Dividends are a precious perk.

Research over the past few years from FactSet, Ned Davis Research and River Road Asset Management, among others, has illustrated the long-term benefits of owning dividend stocks versus their non-paying peers. A 2019 Hartford Funds study showed that $10,000 invested in Standard & Poor's 500-stock index in 1960 would have generated $460,095 excluding the effect of dividends ... but $2,571,920 once dividends were reinvested.

No wonder, then, that dividend stocks are a favorite holding of numerous "smart money" investors. Even Warren Buffett's Berkshire Hathaway (BRK.B) - which famously does not pay a dividend because Buffett believes he can allocate profits in better ways - has depended on numerous income-generating stocks for its long-term market outperformance.

Hedge funds are no different. According to WalletHub data gathered from regulatory filings, more than two-thirds of the most popular holdings among hedge-fund managers offer up some sort of dividend, and the majority of those out-yield the market. These stocks provide defense in market downturns, and compounding dividends over time contribute to long-term returns.

Here are a dozen dividend stocks that are popular among hedge funds. Better still, all of the following stocks yield more than the S&P 500 at present.

Bank of America

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"Big Four" bank stock Bank of America (, $28.54) is loved by both hedge funds and Warren Buffett alike. The nation's second-largest bank by assets).