In this article, we will be taking a look at 10 dividend stocks with over 20 years of dividend increases.
Typical dividend stocks are known to be some of the most attractive investment options for a number of reasons. First, they allow investors to establish a passive income stream. Second, this passive income stream bears promises of sustaining investors through times of economic recession and inflation, especially when unemployment is at all-time highs. Third, dividend stocks just tend to perform better than the market at large, contribute greatly to the S&P 500’s returns, and tend to offer greater stability in bear markets as well. On this last point, Hartford Funds has mentioned that if you track stock market performance all the way back to the 1970s, you will be hit in the face with the eye-popping fact that dividend stocks have contributed about 84% of the total return of the S&P 500 Index during that time period.
It is true that dividend performance and the influence of dividends on the return of the S&P 500 will vary from time to time, and it is also true that past performance, especially if highly optimistic, will guarantee the same in the future. To understand this well, let’s look at the performance of dividend stocks on a decade-by-decade basis. During the 1940s, 1960s, and 1970s, the S&P 500 dividend contribution to the total return was about 67%, 44%, and 73% respectively. However, in the 1950s, 1980s, and 1990s, dividends only contributed about 30%, 28%, and 16% to the S&P 500’s total return. As such, of course, based on economic conditions and market situations at any point in time, the relative performance of different stocks will vary, improve, or grow worse. Yet, this reality is still not enough to make investors shy away from dividend stocks, which stay incredibly popular among investor circles to date.
For instance, a Reuters article published this July mentioned that while Treasury yields are eliciting less excitement from investors, the spotlight is beginning to be redirected to traditional dividend stocks. The ProShares S&P Dividend Aristocrats ETF, for instance, was up about 14.3% as of this July, with more investors demonstrating a bullish outlook on dividend stocks as the year progresses. As such, dividend stocks like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX) are beginning to gain positive attention slowly, but surely.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let’s take a look at the 10 dividend stocks with over 20 years of dividend increases.
Our Methodology
Insider Monkey tracks the data of about 873 hedge funds, and we have used this data to pick dividend stocks falling under the category of stocks with at least 20 years of consistent dividend increases, which are also highly popular among hedge funds today. For each stock we have mentioned its yield and the number of hedge funds holding a stake in it, ranking them from the lowest to the highest dividend yield. Finally, we have 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 with Over 20 Years of Dividend Increases
10. Kimberly-Clark Corporation (NYSE: KMB)
Number of Hedge Fund Holders: 37
Dividend Yield: 3.3%
Number of Years of Dividend Increases: 49
Kimberly-Clark Corporation (NYSE: KMB) is a manufacturer and marketer of personal care and consumer products for consumers across the globe. The company operates through its Personal Care, Consumer Tissue, and K-C Professional segments. It ranks 10th on our list of dividend stocks with over 20 years of dividend increases.
As of this July, analyst Kevin Grundy at Jefferies has a raised price target on shares of Kimberly-Clark Corporation (NYSE: KMB). The new price target is $155, compared to the previous target of $150. The analyst also holds a Buy rating on the stocks.
In the second quarter of 2021, Kimberly-Clark Corporation (NYSE: KMB) had an EPS of $1,47, missing estimates by $0.24. The company’s revenue was $4.72 billion, up 2.39% year over year and also missing estimates by $44.43 million. Kimberly-Clark Corporation (NYSE: KMB) has gained 5.32% in the past 6 months and 4.36% year to date.
By the end of the second quarter of 2021, 37 hedge funds out of the 873 tracked by Insider Monkey held stakes in Kimberly-Clark Corporation (NYSE: KMB) worth roughly $903 million. This is compared to 31 hedge funds in the previous quarter with a total stake value of approximately $1.3 billion.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), Kimberly-Clark Corporation (NYSE: KMB) is a good stock to invest in
9. Leggett & Platt, Incorporated (NYSE: LEG)
Number of Hedge Fund Holders: 14
Dividend Yield: 3.4%
Number of Years of Dividend Increases: 48
Leggett & Platt, Incorporated (NYSE: LEG) manufactures engineered components and products for their sale and marketing across the globe. The company operates in the home furnishings industry through its Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products segments. It ranks 9th on our list of dividend stocks with over 20 years of dividend increases.
As of this February, Raymond James analyst Bobby Griffin holds an Outperform rating on shares of Leggett & Platt, Incorporated (NYSE: LEG). The analyst also holds a $48 price target on the stock.
In the second quarter of 2021, Leggett & Platt, Incorporated (NYSE: LEG) had an EPS of $0.66, beating estimates by $0.12. The company’s revenue was $1.27 billion, up 50.23% year over year and beating estimates by $41.90 million. Leggett & Platt, Incorporated (NYSE: LEG) has gained 15.22% in the past 6 months and 11.26% year to date.
