In this article, we will be taking a look at 10 high dividend stocks for 2022.
Dividend investing remained in focus in 2021 as investors scrambled to find reliable income streams in the midst of the pandemic. According to a Fidelity article, dividends made up about 40% of overall stock market returns since 1930, for instance. Additionally, Fidelity’s research mentions how dividends are vital to returns especially when stocks are on the fall, as was the case with S&P 500 stocks in the 1930s and 2000s. The declining stock prices and their impact were mitigated by dividends in the 1940s and 1970s, when they made up 65% and 71%, respectively, of the S&P 500’s return.
Stocks paying attractive dividends like Altria Group, Inc. (NYSE:MO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie Inc. (NYSE:ABBV), are thus among the most popular picks for investors today. The reason for this also lies in the outperformance of dividend stocks that raise their yields, especially in times of inflation, as mentioned by Denise Chisholm, the sector strategist for Fidelity Investments. As such, stocks in the financials and real estate sectors tend to be among the most popular high dividend stocks to invest in.
REIT Dividend Stocks
According to the National Association of Real Estate Investment Trusts, the above is a result of real estate investment trusts (REITs), for instance, delivering competitive total returns over history. Resultantly, commercial real estate was seen to be the third-largest asset class at 14% in the US investment market, after bonds and equities, at 43% and 38%, respectively. The fact that REITs in our example have proven to be a popular and important investment option for Americans today is a result of their high dividend yields offering strong dividend incomes to investors, and because of their high ratio of income distribution to shareholders.
REITs are also required to distribute about 90% of their taxable income among their shareholders, annually. As such, stocks paying high dividends, like REITs, are typically considered smart investments for income investors.
Photo by Vitaly Taranov on Unsplash
Our Methodology
We have used hedge fund data compiled by Insider Monkey to pick dividend stocks proven to be popular among the 867 funds tracked in the third quarter of 2021.
The yields of each stock are 5% and above, and they are ranked from the lowest to the highest dividend yield. Finally, the number of hedge funds holding stakes in each stock and analyst ratings are also mentioned below.
High Dividend Stocks for 2022
10. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Dividend Yield: 5.1%
Number of Years of Dividend Growth: 8
Verizon Communications Inc. (NYSE:VZ) is one of the biggest companies operating in the integrated telecommunication services industry. The company’s dividend yield is over 5% and it has consistently increased its dividend for 8 years, making it one of the top high dividend stocks for 2022. It offers postpaid and prepaid service plans, residential fixed connectivity solutions, management and data security services, and a range of related products and services.
Cowen’s Colby Synesael, this October, reiterated an Outperform rating on shares of Verizon Communications Inc. (NYSE:VZ), alongside raising the price target to $71.
Our hedge fund data shows that 57 hedge funds held stakes in Verizon Communications Inc. (NYSE:VZ) in the third quarter of 2021. Their total stake value was $10.4 billion.
Like Altria Group, Inc. (NYSE:MO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie Inc. (NYSE:ABBV), Verizon Communications Inc. (NYSE:VZ) is a reputable dividend stock to invest in for 2022.
9. Vector Group Ltd (NYSE:VGR)
Number of Hedge Fund Holders: 18
Dividend Yield: 5.1%
Number of Years of Dividend Growth: N/A
Vector Group Ltd (NYSE:VGR) is a tobacco company operating in the US through its Tobacco and Real Estate segments. Apart from its main business in cigarette production and sale under the Pyramid, Grand Prix, Eve, and other brands, it also provides residential real estate services. With a dividend yield of over 5%, the company is among the best high dividend stocks for 2022.
In November, Barclays analyst Gaurav Jain upgraded Vector Group Ltd (NYSE:VGR) shares from Underweight to Equal Weight, with a price target of $17.
The company’s earnings report for the third quarter of 2021 showed an EPS of $0.34, and a revenue of $652.65 million. The revenue beat estimates by $846,000.
By the end of the third quarter of 2021, 18 hedge funds out of the 867 tracked by Insider Monkey held stakes in Vector Group Ltd (NYSE:VGR) worth roughly $147 million. This is compared to 14 hedge funds in the previous quarter with a total stake value of approximately $163 million.
8. International Business Machines Corp. (NYSE:IBM)
Number of Hedge Fund Holders: 41
Dividend Yield: 5.3%
Number of Years of Dividend Growth: 22
International Business Machines Corp. (NYSE:IBM) is an information technology company providing integrated solutions and services. The company offers software for vertical and domain-specific solutions alongside analytics and integration software solutions, among other products and services. Having raised its dividend yield for 22 years in a row, the company is among the top high dividend stocks for 2022.
As of December, the stock’s coverage was taken over by Credit Suisse analyst Sami Badri, who placed an Outperform rating on International Business Machines Corp. (NYSE:IBM). The price target is $164.29.
International Business Machines Corp. (NYSE:IBM) was among the more popular high dividend stocks in the third quarter, with 41 hedge funds long the stock. Their total stake value was $1.4 billion.
Like Altria Group, Inc. (NYSE:MO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie Inc. (NYSE:ABBV), International Business Machines Corp. (NYSE:IBM) is a high dividend stock popular among elite hedge funds.
7. Spok Holdings Inc (NASDAQ:SPOK)
Number of Hedge Fund Holders: 21
Dividend Yield: 5.4%
Number of Years of Dividend Growth: N/A
Spok Holdings Inc (NASDAQ:SPOK) is a communication services company operating through its subsidiary, Spok, Inc. It offers healthcare communication solutions in the US, Europe, Canada, Australia, Asia, and the Middle East. With a 5.4% yield, it’s one of the most notable high dividend stocks for 2022.
The company’s EPS in the third quarter of 2021 was $0.07, in line with estimates.
