In this article, we discuss the 10 dividend aristocrats to buy for 2022.
Dividend aristocrats are some of the most lucrative investment options, since these stocks have raised their dividends consistently for more than 25 years and these companies have long-term stable performance.
The global COVID-19 pandemic influenced company earnings significantly, which compelled many businesses to slash their dividends, or lower them significantly, impacting dividend investors all over the world.
However, as economic recovery is underway in 2021, income investing is gaining its mojo back. The highest yielding industries are the oil and gas sectors, with average yields over 5%. Attractive dividend opportunities are also seen in the banking sector, utilities with exposure to solar and wind energy, as well as the property and casualty insurance industries.
Legendary value investor Warren Buffett is considered the greatest investor of all time, and much of his investment strategy relies on collecting dividend payments. A large amount of profits flowing into Berkshire Hathaway Inc. (NYSE:BRK-A) is attributed to dividend investments. In 2021 alone, the company is expected to collect $3.8 billion in dividend payments.
Dividend investing will never truly fall out of favor, especially for passive income investors who have long term investment horizons. Retirees, people who are switching employment, and individuals who run into unexpected financial trouble always fall back on their dividend stock portfolio as a reliable income source.
Some of the notable dividend aristocrats from 2021 include AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO), among others discussed in detail below.
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Our Methodology
For selecting the 10 best dividend aristocrats to buy for 2022, we focused on companies that offer more than 3% dividend yield, have mostly positive analyst ratings, strong growth catalysts, and solid company fundamentals.
We have ranked the companies according to their dividend yield, mentioning the number of years of consecutive dividend growth, and the hedge fund sentiment around each stock.
Dividend Aristocrats to Buy for 2022
10. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 21
Dividend Yield: 3.28%
Number of Years of Consecutive Dividend Growth: 49
Federal Realty Investment Trust (NYSE:FRT) is a Maryland-based real estate investment trust that invests in retail centers and mixed-use neighborhoods in the Northeastern United States, the Mid-Atlantic states, California, and South Florida.
Federal Realty Investment Trust (NYSE:FRT), on November 4, posted its Q3 results. EPS in the third quarter totaled $0.64, beating estimates by $0.23. The revenue amounted to $247.02 million, up 19.10% year-over-year, exceeding estimates by $18.80 million.
Truist analyst Ki Bin Kim on December 10 raised the price target on Federal Realty Investment Trust (NYSE:FRT) to $130 from $125 and kept a Hold rating on the shares, updating his estimates to reflect the company’s Q3 earnings and assumptions for revenue growth and expenses.
With a forward dividend yield of 3.28%, Federal Realty Investment Trust (NYSE:FRT) is one of the best dividend aristocrats to buy for 2022, offering 49 years of consistent dividend growth.
The largest stakeholder of Federal Realty Investment Trust (NYSE:FRT) from the third quarter is Waterfront Capital Partners, holding 605,515 shares worth $71.4 million. Overall, 21 hedge funds tracked by Insider Monkey were bullish on Federal Realty Investment Trust (NYSE:FRT), up from 16 funds in the preceding quarter.
Federal Realty Investment Trust (NYSE:FRT) is one of the notable dividend aristocrats, in addition to AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO).
9. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 24
Dividend Yield: 3.75%
Number of Years of Consecutive Dividend Growth: 47
Consolidated Edison, Inc. (NYSE:ED) is one of the biggest investor-owned energy companies in the US, offering an extensive portfolio of energy products and services to customers via its subsidiaries in New York, Manhattan, and Westchester County. With 47 years of consecutive dividend growth, Consolidated Edison, Inc. (NYSE:ED) is one of the best dividend aristocrats to buy for 2022.
On November 4, Consolidated Edison, Inc. (NYSE:ED) announced earnings for Q3, posting an EPS of $1.41, missing estimates by $0.07. Revenue for the quarter increased 8.40% year-over-year to $3.61 billion, outperforming estimates by $152.85 million.
At the end of September, 24 hedge funds were long Consolidated Edison, Inc. (NYSE:ED), with total stakes amounting to $364.1 million. Electron Capital Partners is the largest Consolidated Edison, Inc. (NYSE:ED) stakeholder, acquiring the security in the third quarter, with 1.35 million shares worth $98.46 million.
Citi analyst Ryan Levine on December 15 raised the price target on Consolidated Edison, Inc. (NYSE:ED) to $84 from $77 and kept a Neutral rating on the shares. The analyst stated that over the next 5 to 10 years, it seems reasonable to assume that 100% of Consolidated Edison, Inc. (NYSE:ED)’s gas supply will become certified.
8. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 36
Dividend Yield: 4.01%
Number of Years of Consecutive Dividend Growth: 34
Cardinal Health, Inc. (NYSE:CAH) posted earnings for the third quarter on November 9. The company reported a loss per share of $1.29, missing estimates by $0.06. The quarterly revenue was up 12.55% from the prior year quarter, amounting to $43.97 billion, exceeding estimates by $2.14 billion.
Cardinal Health, Inc. (NYSE:CAH) is engaged in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations, offering medical products to more than 75% of the hospitals in the United States.
