In this article, we discuss 10 income stocks with over 10 years of dividend increases.
Owing to strong earnings in 2022, companies are set to spend even more on distribution of funds to shareholders and share buybacks. Many dividend paying companies have rebounded from the effects of the COVID-19 pandemic on sales volume and consequent earnings, which enables them to give back to their shareholders.
At the end of the third quarter of 2021, the S&P 500 constituents reported holding $3.78 trillion in cash and cash equivalents, as compared to $3.41 trillion in 2020 and $2.19 trillion in 2019. This influx of cash will help these companies regain shareholder confidence by reimbursing them for the slashed dividends during 2020 and the first half of 2021.
Jeremy Siegel, a finance professor from the Wharton School, told CNBC in an interview on January 12 that he expects investors to gravitate towards dividend stocks in 2022, since they will be looking to protect themselves from the rising inflationary pressures. According to Siegel, the FED has underestimated inflation levels, and the blue chip tech stocks will not be the focus for investors heading into 2022, and dividend-paying stocks will be of primary interest to traders.
The most notable dividend stocks with rich dividend histories include AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO).
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Our Methodology
We selected stocks that increased their dividends consistently for over 10 years. We have ranked the companies according to their dividend yields. The hedge fund sentiment is also mentioned with each security, in addition to the years of dividend growth.
Income Stocks with Over 10 Years of Dividend Increases
10. Air Products and Chemicals, Inc. (NYSE:APD)
Dividend Yield as of January 19: 2.10%
Number of Hedge Fund Holders: 32
Number of Years of Dividend Increases: 39
Air Products and Chemicals, Inc. (NYSE:APD) is an American company that sells gases and chemicals for industrial applications. The company is headquartered in Pennsylvania, and has been distributing increasing dividends for 39 consecutive years, offering a yield of 2.10%.
On November 18, Air Products and Chemicals, Inc. declared a $1.50 per share quarterly dividend, in line with previous. The quarterly dividend was increased 12% by the company in FY2021. The dividend is payable on February 14, to shareholders of record on January 3.
Vertical Research analyst Kevin McCarthy upgraded Air Products and Chemicals, Inc. to Buy from Hold with a $335 price target on January 4.
Among the hedge funds monitored by Insider Monkey in Q3 2021, Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of Air Products and Chemicals, Inc., with 351,940 shares worth $90.1 million. Overall, 32 hedge funds were bullish on Air Products and Chemicals, Inc. in the third quarter, down from 40 funds in the preceding quarter.
Just like AbbVie Inc., Johnson & Johnson, and The Coca-Cola Company, Air Products and Chemicals, Inc. has a notable dividend history.
9. The Allstate Corporation (NYSE:ALL)
Dividend Yield as of January 19: 2.63%
Number of Hedge Fund Holders: 27
Number of Years of Dividend Increases: 11
The Allstate Corporation (NYSE:ALL) is an American insurance company that operates in the United States and Canada. The company specializes in auto insurance, homeowners insurance, comprehensive personal liability, estate planning products, business succession planning products, family protection insurance, asset management and accumulation, life insurance, and retirement.
On November 19, The Allstate Corporation declared a quarterly per share dividend of $0.80, in line with previous. The dividend was paid on January 3, for shareholders of record on November 30. The Allstate Corporation has offered 11 years of dividend increases to its shareholders, delivering a dividend payout ratio of 24.10%.
The Allstate Corporation announced on November 29 that it is selling the majority of its Illinois headquarters to Dermody Properties for $232 million, since most employees are now working remotely. This will lower The Allstate Corporation’s real estate expenses and allow the company to accelerate its multi-year Transformative Growth initiative “to increase property-liability market share by building a low cost insurer with broad distribution”. The company will maintain its physical presence via its Chicago office space.
Barclays analyst Tracy Benguigui on January 6 lowered the firm’s price target on The Allstate Corporation to $119 from $123 and kept an Equal Weight rating on the shares. The analyst says the property and casualty pricing cycle is past its peak with reserves and inflation in focus.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Cliff Asness’ AQR Capital Management is the largest stakeholder of The Allstate Corporation, with roughly 3 million shares worth $377 million. Overall, 27 hedge funds were bullish on the stock in the third quarter.
