fill in some of the monthly gaps in your dividend stocks collection so you have a steady stream of income from them, November is a good month to target.
Some of the best dividend stocks on the market, which boast attractive yields and strong dividend growth rates are paying out in November. All of the stocks on this list make their payments in the second half of the month and have yet to pass their ex-dividend date (as of the time of publication), so it’s not too late to add any of them to your portfolio and collect their November dividend payments.
Among the top November dividend stocks are more than a dozen Dividend Aristocrats, which are companies that have increased their annual dividend payouts for at least 25 straight years. A. O. Smith Corporation (NYSE:AOS), General Dynamics Corporation (NYSE:GD), and Caterpillar Inc. (NYSE:CAT) are just some of the Dividend Aristocrats paying out this month.
There are even some Dividend Kings (50+ consecutive years of annual dividend increases) paying out this month that make great additions to any dividend portfolio. Colgate-Palmolive Company (NYSE:CL) and The Procter & Gamble Company (NYSE:PG) feature prominently on that list. However, all of the aforementioned stocks have passed their ex-dividend date (the date before which one must be a shareholder of the company to receive its next dividend payment), so none of those companies are included in this list.
Even without those major dividend players, the list of best dividend stocks that pay in November isn’t left wanting for strong dividend stocks, as evidenced by the following list. In it, we’ll examine each stock’s dividend history, payout and ex-dividend dates, payout ratio, and other factors so you can make an informed decision about whether or not the stock in question would make a good addition to your dividend portfolio.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
The following November dividend stocks are ranked based on hedge fund sentiment. We follow a select group of hedge funds because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.
All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q2 2022 reporting period.
10 Best November Dividend Stocks To Buy
10. Alexander’s, Inc. (NYSE:ALX)
Number of Hedge Fund Shareholders: 9
November 18 Dividend Payout: $4.50
CF Industries Holdings, Inc. (NYSE:CF), Citigroup Inc. (NYSE:C), and Starbucks Corporation (NASDAQ:SBUX) are some of the major November dividend payers to consider for your portfolio. A lesser known company that also makes its next dividend payment this month is REIT Alexander’s, Inc. (NYSE:ALX).
Alexander’s, Inc. (NYSE:ALX) has paid out dividends for ten straight years, though its quarterly dividend payments have been stalled at $4.50 for the last five years. Nonetheless, the stock boasts an attractive dividend yield of 7.81%. The ex-dividend date for the next payment is November 4.
In addition to its dividend payments, there are other potential ways for investors to make money off ALX, as the company reportedly has an interested buyer willing to take it private at a significant premium according to an open letter to ALX shareholders issued by Lionbridge Capital in July. In the letter, Lionbridge urged the company to consider several other changes that could unlock shareholder value, believing that mismanagement has left the company severely underrated by the market. It estimates Alexander’s Net Asset Value to be over $400 per share, more than 70% greater than the stock’s current price.
Hedge fund ownership of Alexander’s, Inc. (NYSE:ALX) ticked up in Q2 but is down by 31% from its peak reached in the second quarter of 2021. Israel Englander’s Millennium Management and Paul Tudor Jones’ Tudor Investment Corp added ALX to their 13F portfolios during Q2, while Frank Brosens’ Taconic Capital held the largest stake in the company consisting of 142,300 shares.
9. Comfort Systems USA, Inc. (NYSE:FIX)
Number of Hedge Fund Shareholders: 14
November 28 Dividend Payout: $0.15
Comfort Systems USA, Inc. (NYSE:FIX) has grown its dividend at an impressive CAGR of 13.2% over the past five years, though the stock’s yield is still rather light at just 0.49%. Nonetheless, with a payout ratio of just 11%, this is a dividend stock that could continue to grow at a steady rate for years to come. The ex-dividend date for the company’s next payment is November 16. That payment will be one cent higher for the second time this year and 36% higher than it was two years ago.
Comfort Systems USA, Inc. (NYSE:FIX), which provides installation, maintenance, and repair services for heating, air conditioning, and ventilation systems, had a strong Q3 despite warning of cost and input challenges back in July. The company pulled in $1.71 in EPS, which topped estimates by 25%, while its $1.12 billion in revenue also beat estimates. Comfort Systems also has a robust backlog, which should ensure continued organic growth in the quarters to come.
The number of smart money managers with long positions in Comfort Systems USA, Inc. (NYSE:FIX) fell by 44% between the middle of 2021 and the end of March 2022, hitting its lowest point in five years. Hedge fund ownership of the stock remained flat during Q2. Chuck Royce’s Royce & Associates maintained the largest position in FIX for the tenth straight quarter, owning 383,851 shares as of June 30 after nearly doubling the size of position during the quarter.
8. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Shareholders: 17
November 23 Dividend Payout: $0.50
There’s been a lot of activity surrounding Southern Copper Corporation (NYSE:SCCO)’s dividend payments in recent quarters. The company made six consecutive quarterly hikes to its dividend beginning in Q3 2020, and then raised it by another 25% in the second quarter of this year. However, it’s since had to cut its dividend in each of the last two quarters, paring its payout back to Q4 2020 levels. The stock, which has an ex-dividend date of November 8, still has an attractive yield of over 4%.
Southern Copper Corporation (NYSE:SCCO)’s Q2 revenue and EPS took major year-over-year hits, falling to $2.31 billion and $0.56 respectively from $2.9 billion and $1.21 a year earlier, as demand weakens. With Goldman Sachs predicting copper scarcity in the coming years, the company is well positioned to capitalize given its advantageous cost/curve position and sizable exposure to copper.
Hedge fund ownership of Southern Copper Corporation (NYSE:SCCO) fell by 38% between Q1 2021 and Q2 2022, but did tick up slightly during the second quarter. Billionaire Ken Fisher’s Fisher Asset Management owned the largest stake in SCCO, while fellow billionaire Ken Griffin’s Citadel Investment Group added SCCO to its 13F portfolio during the quarter.
7. Masco Corporation (NYSE:MAS)
Number of Hedge Fund Shareholders: 26
November 28 Dividend Payout: $0.28
Masco Corporation (NYSE:MAS) has nearly tripled the size of its quarterly dividend over the past five years, growing it at an impressive CAGR of 21.9% during that time. That rapid growth has lifted its yield to a respectable 2.38%, and with a payout ratio of just 32%, that yield could push towards 3% in the coming years. The company’s next dividend payment has an ex-dividend date of November 11.
A manufacturer of a wide range of home improvement products, Masco did run into some difficulty in Q3, missing its earnings guidance and cutting its full-year outlook, citing weakness in its plumbing and paints segments. The company could face continued pressure throughout next year amid a weakened housing market, but has a strong balance sheet and cash flows that should see it through the period without any risk to its dividend.
Hedge funds have been bailing on Masco Corporation (NYSE:MAS) this year, as there’s been a 36% decline in the number of funds long MAS through the end of June. Steve Cohen’s Point72 Asset Management and Greg Poole’s Echo Street Capital Management were a couple of the funds to unload their stakes in Masco during the second quarter.
On the other hand, Oakmark Fund believes the market is undervaluing Masco Corporation (NYSE:MAS), as detailed in the fund’s Q2 2022 investor letter:
“We believe the market is failing to properly reward Masco (NYSE:MAS), a leader in home improvement products, for the significant upgrade of its business mix over the past decade. Having previously sold its more cyclical, lower return businesses, such as insulation, windows, and cabinets, what remains are some of the strongest and most recognizable brands in the industry. The company’s portfolio of products-primarily coatings (Behr) and plumbing fixtures (Delta, Hansgrohe)-are more resilient, lower ticket, and higher margin categories. Both segments compete within heavily consolidated industries, exhibit strong pricing power and skew meaningfully toward the less cyclical repair and remodel market. Despite its greatly improved business mix, Masco trades for just 10x next year’s expected earnings, which is a discount to historical levels and comfortably below a market multiple. We believe this dislocation presents an attractive opportunity to invest in a well-managed, high-quality portfolio in a sector that’s currently out of favor.”
6. KB Home (NYSE:KBH)
Number of Hedge Fund Shareholders: 29
November 23 Dividend Payout: $0.15
Another home-related stock closes out the first half of this list in the form of homebuilder KB Home (NYSE:KBH), whose dividend payments have flat lined this year after rising by 400% between 2018 and 2021. The company has a miniscule payout ratio of just 7%, which is impressive for a stock with a decent yield of just over 2%. The ex-dividend date to collect KBH’s next dividend payment is November 9.
With home prices deteriorating, particularly in KB Home (NYSE:KBH)’s core West Coast markets, analysts believe the company may need to sacrifice some of its margins to continue driving sales. RBC Capital analyst Mike Dahl slashed his FY23 EPS forecast for the company to $6.97 from $9.57 in September, but noted that near-term risks are already priced into the stock given that it trades at just 0.7x tangible book value.
Hedge fund ownership of KB Home (NYSE:KBH) shot up by 38% during the fourth quarter of 2021 to hit an all-time high, but had since fallen back slightly. Charles Clough’s Clough Capital Partners and Mark Coe’s Intrinsic Edge Capital were some of the funds to add KBH stakes to their portfolios last Q4. Ken Fisher’s Fisher Asset Management held the largest position in KB Home on June 30, owning 2.43 million shares.
Starbucks Corporation (NASDAQ:SBUX), CF Industries Holdings, Inc. (NYSE:CF), and Citigroup Inc. (NYSE:C) are among the top dividend stocks to buy in November, check out the details through the link below.
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Disclosure: None. 10 Best November Dividend Stocks To Buy is originally published at Insider Monkey.