In this article, we discuss 5 blue-chip dividend stocks with over 5% yield. If you want to read our detailed analysis of dividend stocks and their returns over the years, go directly to read 10 Blue Chip Dividend Stocks with Over 5% Yield.
5. ONEOK, Inc. (NYSE:OKE)
Dividend Yield as of July 16: 6.71%
ONEOK, Inc. (NYSE:OKE) is an Oklahoma-based natural gas liquids company and a leading midstream service provider in the US.
ONEOK, Inc. (NYSE:OKE) stopped increasing its dividend during the pandemic of 2020 but has been paying uninterrupted dividends for the past 25 years. In the past five years, the company raised its dividend at a CAGR of 8.7% and has a payout ratio of 67%. In the past year, ONEOK, Inc. (NYSE:OKE) paid over $1.6 billion in dividends to shareholders. The company’s current quarterly dividend stands at $0.935 per share, with a dividend yield of 6.71%, as of July 16.
In May, Morgan Stanley raised its price target on ONEOK, Inc. (NYSE:OKE) to $81 with an Equal Weight rating on the shares, presenting a bullish outlook on the midstream sector.
At the end of Q1 2022, 25 hedge funds tracked by Insider Monkey owned stakes in ONEOK, Inc. (NYSE:OKE), the same as in the previous quarter. These stakes hold a collective value of $174.3 million, up from $94.5 million worth of stakes owned by hedge funds in Q4 2021. Ken Griffin and Israel Englander were the company’s most prominent stakeholders in Q1.
Miller Howard Investments mentioned ONEOK, Inc. (NYSE:OKE) in its Q3 2021 investor letter. Here is what the firm has to say:
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”
4. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of July 16: 7.75%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company that also specializes in refined products and petrochemicals.
In Q1 2022, Enterprise Products Partners L.P. (NYSE:EPD) reported $1.8 billion in distributable cash flow, up from $1.7 billion reported during the same period last year. Its cash flow from operations stood at $2 billion, compared with $1.9 billion in the first quarter of 2021. Enterprise Products Partners L.P. (NYSE:EPD) has been raising its dividends consecutively for the past 23 years. The company raised its payout twice in 2022, offering a quarterly dividend of $0.475 per share, with a yield of 7.75%, as of July 16.
Following the company’s solid Q1 results, Truist raised its price target on Enterprise Products Partners L.P. (NYSE:EPD) in May to $30, with a Buy rating on the shares.
At the end of Q1 2022, 19 hedge funds in Insider Monkey’s database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), down from 21 in the previous quarter. The combined value of these stakes is over $177.5 million. First Eagle Investment Management was the company’s leading shareholder in Q1, owning over 3.2 million shares.
ClearBridge Investments mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q1 2022 investor letter. Here is what the firm has to say:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Magellan Midstream Partners, L.P. (NYSE:MMP)
Dividend Yield as of July 16: 8.46%
Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based partnership that owns ammonia and petroleum pipelines. In June, the company was upgraded at Goldman Sachs to Buy with a $59 price target. The firm believes that the company will benefit a lot from rising inflation.
In Q1 2022, Magellan Midstream Partners, L.P. (NYSE:MMP) reported $265 million in distributable cash flow and $240 million in free cash flow. The company expects its FCF to reach $1.46 billion in FY22. It currently pays a quarterly dividend of $1.0375 per share. Magellan Midstream Partners, L.P. (NYSE:MMP) has been raising its dividends consecutively for the past 20 years at a CAGR of 4%. The company’s payout ratio based on distributable cash flow stands at 81%. As of July 16, the stock’s dividend yield came in at 8.46%.
At the end of March 2022, 11 hedge funds in Insider Monkey’s database owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), valued at $31.5 million. In comparison, 13 hedge funds held positions in the company in the previous quarter, worth $87.3 million.
2. Holly Energy Partners, L.P. (NYSE:HEP)
Dividend Yield as of July 16: 8.53%
Holly Energy Partners, L.P. (NYSE:HEP) is an American limited partnership that provides petroleum products and crude oil transportation and storage services to the petroleum industry.
Holly Energy Partners, L.P. (NYSE:HEP) ended Q1 with over $15 million available in cash and cash equivalents, up from $14.3 million available in the previous quarter. The company’s distributable cash flow stood at $64.5 million, declining 12% from the same period last year. However, its operating cash flow for the quarter came in at $86.7 million, up from $82.5 million in the prior-year quarter. Holly Energy Partners, L.P. (NYSE:HEP) slashed its dividend by 48% in 2020 due to the pandemic but paid regular dividends to shareholders throughout this period. It currently offers a quarterly payout of $0.35 per share, with a yield of 8.53%, as of July 16.
As per Insider Monkey’s first quarter 2022 database, 3 hedge funds held positions in Holly Energy Partners, L.P. (NYSE:HEP), up from 2 in the previous quarter. These hedge funds hold combined stakes worth $1.3 million. Ken Griffin’s Citadel Investment was the company’s leading stakeholder in Q1.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of July 16: 8.57%
Altria Group, Inc. (NYSE:MO) is an American producer and marketer of tobacco, cigarettes, and related products. Recently, the company announced to raise the prices of its products across many brands in order to support its Q3 profitability. This price increase is effective from July 17.
Altria Group, Inc. (NYSE:MO)’s dividend is one of the safest in the industry. The company spent over $36 billion in dividends and buybacks from 2017 to 2021. In FY21, the company’s payout ratio stood at 76.4% and is expected to be between 75% and 76% for Fy22. In Q1 2022, Altria Group, Inc. (NYSE:MO) paid $1.6 billion in dividends to shareholders. The company’s dividend history is also very strong, raising payouts 56 times in 52 years. It currently offers a quarterly dividend of $0.90 per share, with a yield of 8.57%, as of July 16.
In June, Morgan Stanley raised its price target on Altria Group, Inc. (NYSE:MO) to $47 while upgrading it to Equal Weight.
The number of hedge funds tracked by Insider Monkey owning stakes in Altria Group, Inc. (NYSE:MO) stood at 47 in Q1, up from 39 in the previous quarter. These stakes are collectively valued at nearly $2 billion.
You can also take a look at 10 Value Stocks Hedge Funds Like in 2022 and Oil Price Predictions for 2022 and 10 Stocks to Watch
