In this article, we discuss 10 dividend stocks that raised their dividends in 2022.
Given growing earnings, some companies are raising their payouts this year. According to the Janus Henderson Group, US dividend payments amounted to $144.4 billion in Q2, reaching their all-time high. In addition to this, global quarterly dividends also jumped 19.1% to $544.8 billion.
Many dividend stocks have declined less than the market, at least in the second quarter. While the MSCI World Index declined by 16.19% in Q2, the MSCI World High Dividend Yield Index fell by 8.72%, as reported by Allspring Global Investments.
When investing in dividend stocks, investors often gravitate towards companies that have decades-long dividend growth streaks. Dividend Aristocrats, the companies in the S&P 500 index that have raised their dividends for consecutive 25 years or more, are popular in this regard. These companies not only have proven records of dividend growth but also exhibit strong financials and balance sheets to support their payouts. Historically, Dividend Aristocrats have delivered higher yields than the wider market. According to a report by S&P Dow Jones Indices, the average yield of S&P 500 Dividend Aristocrats was 2.5% from 1998 to 2021, compared with a 1.8% yield of the S&P 500.
Some of the most popular Dividend Aristocrats are Johnson & Johnson (NYSE:JNJ), Colgate-Palmolive Company (NYSE:CL), and The Procter & Gamble Company (NYSE:PG), as these companies maintain long dividend growth track records. Moreover, these companies have also raised their payouts this year.
Dividend stocks might not perform as well if interest rates continue to increase as the interest rate increases make the dividend yields less attractive. Furthermore, stocks could continue to fall if economic data doesn’t meet expectations. Nevertheless, there could be an opportunity for long term investors who invest in quality blue chip stocks given the lower valuations.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology:
We took 10 stocks that have had strong dividend histories that also raised their dividends in 2022. We then sorted them based on the number of hedge funds in our database that also owned shares in the same companies at the end of Q2 2022.
10 Dividend Stocks That Raised Their Dividends in 2022
10. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 30
Dividend Yield as of September 20: 1.65%
Dover Corporation (NYSE:DOV) is an American manufacturing company that specializes in the production of industrial products. In July, Mizuho maintained its Buy rating on the stock with a $155 price target. The firm appreciated that customer ordering behaviors are getting back to normal after the pandemic, which would lead to the company’s revenue growth.
On August 4, Dover Corporation (NYSE:DOV) declared a 1% hike in its quarterly dividend to $0.505 per share. This marked the company’s 67th consecutive year of dividend growth. As of September 20, the stock has a yield of 1.65%.
In Q2 2022, Dover Corporation (NYSE:DOV) generated $178.7 million in operating cash flow, up from $23.6 million in the previous quarter. The company’s free cash flow for the quarter came in at $128.5 million. Its revenue showed a 6.4% year-over-year growth at $2.1 billion.
At the end of Q2 2022, 30 hedge funds tracked by Insider Monkey owned stakes in Dover Corporation (NYSE:DOV), up from 28 in the previous quarter. The total value of these stakes is over $420.3 million. Adage Capital Management was the company’s leading stakeholder in Q2, owning stakes worth over $100 million.
Alongside The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and S&P Global Inc. (NYSE:SPGI), Dover Corporation (NYSE:DOV) is a company that has raised its dividend this year and is also widely held by many hedge funds in our list at the end of Q2 2022.
9. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 31
Dividend Yield as of September 20: 3.34%
The Clorox Company (NYSE:CLX) is a California-based manufacturer of consumer and professional products, including bleach and cleaning equipment. In fiscal Q4 2022, the company reported revenue of $1.8 billion, in line with its revenue during the same period last year. The company’s operating cash flow for the quarter stood at $335 million, up from $229 million in the previous quarter. Its free cash flow came in at $256 million, growing from $166 million a quarter earlier.
