In this article, we discuss 10 best long-term dividend stocks. You can read our detailed analysis of dividend stocks and their recent performance by clicking 10 Best Long-Term Dividend Stocks.
5. Air Products and Chemicals, Inc. (NYSE:APD)
Dividend Yield as of July 18: 2.90%
Air Products and Chemicals, Inc. (NYSE:APD) is an American chemical industry company that sells gases and chemicals for industrial uses.
In fiscal Q2 2022, Air Products and Chemicals, Inc. (NYSE:APD) paid $664.7 million in dividends to shareholders, up from $592.7 million paid during the same period last year. The company holds a 40-year streak of dividend growth, with a 5-year CAGR of 11.83%. Considering its historical performance, the company is expected to raise its dividend by 10% in the next five years. Air Products and Chemicals, Inc. (NYSE:APD) has a payout ratio of 55%. The company pays a quarterly payout of $1.62 per share, with a dividend yield of 2.90%, as of July 18.
In July, UBS set a $295 price target on Air Products and Chemicals, Inc. (NYSE:APD) with a Buy rating on the shares, presenting a positive stance on chemical and packaging stocks.
As per Insider Monkey’s Q1 2022 database, 39 hedge funds owned positions in Air Products and Chemicals, Inc. (NYSE:APD), down from 40 in the previous quarter. The collective value of stakes owned by these funds stood at nearly $859 million. Jim Simons, Israel Englander, and Ken Griffin were some of the company’s prominent shareholders in Q1.
ClearBridge Investment mentioned Air Products and Chemicals, Inc. (NYSE:APD) in its Q1 2022 investor letter. Here is what the firm has to say:
“While commodities-exposed areas of the materials sector such as mining and steel fared well in the quarter, we tend to have less direct exposure to commodities across our portfolio. Holdings like industrial gas company Air Products and Chemicals (NYSE:APD) faced sharp input cost escalation, driving meaningful margin compression, which was not well-received by investors. While negative in the short term, we remain confident that the company will be able to adjust pricing accordingly and recover margins over the medium term.”
4. BlackRock, Inc. (NYSE:BLK)
Dividend Yield as of July 18: 3.21%
BlackRock, Inc. (NYSE:BLK) is a New York-based multinational investment management company. It provides investment, advisory, and risk management solutions to consumers. At the end of June, the company had $10 trillion in assets under management.
BlackRock, Inc. (NYSE:BLK) froze its dividends during the financial crisis of 2008 but raised its payouts every year since then. In the last five years, the company raised its dividends at a CAGR of 13%. It pays less than 45% of its earnings in dividends, which shows that the company’s payments are safe. BlackRock, Inc. (NYSE:BLK) pays a quarterly dividend of $4.88 per share, raising it by 18% in January. As of July 18, the stock’s dividend yield came in at 3.21%.
In July, UBS lowered its price target on BlackRock, Inc. (NYSE:BLK) to $718 but kept a Buy rating on the shares, highlighting the Q2 market pullback.
At the end of Q1 2022, 49 hedge funds tracked by Insider Monkey owned stakes in BlackRock, Inc. (NYSE:BLK), the same as in the previous quarter. The combined value of these stakes is over $1.8 billion, compared with $1.5 billion worth of stakes owned by hedge funds in Q4 2021.
Carillon Tower Advisers mentioned BlackRock, Inc. (NYSE:BLK) in its Q1 2022 investor letter. Here is what the firm has to say:
“BlackRock (NYSE:BLK) shares underperformed due to a decline in equity market performance. As a reminder, market weakness typically drives assets under management lower, which in turn leads to lower revenues.”
3. Extra Space Storage Inc. (NYSE:EXR)
Dividend Yield as of July 18: 3.53%
Extra Space Storage Inc. (NYSE:EXR) is a Utah-based real estate investment trust that invests in self-storage units.
At the end of Q1 2022, Extra Space Storage Inc. (NYSE:EXR) had nearly $66 million in cash and cash equivalents and $10.5 billion in total assets. The company also reported a 50% increase in its dividend payments, compared with the same period last year. Extra Space Storage Inc. (NYSE:EXR) has been raising its dividends consecutively for the past 11 years. Between 2012 and 2022, the company’s dividend gradually rose from $0.20 per share to $1.50 per share. As of July 18, the stock’s dividend yield stood at 3.53%.
In June, JPMorgan upgraded Extra Space Storage Inc. (NYSE:EXR) to Overweight, with a $193 price target. The firm believed that the company is expected to generate net operating income growth, which is above average for the REIT group in the coming years.
In Q1 2022, 29 hedge funds tracked by Insider Monkey held investments in Extra Space Storage Inc. (NYSE:EXR), up from 27 a quarter earlier. The collective value of these investments stood at $327.7 million. AEW Capital Management was the company’s leading shareholder in Q1.
2. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of July 18: 3.56%
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services holding company. It provides services in consumer banking, investment banking, and asset management.
In Q2 2022, JPMorgan Chase & Co. (NYSE:JPM) paid $3 billion in dividends to shareholders, up from $1.7 billion paid in the last quarter. The company has been raising its dividends consecutively for the past 12 years, with a five-year CAGR of 15%. Its payout ratio stands at 40% and is expected to remain the same for the remaining year. JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1.00 per share, with a dividend yield of 3.56%, as of July 18.
Following the strong Q2 earnings of JPMorgan Chase & Co. (NYSE:JPM), RBC Capital expressed concerns about difficult capital market businesses. In view of this, the firm lowered its price target on the stock to $130 but kept an Outperform rating on the shares.
At the end of Q1 2022, 110 hedge funds tracked by Insider Monkey owned stakes in JPMorgan Chase & Co. (NYSE:JPM), up from 107 in the previous quarter. The collective value of these stakes is over $5 billion.
Carillon Tower Advisers mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2022 investor letter. Here is what the firm has to say:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”
1. First American Financial Corporation (NYSE:FAF)
Dividend Yield as of July 18: 3.77%
First American Financial Corporation (NYSE:FAF) is an American insurance company, specializing in comprehensive title insurance protection and professional settlement.
At the end of Q1 2022, First American Financial Corporation (NYSE:FAF) reported $1.7 billion in cash and cash equivalents, up from $1.22 billion in the previous quarter. The company’s total assets grew slightly to $16.5 billion, from $16.4 billion at the end of December 2021. First American Financial Corporation (NYSE:FAF) pays a quarterly dividend of $0.51 per share, with a yield of 3.77%, as of July 18. The company has a healthy payout ratio of 35%.
In July, Truist set a $77 price target on First American Financial Corporation (NYSE:FAF) with a Buy rating on the shares, highlighting the company’s Q2 order count.
According to Insider Monkey’s Q1 2022 data, 31 hedge funds owned stakes in First American Financial Corporation (NYSE:FAF), worth over $1.45 billion. In comparison, 30 hedge funds held positions in the California-based company, with stakes valued at over $1.74 billion.
You can also take a look at 10 Best Stocks To Buy In 2022 According To Billionaire Mario Gabelli and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman.
