In this article, we discuss the companies that have just increased their dividends. You can skip our detailed analysis of dividend investing, and go directly to read MSFT and 4 Other Companies Just Increased Their Dividends.
After the pandemic-related hiatus, many American companies started raising their dividends to attract shareholders. According to a report by Janus Henderson Group, 94% of the companies in the index grew or maintained their payouts during the second quarter of 2022. The report also mentioned that dividend payments reached their record high during the quarter, amounting to $144.4 billion. Global dividends also notched a new milestone during this time. In the 12 months ending March 2022, the MSCI AC World Index paid out nearly $1.3 trillion in dividends, up 17% from 2020, as reported by abrdn PLC.
Analysts are expecting steady growth in dividend payments for the remaining two quarters of the fiscal year 2022. Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices, talked about the popularity of dividend stocks in his New York Times interview this August. He said that the companies in the S&P 500 will spend a combined $1.5 trillion in dividends and buybacks this year as they are reporting strong cash flows. This admiration of dividend stocks can also be attributed to the current economic circumstances. With rising inflation and interest rate hikes, investors are gravitating towards dividend stocks to ensure regular income. Dividend companies have outdone their peers during the phases of market decline. According to a report by Goldman Sachs, during the periods when inflation was above 5%, companies offering high dividends performed better than the broader market. For example, in the last 20 years ending April 2022, dividends and dividends reinvested represented over half of the total return of the MSCI AC World Index.
When investing in dividend stocks, investors pay attention to companies that have proven histories of consistent dividend growth. In addition to this, investors also assess the companies’ financial health and balance sheets to determine the stability of their payouts. Some popular dividend stocks that have maintained decades-long dividend growth streaks include The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG). In this article, we will discuss some companies that just increased their dividends.
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Our Methodology:
For this list, we selected companies that raised their dividends in September 2022. These companies are ranked according to the number of hedge funds holders, according to Insider Monkey’s Q2 2022 data.
MSFT and 9 Other Companies Just Increased Their Dividends
10. Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO)
Number of Hedge Fund Holders: N/A
Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) is an Ohio-based community bank that specializes in traditional banking and digital banking. The company also provides services in commercial lending, online and mobile banking, and personal checking.
In Q2 2022, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) showed strong cash flow as its operating cash flow grew to $14.5 million, from $7.8 million in the previous quarter. The company’s free cash flow stood at $14 million, from $7.4 million in the preceding quarter. It reported revenue of over $25 million, which showed a 25.7% year-over-year growth.
On September 16, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) announced a 10.5% hike in its quarterly dividend to $0.21 per share. This marked the company’s 28th consecutive year of dividend growth. For the first six months of the year, the company’s payout ratio was 30.08%, compared with 38.18% during the same period last year. As of September 21, the stock’s dividend yield is 3.01%.
In addition to popular dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) can be a good addition to dividend portfolios due to its strong dividend growth history.
9. Saga Communications, Inc. (NASDAQ:SGA)
Number of Hedge Fund Holders: 4
Saga Communications, Inc. (NASDAQ:SGA) is an American broadcasting company that acquires and operates radio stations. On September 20, the company raised its quarterly dividend by 25% to $0.25 per share. As of September 21, the stock’s dividend yield stood at 2.94%. The company has been paying uninterrupted dividends since 2012.
In Q2 2022, Saga Communications, Inc. (NASDAQ:SGA) reported revenue of roughly $30 million, up 6.3% from the same period last year. The company’s balance sheet also remained stable as its operating income grew by 13.2% in the first six months of the year to $14.8 million. Its free cash flow came in at $5.1 million for the period and paid approximately $1.2 million in dividends to shareholders. Since 2012, the company has paid a total of $79 million in dividends.
At the end of Q2 2022, 4 hedge funds in Insider Monkey’s database owned stakes in Saga Communications, Inc. (NASDAQ:SGA), the same as in the previous quarter. These stakes hold a collective value of roughly $12 million. Minerva Advisors owned the largest position in the company in Q2.