Appleseed Fund mentioned The Allstate Corporation in its Q2 2021 investor letter. Here is what they had to say:
“The Allstate Corporation is the second-largest personal insurance company in the United States with a 9.3% share in auto insurance (4th largest) and an 8.0% share in homeowner’s insurance (2nd largest). The company sells products primarily through its captive agents though this business line is shrinking as the company’s direct (Esurance.com and, more recently, Allstate.com) and independent agent businesses grow more quickly. The personal insurance industry is relatively consolidated, and competition has historically been rational, allowing The Allstate Corporation to earn attractive mid-teen returns on equity in this business over the past decade. Allstate also recently announced plans to divest their low-growth, low-return life and annuity businesses. This will free up capital to reinvest into the more attractive personal insurance segment and result in improvements on consolidated returns on equity of approximately 2.5%.
8. Cambridge Bancorp (NASDAQ:CATC)
Dividend Yield as of January 19: 2.70%
Number of Hedge Fund Holders: 6
Number of Years of Dividend Increases: 18
Cambridge Bancorp (NASDAQ:CATC) made it to our list of income stocks with over 10 years of dividend increases, since the company has been consistently growing dividends for 18 years. Cambridge Bancorp is a federally registered American bank holding company that operates via its subsidiary, Cambridge Trust Company, offering private banking and wealth management services to its customers.
Cambridge Bancorp declared on October 19 a quarterly per share dividend of $0.61, in line with previous, which was paid on November 18 to shareholders of record on November 4. Cambridge Bancorp also announced its Q3 earnings on October 19, beating market consensus estimates on EPS and revenue.
Keefe Bruyette analyst Christopher O’Connell took over coverage of Cambridge Bancorp with an Outperform rating and a $110 price target on January 9.
Polaris Capital Management is the largest Cambridge Bancorp stakeholder as of the third quarter of 2021, with a $16.3 million position in the company. Overall, 6 hedge funds were long Cambridge Bancorp in Q3, with stakes totaling $21.4 million.
In addition to AbbVie Inc., Johnson & Johnson, and The Coca-Cola Company, Cambridge Bancorp is a notable dividend stock.
7. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of January 19: 2.84%
Number of Hedge Fund Holders: 50
Number of Years of Dividend Increases: Over 10
Broadcom Inc. (NASDAQ:AVGO) is an American manufacturer of semiconductors and infrastructure software. The company serves the software, broadband, wireless, storage, and industrial markets with its products. As of January 19, Broadcom Inc. offers a dividend yield of 2.84%, and the company has been increasing dividends for 10 years.
On December 9, Broadcom Inc. announced a quarterly dividend per share of $4.10, which reflects a 13.9% increase from the prior dividend of $3.60. The dividend was paid on December 31, to shareholders of record on December 22. The company also authorized a share repurchase program of $10 billion in common stock, effective until December 31, 2022.
Piper Sandler analyst Harsh Kumar on January 3 raised the price target on Broadcom Inc. to $750 from $680 and kept an Overweight rating on the shares.
According to Insider Monkey’s Q3 data, 50 hedge funds were bullish on Broadcom Inc., up from 47 funds in the preceding quarter. William Von Mueffling’s Cantillon Capital Management is one of the leading stakeholders of Broadcom Inc., holding over 1 million shares worth $525 million.
Here is what Miller Howard Investments has to say about Broadcom Inc. in its Q3 2021 investor letter:
“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold Broadcom (AVGO) of which have strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”
6. Fulton Financial Corporation (NASDAQ:FULT)
Dividend Yield as of January 19: 2.98%
Number of Hedge Fund Holders: 14
Number of Years of Dividend Increases: 28
Fulton Financial Corporation (NASDAQ:FULT) is a regional American financial services company, headquartered in Lancaster, Pennsylvania. The corporation specializes in branch banking, consumer lending, commercial banking, investment advisory services, and mortgage.
