10 High Yield Dividend Champions

Published on September 30, 2021 at 12:33 pm by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at 10 high yield dividend champions.

Dividend investing is not about just looking at those attractive yields. Metrics like payout ratio, price-to-book ratio and the number of years of dividend growth can come in handy for investors, new and old alike. With dividend stocks in particular, those companies that have been known to raise their dividends for quite some time at least, for instance The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE: CL), Johnson & Johnson (NYSE: JNJ), and Walmart Inc. (NYSE: WMT), among others, may be solid stock picks. And to find such companies, there are a number of lists one can consult.

What is a Dividend Champion?

Dividend champions, like dividend aristocrats, are those dividend stocks that have managed to consistently increase their dividend yields for at least the past 25 years or more.

Without further ado, let’s take a look at the 10 high yield dividend champions.

Our Methodology

We have selected dividend champion stocks with yields of over 4%. 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, the number of years it has grown its dividend for, 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.

Why do we care about hedge fund activity? 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 86 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 86 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.

High Yield Dividend Champions

10. People’s United Financial, Inc. (NASDAQ: PBCT)

Number of Hedge Fund Holders: 24
Dividend Yield: 4.57%
Number of Years of Consistent Dividend Increases: 29

People’s United Financial, Inc. (NASDAQ: PBCT) is the bank holding company for People’s United Bank, National Association. The company operates through its Commercial Banking and Retail Banking segments, and ranks 10th on our list of high yield dividend champions.

Compass Point raised its price target on shares of People’s United Financial, Inc. (NASDAQ: PBCT) this May to $19.50, alongside reiterating a Neutral rating on the stock.

In the second quarter of 2021, People’s United Financial, Inc. (NASDAQ: PBCT) had an EPS of $0.41, beating estimates by $0.08. The company’s revenue was $479.90 million but missed estimates by $17.70 million.

By the end of the second quarter of 2021, 24 hedge funds out of the 873 tracked by Insider Monkey held stakes in People’s United Financial, Inc. (NASDAQ: PBCT) worth roughly $219 million. This is compared to 20 hedge funds in the previous quarter with a total stake value of approximately $208 million.

Like The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE: CL), Johnson & Johnson (NYSE: JNJ), and Walmart Inc. (NYSE: WMT), People’s United Financial, Inc. (NASDAQ: PBCT) is a good stock to invest in.

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

Number of Hedge Fund Holders: 19
Dividend Yield: 4.5%
Number of Years of Consistent Dividend Increases: 21

National Retail Properties, Inc. (NYSE: NNN), a retail real estate investment trust, ranks 9th on our list of high yield dividend champions. The company invests in high-quality retail properties subject to long-term, net leases.

This July, Wells Fargo raised its price target on shares of National Retail Properties, Inc. (NYSE: NNN) from $44 to $50. The firm also reiterated an Equal Weight rating on National Retail Properties, Inc. (NYSE: NNN) shares.

In the second quarter of 2021, National Retail Properties, Inc. (NYSE: NNN) 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.

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. (NYSE: NNN) worth roughly $188 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $289 million.

8. International Business Machines Corporation (NYSE: IBM)

Number of Hedge Fund Holders: 41
Dividend Yield: 4.7%
Number of Years of Consistent Dividend Increases: 26

International Business Machines Corporation (NYSE: IBM), an IT consulting company, offers integrated solutions and services to its consumers. It ranks 8th on our list of high yield dividend champions.

This July, Morgan Stanley raised its price target on shares of International Business Machines Corporation (NYSE: IBM) to $164, compared to the previous $152 price target. The firm also holds an Equal Weight rating on International Business Machines Corporation (NYSE: IBM) shares.

In the second quarter of 2021, International Business Machines Corporation (NYSE: IBM) 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.

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 (NYSE: IBM) 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.

Like The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE: CL), Johnson & Johnson (NYSE: JNJ), and Walmart Inc. (NYSE: WMT), International Business Machines Corporation (NYSE: IBM) is a good stock to invest in.

7. Universal Health Realty Income Trust (NYSE: UHT)

Number of Hedge Fund Holders: 9
Dividend Yield: 4.77%
Number of Years of Consistent Dividend Increases: 36

Universal Health Realty Income Trust (NYSE: UHT), a healthcare REIT, invests in human service-related facilities. The company ranks 7th on our list of high yield dividend champions. It has investments in about 71 properties in 20 states in the US.

In the second quarter of 2021, Universal Health Realty Income Trust (NYSE: UHT) had an FFO of $0.92. The company’s revenue was $20.88 million, up 8.3% year over year.

By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Universal Health Realty Income Trust (NYSE: UHT) worth roughly $25 million. This is compared to 4 hedge funds in the previous quarter with a total stake value of approximately $24.5 million.

Like The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE: CL), Johnson & Johnson (NYSE: JNJ), and Walmart Inc. (NYSE: WMT), Universal Health Realty Income Trust (NYSE: UHT) is a good stock to invest in.

