10 Dividend Stocks That Have Doubled Their Payouts

In this article, we will be taking a look at 10 dividend stocks that have doubled their payouts.

Perhaps to signal confidence in their financial strength in the aftermath of the crippling coronavirus pandemic, many companies this year have announced impressive dividend hikes right as the market began recuperating. Dividend stocks like AbbVie Inc. (NYSE:ABBV), Medtronic plc (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and the Procter & Gamble Company (NYSE:PG) are typically considered good investment options for those looking for a stable income especially in trying financial times.

Thus, when massive dividend hikes are added onto the existing benefits of dividend stocks, they become hard to resist for income investors and hedge funds alike. With the steadily improving market condition and economic situation of companies in general, it is unsurprising that dividend increases and impressive hikes of a minimum of 100%, at least for all the stocks mentioned below, are being announced consecutively. Share buyback programs alongside dividend payouts are mainly sustained by good cash flows, allowing for the above correlation to be drawn.

According to a CNBC article from this November, it’s expected that S&P 500 companies will end up reaching record highs in terms of cash dividends paid out to stakeholders in 2021. When compared to the past four years, we see that as of November 2021, S&P 500 companies had already crossed previous years’ records in dividend payments. About $522 billion were reported to have been spent in dividends this year, according to the S&P Dow Jones Indices.

Photo by Viacheslav Bublyk on Unsplash

Without further ado, let’s take a look at the 10 dividend stocks that have doubled their payouts.

Our Methodology

We have picked stocks that announced dividend hikes in 2021, with each stock having a minimum hike of 100% and many having even higher raises. We have also used analysts’ ratings to determine which stocks are favorably placed in analyst and investor circles, picking stocks with mostly positive ratings and strong fundamentals.

Dividend Stocks That Have Doubled Their Payouts

10. Geopark Ltd (NYSE:GPRK)

Number of Hedge Fund Holders: 10

Dividend Yield: 1.4%

Geopark Ltd (NYSE:GPRK) is an energy company that deals with oil and gas reserves in Chile, Colombia, Brazil, Argentina, Peru, and Ecuador. The company has net proved reserves of 124 million barrels of oil equivalent. In August, it doubled its quarterly dividend payout, and as of this November, its yield is 1.4%, making it one of the best dividend stocks that have doubled their payouts this year.

In the third quarter of 2021, Geopark Ltd (NYSE:GPRK) had an EPS of $0.48, beating estimates by $0.03. The company’s revenue was $174 million. Geopark Ltd (NYSE:GPRK) has gained 9% in the past year.

By the end of the third quarter of 2021, 10 hedge funds out of the 867 tracked by Insider Monkey held stakes in Geopark Ltd (NYSE:GPRK) worth roughly $80.5 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $79.2 million.

Like AbbVie Inc. (NYSE:ABBV), Medtronic plc (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and the Procter & Gamble Company (NYSE:PG), Geopark Ltd (NYSE:GPRK) is a noteworthy dividend stock to consider.

9. Advance Auto Parts, Inc. (NYSE:AAP)

Number of Hedge Fund Holders: 35

Dividend Yield: 1.8%

Advance Auto Parts, Inc. (NYSE:AAP) is an automotive-replacement parts, accessories, batteries, and maintenance items provider. It mainly offers products for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company hiked its dividend this year by a whopping 300%, bringing its yield up to 1.8% as of this November. As such, it is among the most noteworthy dividend stocks that have doubled their payout.

This November, Raymond James analyst Bobby Griffin reiterated a Buy rating on shares of Advance Auto Parts, Inc. (NYSE:AAP). The analyst also raised his price target on the stock to $275.

The fiscal third quarter of 2021 showed an EPS of $3.21, beating estimates by $0.36, for Advance Auto Parts, Inc. (NYSE:AAP). The company’s revenue was $2.62 billion, up 3.12% year over year and beating estimates by $36.66 million.

According to our data, 35 hedge funds held stakes in Advance Auto Parts, Inc. (NYSE:AAP) in the third quarter, worth $899 million.

8. United Microelectronics Corp (NYSE:UMC)

Number of Hedge Fund Holders: 13

Dividend Yield: 2%

United Microelectronics Corp (NYSE:UMC) is an information technology company operating as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the US, Europe, and internationally. The company offers services such as circuit design, mask tooling, wafer fabrication, and assembly and testing. In July, the company raised its dividend by 110%.

In the third quarter, United Microelectronics Corp’s (NYSE:UMC) revenue was $2 billion, beating estimates by $43.53 million.

Insider Monkey’s data shows 13 hedge funds holding stakes in United Microelectronics Corp (NYSE:UMC) in the third quarter, worth $151 million. In the second quarter, 10 hedge funds were long this stock, with stakes valued at $141 million.

