10 Stocks That Raised Their Dividend in 2021

Published September 17, 2021 at 10:03 am EDT Updated September 7, 2026 at 1:35 pm EDT

In this article, we will be taking a look at 10 dividend stocks that raised their dividend in 2021.

Dividend investing is not straightforward. That’s why expert income investors look at a range of metrics to determine which stock would be the best fit for their portfolio. Some key metrics include payout ratio, price-to-book ratio, the Sharpe ratio, and even the frequency of dividend increases over set time periods. Only by carefully analyzing these factors, and more, can one be somewhat certain about investing in any stock, even those typically considered to perform well, like Exxon Mobil Corporation (NYSE: XOM), Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), and PepsiCo, Inc. (NASDAQ: PEP), among others.

When looking at dividend stocks in particular, though, one must take into account the relevant company’s dividend history. Companies that have recently slashed or eliminated dividends may thus not be the smartest investment choices for any investors, while those that have managed to consistently increase their yields, like the dividend aristocrats with 25 or more years of consistent increases, or dividend kings with 50 or more years of the same, may be good investment options. Within these categories of dividend stocks as well, we should look at yield as a deciding factor, particularly in rising rate environments.

Research conducted by Global X, for instance, found some interesting findings on the performance of high dividend stocks in rising rate environments. The study has analyzed the performance and behavior of the highest decile of dividend-yielders from 1960 to 2017 to come up with conclusive evidence that high-yielding dividend stocks can, and have, outperformed the market at large. Firstly, it was found that these stocks managed to generate an average annual dividend yield of 6.4% in the time period studied. Secondly, it was also estimated that the highest-yielding stocks outperformed the S&P 500 by about 3% per year, between 1960 and 2017. And lastly, it was mentioned that in 7 out of 10 rising interest rate periods during the studied time period, dividend stocks with higher yields yet again managed to outperform the S&P 500 at an annualized average rate of about 0.80%. Hence, a very strong case can be made in favor of high-yielding dividend stocks particularly in times of rising interest.

Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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Without further ado, let’s take a look at the 10 dividend stocks that raised their dividend in 2021.

Our Methodology

We have selected dividend-yielding stocks with yields going up to 7% and above. Insider Monkey tracks the data of about 873 hedge funds, and we have also used this data to pick dividend stocks that are highly popular among hedge funds today. For each stock we have mentioned its yield and the number of hedge funds holding a stake in it, ranking them from the lowest to the highest dividend yield. Finally, we have used analysts’ ratings to determine which stocks are favorably placed in analyst and investor circles, picking stocks with mostly positive ratings and strong fundamentals.

Dividend Stocks That Raised Their Dividend in 2021

10. Ally Financial Inc. (NYSE: ALLY)

Number of Hedge Fund Holders: 54
Dividend Yield: 2%

Ally Financial Inc. (NYSE: ALLY) operates primarily in America and Canada as a bank holding company. The company works to serve consumer, commercial, and corporate customers, providing them with digital financial products and services. It ranks 10th on our list of dividend stocks that raised their dividend in 2021.

Just this July, Citigroup raised the price target on shares of Ally Financial Inc., from $59 to $63. The firm also reiterated a Buy rating on the stock.

In the second quarter of 2021, Ally Financial Inc. had an EPS of $2.33, beating estimates by $0.83. The company’s revenue was $2.08 billion, up 29.58% year over year and also beating estimates by $213.29 million. Ally Financial Inc. has also gained 11.81% in the past 6 months and 44.03% year to date.

By the end of the second quarter of 2021, 54 hedge funds out of the 873 tracked by Insider Monkey held stakes in Ally Financial Inc. worth roughly $2.4 billion. This is compared to 51 hedge funds in the previous quarter with a total stake value of approximately $2.8 billion.

Like Exxon Mobil Corporation, Microsoft Corporation, Apple Inc., and PepsiCo, Inc., Ally Financial Inc. is a notable stock pick today.

9. Ares Management Corporation (NYSE: ARES)

Number of Hedge Fund Holders: 20
Dividend Yield: 2.4%

Ares Management Corporation (NYSE: ARES), a capital market company, operates as a global alternative investment manager. It works with three integrated businesses in the credit, private equity, and real estate markets, and ranks 9th on our list of dividend stocks that raised their dividend in 2021.

BMO Capital just this August raised the price target on shares of Ares Management Corporation from $77 to $85, while also reiterating an Outperform rating on the stock.