By the end of the second quarter of 2021, 14 hedge funds out of the 873 tracked by Insider Monkey held stakes in Leggett & Platt, Incorporated (NYSE: LEG) worth roughly $106 million. This is compared to 24 hedge funds in the previous quarter with a total stake value of approximately $83 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), Leggett & Platt, Incorporated (NYSE: LEG) is a good stock to invest in
8. Franklin Resources, Inc. (NYSE: BEN)
Number of Hedge Fund Holders: 30
Dividend Yield: 3.4%
Number of Years of Dividend Increases: 41
Franklin Resources, Inc. (NYSE: BEN), a publicly-owned asset management holding company, is next on our list of dividend stocks with over 20 years of dividend increases. The company offers financial services to individuals, institutions, pension plans, trusts, and partnerships. It ranks 8th on our list.
This May, analyst Brian Bedell at Deutsche Bank raised his price target on shares of Franklin Resources, Inc. (NYSE: BEN) from $29 to $33. The analyst also reiterated a Hold rating on the stock.
In the fiscal third quarter of 2021, Franklin Resources, Inc. (NYSE: BEN) had an EPS of $0.96, beating estimates by $0.18. The company’s revenue was $2.17 billion, up 82.89% year over year and beating estimates by $43.73 million. Franklin Resources, Inc. (NYSE: BEN) has gained 17.3% in the past 6 months and 30.07% year to date.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Franklin Resources, Inc. (NYSE: BEN) worth roughly $205 million. This is compared to 31 hedge funds in the previous quarter with a total stake value of approximately $198 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), Franklin Resources, Inc. (NYSE: BEN) is a good stock to invest in
7. Federal Realty Investment Trust (NYSE: FRT)
Number of Hedge Fund Holders: 16
Dividend Yield: 3.6%
Number of Years of Dividend Increases: 54
Federal Realty Investment Trust (NYSE: FRT), a leading real estate company, owns, operates, and redevelops high-quality retail-based properties in major coastal markets located in the US, from areas in Washington DC to Boston, San Francisco, and Los Angeles. The company ranks 7th on our list of dividend stocks with over 20 years of dividend increases. It works to deliver long-term sustainable growth through its investments in densely populated and affluent communities.
This July, analyst Ki Bin Kim at Truist raised his price target on shares of Federal Realty Investment Trust (NYSE: FRT). The analyst’s new target is $120 compared to the previous $110 target. Kim also reiterated a Hold rating on Federal Realty Investment Trust (NYSE: FRT) at the same time.
In the second quarter of 2021, Federal Realty Investment Trust (NYSE: FRT) had an FFO of $1.41, beating estimates by $0.24. The company’s revenue was $230.79 million, up 31.52% year over year and beating estimates by $10.16 million. Federal Realty Investment Trust (NYSE: FRT) has gained 15.84% in the past 6 months and 41.95% year to date.
By the end of the second quarter of 2021, 16 hedge funds out of the 873 tracked by Insider Monkey held stakes in Federal Realty Investment Trust (NYSE: FRT) worth roughly $87 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $43.3 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), Federal Realty Investment Trust (NYSE: FRT) is a good stock to invest in
6. Amcor plc (NYSE: AMCR)
Number of Hedge Fund Holders: 16
Dividend Yield: 3.8%
Number of Years of Dividend Increases: 40
Amcor plc (NYSE: AMCR) manufactures a range of packaging products for food, beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries across the globe. The company operates through its Flexibles and Rigid Packaging segments and ranks 6th on our list of dividend stocks with over 20 years of dividend increases.
John Purtell, an analyst at Macquarie, upgraded shares of Amcor plc (NYSE: AMCR) this July from Neutral to Outperform.
In the fiscal third quarter of 2021, Amcor plc (NYSE: AMCR) had an EPS of $0.18, beating estimates by $0.01. The company’s revenue was $3.21 billion, up 2.1% year over year and beating the previous quarter’s $3.1 billion revenue. Amcor plc (NYSE: AMCR) has gained 5.95% in the past 6 months and 6.33% year to date.
By the end of the second quarter of 2021, 16 hedge funds out of the 873 tracked by Insider Monkey held stakes in Amcor plc (NYSE: AMCR) worth roughly $212 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $226 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT), and Chevron Corporation (NYSE: CVX), Amcor plc (NYSE: AMCR) is a good stock to invest in
5. Consolidated Edison, Inc. (NYSE: ED)
Number of Hedge Fund Holders: 30
Dividend Yield: 4%
Number of Years of Dividend Increases: 47
Consolidated Edison, Inc. (NYSE: ED) is a utilities company engaging in the regulated electric, gas, and steam delivery businesses. The company operates in the US to provide electric services, gas, and steam to thousands of consumers in Manhattan. It ranks 5th on our list of dividend stocks with over 20 years of dividend increases.
