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3 Top Dividend Stocks on Robinhood's Most Popular List

The Motley Fool
The Motley Fool
 2022-01-17

Robinhood Markets (NASDAQ: HOOD) doesn't mind sharing which stocks are the most popular among investors on its trading platform. The company's "100 Most Popular" list identifies the top 100 stocks most widely held by Robinhood customers.

As you might expect, this list is loaded with growth stocks. However, Robinhood users also like some stocks that offer dividend yields of at least 2% -- high enough to catch the eye of many income-oriented investors. Here are three top dividend stocks on Robinhood's most popular list.

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1. Pfizer

Pfizer (NYSE: PFE) arguably offers the strongest combination of growth and income of any stock on Robinhood's 100 Most Popular list. The drugmaker has long been a favorite for income investors. It still is, with a dividend yield of nearly 2.9%.

However, Pfizer has also delivered impressive growth lately. The pharma stock soared 60% in 2021, fueled by the massive sales of COVID-19 vaccine Comirnaty. Pfizer expects the vaccine will rake in sales of around $29 billion this year.

The company has another COVID-19 blockbuster that just won authorization as well. COVID-19 pill Paxlovid could make sales of roughly $24 billion in 2022, according to SVB Leerink.

Pfizer doesn't depend solely on COVID-19 for growth, though. It had more than 20 products that generated double-digit percentage year-over-year sales increases in the third quarter of 2021.

2. Johnson & Johnson

If you're looking for the most impressive dividend pedigree among the most popular stocks on Robinhood, Johnson & Johnson (NYSE: JNJ) is it. The healthcare giant belongs to an elite group of stocks known as Dividend Kings . Only S&P 500 members with at least 50 consecutive years of dividend increases make the cut. J&J has increased its dividend for 59 years in a row.

Many Dividend Kings offer only paltry yields. Johnson & Johnson's dividend yield, though, currently tops 2.5%.

The stock has underperformed the S&P 500 in recent years. However, it could pick up momentum once the spin-off of its consumer health unit finalizes in 2023. The transaction will leave the faster-growing pharmaceutical and medical device segments with Johnson & Johnson.

Sure, J&J will cut its dividend with the spin-off. However, the company expects the combined dividend of the two entities after the transaction will remain at least at the same level as before the split.

3. ExxonMobil

ExxonMobil 's (NYSE: XOM) dividend yield of more than 4.9% stands out as one of the highest yields among stocks on the Robinhood 100 Most Popular list. The company is also a Dividend Aristocrat with 39 consecutive years of dividend increases.

The oil and gas stock languished for several years. But ExxonMobil's shares popped in 2021, jumping 48% as oil prices rose. The stock is also off to a great start so far this year with a strong double-digit percentage gain.

ExxonMobil's business appears to be in solid shape once again. As the global economy recovers from the COVID-19 pandemic, the company should continue to fire on all cylinders.

Granted, there is some uncertainty over the longer term. The shift from fossil fuels to renewable energy sources will likely accelerate, potentially disrupting ExxonMobil's business. For now, though, ExxonMobil without question ranks as one of the best oil and gas dividend stocks on the market and one of the top dividend stocks on Robinhood.

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Keith Speights owns Pfizer. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy .

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