Like AbbVie Inc. (NYSE:ABBV), Medtronic plc (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and the Procter & Gamble Company (NYSE:PG), United Microelectronics Corp (NYSE:UMC) is a dividend stock elite investors are eyeing today.

7. SLM Corp (NASDAQ:SLM)

Number of Hedge Fund Holders: 27

Dividend Yield: 2.5%

SLM Corp (NASDAQ:SLM) is a consumer finance company that originates and services private education loans to students and their families to help fund education costs in the US. The company is based in Newark, and raised its dividend by 267% this year, bringing its yield up to 2.5% as of November.

The company’s earnings history shows an EPS of $0.24, beating estimates by $0.09, in the fiscal third quarter of 2021. Its revenue was $357.52 million, beating estimates by $14.99 million.

The third quarter showed 27 hedge funds holding stakes in SLM Corp (NASDAQ:SLM), worth $891 million. Comparatively, the second quarter had 27 hedge funds holding stakes in the company as well, worth $1.1 billion.

Like AbbVie Inc. (NYSE:ABBV), Medtronic plc (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and the Procter & Gamble Company (NYSE:PG), SLM Corp (NASDAQ:SLM) is a dividend stock many investors are piling into.

6. Trinseo S.A. (NYSE:TSE)

Number of Hedge Fund Holders: 12

Dividend Yield: 2.6%

Trinseo S.A. (NYSE:TSE) is a manufacturing company operating globally in the materials sector. It focuses on manufacturing plastics, latex, and synthetic rubber. The company raised its dividend by 300% this year, bringing its yield up to 2.6% as of this November. The company is thus one of the best dividend stocks that have doubled their payout.

According the Trinseo S.A.’s (NYSE:TSE) earnings history and fiscal third quarter of 2021 earnings report, it had an EPS of $2.01 for that quarter. The company’s revenue was $1.27 billion, up 68.73% year over year and beating estimates by 75.39% as well.

Insider Monkey’s hedge fund data shows 12 hedge funds holding stakes in Trinseo S.A. (NYSE:TSE) in the third quarter, worth $29 million. In the second quarter, 17 hedge funds held stakes in the company worth $41.4 million.

5. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 65

Dividend Yield: 2.9%

Morgan Stanley (NYSE:MS) is among the most renowned financial and investment banking and brokerage companies out there. The company offers financial products and services to a varied consumer-base, including corporations, governments, financial institutions, and individuals. It raised its dividend by 100% this year, and as of this November, it had a yield of 2.9%.

Citigroup analyst Keith Horowitz holds a Neutral rating on shares of Morgan Stanley (NYSE:MS) as of this October. The analyst also raised his price target on the stock to $105.

In the fiscal third quarter of 2021, Morgan Stanley (NYSE:MS) had an EPS of $2.04, beating estimates by $0.36. The company’s revenue was $14.75 billion, up 26.56% year over year and beating estimates by $799.47 million as well.

Out of 867, 65 hedge funds held stakes in Morgan Stanley (NYSE:MS) in the third quarter, worth $4.9 billion. In the second quarter, 69 hedge funds held stakes in the company worth $5.3 billion.

4. Genco Shipping & Trading Limited (NYSE:GNK)

Number of Hedge Fund Holders: 17

Dividend Yield: 3.9%

Genco Shipping & Trading Limited (NYSE:GNK) is an industrials company that engages in the ocean transportation of dry bulk cargoes across the globe. The company owns and operates dry bulk carrier vessels and transports iron ore, coal, grains, steel products, and other dry-bulk cargoes. This year, the company has hiked its dividend thrice to bring in a cumulative increase of 650% in 2021.

This November, H.C. Wainwright analyst Magnus Fyhr reiterated a Buy rating on Genco Shipping & Trading Limited (NYSE:GNK) shares.

According to Insider Monkey’s hedge fund data, 17 hedge funds held stakes in Genco Shipping & Trading Limited (NYSE:GNK) in the third quarter worth $175 million. In the second quarter, 19 hedge funds held stakes in the company worth $175 million.

3. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 32

Dividend Yield: 5.4%

Suncor Energy Inc. (NYSE:SU) is an integrated energy company focusing on developing petroleum resource basins in Canada’s Athabasca oil sands. It also deals with crude oil in Canada and internationally. The company doubled its dividend this year, using its increased cash flow in 2021 while also cutting $3 billion worth of debt. It is among the best dividend stocks that have doubled their payouts.

Scotiabank’s Jason Bouvier reiterated an Outperform rating on shares of Suncor Energy Inc. (NYSE:SU) this November.