8. New Jersey Resources Corporation (NYSE:NJR)
Number of Hedge Fund Holders: 8
Another stock that just increased its dividend is New Jersey Resources Corporation (NYSE:NJR), which is an American energy services holding company that provides reliable energy services to its consumers. In September, JPMorgan maintained a $46 price target on the stock as its renewables capital deployment remained efficient.
During the first nine months of 2022, New Jersey Resources Corporation’s (NYSE:NJR) operating cash flow stood at $236 million, down from $341.8 million during the same period last year. The company’s revenue in fiscal Q3 2022 came in at $552.3 million, up 50.3% from the prior-year quarter. Its consolidated net income was $13.1 million and its home services and other operations generated over $0.2 million during the quarter.
New Jersey Resources Corporation (NYSE:NJR) holds a strong dividend history. The company has been paying dividends since its inception in 1952 and has raised its payouts 29 times in the last 27 years. On September 14, the company announced a 7.6% hike in its quarterly dividend to $0.39 per share. As of September 21, the company’s shares boast a yield of 3.46%.
At the end of June 2022, 8 hedge funds tracked by Insider Monkey reported owning stakes in New Jersey Resources Corporation (NYSE:NJR), compared with 12 in the previous quarter. These stakes hold a collective value of over $47.2 million, compared with $55.8 million worth of stakes owned by hedge funds in the preceding quarter.
7. Ladder Capital Corp (NYSE:LADR)
Number of Hedge Fund Holders: 8
Ladder Capital Corp (NYSE:LADR) is an internally-managed real estate investment trust corporation. The company’s main goal is to protect shareholders’ capital while producing attractive risk-adjusted returns. In Q2 2022, the company’s revenue surged by 107% to $83.8 million, as commercial real estate is gaining ground after the pandemic. The company generated roughly $44 million in free cash flow and paid $29 million in dividends during the quarter. Moreover, it had over $217.3 million available in cash and cash equivalents.
On September 15, Ladder Capital Corp (NYSE:LADR) declared a 4.5% growth in its quarterly dividend to $0.23 per share. This marked the company’s second consecutive quarterly dividend raise. As of September 21, the stock has a dividend yield of 8.17%.
At the end of Q2 2022, Millennium Management owned over 1.4 million shares in Ladder Capital Corp (NYSE:LADR), worth $15.7 million, and was the company’s largest stakeholder. In addition to this, 8 hedge funds in Insider Monkey’s database owned stakes in the company in Q2, the same as in the previous quarter. The total value of these stakes is over $32 million.
6. Trinity Capital Inc. (NASDAQ:TRIN)
Number of Hedge Fund Holders: 8
Trinity Capital Inc. (NASDAQ:TRIN) is an Arizona-based capital market company that provides services in venture debt financing and strategic financing. The company was a part of 8 hedge fund public portfolios in Q2 2022, down from 12 in the previous quarter, as per Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $18.3 million.
In Q2 2022, Trinity Capital Inc. (NASDAQ:TRIN) reported a total investment income of $33.4 million, which shows a 71.8% growth from the same period last year. At the end of June, the company had approximately $93.2 million in available liquidity, including $13.2 million in cash and cash equivalents. It also had $80 million in the available credit facility.
Trinity Capital Inc. (NASDAQ:TRIN) started paying dividends in November 2020 and has raised its payouts five times since then. On September 16, the company raised its quarterly dividend by 7% to $0.45 per share. This marked the company’s fifth consecutive quarter of dividend growth. In addition to this, it also declared a supplemental dividend of $0.15 per share. The stock’s dividend yield came in at 11.85%, as of September 21.
In September, B. Riley assumed its coverage on Trinity Capital Inc. (NASDAQ:TRIN) with a Buy rating, presenting a positive stance on business development companies. Moreover, the firm also appreciated the company’s initiative of paying special dividends.
Trinity Capital Inc. (NASDAQ:TRIN) is another dividend stock to consider due to its steadily growing payouts alongside popular stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
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Disclosure. None. MSFT and 9 Other Companies Just Increased Their Dividends is originally published on Insider Monkey.
