In this article, we discuss 10 mid-cap dividend stocks to buy now.
Dividend paying stocks are attractive for investors not only due to the passive income, but also because they act as a proven hedge against inflation and market uncertainty. Companies that increase their dividends consistently over the years despite stock market turbulence have generally outperformed the broader market. Since 1930, dividend payouts have been responsible for roughly 40% of the total stock portfolio returns. In this uncertain market, dividend returns are likely to outweigh share price gains in a portfolio.
Dividends Heading Into 2022
Historically, when share prices of S&P 500 constituents declined in the 1930s and 2000s, dividends largely offset the fall in returns. Similarly, during high inflation in the 1940s and 1970s, dividends respectively resulted in 65% and 71% of the S&P 500 Index’s returns.
According to a report by IHS Markit on March 28, the rampant inflation is not expected to impact 2022 dividend payments in the near-term. Aggregate dividend payouts in the United States are forecasted to increase 8% in 2022 to $670 billion.
In this market environment, it is imperative to look out for companies that offer attractive dividend yields, stability of performance and operations, and room for growth. Most dividend investors gravitate towards companies like Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and Altria Group, Inc. (NYSE:MO), but in this article, we highlight mid-cap dividend stocks to consider.
Our Methodology
We selected dividend stocks that have a market capitalization ranging between $2 billion and $10 billion. These companies have received positive analyst ratings in the last few weeks. We have mentioned the hedge fund sentiment around the stocks as well.
Data from 900+ elite hedge funds tracked by Insider Monkey at the end of December 2021 was used to identify the number of hedge funds that hold stakes in each firm.
Mid-Cap Dividend Stocks to Buy Now
10. Crestwood Equity Partners LP (NYSE:CEQP)
Dividend Yield as of March 30: 8.05%
Market Capitalization as of March 30: $3.027 billion
Number of Hedge Fund Holders: 3
Crestwood Equity Partners LP (NYSE:CEQP) is a Houston-based company that operates in the energy midstream sector in the United States. In addition to providing natural gas and crude oil, the company is involved in water treatment and disposal services.
On January 21, Crestwood Equity Partners LP (NYSE:CEQP) declared a quarterly dividend of $0.625 per share. The dividend was paid on February 14, to shareholders of record on February 7. Crestwood Equity Partners LP (NYSE:CEQP)’s dividend yield on March 30 came in at 8.05%.
The company reported its Q4 results on February 22, posting a GAAP EPS of $0.79, exceeding estimates by $0.48. Revenue over the period jumped 110.8% year-over-year to $1.38 billion, topping market consensus by $190 million.
JPMorgan analyst Dan Walk upgraded Crestwood Equity Partners LP (NYSE:CEQP) on February 28 to Overweight from Neutral with a price target of $34, up from $32. According to the analyst, Crestwood Equity Partners LP (NYSE:CEQP)’s acquisition of Oasis Midstream helped the company gain scale and unlock new growth avenues while maintaining solid credit metrics. He believes Crestwood Equity Partners LP (NYSE:CEQP)’s valuation is attractive at current levels.
Among the hedge funds tracked by Insider Monkey, 3 funds reported owning stakes in Crestwood Equity Partners LP (NYSE:CEQP), collectively worth more than $7 million. Springbok Capital owns a prominent position in the company, with 425,014 shares worth $4.1 million.
In addition to Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and Altria Group, Inc. (NYSE:MO), Crestwood Equity Partners LP (NYSE:CEQP) is a notable dividend stock to invest in.
9. DCP Midstream, LP (NYSE:DCP)
Dividend Yield as of March 30: 4.66%
Market Capitalization as of March 30: $6.947 billion
Number of Hedge Fund Holders: 5
DCP Midstream, LP (NYSE:DCP) is a Colorado-based midstream energy company that provides natural gas and natural gas liquids. DCP Midstream, LP (NYSE:DCP) is a notable mid-cap dividend stock, with a market cap of $6.94 billion and a dividend yield of 4.66% as of March 30.
On January 25, DCP Midstream, LP (NYSE:DCP) declared a quarterly dividend of $0.39 per share. This dividend was distributed on February 14, to shareholders of record on February 4.
The company published on February 9 its fourth quarter results, posting a GAAP EPS of $1.44. Revenue for the period came in at $3.48 billion, up 94.4% year-over-year. The company also reported guidance for 2022. The net income is expected to range between $615 million to $765 million, and the adjusted EBITDA is projected to fall between $1.35 billion to $1.5 billion.