In July, The Clorox Company (NYSE:CLX) increased its quarterly dividend from $1.16 per share to $1.18 per share, presenting a 1.7% growth. The company has been making consecutive dividend payments for the past 50 years and has raised its payouts for 20 years in a row. As of September 20, the stock’s dividend yield came in at 3.34%.
In August, Credit Suisse reiterated its Outperform rating on The Clorox Company (NYSE:CLX) as the company has dealt with demand spikes and supply issues during the pandemic.
At the end of Q2 2022, the number of hedge funds tracked by Insider Monkey reported owning stakes in The Clorox Company (NYSE:CLX) grew to 31, from 26 in the previous quarter. These stakes have a total value worth $570.4 million.
8. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 35
Dividend Yield as of September 20: 1.77%
Chubb Limited (NYSE:CB) is a Zurich-based insurance company that provides property, health, and reinsurance services to its consumers. In July, Jefferies maintained its Buy rating on the stock, highlighting the company’s core underlying EPS and its pricing trends.
In Q2 2022, Chubb Limited (NYSE:CB) generated $2.7 billion in operating cash flow, up from $2.4 billion in the previous quarter. Its revenue for the quarter came in at $9.56 billion, which showed an 8.5% growth from the same period last year. The company returned $1.48 billion in capital to shareholders, $348 million of which represented dividend payments.
In May, Chubb Limited (NYSE:CB) announced the growth of its quarterly dividend from $0.80 per share to $0.83 per share. The company holds a 29-year track record of consistent dividend growth. The company’s shares boast a yield of 1.77%, as of September 20.
As of the close of Q2 2022, 35 hedge funds in Insider Monkey’s database owned stakes in Chubb Limited (NYSE:CB), up from 31 in the previous quarter. The collective value of these stakes is over $1.68 billion. Viking Global owned the largest position in the company, holding shares worth $742 million.
Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:
“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
7. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
Dividend Yield as of September 20: 5.23%
International Business Machines Corporation (NYSE:IBM) provides tech-related services to its consumers and also specializes in related products. In August, Credit Suisse initiated its coverage of the stock with an Outperform rating and a $163 price target and appreciated the historical outperformance of the IT hardware sector during recessionary periods due to its strong balance sheets and steady cash flows.
In Q2 2022, International Business Machines Corporation (NYSE:IBM) reported strong results, posting revenue of $15.5 billion, up 9.3% from the same period last year. The company’s cash generation remained strong in the first half of 2022, with net cash from operating activities standing at $4.6 billion. Its free cash flow came in at $3.3 billion and paid $1.5 billion in dividends to shareholders, reflecting secure dividend payments.
In April, International Business Machines Corporation (NYSE:IBM) hiked its quarterly dividend to $1.65 per share, from $1.64 per share. With this increase, the company takes its dividend growth streak to 27 years. As of September 20, the stock has a dividend yield of 5.23%.
At the end of Q2 2022, 40 hedge funds tracked by Insider Monkey owned investments in International Business Machines Corporation (NYSE:IBM), valued at over $948.3 million.
6. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 42
Dividend Yield as of September 20: 2.20%
General Dynamics Corporation (NYSE:GD) is an American aerospace and defense company that manufactures business jets, combat vehicles, and communication systems.
General Dynamics Corporation (NYSE:GD) generated $435 million in free cash flow in Q2 2022 and paid $349 million in dividends. This validates that the company’s dividends are safe within its FCF. The company’s operating cash flow for the quarter came in at $659 million and it ended the quarter with $2.2 billion available in cash and cash equivalents.
In March, General Dynamics Corporation (NYSE:GD) raised its quarterly dividend by 6% to $1.26 per share. This was the company’s 25th consecutive year of dividend growth. As of September 20, the stock’s dividend yield stood at 2.20%.
Appreciating the company’s strong cash generation, Wells Fargo set a $256 price target on General Dynamics Corporation (NYSE:GD) with an Overweight rating on the shares.