On November 19, Fulton Financial Corporation declared a special dividend of $0.08 per share, which was paid on December 15. Fulton Financial Corporation, on December 21, announced a quarterly per share dividend of $0.14, in line with previous. The dividend was paid on January 14, to shareholders of record on December 31.
Fulton Financial Corporation reported its Q4 earnings on January 18, posting an EPS of $0.37, in line with market consensus estimates. Revenue for the fourth quarter came in at $229.49 million, outperforming estimates by $4.36 million.
Billion Ken Griffin’s Citadel Investment Group is one of the leading Fulton Financial Corporation stakeholders. Ken Griffin’s fund increased its position in the company by 419% in Q3 2021, holding 614,922 shares worth $9.3 million. Overall, 14 hedge funds in the third quarter database were bullish on Fulton Financial Corporation.
5. AXIS Capital Holdings Limited (NYSE:AXS)
Dividend Yield as of January 19: 3.04%
Number of Hedge Fund Holders: 26
Number of Years of Dividend Increases: 18
AXIS Capital Holdings Limited (NYSE:AXS) is a holding company that operates via its subsidiaries, conducting operations in Bermuda, the United States, Canada, Europe, and Singapore. AXIS Capital Holdings Limited line of business includes property, professional lines, terrorism, marine, energy, environmental, and other categories of insurance and reinsurance.
AXIS Capital Holdings Limited on December 2 declared a $0.43 per share quarterly dividend, which reflects a 2.4% increase from the prior dividend of $0.42. The dividend was paid on January 18 to shareholders of record on December 30. The company also announced a share repurchase program of $100 million in common stock, effective until December 31, 2022.
On January 4, Wells Fargo analyst Elyse Greenspan upgraded AXIS Capital Holdings Limited to Equal Weight from Underweight with a price target of $57, up from $54. The analyst believes that AXIS Capital Holdings Limited should be able to benefit from the continued favorable market conditions. Further, she notes AXIS Capital Holdings Limited recently announced a new buyback authorization, which will enable the company to return excess capital to shareholders, while still taking advantage of organic growth opportunities. Lastly, the shares trade at a cheap valuation.
Pzena Investment Management is the largest AXIS Capital Holdings Limited stakeholder as of Q3 2021, owning 7.1 million shares of the company, worth $327 million. Overall, 26 hedge funds were long AXIS Capital Holdings Limited in the third quarter, up from 19 funds in the prior quarter.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of January 19: 3.33%
Number of Hedge Fund Holders: 74
Number of Years of Dividend Increases: 13
Bristol-Myers Squibb Company (NYSE:BMY), one of the largest American multinational pharmaceutical companies, is a solid dividend stock that offers a 3.33% yield and has had 13 consistent years of dividend increases. The company performed well in Q3 2021, beating market consensus estimates for earnings and revenue.
On December 13, Bristol-Myers Squibb Company announced a quarterly dividend per share of $0.54, representing a 10.2% increase from the prior dividend of $0.49. The dividend is payable on February 1, to shareholders of record on January 7. Bristol-Myers Squibb Company also reported a share repurchase authorization of $15 billion in common stock, which brings the total outstanding amount available for repurchase to $15.2 billion.
JPMorgan analyst Chris Schott on December 20 kept an Overweight rating on Bristol-Myers Squibb Company with an $80 price target. The analyst says that while investor concerns around new product “controversies” and the company’s ongoing loss of exclusivity cycle are understandable, these appear “well reflected” with the shares trading at eight times estimated 2022 earnings. The analyst sees Bristol-Myers Squibb Company rebounding in 2022, owing to multiple new launches and pipeline catalysts.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 74 funds reported owning stakes in Bristol-Myers Squibb Company, worth $4.75 billion. Warren Buffett’s Berkshire Hathaway is the leading Bristol-Myers Squibb Company stakeholder, with over 22 million shares, valued at $1.30 billion.
Wedgewood Partners mentioned Bristol-Myers Squibb Company in its Q4 2020 investor letter. Here is what they 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.”
3. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of January 19: 3.45%
Number of Hedge Fund Holders: 36
Number of Years of Dividend Increases: 12
American Electric Power Company, Inc. (NASDAQ:AEP) is an investor-owned electric utility company that provides electricity to millions of customers in 11 states. The company was founded in 1906 and is headquartered in Ohio, Columbus.
American Electric Power Company, Inc. on January 18 declared a $0.78 per share quarterly dividend, in line with previous, payable on March 10 to shareholders of record on February 10.
On November 5, American Electric Power Company, Inc. announced its 2022 guidance. The company stated that the operating EPS would equal $4.85-$5.05, in line with consensus EPS of $4.98. The annual projected operating earnings growth rate is expected to reach 5%-7%. American Electric Power Company, Inc. also plans to spend $38 billion over the upcoming five years to make energy transmission and distribution more efficient, and invest in renewable energy grids and projects.
Mizuho analyst Paul Fremont on October 27 lowered the price target on American Electric Power Company, Inc. to $86 from $91 and kept a Buy rating on the shares after the company announced the sale of its Kentucky Power subsidiary for $1.625 billion. The analyst reduced the price target to account for market multiples at the time.
Of the 36 hedge funds that were long American Electric Power Company, Inc. in the third quarter of 2021, Renaissance Technologies is the leading stakeholder of the company, with 2.3 million shares worth $189.75 million.
2. Edison International (NYSE:EIX)
Dividend Yield as of January 19: 4.39%
Number of Hedge Fund Holders: 25
Number of Years of Dividend Increases: 18
Edison International (NYSE:EIX) is a California-based public utility holding company providing electricity and energy solutions via its subsidiaries, namely Southern California Edison and Edison Energy.
On December 10, Edison International declared a $0.70 per share quarterly dividend, which is a 5.7% increase from the prior dividend of $0.66. The dividend will be paid on January 31, to shareholders of record on December 31. This marks the 18th year of consecutive dividend increases by the company.
Argus analyst Gary Hovis raised the price target on Edison International to $73 from $68 and kept a Buy rating on the shares on December 29. The analyst is positive on Edison International’s forward earnings visibility, favorable regulatory environment, and improving financial strength while noting that the company is seeing increased revenue from the recovery of its investments in infrastructure projects and alternative energy facilities.
Among the hedge funds tracked by Insider Monkey, Zimmer Partners is one of the leading Edison International stakeholders, with 4.3 million shares worth $240.4 million. Overall, 25 hedge funds were long Edison International in Q3 2021, up from 18 funds in the preceding quarter.
1. Healthcare Services Group, Inc. (NASDAQ:HCSG)
Dividend Yield as of January 19: 4.73%
Number of Hedge Fund Holders: 21
Number of Years of Dividend Increases: 18
Healthcare Services Group, Inc. (NASDAQ:HCSG) operates in the healthcare industry, working on housekeeping, laundry, dining, and nutritional services. Healthcare Services Group, Inc. aims to improve the operational and financial outcomes of companies in the healthcare sector.
On October 20, Healthcare Services Group, Inc. declared a $0.21 per share quarterly dividend, in line with previous, which was paid on December 23. As of January 19, Healthcare Services Group, Inc. offers a dividend yield of 4.73%, and has been increasing its dividends consistently for 18 years.
RBC Capital analyst Sean Dodge on October 21 lowered the price target on Healthcare Services Group, Inc. to $20 from $29 and kept a Sector Perform rating on the shares. The company’s Q3 earnings fell “well short” of consensus due to higher-than-expected labor and food costs stemming from the tight U.S. labor markets, along with the rising wage rate inflation and food supply chain disruptions.
21 hedge funds in the third quarter database of Insider Monkey were long Healthcare Services Group, Inc., up from 18 funds in the preceding quarter. Cliff Asness’ AQR Capital Management is the largest Healthcare Services Group, Inc. stakeholder, with 1.28 million shares, worth $32 million.
You can also take a look at 10 Best Global Stocks To Buy Now and 11 Best Blue Chip Stocks To Buy Now.
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This article is originally published at Insider Monkey.
