In this article, we discuss 10 best long-term dividend stocks with over 4% yield. If you want to see some more stocks from this list, click 5 Best Long-Term Dividend Stocks with Over 4% Yield.
Dividends are a reliable stream of passive income for investors, and they also offer greater returns than share price gains in this macro environment. According to a report by S&P Dow Jones Indices, dividend increases for US common shares in the first quarter of 2022 were $27.7 billion, an increase of 34.8% from the prior quarter, when the dividend increases amounted to $20.6 billion. The Q1 2022 dividend increases also reflect a 36.3% year-over-year increase from $20.3 billion in the first quarter of 2021.
Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, stated that dividend increases in the quarter ending March 2022 would have set a record had it not been for AT&T Inc. (NYSE:T) lowering dividend payments by $6.9 billion given its WarnerMedia spinoff. The dividend payout ratios are expected to increase in 2022, and although inflation remains a near-term concern, investors still seek out dividend stocks for reliable income.
The best way to determine dividend stocks as long-term reliable investments are companies who continue to increase their dividend payouts over the years. Some of the most notable long-term dividend stocks with attractive yields include Philip Morris International Inc. (NYSE:PM), Exxon Mobil Corporation (NYSE:XOM), and Verizon Communications Inc. (NYSE:VZ), among others discussed at length ahead.
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Our Methodology
We selected stocks that have a rich dividend history and yield over 4% as of April 4. The hedge fund sentiment around each stock is mentioned, in addition to the consistent years of dividend increases for each company. To ensure that these companies qualify as long-term investments, we listed stocks that have raised their dividend payouts for at least 5 years or more.
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.
Best Long-Term Dividend Stocks with Over 4% Yield
10. Realty Income Corporation (NYSE:O)
Dividend Yield as of April 4: 4.23%
Number of Years of Consecutive Dividend Increases: 28
Number of Hedge Fund Holders: 30
Realty Income Corporation (NYSE:O) is a reliable monthly dividend payer, operating as a real estate investment trust. The REIT has properties for commercial tenants across the United States, Spain, and the United Kingdom. Wolfe Research analyst Andrew Rosivach upgraded Realty Income Corporation (NYSE:O) on March 15 to Outperform from Peer Perform.
Realty Income Corporation (NYSE:O) has consistently increased its dividend payments for 28 years. On March 16, the company declared a $0.247 per share monthly dividend, a 0.2% increase from its prior dividend of $0.246. The dividend will be paid on April 15, to shareholders of the company as of April 1. Realty Income Corporation (NYSE:O)’s dividend yield on April 4 came in at 4.23%.
On April 1, Realty Income Corporation (NYSE:O) priced its private offering of £140 million senior unsecured notes due 2030, £345 million senior unsecured notes due 2032, and £115 million senior unsecured notes due 2037. These offerings will be concluded on April 14. The average tenure of the notes is 10.5 years, with a weighted average fixed interest rate of 3.22%.
In the fourth quarter of 2021, 30 hedge funds reported owning stakes in Realty Income Corporation (NYSE:O), valued at roughly $399 million, compared to 22 funds in the prior quarter, holding stakes in the company worth $275 million. Matthew Barrett’s Glendon Capital Management held the largest stake in Realty Income Corporation (NYSE:O), with 1.85 million shares worth close to $133 million.
In addition to Philip Morris International Inc. (NYSE:PM), Exxon Mobil Corporation (NYSE:XOM), and Verizon Communications Inc. (NYSE:VZ), Realty Income Corporation (NYSE:O) is a notable long-term dividend stock to buy and hold.
9. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of April 4: 4.27%
Number of Years of Consecutive Dividend Increases: 38
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is a Texas-based multinational company that is involved in the transport and sale of crude oil, natural gas, petroleum products, and petrochemicals. Exxon Mobil Corporation (NYSE:XOM) has a rich dividend history, with the company increasing its dividends consecutively for 38 years.
Exxon Mobil Corporation (NYSE:XOM) has a sustainable dividend payout ratio of approximately 49%, and the stock yields above the industry average of 4.24%. On January 26, the company declared a $0.88 per share quarterly dividend, in line with previous. The dividend was paid on March 10, to shareholders of the company as of February 10.
MKM Partners analyst John Gerdes on March 7 maintained a Buy recommendation on Exxon Mobil Corporation (NYSE:XOM) and raised the price target on the shares to $84 from $81. The analyst cited the company’s solid production outlook and the higher international natural gas prices that are offset partly by increased operating expenses. The analyst added that Exxon Mobil Corporation (NYSE:XOM) will incur approximately $21.6 billion of net capital expenditures in 2022, and the company should subsequently generate about $40.2 billion of free cash flows this year.