As per Insider Monkey’s Q2 2022 database, 42 hedge funds owned stakes in General Dynamics Corporation (NYSE:GD), down from 47 in the previous quarter. These stakes are valued at roughly $7.7 billion, compared with $8.4 billion worth of stakes owned by hedge funds in the previous quarter.
Like General Dynamics Corporation (NYSE:GD), The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and S&P Global Inc. (NYSE:SPGI) are companies that have raised their dividends this year and are widely held by many hedge funds in our list at the end of Q2 2022.
5. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 44
Dividend Yield as of September 20: 2.93%
Cardinal Health, Inc. (NYSE:CAH) is an Ohio-based multinational healthcare services company that provides medical devices and related products to its consumers. On May 10, the company hiked its quarterly dividend from $0.4908 to $0.4957 per share. This was the company’s 36th consecutive year of dividend growth. The stock’s dividend yield came in at 2.93%, as of September 20.
In fiscal Q4 2022, Cardinal Health, Inc. (NYSE:CAH) generated $3.1 billion in operating cash flow, up from $2.4 billion in the previous year. The company’s free cash flow came in at $2.73 billion, compared with $2 billion in 2021. In addition to this, it also returned $1.6 billion to shareholders through share repurchases and dividends during the year.
In August, UBS raised its price target on Cardinal Health, Inc. (NYSE:CAH) to $78 with a Buy rating on the shares, appreciating the company’s efficient capital deployment and growth in its Pharma segment. In addition to this, the firm also appreciated the company’s balance sheet and free cash flow yield.
Cardinal Health, Inc. (NYSE:CAH) was a popular buy among elite funds in Q2 2022, as 44 hedge funds owned stakes in the company, up from 38 in the previous quarter. These stakes hold a collective value of $814.8 million. With nearly 3 million shares, Pzena Investment Management owned the largest position in the company in Q2.
4. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 55
Dividend Yield as of September 20: 2.50%
Colgate-Palmolive Company (NYSE:CL) is an American multinational consumer products company that specializes in the production and distribution of household, healthcare, and personal care products. In August, Barclays appreciated the company’s organic sales growth in Q2 which also enabled the company to raise its full-year guidance. The firm maintained its Equal Weight rating on the stock.
In Q2 2022, Colgate-Palmolive Company (NYSE:CL) reported revenue of $4.48 billion, which showed a 5.2% growth from the same period last year. The company’s organic sales also grew by 9% from the prior-year quarter. It generated $350 million in free cash flow, up from $264 million in the previous quarter. The company’s operating cash flow also jumped to $528 million, from $386 million in the preceding quarter.
Colgate-Palmolive Company (NYSE:CL) currently pays a quarterly dividend of $0.47 per share, raising it from $0.45 in March. The company maintains a 60-year track record of dividend growth. In the past five years, it has raised its dividends at a CAGR of 3.09%. As of September 20, the stock has a yield of 2.50%.
At the end of Q2 2022, 55 hedge funds tracked by Insider Monkey owned stakes in Colgate-Palmolive Company (NYSE:CL), growing from 50 in the previous quarter. These stakes hold a combined value of roughly $3 billion.
First Eagle Investments mentioned Colgate-Palmolive Company (NYSE:CL) in its Q2 2022 investor letter. Here is what the firm has to say:
“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
Dividend Yield as of September 20: 2.66%
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company, headquartered in Ohio. The company was in 71 hedge fund public portfolios in Q2 2022, down from 72 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds are collectively valued at over $5.5 billion. Among these hedge funds, Bridgewater Associates was the company’s leading stakeholder in Q2.
In fiscal Q4 2022, The Procter & Gamble Company (NYSE:PG) posted revenue of $19.5 billion, up 3% from the same period last year. The company’s organic sales also presented a 7% year-over-year growth. In FY22, it returned nearly $19 billion to shareholders and $8.8 billion of this amount represented dividend payments. At the end of the year, the company had over $10.8 billion available in cash and cash equivalents.
