Dividendology: 5 Dividend Stocks Just Bought By Super Investors

Every quarter, professional money managers file a 13-F form with the SEC. It discloses their holdings and any additions or sales.

Some investors, such as Warren Buffett or Ray Dalio, are widely followed. And the disclosure of a new holding can mean a move in the stock as retail investors file in. Recently, many large investors have been adding to positions focused more on safety and dividends, rather than outright growth.

Some companies are low payers, such as Microsoft (MSFT). The tech giant pays a low 0.75 percent yield. However, over the past 10 years, Microsoft has increased its dividend by an average of 10 percent.

And they have a low payout ratio of about 33 percent of their cash flow. So Microsoft can continue to raise its dividend for years, especially if it continues to increase earnings.

Another stock that big money is buying now is Visa (V). The credit card network also pays a low dividend of 0.75 percent. But they’ve grown their payout by 22 percent on average over the past five years.

And their payout ratio is less than 20 percent of earnings. That allows Visa to continue growing the payout over time with no risk of a dividend cut.

Dividends can offer investors current income now, and the right dividend stocks can show increasing income well into the future.

To see the other three stocks seeing major investor interest now, click here.