This June, Mizuho analyst Anthony Crowdell raised his price target on shares of Consolidated Edison, Inc. (NYSE: ED) from $68 to $78. The analyst also reiterated a Neutral rating on the stock.
In the second quarter of 2021, Consolidated Edison, Inc. (NYSE: ED) had an EPS of $0.53, missing estimates by $0.09. The company’s revenue was $2.97 billion, up 9.27% year over year and beating estimates by $136.93 million. Consolidated Edison, Inc. (NYSE: ED) has gained 10.31% in the past 6 months and 9.31% year to date.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Consolidated Edison, Inc. (NYSE: ED) worth roughly $533 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $196 million.
4. International Business Machines Corporation (NYSE: IBM)
Number of Hedge Fund Holders: 41
Dividend Yield: 4.6%
Number of Years of Dividend Increases: 41
International Business Machines Corporation (NYSE: IBM) offers integrated solutions and services across the globe. It operates through its Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing segment. The company ranks 4th on our list of dividend stocks with over 20 years of dividend increases.
This July, Morgan Stanley’s Katy Huberty raised her price target on shares of International Business Machines Corporation (NYSE: IBM) from $152 to $164. The analyst also reiterated an Equal Weight rating on the shares.
In the second quarter of 2021, International Business Machines Corporation (NYSE: IBM) had an EPS of $2.33, beating estimates by $0.04. The company’s revenue was $18.75 billion, up 3.43% year over year and beating estimates by $447.50 million. International Business Machines Corporation (NYSE: IBM) has gained 17.97% in the past 6 months and 14.91% year to date.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in International Business Machines Corporation (NYSE: IBM) worth roughly $1.4 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $1.4 billion.
3. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 41
Dividend Yield: 5.3%
Number of Years of Dividend Increases: 34
Chevron Corporation (NYSE: CVX) is an energy company working in integrated energy, chemicals, and petroleum operations across the globe. The company ranks 3rd on our list of dividend stocks with over 20 years of dividend increases, working through its Upstream and Downstream segments.
This July, Ryan Todd, an analyst at Piper Sandler, raised his price target on shares of Chevron Corporation (NYSE: CVX) from $126 to $137. The analyst also reiterated an Overweight rating on the shares.
In the second quarter of 2021, Chevron Corporation (NYSE: CVX) had an EPS of $1.71, beating estimates by $0.11. The company’s revenue was $37.6 billion, up 178.62% year over year and beating estimates by $1.15 billion. Chevron Corporation (NYSE: CVX) has gained 6.03% in the past 6 months and 18.91% year to date.
By the end of the second quarter of 2021, 50 hedge funds out of the 873 tracked by Insider Monkey held stakes in Chevron Corporation (NYSE: CVX) worth roughly $4.3 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $4.9 billion.
2. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 65
Dividend Yield: 6.2%
Number of Years of Dividend Increases: 38
Exxon Mobil Corporation (NYSE: XOM), another energy company, is next on our list of dividend stocks with over 20 years of dividend increases. The company explores for and produces crude oil and natural gas, operating primarily within the US but also internationally. It ranks 2nd on our list.
Piper Sandler’s Ryan Todd raised his price target on shares of Exxon Mobil Corporation (NYSE: XOM) just this July from $63 to $69. The analyst also reiterated a Neutral rating on the shares.
In the second quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $1.10, beating estimates by $0.11. The company’s revenue was $67.74 billion, up 107.77% year over year and beating estimates by $3.02 billion. Exxon Mobil Corporation (NYSE: XOM) has gained 6.81% in the past 6 months and 33.88% year to date.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in Exxon Mobil Corporation (NYSE: XOM) worth roughly $3.7 billion. This is compared to 65 hedge funds in the previous quarter with a total stake value of approximately $2.8 billion.
1. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 63
Dividend Yield: 7.4%
Number of Years of Dividend Increases: 36
AT&T Inc. (NYSE: T) is a provider of telecommunications, media, and technology services. The company is among the largest communication services corporations in the world, operating through its Communications, WarnerMedia, and Latin America segments. It ranks 1st on our list of dividend stocks with over 20 years of dividend increases.
Bryan Kraft, an analyst at Deutsche Bank, just this July raised his price target on shares of AT&T Inc. (NYSE: T) from $34 to $37. The analyst’s rating on the stock was also reiterated at Buy.
In the second quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.7 billion.
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Disclosure: None. 10 Dividend Stocks with Over 20 Years of Dividend Increases is originally published on Insider Monkey.