Out of 867 hedge funds, 21 hedge funds held stakes in Spok Holdings Inc (NASDAQ:SPOK) in the third quarter of 2021, worth $32 million. In the previous quarter, 15 hedge funds were long the stock with stakes worth $24 million.
6. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 48
Dividend Yield: 5.6%
Number of Years of Dividend Growth: 13
Philip Morris International Inc. (NYSE:PM) is a tobacco company offering cigarettes and other nicotine products, smoke-free products, and related electronic devices and accessories. It has grown its now 5.6% dividend yield for the past 13 years in a row, making it one of the most renowned high dividend stocks for 2022. Some of its major brands include HEETS, HEETS Creations, HEETS Marlboro, and Parliament HeatSticks, among others.
Gaurav Jain from Barclays also holds an Overweight rating on Philip Morris International Inc. (NYSE:PM) shares alongside a $113 price target, as of this November.
The company is among the top high dividend stocks for the next year for good reason, as demonstrated by its financial performance in the fiscal third quarter of 2021 earnings report. Its EPS was $1.58, beating estimates by $0.02. Its revenue was $8.12 billion, up 9.08% year over year and also beating estimates by $175.15 million for this quarter.
By the close of the third quarter, 48 hedge funds were long Philip Morris International Inc. (NYSE:PM).
Like Altria Group, Inc. (NYSE:MO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie Inc. (NYSE:ABBV), Philip Morris International Inc. (NYSE:PM) is a noteworthy stock pick for income investors.
5. NVE Corporation (NASDAQ:NVEC)
Number of Hedge Fund Holders: 7
Dividend Yield: 5.9%
Number of Years of Dividend Growth: N/A
NVE Corporation (NASDAQ:NVEC) is an information technology company. It develops and sells devices using spintronics, which is nanotechnology relying on electron spin. The company’s dividend yield is nearly 6%.
The EPS of NVE Corporation (NASDAQ:NVEC) in the third quarter of 2021 was $0.74, in line with analyst estimates. Its revenue was $7.36 million, also in line with estimates.
Seven out of 867 hedge funds held stakes in NVE Corporation (NASDAQ:NVEC) in the third quarter of 2021, worth $52 million.
4. B&G Foods, Inc. (NYSE:BGS)
Number of Hedge Fund Holders: 13
Dividend Yield: 6.3%
Number of Years of Dividend Growth: N/A
B&G Foods, Inc. (NYSE:BGS), a packaged foods and meats company, manufactures and sells a portfolio of shelf-stable and frozen foods. It also offers household products in the US, Canada, and Puerto Rico. The company’s dividend yield is over 6.3%, making it one of the popular high dividend stocks for 2022.
In the fiscal third quarter of 2021, B&G Foods, Inc. (NYSE:BGS) had an EPS of $0.55. Its revenue was $514.97 million, and beat estimates by $19.59 million.
We have recorded 13 hedge funds holding stakes in B&G Foods, Inc. (NYSE:BGS) in the third quarter, compared to 10 hedge funds in the second quarter.
3. National CineMedia, Inc. (NASDAQ:NCMI)
Number of Hedge Fund Holders: 12
Dividend Yield: 7.6%
Number of Years of Dividend Growth: N/A
National CineMedia, Inc. (NASDAQ:NCMI) is an advertising company operating a cinema advertising network in North America. The company has a dividend yield of over 7%, making it one of the top high dividend stocks for 2022.
B. Riley’s Eric Wold holds a Buy rating on shares of National CineMedia, Inc. (NASDAQ:NCMI) as of this November.
According to its fiscal third quarter of 2021 earnings report, National CineMedia, Inc. (NASDAQ:NCMI) had an EPS of -$0.19. Its revenue was $31.7 million, up 428.33% year over year and beating the previous quarter’s revenue by $14 million.
According to our data, 12 hedge funds were long National CineMedia, Inc. (NASDAQ:NCMI) in the third quarter of 2021, with stakes worth $10.9 million.
2. United-Guardian, Inc. (NYSE:UG)
Number of Hedge Fund Holders: 2
Dividend Yield: 8.3%
Number of Years of Dividend Growth: 1
United-Guardian, Inc. (NYSE:UG), a consumer staples company, markets cosmetic ingredients, pharmaceuticals, medical lubricants, and specialty industrial products. The company has a dividend yield of over 8.3%.
Two hedge funds out of 867 hedge funds held stakes in United-Guardian, Inc. (NYSE:UG) in the third quarter according to our data.
Palm Valley Capital Management, an investment management firm, mentioned United-Guardian, Inc. (NYSE:UG) in its second-quarter 2021 investor letter. Here’s what they said:
“We sold United-Guardian (ticker: UG) after the share price exceeded our intrinsic value estimates. These company was negatively impacted by the pandemic but is beginning to see light at the end of the tunnel.”
1. Natural Health Trends Corp. (NASDAQ:NHTC)
Number of Hedge Fund Holders: 1
Dividend Yield: 11.7%
Number of Years of Dividend Growth: N/A
Natural Health Trends Corp. (NASDAQ:NHTC) is a direct-selling and e-commerce company that offers personal care, wellness, and lifestyles products under the NHT Global brand. Its dividend yield is the highest on our list of high dividend stocks for 2022, at 11.7%.
According to its third quarter earnings report, Natural Health Trends Corp. (NASDAQ:NHTC) had a revenue of $14.3 million.
At the close of the third quarter of 2021, one hedge fund held stakes in Natural Health Trends Corp. (NASDAQ:NHTC) worth $6.2 million. The previous quarter, two hedge funds held stakes in the stock worth $6.6 million.
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Disclosure: None. 10 High Dividend Stocks for 2022 is originally published on Insider Monkey.
