Top 5 Dividend Increases of 2021

2. Advance Auto Parts, Inc. (NYSE:AAP)

Dividend Yield as of January 20: 1.74%

Dividend Increase in 2021: 300%

Number of Hedge Fund Holders: 35
Advance Auto Parts, Inc. (NYSE:AAP) is an American provider of replacement automotive parts and accessories, serving customers in the United States and Canada. In the third quarter of 2021, 35 hedge funds were bullish on Advance Auto Parts, Inc. (NYSE:AAP), with stakes amounting to roughly $900 million.

On April 20, 2021, Advance Auto Parts, Inc. (NYSE:AAP) lifted its quarterly per share dividend by 300%, up from its prior dividend of $0.25. On December 16, Advance Auto Parts, Inc. (NYSE:AAP) announced a $1 dividend per share, which was paid on January 3, to shareholders of record on December 17.

Truist analyst Scot Ciccarelli initiated coverage of Advance Auto Parts, Inc. (NYSE:AAP) with a Buy rating and a $273 price target on January 12. The recent industry drivers including increased personal vehicle usage, suburban/rural migration, and elevated vehicle prices will continue into the foreseeable future, the analyst told investors in a research note. After years of heavy investment, Advance Auto Parts, Inc. (NYSE:AAP) has finally laid the groundwork to capitalize on its “substantial margin expansion opportunity”.

Among the hedge funds tracked by Insider Monkey in Q3 2021, Citadel Investment Group is the leading Advance Auto Parts, Inc. (NYSE:AAP) stakeholder, with 591,694 shares worth $123.5 million. Overall, 35 hedge funds were long Advance Auto Parts, Inc. (NYSE:AAP) in the third quarter.