In April, The Procter & Gamble Company (NYSE:PG) declared a 5% hike in its quarterly dividend to $0.9133 per share. Through this increase, the company extended its dividend growth streak to 66 years, which is one of the highest growth track records in the market. As of September 20, the stock’s dividend yield came in at 2.66%.
In August, Barclays maintained its Overweight rating on The Procter & Gamble Company (NYSE:PG), following the company’s fiscal Q4 results. The firm also appreciated the company’s business model in this current market cycle.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield as of September 20: 2.74%
Johnson & Johnson (NYSE:JNJ) is one of the most prominent pharmaceutical companies in the US. The company specializes in medical devices, vaccines, and other healthcare products. In April, it raised its quarterly dividend to $1.13 per share, from its previous dividend of $1.06 per share. This was the company’s 60th consecutive year of dividend growth. The company’s shares yield at 2.74%, as of September 20.
In Q2 2022, Johnson & Johnson (NYSE:JNJ) reported total year-over-year sales growth of 3% to $24 billion. The company’s operating cash flow for the quarter came in at $5.58 billion, up from roughly $4 billion in the previous quarter. Its free cash flow generation also remained strong at $4.7 billion, growing from $3.3 billion in the preceding quarter. For FY22, the company expects its revenue to fall between $93.3 billion to $94.3 billion.
At the end of June 2022, 83 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter, as per Insider Monkey’s data. The total value of these stakes over $6.7 billion. Rajiv Jain, Ken Fisher, and Ray Dalio were some of the company’s most prominent stakeholders in Q2.
Mayar Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:
“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.
To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…”
1. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 84
Dividend Yield as of September 20: 1.00%
S&P Global Inc. (NYSE:SPGI) is an American multinational company that specializes in financial information and analytics. As the company reported strong results in its recent quarter, Oppenheimer lifted its price target on the stock to $419 with an Outperform rating on the shares. The firm also sees the company as an attractive buying opportunity for income investors.
S&P Global Inc. (NYSE:SPGI) has been making uninterrupted dividend payments since 1937. In March, the company raised its quarterly dividend to $0.85 to share, presenting a 10.5% increase from its previous dividend of $0.77 per share. The company holds a 49-year run of raising its dividends consistently. As of September 20, the stock’s dividend yield stood at 1.00%.
As of the close of Q2 2022, 84 hedge funds owned stakes in S&P Global Inc. (NYSE:SPGI), down from 97 in the previous quarter. These stakes hold a collective value of over $7.2 billion.
Baron Funds mentioned S&P Global Inc. (NYSE:SPGI) in its Q2 2022 investor letter. Here is what the firm has to say:
“Another example is S&P Global (NYSE:SPGI), the leading rating agency and data provider, whose stock declined 29.0% year-to-date and 17.5% during the second quarter as a result of growing investor concerns over the slowdown in debt issuance. While debt issuance volumes have seen a dramatic decline – the worst quarterly decline in a decade (down 41% year-over-year in the second quarter based on Goldman Sachs estimates), – and this led management to withdraw its 2022 guidance in early June, we do not believe it would result in a permanent loss of capital.
First, ratings represent only about 30% of S&P Global’s total revenues. Second, despite inherent volatility in quarterly or annual issuance, over the long-term issuance volumes follow the trends in levels of debt outstanding, which has compounded in the mid-single digits for many years. Lastly, we believe that S&P Global’s strong competitive positioning will enable it to continue benefiting from pricing power, while taking advantage of secular tailwinds such as the growth in passive and ESG investing, international expansion, and the growing demand for data analytics.”
You can also take a look at 10 Best Cheap DRIP Stocks to Buy Now and 10 High-Yield Dividend Stocks for Stable Income
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Dow Jones Dividend Stocks With Over 1% Yield
- 10 Best ESG Stocks to Invest In
- 10 Best Stocks to Buy Now According to Billionaire Thomas Steyer
Disclosure. None. 10 Dividend Stocks That Raised Their Dividends in 2022 is originally published on Insider Monkey.