6. Chevron Corporation (NYSE: CVX)

Number of Hedge Fund Holders: 50
Dividend Yield: 5.54%
Number of Years of Consistent Dividend Increases: 34

Chevron Corporation (NYSE: CVX) is an energy company exploring, developing, and producing crude oil and natural gas. It ranks 6th on our list of high yield dividend champions.

RBC Capital holds a Sector Perform rating and a $130 price target on shares of Chevron Corporation (NYSE: CVX) as of this August.

In the second quarter of 2021, Chevron Corporation (NYSE: CVX) had an EPS of $1.71, beating estimates by $0.11. The company’s revenue was $37.60 billion, up 178.62% year over year and beating estimates by $1.15 billion.

By the end of the second quarter of 2021, 50 hedge funds out of the 873 tracked by Insider Monkey held stakes in Chevron Corporation (NYSE: CVX) worth roughly $4.3 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $4.9 billion.

5. Universal Corporation (NYSE: UVV)

Number of Hedge Fund Holders: 9
Dividend Yield: 6.3%
Number of Years of Consistent Dividend Increases: 50

Universal Corporation (NYSE: UVV) is a renowned tobacco company operating globally to provide leaf tobacco and plant-based ingredients. It ranks 5th on our list of the high yield dividend champions.

In the fiscal first quarter of 2022, Universal Corporation (NYSE: UVV) had an EPS of $0.30. The company’s revenue was $350 million, up 10.8% year over year.

By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Universal Corporation (NYSE: UVV) worth roughly $87 million. This is compared to 1o hedge funds in the previous quarter with a total stake value of approximately $93 million.

4. Exxon Mobil Corporation (NYSE: XOM)

Number of Hedge Fund Holders: 68
Dividend Yield: 6.3%
Number of Years of Consistent Dividend Increases: 38

Exxon Mobil Corporation (NYSE: XOM), an energy company, manufactures and transports crude oil, natural gas, petroleum products, petrochemicals, and other specialty products. The company ranks 4th on our list of high yield dividend champions.

Piper Sandler raised its price target on shares of Exxon Mobil Corporation (NYSE: XOM) this July from $63 to $69, while reiterating a Neutral rating on the shares.

In the second quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $1.10, beating estimates by $0.11. The company’s revenue was $67.74 billion, up 107.77% year over year and beating estimates by $3.02 billion.

By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in Exxon Mobil Corporation (NYSE: XOM) worth roughly $3.7 billion. This is compared to 65 hedge funds in the previous quarter with a total stake value of approximately $2.8 billion.

3. Enbridge Inc. (NYSE: ENB)

Number of Hedge Fund Holders: 19
Dividend Yield: 6.82%
Number of Years of Consistent Dividend Increases: 26

Enbridge Inc. (NYSE: ENB), an energy company, operates through its Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. It ranks 3rd on our list of high yield dividend champions.

RBC Capital, this August, reiterated an Outperform rating on shares of Enbridge Inc. (NYSE: ENB). BMO Capital also holds an Outperform rating on Enbridge Inc. (NYSE: ENB).

In the second quarter of 2021, Enbridge Inc. (NYSE: ENB) had an EPS of $0.54, beating estimates by $0.08. The company’s revenue was $8.77 billion, up 47.12% year over year and beating estimates by $1.61 billion

By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Enbridge Inc. (NYSE: ENB) worth roughly $166 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $144 million.

ClearBridge Investments, an investment management firm, mentioned Enbridge Inc. (NYSE: ENB) in its first-quarter 2021 investor letter. Here’s what they said:

“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”

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

Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%
Number of Years of Consistent Dividend Increases: 51

Altria Group, Inc. (NYSE: MO) is one of the largest tobacco companies in the world, selling cigarettes under the Marlboro and cigars under the Black & Mild brands. The company is based in Richmond, Virginia, and ranks 2nd on our list of high yield dividend champions.

Stifel holds a Buy rating and $56 price target on shares of Altria Group, Inc. (NYSE: MO) as of this July.

In the second quarter of 2021, Altria Group, Inc. (NYSE: MO) 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.

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. (NYSE: MO) 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. (NYSE: MO) 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.”

1. AT&T Inc. (NYSE: T)

Number of Hedge Fund Holders: 68
Dividend Yield: 7.56%
Number of Years of Consistent Dividend Increases: 36

AT&T Inc. (NYSE: T), a telecommunications company, is next and last on our list of high yield dividend champions, ranking 1st. The company operates through its Communications, WarnerMedia, and Latin America segments.

RBC Capital holds a Sector Perform rating on shares of AT&T Inc. (NYSE: T) as of this July. The firm also has a price target of $30 on the stock.

In the second quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.

By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.7 billion.

We may use your email to send marketing emails about our services. Click here to read our privacy policy.

Follow Insider Monkey on Twitter