In this article, we discuss 5 high yield dividend kings for 2022. If you want our detailed analysis of these stocks, go directly to 10 High Yield Dividend Kings for 2022.
5. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of January 21: 3.56%
Number of Years of Dividend Increases: 51
Number of Hedge Fund Holders: 16
Black Hills Corporation (NYSE:BKH) is an electric utility and gas company that supplies power throughout the western United States. Black Hills Corporation (NYSE:BKH) is a notable dividend king, with a rich history of consistently increasing dividends and a yield of 3.56%. The stock offers a dividend payout ratio of 59.02%.
Black Hills Corporation (NYSE:BKH) declared on October 26 a $0.595 per share quarterly dividend, which is a 5.3% increase from its prior dividend of $0.565. The dividend was paid on December 1, for shareholders of record on November 17.
Mizuho analyst Paul Fremont raised the price target on Black Hills Corporation (NYSE:BKH) to $67 from $60 and kept a Neutral rating on the shares on September 22.
In the third quarter of 2021, 16 hedge funds reported owning stakes in Black Hills Corporation (NYSE:BKH), equaling $55.9 million, as compared to 14 funds in the preceding quarter, holding stakes worth $62.5 million in Black Hills Corporation (NYSE:BKH). Royce & Associates is one of the leading Black Hills Corporation (NYSE:BKH) stakeholder, with an $11 million stake.
4. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of January 21: 4.06%
Number of Years of Dividend Increases: 66
Number of Hedge Fund Holders: 9
Northwest Natural Holding Company (NYSE:NWN) is a natural gas and energy company operating in the Pacific Northwest region. Northwest Natural Holding Company (NYSE:NWN) provides clean energy and uses advanced technology to create a sustainable supply of gas for the future.
Northwest Natural Holding Company (NYSE:NWN) on January 13 declared a $0.4825 per share quarterly dividend, which is a 0.5% increase from its prior dividend of $0.4800. The dividend is payable on February 15, to shareholders of record on January 31. The company offers a 4.06% yield as of January 21, and has increased dividends constantly for 66 years.
Guggenheim analyst Shahriar Pourreza upgraded Northwest Natural Holding Company (NYSE:NWN) on January 20 to Neutral from Sell with a $49 price target.
Among the hedge funds tracked by Insider Monkey in the third quarter of 2021, billionaire Ken Griffin’s Citadel Investment Group is the largest Northwest Natural Holding Company (NYSE:NWN) stakeholder, with 48,951 shares worth $2.2 million. Overall, 9 hedge funds reported owning stakes in Northwest Natural Holding Company (NYSE:NWN) in Q3 2021, valued at $8.91 million.
3. Leggett & Platt, Incorporated (NYSE:LEG)
Dividend Yield as of January 21: 4.30%
Number of Years of Dividend Increases: 50
Number of Hedge Fund Holders: 16
Leggett & Platt, Incorporated (NYSE:LEG) is a company manufacturing bedding products, furniture, flooring, and textile products. Leggett & Platt, Incorporated (NYSE:LEG) supplies its products to big box and e-commerce retailers, bedding brands, department stores, and home improvement centers.
On November 9, Leggett & Platt, Incorporated (NYSE:LEG) declared a $0.42 per share quarterly dividend, which is a 5% increase from its prior dividend of $0.40. The dividend was paid on January 14, to shareholders of record on December 15. Leggett & Platt, Incorporated (NYSE:LEG) delivers a dividend yield of 4.30% as of January 21.
In its third quarter earnings report, published by Leggett & Platt, Incorporated (NYSE:LEG) on November 1, the company posted earnings per share of $0.71, missing estimates by $0.06. Revenue over the period jumped 9.24% year-over-year to $1.32 billion, outperforming estimates by $3.02 million.
According to Insider Monkey’s Q3 database, 16 hedge funds were long Leggett & Platt, Incorporated (NYSE:LEG), with stakes totaling $56.1 million. Balyasny Asset Management is the largest stakeholder of Leggett & Platt, Incorporated (NYSE:LEG), owning 229,919 shares worth $10.3 million.
2. Universal Corporation (NYSE:UVV)
Dividend Yield as of January 21: 5.51%
Number of Years of Dividend Increases: 51
Number of Hedge Fund Holders: 8
Universal Corporation (NYSE:UVV) is one of the leading tobacco companies worldwide, based in Richmond, Virginia. Universal Corporation (NYSE:UVV) procures, finances, processes, packs, stores, and supplies leaf tobacco to manufacturers of consumer tobacco products.
Universal Corporation (NYSE:UVV) on November 3 declared a $0.78 per share quarterly dividend, in line with previous. It is payable on February 7, for shareholders of record on January 10. As of January 21, Universal Corporation (NYSE:UVV) delivers a 5.51% dividend yield, making it one of the top high yield dividend kings for 2022.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on Universal Corporation (NYSE:UVV) in the third quarter of 2021, with stakes equaling $75.6 million. Pzena Investment Management is the biggest Universal Corporation (NYSE:UVV) shareholder as of Q3, with 862,152 shares worth $41.6 million.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of January 21: 7.15%
Number of Years of Dividend Increases: 51
Number of Hedge Fund Holders: 45
Altria Group, Inc. (NYSE:MO) is one of the largest producers of tobacco and cigarettes in the world, in addition to supplying cigars, wine, and moist smokeless tobacco products. Altria Group, Inc. (NYSE:MO) sells its tobacco products to wholesalers, distributors, and large retail organizations.
On December 8, Altria Group, Inc. (NYSE:MO) declared a $0.90 per share quarterly dividend, in line with previous. The dividend was paid on January 10, for shareholders of record on December 23. Altria Group, Inc. (NYSE:MO) is one of the highest yielding dividend kings heading into 2022, offering a yield of 7.15%.
BofA analyst Lisa Lewandowski downgraded Altria Group, Inc. (NYSE:MO) to Neutral from Buy with a price target of $50, down from $56. According to the analyst, Altria Group, Inc. (NYSE:MO) is likely to remain a “steady” earnings performer with limited input inflation and margin expansion, but her expectations of regulatory news flow may be an overhang on the stock in 2022.
As of the third quarter of 2021, Harris Associates is the largest Altria Group, Inc. (NYSE:MO) stakeholder, with 5.1 million shares worth $232.6 million. Overall, 45 hedge funds were long Altria Group, Inc. (NYSE:MO) in Q3 2021, with stakes totaling $829.7 million.
Here is what Broyhill Asset Management has to say about Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
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