In this article, we discuss 5 dividend growth stocks popular on Robinhood. If you want to see more stocks from this list, click 10 Dividend Growth Stocks Popular on Robinhood.
5. The Kroger Co. (NYSE:KR)
Dividend Yield as of April 4: 1.46%
Number of Years of Consecutive Dividend Increases: 16
Number of Hedge Fund Holders: 41
The Kroger Co. (NYSE:KR) was founded in 1883 and is based in Cincinnati, Ohio. The company operates as a network of multi-department stores in the United States. The Kroger Co. (NYSE:KR) has a rich dividend history, with 16 years of consistent dividend growth.
On March 10, The Kroger Co. (NYSE:KR) declared a $0.21 per share quarterly dividend, in line with previous. The dividend is payable on June 1, for shareholders of record on May 13. The Kroger Co. (NYSE:KR)’s dividend yield on April 4 came in at 1.46% and its dividend payout ratio is 21.31%.
Scotiabank analyst Patricia Baker raised the price target on The Kroger Co. (NYSE:KR) to $64 from $60 and maintained an Outperform rating on the shares on March 10. According to the analyst, The Kroger Co. (NYSE:KR) reinforced its commitment to deliver 8%-11% total shareholder returns annually and its successful execution of the “Restock Kroger” initiative has increased investor confidence in the company’s strategic agenda.
According to the fourth quarter database of Insider Monkey, 41 hedge funds were bullish on The Kroger Co. (NYSE:KR), up from 39 funds in the earlier quarter. The total stakes held in Q4 amounted to $4.15 billion. Warren Buffett’s Berkshire Hathaway is the leading shareholder of The Kroger Co. (NYSE:KR), with 61.4 million shares worth $2.7 billion.
4. Starbucks Corporation (NASDAQ:SBUX)
Dividend Yield as of April 4: 2.22%
Number of Years of Consecutive Dividend Increases: 12
Number of Hedge Fund Holders: 53
Starbucks Corporation (NASDAQ:SBUX), the American multinational specialty coffee retailer, is one of the most popular dividend growth stocks on Robinhood. Starbucks Corporation (NASDAQ:SBUX)’s dividend yield on April 4 was 2.22%, which is above the industry average of 1.89%.
On March 22, Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend of $0.49 per share. The dividend is payable on May 27, for shareholders of the company as of May 13. Starbucks Corporation (NASDAQ:SBUX) delivers a dividend payout ratio of 50.11%, indicating stability of payments and simultaneous business growth.
BMO Capital analyst Andrew Strelzik on April 5 lowered the price target on Starbucks Corporation (NASDAQ:SBUX) to $115 from $125 but reiterated an Outperform rating on the shares. The suspension of Starbucks Corporation (NASDAQ:SBUX)’s share repurchase program to allow for greater investment in employees and stores sends a “clear message” on its priorities, the analyst told investors in a research note.
According to Insider Monkey’s Q4 data, Terry Smith’s Fundsmith LLP is the leading shareholder of Starbucks Corporation (NASDAQ:SBUX), with 11.5 million shares worth $1.35 billion. Overall, 53 hedge funds were bullish on the stock at the end of December 2021.
Here is what Polen Global Growth has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q4 2021 investor letter:
“We trimmed Starbucks as a source of funding and to edge our weighting down. While the company has managed well through a difficult environment, we recognize that lockdowns are categorically challenging for this business. Starbucks has a robust mobile order and pay platform fueled by a sophisticated app as well as a strong loyalty program, but this doesn’t alter the fact that the store-based retail business is important to the company. As a result, we felt a smaller weighting was appropriate.”
3. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of April 4: 2.54%
Number of Years of Consecutive Dividend Increases: 50
Number of Hedge Fund Holders: 60
PepsiCo, Inc. (NASDAQ:PEP) is an American multinational corporation that markets and distributes beverages and convenient foods worldwide. PepsiCo, Inc. (NASDAQ:PEP) is a significant dividend king, which yields above the industry average of 1.89%.
On February 10, PepsiCo, Inc. (NASDAQ:PEP) reported its Q4 results. The company posted earnings per share of $1.53, exceeding estimates by $0.01. Revenue over the period jumped 12.44% year-over-year to $25.25 billion, outperforming market consensus by $1.01 billion. The company also authorized a share repurchase program worth $10 billion.
PepsiCo, Inc. (NASDAQ:PEP) increased its quarterly dividend to $1.075 per share on February 2. The dividend was paid on March 31, to shareholders of the company as of March 4. The stock delivers a dividend yield of 2.54% as of April 4.
