5 Undervalued Dividend Aristocrats to Buy in 2022

4. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Number of Hedge Fund Holders: 42

Dividend Yield as of February 25: 4.13%

Number of Years of Consecutive Dividend Increases: 46

P/E Ratio: 6.23

Founded in 1901 and based in Deerfield, Illinois, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) operates as a pharmacy, healthcare, and beauty retail company. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)’s dividend yield on February 25 was 4.13%, and it is one of the most undervalued dividend aristocrats to buy in 2022. 

On January 27, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced a per share quarterly dividend of $0.4775, in line with previous. The dividend is payable on March 11, to shareholders of record on February 18. 

In its Q4 earnings report, published on February 6, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) posted an EPS of $1.68, topping market consensus by $0.34. The company’s revenue came in at $33.90 billion, surpassing analysts’ estimates by $946.75 million.

Mizuho analyst Ann Hynes raised the price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) on January 10 to $56 from $51 and kept a Neutral rating on the shares, citing an improved outlook of COVID testing and vaccine benefits for the revised target.

Camber Capital Management held the leading stake in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), owning 3.5 million shares worth $182.56 million. Overall, 42 hedge funds were long Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in Q4 2021, up from 37 funds in the prior quarter. 

Here is what Miller Howard Investments has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”