Mizuho analyst Gabriel Moreen raised the price target on DCP Midstream, LP (NYSE:DCP) to $37 from $35 and maintained a Buy rating on the shares. The company’s guidance may be disappointing at first glance, but commodity upside is “low-hanging”, the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 5 funds were bullish on DCP Midstream, LP (NYSE:DCP), with combined stakes of $16.8 million. Matthew Hulsizer’s PEAK6 Capital Management is the leading shareholder of the company, with 186,023 shares worth over $5 million.
8. Enviva Inc. (NYSE:EVA)
Dividend Yield as of March 30: 4.44%
Market Capitalization as of March 30: $5.197 billion
Number of Hedge Fund Holders: 5
Enviva Inc. (NYSE:EVA) is an American seller of utility-grade wood pellets as a substitute for coal in power and heat plants. Enviva Inc. (NYSE:EVA)’s dividend yield on March 30 came in at 4.44%.
On February 28, Enviva Inc. (NYSE:EVA) declared a $0.86 per share quarterly dividend, a 2.4% increase from its prior dividend of $0.84. The dividend was distributed on February 25.
Truist analyst Jordan Levy initiated coverage of Enviva Inc. (NYSE:EVA) on March 30 with a Buy rating and a $100 price target. According to the analyst, Enviva Inc. (NYSE:EVA) is a significant global wood pellet producer for biomass energy. The company is positioned to enter into a new growth phase where it will benefit from industrial decarbonization and energy security, the analyst told investors in a bullish thesis. Enviva Inc. (NYSE:EVA) provides solid dividend yield and growth that should attract new investor interest.
According to the fourth quarter database of Insider Monkey, 5 hedge funds placed long bets on Enviva Inc. (NYSE:EVA), compared to 8 funds in the prior quarter. Jeff Ubben’s Inclusive Capital held the leading stake in the company, owning 5.7 million shares worth $402.3 million.
7. Nu Skin Enterprises, Inc. (NYSE:NUS)
Dividend Yield as of March 30: 3.25%
Market Capitalization as of March 30: $2.369 billion
Number of Hedge Fund Holders: 17
Nu Skin Enterprises, Inc. (NYSE:NUS) is a Utah-based company that distributes beauty, skincare, and wellness products worldwide. Nu Skin Enterprises, Inc. (NYSE:NUS)’s dividend yield on March 30 stood at 3.25%.
On February 16, Nu Skin Enterprises, Inc. (NYSE:NUS) declared a $0.385 per share quarterly dividend, a 1.3% increase from its prior dividend of $0.380. The dividend was paid on March 9.
According to its 2022 guidance, published on February 16, the company expects full-year revenue to fall between $2.66 billion to $2.77 billion, compared to market consensus estimates of $2.69 billion. Nu Skin Enterprises, Inc. (NYSE:NUS)’s forecasted earnings per share are projected to lie between $4.05 to $4.45, versus consensus of $4.06.
Jefferies analyst Stephanie Wissink reiterated a Buy recommendation on Nu Skin Enterprises, Inc. (NYSE:NUS) on February 17 and raised the price target on the shares to $75 from $61. The analyst noted that given the company’s innovative pipeline, customer and affiliate tools, and strong demand, Nu Skin Enterprises, Inc. (NYSE:NUS) can reach high single digit/low double digit growth in the near-term.
Among the hedge funds tracked by Insider Monkey, 17 funds reported owning stakes in Nu Skin Enterprises, Inc. (NYSE:NUS), compared to 22 funds in the earlier quarter. The total stakes held in Q4 amounted to $254.6 million. Renaissance Technologies is the biggest shareholder of the company, with 2.6 million shares worth $132.5 million.
6. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of March 30: 3.12%
Market Capitalization as of March 30: $4.976 billion
Number of Hedge Fund Holders: 19
Black Hills Corporation (NYSE:BKH) is an electric and natural gas utility company in the United States. The company was incorporated in 1941 and is headquartered in Rapid City, South Dakota. Black Hills Corporation (NYSE:BKH) is a notable dividend king, with a history of consecutively increasing dividends for 51 years.
On January 26, Black Hills Corporation (NYSE:BKH) declared a quarterly dividend of $0.595 per share. The dividend was paid on March 1. The stock yields 3.12% as of March 30.
Mizuho analyst Paul Fremont upgraded Black Hills Corporation (NYSE:BKH) on February 7 to Buy from Neutral with an unchanged price target of $71. The current valuation offers a “free option” if Black Hills Corporation (NYSE:BKH) decides to transition its business operations away from gas without issuing equity in the process, the analyst told investors. He cited valuation for the upgrade.