In the second quarter of 2021, Ares Management Corporation had an EPS of $0.64, beating estimates by $0.12. The company’s revenue was $478.36 million, also beating estimates by $28.89 million. Ares Management Corporation has gained 44.03% in the past 6 months and 69.09% year to date.

By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Ares Management Corporation worth roughly $686 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $565 million.

Like Exxon Mobil Corporation, Microsoft Corporation, Apple Inc., and PepsiCo, Inc., Ares Management Corporation is a notable stock pick today.

8. Best Buy Co., Inc. (NYSE: BBY)

Number of Hedge Fund Holders: 27
Dividend Yield: 2.5%

Best Buy Co., Inc. (NYSE: BBY) is a consumer discretionary company that retails technology products in the US and Canada. The company ranks 8th on our list of dividend stocks that raised their dividend in 2021 and operates through it Domestic and International segments.

This August, Wedbush raised its price target on shares of Best Buy Co., Inc. from $125 to $130. The firm also reiterated a Neutral rating on the stock.

In the fiscal second quarter of 2022, Best Buy Co., Inc. had an EPS of $2.98, beating estimates by $1.09. The company’s revenue was $11.85 billion, up 19.57% year over year and beating estimates by $313.13 million. Best Buy Co., Inc. has gained 2.55% in the past 6 months and 10.81% year to date.

By the end of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in Best Buy Co., Inc. worth roughly $984 million. This is compared to 33 hedge funds in the previous quarter with a total stake value of approximately $957 million.

7. Jefferies Financial Group Inc. (NYSE: JEF)

Number of Hedge Fund Holders: 29
Dividend Yield: 2.7%

Jefferies Financial Group Inc. (NYSE: JEF) is a financial services company that works in the investment banking and capital markets, alongside working with asset management and direct investing businesses in the US, Europe, the Middle East, Africa, and Asia. The company ranks 7th on our list of dividend stocks that raised their dividend in 2021.

In the second quarter of 2021, Jefferies Financial Group Inc. had an EPS of $1.30, beating estimates by $0.40. The company’s revenue was $4.44 billion, up 286.68% year over year and beating estimates by $2.86 billion. Jefferies Financial Group Inc. has gained 14.08% in the past 6 months and 47.54% year to date.

By the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in Jefferies Financial Group Inc. worth roughly $698 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $700 million.

Like Exxon Mobil Corporation, Microsoft Corporation, Apple Inc., and PepsiCo, Inc., Jefferies Financial Group Inc. is a notable stock pick today.

Miller/Howard Investments, an investment management firm, mentioned Jefferies Financial Group Inc. in its first-quarter 2021 investor letter. Here’s what they said:

“We bought two new financials this quarter (including), Jefferies (JEF). Both were selling at a discount to book value and should benefit from the improving economy, in our opinion.”

6. Newmont Corporation (NYSE: NEM)

Number of Hedge Fund Holders: 55
Dividend Yield: 3.9%

Newmont Corporation (NYSE: NEM) is a materials company working to produce and explore gold. The company also explores for copper, silver, zinc, and lead. It ranks 6th on our list of dividend stocks that raised their dividend in 2021.

As of this September, National Bank analysts hold an Outperform rating on shares of Newmont Corporation.

In the second quarter of 2021, Newmont Corporation had an EPS of $0.83, beating estimates by $0.06. The company’s revenue was $3.06 billion, up 29.6% year over year and beating the previous quarter’s revenue of $2.87 billion.

By the end of the second quarter of 2021, 55 hedge funds out of the 873 tracked by Insider Monkey held stakes in Newmont Corporation worth roughly $1.3 billion. This is compared to 43 hedge funds in the previous quarter with a total stake value of approximately $994 million.

Like Exxon Mobil Corporation, Microsoft Corporation, Apple Inc., and PepsiCo, Inc., Newmont Corporation is a notable stock pick today.

5. Walgreens Boots Alliance, Inc. (NASDAQ: WBA)

Number of Hedge Fund Holders: 41
Dividend Yield: 3.9%

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is a holding company that owns and operates the retail pharmacy chains named Walgreens and Boots. The company ranks 5th on our list of dividend stocks that raised their dividend in 2021.

Truist, as of this July, has a Hold rating on shares of Walgreens Boots Alliance, Inc.. The firm holds this rating alongside a price target of $52.

In the fiscal third quarter of 2021, Walgreens Boots Alliance, Inc. had an EPS of $1.38, beating estimates by $0.23. The company’s revenue was $34.03 billion, beating estimates by $526.6 million. Walgreens Boots Alliance, Inc. has gained 19.44% year to date and 42.51% in the past year.