Insider Monkey’s data shows 32 hedge funds long in Suncor Energy Inc. (NYSE:SU) in the third quarter, with stakes worth $1.08 billion. In the second quarter again, 32 hedge funds were long in the stock, with stakes worth $1.1 billion.

2. Alico, Inc. (NASDAQ:ALCO)

Number of Hedge Fund Holders: 10

Dividend Yield: 5.6%

Alico, Inc. (NASDAQ:ALCO) is an agricultural products company based in the US. It operates through its Alico Citrus and Land Management and Other Operations segments. It hiked its dividend this year by 178%, making it one of the top dividend stocks that have doubled their payout.

In the third quarter of 2021, Alico, Inc. (NASDAQ:ALCO) had an EPS of $3.61, beating estimates by $3.32. Its revenue was $34.89 million, beating estimates by $5.49 million.

Our data shows that 10 hedge funds held stakes in Alico, Inc. (NASDAQ:ALCO) in the third quarter, worth $12.2 million. Comparatively, in the second quarter, seven hedge funds held stakes in the company worth $11.1 million.

Third Avenue Management, an investment management firm, mentioned Alico, Inc. (NASDAQ:ALCO) in its first-quarter 2021 investor letter. Here’s what they said:

“We also exited the Fund’s investment in long-time holding Alico, one of the largest citrus producers in the US. While Alico’s management has made good progress in streamlining and bettering the company, competition from foreign producers has weighed on industry pricing and we believe this is likely to remain a constraint on the industry for the foreseeable future.”

1. Star Bulk Carriers Corp. (NASDAQ:SBLK)

Number of Hedge Fund Holders: 21

Dividend Yield: 13.7%

Star Bulk Carriers Corp. (NASDAQ:SBLK) is a shipping company that works to transport dry bulk cargoes across the globe. It hiked its dividend by 317% this November.

This September, H.C. Wainwright analyst Magnus Fyhr initiated coverage of Star Bulk Carriers Corp. (NASDAQ:SBLK) shares with a Buy rating.

The company’s EPS in the fiscal third quarter of 2021 was $2.19, beating estimates by $0.05. The revenue was $354.84 million, up 126.61% year over year and beating estimates by $14.59 million.

In the third quarter, 21 hedge funds held stakes in Star Bulk Carriers Corp. (NASDAQ:SBLK), worth $846 million.

Massif Capital, an investment management firm, mentioned Star Bulk Carriers Corp. (NASDAQ:SBLK) in its third-quarter 2021 investor letter. Here’s what they said:

“We initiated one long position, one short position and exited one position during the third quarter. Our new long position was in Star Bulk Carriers (SBLK), a pure-play dry bulk operator with roughly 120 controlled vessels and 14 million tons of combined cargo capacity globally.

SBLK has one of the better management teams in the maritime shipping industry and the lowest cost structure among all dry bulk names. After announcing their new dividend policy in May, SBLK now has one of the best payout structures in shipping. The firm has paid out $0.3 and $0.7 per share in dividends for the first and second quarters of 2021. SBLK will most likely announce a dividend for the third quarter somewhere in the $1.15-$1.25 per
share range, depending on movement in net working capital.

We believe the best way to look at this business is through cash generation potential and how much is returned to investors. The current equity valuation does not reflect current rates for shipping (earnings), partly because of the velocity of the move in rates and because shipping cycles turn, and it’s not clear whether this is a local top or the early innings of a multi-year cycle. Our belief is the latter. Part of our catalyst is the market re-rating the stock higher once the length of the increased earnings power becomes understood. It is a relatively strong catalyst in the sense that with a strong dividend policy, we can be patient for the market to underwrite this story as the cash is either returned to us via a high dividend yield if the market is either slow or chooses not to join our side of the trade.

Our estimates suggest a time-charter equivalent rate (net profit or loss of operating a vessel daily) of at least $30,000 for SBLK in Q4, with the firm earning a potential annual average of $26,000. Our base case is that this is a strong floor going into next year, with little need to articulate much more upside. If rates hold, which we expect them to do, we could see a 20+% annual dividend year next year for SBLK. If the market priced the equity such that the dividend yield was 8%, that implies a $62 stock. Today our base case target for the firm is $37 per share. This is likely conservative as we know that third-quarter rates are higher than the second quarter, and third-quarter dividends will most likely reflect that. We are cautious about diving too deep into the sensitivities to the upside with this position as we are arriving at some pretty remunerative torque using current contracted values and seemingly conservative forecasts…” (Click here to see the full text)

See also 10 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility and 15 Best Semiconductor Stocks to Buy Now.

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Disclosure: None. 10 Dividend Stocks That Have Doubled Their Payouts is originally published on Insider Monkey.