According to Insider Monkey’s Q4 data, 19 hedge funds were bullish on Black Hills Corporation (NYSE:BKH), up from 16 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest shareholder of the company, with 205,000 shares worth $14.4 million.
Black Hills Corporation (NYSE:BKH) has a rich dividend history, just like Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and Altria Group, Inc. (NYSE:MO).
5. B2Gold Corp. (NYSE:BTG)
Dividend Yield as of March 30: 3.46%
Market Capitalization as of March 30: $4.907 billion
Number of Hedge Fund Holders: 20
B2Gold Corp. (NYSE:BTG) is headquartered in Vancouver, Canada, operating as a gold producer. The company mines for gold in Mali, the Philippines, and Namibia. Its fourth quarter revenue of $526.11 million outperformed estimates by $1.11 million. As of March 30, B2Gold Corp. (NYSE:BTG)’s dividend yield stood at 3.46%.
On February 23, B2Gold Corp. (NYSE:BTG) declared a quarterly dividend of $0.04 per share, in line with previous. The dividend was distributed on March 17, to shareholders of record on March 9.
National Bank analyst Don DeMarco on February 4 maintained an Outperform rating on B2Gold Corp. (NYSE:BTG), but lowered the price target to C$7.75 from C$8.
According to the fourth quarter database of Insider Monkey, 20 hedge funds were bullish on B2Gold Corp. (NYSE:BTG), compared to 16 funds in the earlier quarter. Renaissance Technologies held the biggest stake in the company, with more than 33 million shares worth $130.3 million.
4. Autoliv, Inc. (NYSE:ALV)
Dividend Yield as of March 30: 3.31%
Market Capitalization as of March 30: $6.782 billion
Number of Hedge Fund Holders: 23
Autoliv, Inc. (NYSE:ALV) was founded in 1953 and is headquartered in Stockholm, Sweden. The company designs and sells safety systems to the automotive industry. Autoliv, Inc. (NYSE:ALV)’s customers are based in Europe, the Americas, China, Japan, and Asia.
On February 22, Autoliv, Inc. (NYSE:ALV) announced a $0.64 per share quarterly dividend, in line with previous. The dividend was paid on March 23, to shareholders of record on March 8. The stock yields 3.31% as of March 30.
Jefferies analyst Philippe Houchois on March 15 maintained a Buy recommendation on Autoliv, Inc. (NYSE:ALV), but lowered the price target to $108 from $121. The analyst is adjusting estimates in his automobile coverage for “a stagflationary environment” given increased input costs, continued supply chain issues, and price and “potential demand destruction”.
According to the fourth quarter database of Insider Monkey, 23 hedge funds were bullish on Autoliv, Inc. (NYSE:ALV), up from 19 funds in the last quarter. Christer Gardell and Lars Forberg’s Cevian Capital is the biggest shareholder of the company, with roughly 6 million shares worth $611 million.
3. Patterson Companies, Inc. (NASDAQ:PDCO)
Dividend Yield as of March 30: 3.27%
Market Capitalization as of March 30: $3.118 billion
Number of Hedge Fund Holders: 25
Patterson Companies, Inc. (NASDAQ:PDCO) is a Minnesota-based company that distributes dental and animal health products in the United States, the United Kingdom, and Canada. As of March 30, the stock delivers a dividend yield of 3.27%.
Patterson Companies, Inc. (NASDAQ:PDCO) on March 15 declared a $0.26 per share quarterly dividend. The dividend will be paid on May 6, to shareholders of the company at the close of business on April 22.
On March 2, Piper Sandler analyst Jason Bednar observed that Patterson Companies, Inc. (NASDAQ:PDCO) reported Q4 results that implied profitability improvements despite revenue missing Street estimates given omicron headwinds. The analyst noted that Patterson Companies, Inc. (NASDAQ:PDCO)’s EPS guidance was raised for the third straight quarter. He has an Overweight rating and a $41 price target on Patterson Companies, Inc. (NASDAQ:PDCO) shares.
According to the Q4 database of Insider Monkey, 25 hedge funds were long Patterson Companies, Inc. (NASDAQ:PDCO), up from 21 funds in the previous quarter. Millennium Management held the largest stake in the company, with more than 1 million shares worth $30.4 million.