By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Walgreens Boots Alliance, Inc. worth roughly $1.1 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.

Ariel Investments, an investment management firm, mentioned Walgreens Boots Alliance, Inc. in its fourth-quarter 2020 investor letter. Here’s what they said:

“Walgreens Boots Alliance, Inc. has been essentially flat during our brief holding period. We have successfully owned Walgreens in the past. Recently, its share price has been pressured on concerns that Amazon may enter the prescription drug distribution business. As recently as 2015, Walgreens was a market favorite, trading at more than 20 times forward earnings. The company was expected to grow in good times and bad. Walgreens’ new clinics, designed to treat day-to-day healthcare needs such as flu shots and children’s ear infections, could be part of the solution for expensive emergency room overcrowding. Finally, trends toward generic pharmaceutics that began in 2015 are still considered a positive, as pharmacies have more influence in directing customers toward particular generics than with a patient seeking a patented drug prescribed by a doctor. Walgreens will face new competition going forward, but with its current depressed valuation, we believe the threats are more than discounted in an attractive stock price.”

4. National Retail Properties, Inc. (NYSE: NNN)

Number of Hedge Fund Holders: 19
Dividend Yield: 4.7%

National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, invests in high-quality retail properties subject to long-term, net leases. As of September 2020, the company owned and operated about 3,114 properties in 48 states with a gross leasable area of about 32.4 million square feet. It ranks 4th on our list of dividend stocks that raised their dividend in 2021.

Wells Fargo holds a raised price target of $50 on shares of National Retail Properties, Inc. as of this July, compared to its previous price target of $44. The firm also reiterated an Equal Weight rating on the stock at the same time.

In the second quarter of 2021, National Retail Properties, Inc. had an FFO of $0.70, beating estimates by $0.02. The company’s revenue was $179.01 million, up 9.35% year over year and beating estimates by $2.01 million. National Retail Properties, Inc. has gained 5.38% in the past 6 months and 14.99% year to date.

By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in National Retail Properties, Inc. worth roughly $188 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $289 million.

3. International Business Machines Corporation (NYSE: IBM)

Number of Hedge Fund Holders: 41
Dividend Yield: 4.8%

International Business Machines Corporation (NYSE: IBM), a technology and computer hardware company, is based in New York. It operates in over 171 countries and ranks 3rd on our list of dividend stocks that raised their dividend in 2o21.

This July, Morgan Stanley raised its price target on shares of International Business Machines Corporation to $164, while reiterating an Equal Weight rating on the stock.

In the second quarter of 2021, International Business Machines Corporation had an EPS of $2.33, beating estimates by $0.04. The company’s revenue was $18.75 billion, up 3.43% year over year and beating estimates by $447.5 million. International Business Machines Corporation has gained 7.77% in the past 6 months and 10.55% year to date.

By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in International Business Machines Corporation worth roughly $1.4 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $1.4 billion.

2. Star Group, L.P. (NYSE: SGU)

Number of Hedge Fund Holders: 11
Dividend Yield: 5.5%

Star Group, L.P. (NYSE: SGU) is a utility company that sells home heating and air conditioning products and services to residential and commercial customers in the US. The company ranks 2nd on our list of dividend stocks that raised their dividend in 2021.

In the fiscal third quarter of 2021, Star Group, L.P. had an EPS of -$0.30. The company’s revenue was $213.01 million, up 43.93% year over year. Star Group, L.P. has gained 0.39% in the past 6 months and 10.47% year to date.

By the end of the second quarter of 2021, 11 hedge funds out of the 873 tracked by Insider Monkey held stakes in Star Group, L.P. worth roughly $68 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $60 million.

1. Altria Group, Inc. (NYSE: MO)

Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%

Altria Group, Inc. (NYSE: MO), one of the largest tobacco companies in the world, sells cigarettes and oral tobacco products across the globe. The company ranks 1st on our list of dividend stocks that raised their dividend in 2021.

This July, Stifel reiterated a Buy rating and $56 price target on shares of Altria Group, Inc..

In the second quarter of 2021, Altria Group, Inc. had an EPS of $1.23, beating estimates by $0.06. The company’s revenue was $5.61 billion, up 10.90% year over year and beating estimates by $250.80 million. Altria Group, Inc. has gained 5.86% in the past 6 months and 23.90% year to date.

By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.

Broyhill Asset Management, an investment management firm, mentioned Altria Group, Inc. in its second-quarter 2021 investor letter. Here’s what they said:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”

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