JPMorgan analyst Andrea Teixeira on March 30 reiterated an Overweight rating on PepsiCo, Inc. (NASDAQ:PEP) and lowered the firm’s price target to $180 from $185. With the ongoing Russia/Ukraine conflict and its impact on commodities, the analyst slashed estimates for most of the companies in the beverages and personal care sectors. However, Teixeira noted that demand would remain solid.
Among the hedge funds tracked by Insider Monkey, 60 funds were bullish on PepsiCo, Inc. (NASDAQ:PEP) in the fourth quarter of 2021, holding combined stakes worth $4.6 billion. Yacktman Asset Management is a notable shareholder of the company, owning 4.45 million shares valued at roughly $774 million.
Here is what Saturna Capital Amana Funds has to say about PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our positions in Pepsi. We believe Pepsi to be a well-run firm, but its products are not in keeping with an ESG mandate. Additionally, it has entered a joint venture to produce and distribute alcoholic beverages, making it ineligible for the portfolio.”
2. Walmart Inc. (NYSE:WMT)
Dividend Yield as of April 4: 1.48%
Number of Years of Consecutive Dividend Increases: 49
Number of Hedge Fund Holders: 63
Walmart Inc. (NYSE:WMT) is well on its way to becoming a dividend king, with 49 years of consistent dividend increases under its belt. Walmart Inc. (NYSE:WMT) is an Arkansas-based retailer that operates via a network of supercenters, supermarkets, hypermarkets, cash and carry stores, discount stores, and ecommerce websites.
Walmart Inc. (NYSE:WMT) declared on February 17 a $0.56 per share quarterly dividend, a 1.8% increase from its prior dividend of $0.55. The dividend was paid on April 4, to shareholders of the company as of March 18. Walmart Inc. (NYSE:WMT)’s dividend yield on April 4 came in at 1.48%.
On March 16, Morgan Stanley analyst Simeon Gutman reiterated an Overweight rating and a $167 price target on Walmart Inc. (NYSE:WMT) shares. The analyst believes that Walmart Inc. (NYSE:WMT)’s fintech startup, ONE, is creating an “affordable and broadly accessible digital platform” and he expects ONE to increase customer engagement and brand affinity to Walmart Inc. (NYSE:WMT)’s primary retail business.
Rajiv Jain’s GQG Partners is the largest stakeholder of Walmart Inc. (NYSE:WMT), with a position worth $1.5 billion. Overall, 63 hedge funds were bullish on the company at the end of the fourth quarter of 2021.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of April 4: 2.93%
Number of Years of Consecutive Dividend Increases: 16
Number of Hedge Fund Holders: 66
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based multinational pharmaceutical company that provides pharmaceutical drugs for multiple therapeutic focus areas such as hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience. Bristol-Myers Squibb Company (NYSE:BMY)’s dividend yield on April 4 stood at 2.93%
The full-year revenue for Bristol-Myers Squibb Company (NYSE:BMY) in 2021 was $46.3 billion, compared to $42.5 billion in 2020. The company’s net income in 2021 rebounded significantly to roughly $7 billion from the $9 billion net loss the prior year. The cash flow also increased as compared to 2020, coming in at $17.2 billion at the end of December 2021.
On March 30, BMO Capital analyst Evan Seigerman raised the price target on Bristol-Myers Squibb Company (NYSE:BMY) to $81 from $74 and kept an Outperform rating on the shares. In addition to a robust product pipeline, Bristol-Myers Squibb Company (NYSE:BMY) shares are undervalued given the company’s strong fundamentals, and its margin leverage is underestimated, the analyst told investors in a research note.
Bristol-Myers Squibb Company (NYSE:BMY) declared on March 1 a $0.54 per share quarterly dividend, in line with previous. The dividend will be paid on May 2, for shareholders of record on April 1.
Among the hedge funds tracked by Insider Monkey, 66 funds were bullish on Bristol-Myers Squibb Company (NYSE:BMY) at the end of Q4 2021, with total stakes amounting to $3.3 billion. John Overdeck and David Siegel’s Two Sigma Advisors is the biggest stakeholder of the company, with 6.6 million shares worth $412.5 million.
Wedgewood Partners mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2020 investor letter. Here is what the fund had to say:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
You can also take a look at 10 Best Biotech Stocks Under $5 and 10 Stocks Trending on Robinhood.