On December 16, Cardinal Health, Inc. (NYSE:CAH) announced a collaboration with Zipline, a privately held on-demand delivery provider, to offer autonomous aircraft delivery to pharmacies. Cardinal Health, Inc. (NYSE:CAH) will use Zipline’s service for on-demand replenishment of pharmaceutical products to retail pharmacy locations, making deliveries within 15-30 minutes. The companies plan to start with the North Carolina region, and expand to additional locations following the initial launch.
Deutsche Bank analyst George Hill on November 12 raised the price target on Cardinal Health, Inc. (NYSE:CAH) to $59 from $51 and kept a Hold rating on the shares after the “modest beat” in the third quarter.
Stocks like Cardinal Health, Inc. (NYSE:CAH) , AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO) offer investors a strong hedge against inflation and economic uncertainty.
The leading Cardinal Health, Inc. (NYSE:CAH) stakeholder in Q3 is Pzena Investment Management, holding 2.95 million shares worth $146.2 million. Overall, 36 hedge funds in the third quarter database of Insider Monkey were bullish on Cardinal Health, Inc. (NYSE:CAH), with total stakes valued at approximately $665 million.
7. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 16
Dividend Yield: 4.02%
Number of Years of Consecutive Dividend Growth: 50
Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturer of engineered components and products, offering furniture, flooring, and textiles for households, in addition to aerospace tubing, ducting, hydraulic cylinders, and fabricated assemblies for the material handling, construction, and transportation industries.
Leggett & Platt, Incorporated (NYSE:LEG), on November 1, posted Q3 earnings. EPS in the period totaled $0.71, missing estimates by $0.06. The quarterly revenue equaled $1.32 billion, increasing 9.24% year-over-year, surpassing estimates by $3.02 million.
On November 9, Leggett & Platt, Incorporated (NYSE:LEG) announced a quarterly dividend of $0.42 per share, offering a 5% increase from the prior dividend of $0.40, payable on January 14 to shareholders of record on December 15. Leggett & Platt, Incorporated (NYSE:LEG) is an underappreciated dividend stock, which has proven to be resilient amidst secular tailwinds, making it one of best dividend stocks to buy for 2022.
The largest Leggett & Platt, Incorporated (NYSE:LEG) stakeholder from Q3 2021 is Balyasny Asset Management, holding a $10.3 million position in the company. Overall, 16 hedge funds in the third quarter reported owning stakes in Leggett & Platt, Incorporated (NYSE:LEG), up from 14 funds in the preceding quarter.
6. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.14%
Number of Years of Consecutive Dividend Growth: 38
Amcor plc (NYSE:AMCR), an Australian company specializing in flexible packaging, rigid containers, and specialty cartons for the food, beverage, pharmaceutical, medical, and household sectors, is one of the most notable dividend aristocrats, offering a forward yield of 4.14% and 38 years of consecutive dividend growth.
Amcor plc (NYSE:AMCR) announced Q3 earnings on November 2. EPS in the quarter equaled $0.18, in line with analysts’ consensus estimates. The $3.42 billion revenue also outperformed estimates by $143.99 million.
Payable on December 14 to shareholders of record on November 24, Amcor plc (NYSE:AMCR) declared a $0.12 per share quarterly dividend, reflecting a 2.1% increase from the prior-quarter dividend of $0.1175.
Polaris Capital Management was the largest Amcor plc (NYSE:AMCR) stakeholder at the end of September, with 13.2 million shares worth $153.93 million. Overall, 19 hedge funds were bullish on Amcor plc (NYSE:AMCR), up from 16 funds in the prior quarter.
Amcor plc (NYSE:AMCR) is one of the notable dividend aristocrats, in addition to AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO).
5. People’s United Financial, Inc. (NASDAQ:PBCT)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.14%
Number of Years of Consecutive Dividend Growth: 28
People’s United Financial, Inc. (NASDAQ:PBCT), a bank holding company offering financial services including personal banking, credit cards, mortgages, loans, investment, and insurance solutions, is one of the best dividend aristocrats to buy for 2022, with a forward yield of 4.14%.
Out of the 867 hedge funds monitored by Insider Monkey in Q3, 19 funds were long People’s United Financial, Inc. (NASDAQ:PBCT), with total stakes amounting to $222.65 million. Alec Litowitz and Ross Laser’s Magnetar Capital is the largest stakeholder of People’s United Financial, Inc. (NASDAQ:PBCT), with 6.35 million shares worth over $111 million.
People’s United Financial, Inc. (NASDAQ:PBCT), on October 21, posted its Q3 results. EPS in the quarter equaled $0.33, beating estimates by $0.01. The quarterly revenue totaled $470.70 million, missing estimates by $6.78 million.
M&T Bank Corporation (NYSE:MTB) announced on October 21 that it has received approval from the New York State Department of Financial Services and the Connecticut Department of Banking to complete the merger of M&T Bank Corporation (NYSE:MTB) with People’s United Financial, Inc. (NASDAQ:PBCT), which will allow customers an expanded network of branches and an increased array of products and services.
4. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield: 4.41%
Number of Years of Consecutive Dividend Growth: 26
Realty Income Corporation (NYSE:O) reported its Q3 results on November 1. EPS in the quarter came in at $0.38, in line with analysts’ estimates. Revenue over the period jumped 26.70% year-over-year to $486.34 million, exceeding estimates by $27.36 million.
Realty Income Corporation (NYSE:O) has increased its dividend 113 times since the company became publicly listed in 1994, and its monthly dividends are supported by the income from more than 7,000 real estate properties owned by the REIT under long-term lease agreements with commercial customers, making it one of the best dividend aristocrats to buy for 2022.
Mizuho analyst Haendel St. Juste on November 30 raised the price target on Realty Income Corporation (NYSE:O) to $82 from $81 and kept a Buy rating on the shares, stating increased competition for assets and the feasible macro environment for real estate.
Israel Englander’s Millennium Management is the largest Realty Income Corporation (NYSE:O) stakeholder as of Q3 2021, with 934,068 shares valued at $60.5 million. Overall, 22 hedge funds in the database of Insider Monkey were bullish on Realty Income Corporation (NYSE:O), with total stakes worth $275 million.
3. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 81
Dividend Yield: 4.50%
Number of Years of Consecutive Dividend Growth: 49
AbbVie Inc. (NYSE:ABBV) is an extremely popular dividend aristocrat among the hedge funds, with 81 funds being bullish on the stock in the third quarter, holding stakes worth $4.14 billion. Billionaire Warren Buffett’s Berkshire Hathaway is the leading stakeholder of AbbVie Inc. (NYSE:ABBV), with $14.39 million shares worth $1.55 billion.
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company that was created in 2013 as a result of a corporate spin off from Abbott Laboratories (NYSE:ABT). AbbVie Inc. (NYSE:ABBV) is engaged in clinical research and medical pipelines, with therapeutic focus areas including immunology, oncology, neuroscience, virology, and eye care.
On October 29, AbbVie Inc. (NYSE:ABBV) announced earnings for Q3. EPS in the quarter totaled $3.33, exceeding estimates by $0.11. Revenue over the period jumped 11.33% to $14.34 billion, outperforming estimates by $43.28 million.
Wells Fargo analyst Mohit Bansal on December 8 initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Overweight rating and a $165 price target.
Here is what Artisan Value Fund has to say about AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter:
“Our sales included Abbvie, a biopharmaceutical company. Abbvie was a smaller position in the portfolio. We had concerns about its capital allocation and a stretched balance sheet, so we chose to move on.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Dividend Yield: 4.53%
Number of Years of Consecutive Dividend Growth: 34
Chevron Corporation (NYSE:CVX), an American multinational energy corporation, posted solid Q3 results on October 29. EPS in the quarter equaled $2.96, topping estimates by $0.77. Revenue over the period jumped 82.86% to $44.71 billion, exceeding estimates by $3.86 billion.
Chevron Corporation (NYSE:CVX) is one of the top dividend aristocrats to buy for 2022, with a forward yield of 4.53%, reporting consecutive dividend growth throughout 34 years.
RBC Capital analyst Biraj Borkhataria on November 24 upgraded Chevron Corporation (NYSE:CVX) to Outperform from Sector Perform with a price target of $145, up from $130. The analyst observed that Chevron Corporation (NYSE:CVX) is in a position to benefit from a “strong” commodity cycle over the coming years, and its business plans “suggest much more stability in its portfolio than peers.”
Fisher Asset Management is one of the largest Chevron Corporation (NYSE:CVX) stakeholders, holding a $634.45 million position in the company in the third quarter. Overall, 51 hedge funds were long Chevron Corporation (NYSE:CVX) in Q3, up from 50 funds in the prior quarter.
Here is what ClearBridge Investments has to say about Chevron Corporation (NYSE:CVX) in its Q1 2021 investor letter:
“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) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Dividend Yield: 5.59%
Number of Years of Consecutive Dividend Growth: 37
Exxon Mobil Corporation (NYSE:XOM), a multinational Texas-based oil and gas corporation, is one of the highest yielding dividend aristocrats to buy for 2022, offering an attractive yield of 5.59%. Exxon Mobil Corporation (NYSE:XOM) announced earnings for the third quarter on October 29, posting an EPS of $1.58, beating estimates by $0.06. Revenue for the period increased 59.71% year-over-year to $73.79 billion, outperforming estimates by $2.09 billion.
JPMorgan analyst Phil Gresh on December 9 raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $83 from $81 and kept an Overweight rating on the shares. The analyst stated that Exxon Mobil Corporation (NYSE:XOM) is “turning a corner, with newfound discipline and good progress on reducing debt from peak levels.”
Rajiv Jain’s GQG Partners is the leading Exxon Mobil Corporation (NYSE:XOM) stakeholder, holding $26.58 million shares worth $1.56 billion. Overall, 64 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), with total stakes amounting to $4.64 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
You can also take a look at 10 Dividend Stocks That Have Doubled Their Payouts and Bill Gates Portfolio: Most Recent Investments.
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Disclosure: None. 10 Dividend Aristocrats to Buy for 2022 is originally published on Insider Monkey.
