5 Undervalued Dividend Kings To Buy In 2022

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In this article, we discuss 5 undervalued dividend kings to buy in 2022. If you want our detailed analysis of these stocks, go directly to 10 Undervalued Dividend Kings To Buy In 2022

5. National Fuel Gas Company (NYSE:NFG)

Dividend Yield as of February 24: 3.06%

Number of Hedge Fund Holders: 21

Number of Years of Consecutive Dividend Increases: 51

P/E Ratio: 13.07

National Fuel Gas Company (NYSE:NFG) operates as a diversified energy company, producing natural gas and oil in California and the Appalachian region of the United States. National Fuel Gas Company (NYSE:NFG)’s history of consistently increasing dividends dates back to 51 years. 

On December 3, National Fuel Gas Company (NYSE:NFG) declared a $0.45 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on January 14. As of February 24, National Fuel Gas Company (NYSE:NFG) offers a yield of 3.06%. 

National Fuel Gas Company (NYSE:NFG)’s earnings and revenue for the fourth quarter of 2021 came in above market consensus. The company posted an EPS of $1.48, and revenue for the period clocked in at $546.56 million, up approximately 26% year-over-year.

Mario Gabelli’s GAMCO Investors is the biggest shareholder of National Fuel Gas Company (NYSE:NFG) as of Q4 2021, with an $80 million stake. Overall, 21 hedge funds were bullish on the stock in the fourth quarter, up from 19 funds in the quarter earlier. 

Here is what Heartland Value Fund has to say about National Fuel Gas Company (NYSE:NFG) in its Q1 2021 investor letter:

“The ho-hum Utilities sector isn’t typically a place to hunt for strong growth prospects. However, for investors willing to do their homework, opportunities do exist. Portfolio holding National Fuel Gas Company (NFG) is a prime example.

NFG is a dividend aristocrat—50 consecutive years of dividend increases. Although the business is lumped in with run-of-the-mill power companies, it is much more diverse. In addition to its utility operations, a pipeline and storage division produces almost a quarter of its profits, and the company generates nearly 40% of its bottom line from natural gas exploration and production.

Shares of NFG are trading at a mid-teens discount to their historic average based on price/book. Given the state of the energy industry over the past few years, we believe the company’s gas unit could be an overlooked source of growth. Additionally, the utility recently received regulatory approval on a natural gas pipeline expansion in Pennsylvania, which is expected to produce a windfall in free cash flow.”

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