Here is what Heartland Advisors has to say about Patterson Companies, Inc. (NASDAQ:PDCO) in its Q2 2021 investor letter:
“Patterson Companies Inc. (PDCO) is a leading distributor of dental and animal health products. Sales have been on the rise and the company reported a record $6.1 billion in revenue for the year ending in April. Shares of the business are up double digits through the first half of the year, and the holding has been a solid contributor to performance.
Management at Patterson has done an impressive job of expanding operating margins and making strategic acquisitions that have fit with the business’ core competencies since coming aboard in 2017. However, shares set back late in the quarter, after the company reported better than expected earnings but issued guidance that was more conservative than Wall Street expectations. Due to the ongoing unwinding of pent-up demand in dental services and the strength of Patterson’s animal health line, we believe recent earnings guidance will prove to be overly cautious.
We view recent softness in shares of Patterson as an overreaction and remain constructive on this industry leader that is priced at just .5X sales.”
2. American Eagle Outfitters, Inc. (NYSE:AEO)
Dividend Yield as of March 30: 4.18%
Market Capitalization as of March 30: $2.911 billion
Number of Hedge Fund Holders: 31
Headquartered in Pittsburgh, Pennsylvania, American Eagle Outfitters, Inc. (NYSE:AEO) is a retailer of clothing, accessories, and personal care products for men and women. American Eagle Outfitters, Inc. (NYSE:AEO)’s market capitalization as of March 30 equals $2.91 billion.
On March 2, American Eagle Outfitters, Inc. (NYSE:AEO) declared a quarterly dividend of $0.18 per share, in line with previous. The dividend was paid on March 24, to shareholders of record on March 11. The stock yields 4.18% as of March 30.
Cowen analyst Oliver Chen kept an Outperform rating on American Eagle Outfitters, Inc. (NYSE:AEO) on March 4, but lowered the price target to $25 from $31. The analyst believes the underlying brand momentum remains solid but supply chain challenges and increased freight costs remain pressure points.
Among the hedge funds tracked by Insider Monkey, 31 funds were bullish on American Eagle Outfitters, Inc. (NYSE:AEO) at the end of December 2021, with collective stakes amounting to $1.13 billion. Select Equity Group is the largest shareholder of the company, with 21.5 million shares worth $546.75 million.
1. The Chemours Company (NYSE:CC)
Dividend Yield as of March 30: 3.11%
Market Capitalization as of March 30: $5.157 billion
Number of Hedge Fund Holders: 35
The Chemours Company (NYSE:CC) is a Delaware-based company that provides performance chemicals such as titanium dioxide, refrigerants, industrial fluoropolymer resins, cyanide, sulfuric acid, aniline, and methylamines.
On February 9, The Chemours Company (NYSE:CC) declared a $0.25 per share quarterly dividend, in line with previous. The dividend was distributed on March 15. The Chemours Company (NYSE:CC) delivers a dividend yield of 3.11% as of March 30.
RBC Capital analyst Arun Viswanathan on February 15 reiterated an Outperform rating on The Chemours Company (NYSE:CC), but lowered the price target on the shares to $41 from $44. The analyst cites the continued input cost inflation for titanium dioxide for the slashed price target. However, he believes that headwinds should moderate in the second half of 2022 and improve heading into 2023.
According to Insider Monkey’s Q4 data, 35 hedge funds were bullish on The Chemours Company (NYSE:CC), compared to 38 funds in the previous quarter. John Petry’s Sessa Capital is the largest shareholder of the company, owning more than 8 million shares worth approximately $275 million.
Here is what Miller Value Partners Income Strategy has to say about The Chemours Company (NYSE:CC) in its Q4 2021 investor letter:
“The Chemours Co (CC) rose 16.4% over the period after reporting Q3 revenue of $1.68Bn, +36% Y/Y and +4% ahead of consensus driven by 25% volume growth while pricing added +11%. Earnings Before Income, Taxes, Depreciation, and Amortization (EBITDA) of $372M rose +77% and beat estimates by 9% as higher top-line results more than offset incremental cost headwinds. Chemours raised FY21 guidance, including EBITDA of $1.3Bn-$1.34Bn (from $1.1Bn-$1.25Bn), Earnings Per Share (EPS) of $3.93-$4.13 (from $2.84-$3.56), and free cash flow (FCF) of at least $500M (from >$450M). Additionally, Chemours announced the closing of the previously announced sale of the Mining Solutions business for $520M.”
You can also take a look at 10 Growth Stocks Under $50 for 2022 and 10 Semiconductor Stocks to Buy Under $50.
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Disclosure: None. 10 Mid-Cap Dividend Stocks to Buy Now is originally published on Insider Monkey.
