In this article, we will be taking a look at the 5 best dividend growth stocks to buy now. To read our detailed analysis of dividend investing, you can go directly to see the 10 Best Dividend Growth Stocks to Buy Now.
5. 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) works to explore, develop, and produce crude oil and natural gas, process, liquefy, and transport, liquified natural gas, and offer a range of other services within the energy sector. It ranks 5th on our list of the best dividend growth stocks to buy now.
As of this August, DZ Bank’s Werner Eisenmann has a Hold rating on shares of Chevron Corporation (NYSE: CVX) with a $110 price target.
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. has gained 14.19% year to date and 10.93% in the past year.
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.
4. 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 among the global leaders in the tobacco industry and is based in Virginia. The company procures, finances, processes, packs, stores, and ships leaf tobacco for sale to manufacturers of consumer tobacco products. It ranks 4th on our list of the best dividend growth stocks to buy now.
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. Universal Corporation (NYSE: UVV) has gained 0.66% year to date and 8.1% in the past 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.
3. 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) is an energy company that manufactures, trades in, transports, and sells crude oil, natural gas, petroleum products, petrochemicals, and other specialty products. It ranks 3rd on our list of the best dividend growth stocks to buy now.
Phillip Jungwirth at BMO Capital began covering shares of Exxon Mobil Corporation (NYSE: XOM) this July with a Market Perform rating and a $69 price target, indicating a 21% upside.
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. Exxon Mobil Corporation (NYSE: XOM) has gained 32.31% year to date and 30.06% in the past year.
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.
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 among the largest global producers and marketers of tobacco, cigarettes, and related products. Some of its brands include Marlboro and Black & Mild. It ranks 2nd on our list of the best dividend growth stocks to buy now.
Stifel analyst Christopher Growe reiterated his Buy rating and $56 price target on shares of Altria Group, Inc. (NYSE: MO) 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. Altria Group, Inc. (NYSE: MO) has gained 7.73% in the past 6 months and 18.71% 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. (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) offers a range of communications and telecommunications services such as wireless voice and data communication services, video and targeted advertising services, broadband, legacy telephony internet and voice communication. It ranks 1st on our list of the best dividend growth stocks to buy now.
Bryan Kraft, a Deutsche Bank analyst, holds a Buy rating and a $37 price target on shares of AT&T Inc. (NYSE: T) as of this July.
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.
See also 10 Most Profitable Industries in the US and Top 10 High Growth Stocks To Buy in 2021.