Among the hedge funds tracked by Insider Monkey, 71 funds were bullish on Exxon Mobil Corporation (NYSE:XOM) at the end of December 2021, compared to 64 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 32.3 million shares worth approximately $2 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
8. Leggett & Platt, Incorporated (NYSE:LEG)
Dividend Yield as of April 4: 4.69%
Number of Years of Consecutive Dividend Increases: 51
Number of Hedge Fund Holders: 21
Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturer that operates via three main segments – Bedding Products, Specialized Products and Furniture, and Flooring & Textile Products. The company sells its products to big box and e-commerce stores, bedding brands, and home improvement centers.
The average dividend yield for the consumer discretionary sector is 1.89%, and Leggett & Platt, Incorporated (NYSE:LEG) exceeds the sector average considerably with its 4.69% yield as of April 4. The company announced on February 26 a $0.42 per share quarterly dividend, a 5.0% increase from its earlier dividend of $0.40. The dividend is payable on April 15, to shareholders of the company as of the close of business on March 15. Leggett & Platt, Incorporated (NYSE:LEG) is a notable dividend king, with 51 consecutive years of increasing dividends under its belt.
On February 9, Raymond James analyst Bobby Griffin reiterated an Outperform rating on Leggett & Platt, Incorporated (NYSE:LEG) but lowered the firm’s price target to $50 from $55. The volume slowdown Leggett & Platt, Incorporated (NYSE:LEG) experienced in its largest business unit is concerning, but the analyst told investors that much of the short-term downside is already accounted for in the stock.
According to the fourth quarter database of Insider Monkey, 21 hedge funds were bullish on Leggett & Platt, Incorporated (NYSE:LEG), with collective stakes worth $136.7 million, compared to 16 funds in the last quarter, holding stakes in Leggett & Platt, Incorporated (NYSE:LEG) worth $56.1 million. Israel Englander’s Millennium Management held the biggest position in the company, with 1.16 million shares valued at $47.8 million.
7. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of April 4: 4.92%
Number of Years of Consecutive Dividend Increases: 18
Number of Hedge Fund Holders: 63
Verizon Communications Inc. (NYSE:VZ) is a New York-based wireless network operator that provides communications, technology, information, and entertainment products and services worldwide. The company serves individual consumers, businesses, and government clients. Verizon Communications Inc. (NYSE:VZ) is a notable player in the rapidly growing 5G space, deploying the technology across the United States via multiple key partnerships.
On February 28, Verizon Communications Inc. (NYSE:VZ) declared a $0.64 per share quarterly dividend, in line with previous. The dividend is payable on May 2, to shareholders of record on April 8. Verizon Communications Inc. (NYSE:VZ)’s dividend yield as of April 4 stands at 4.92%, and the company has consistently raised its dividend payouts for 18 years. The stock delivers an attractive dividend payout ratio of 45.5%, and its yield is higher than the industry average of 2.62%.
Verizon Communications Inc. (NYSE:VZ)’s Q4 results came in above market consensus on January 25. The company posted earnings per share of $1.31, beating estimates by $0.03. Revenue over the period stood at $34.07 billion, outperforming analysts’ predictions by $30.57 million.
According to the fourth quarter database of Insider Monkey, 63 hedge funds reported owning stakes in Verizon Communications Inc. (NYSE:VZ), valued at $10.8 billion. Warren Buffett’s Berkshire Hathaway is the biggest shareholder of the company, owning 158.8 million shares worth $8.2 billion.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon Communications Inc. (NYSE:VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
6. Star Group, L.P. (NYSE:SGU)
Dividend Yield as of April 4: 5.11%
Number of Years of Consecutive Dividend Increases: 9
Number of Hedge Fund Holders: 8
Star Group, L.P. (NYSE:SGU) is a Connecticut-based company that sells heating and air conditioning products and services to residential and commercial customers across the United States. Star Group, L.P. (NYSE:SGU) has increased its dividend payments for 9 years in a row, and the stock delivers a dividend yield of 5.11% as of April 4.
On January 20, Star Group, L.P. (NYSE:SGU) announced a $0.1425 per share quarterly dividend, in line with previous. The dividend was paid on February 1, to shareholders of the company as of January 24.
The company published its fourth quarter financial results in a press release on February 1. Star Group, L.P. (NYSE:SGU) announced GAAP earnings per share of $0.32, and a revenue of $488.3 million, up 30.8% year-over-year.
According to the Q4 database of Insider Monkey, 8 hedge funds placed long bets on Star Group, L.P. (NYSE:SGU), with combined stakes of $60.2 million, compared to the same number of funds in the earlier quarter, holding stakes in Star Group, L.P. (NYSE:SGU) valued at $58.6 million. Gregory Bylinsky and Jefferson Gramm’s Bandera Partners is the biggest shareholder of the company, with 3.3 million shares worth $35.6 million.
Just like Philip Morris International Inc. (NYSE:PM), Exxon Mobil Corporation (NYSE:XOM), and Verizon Communications Inc. (NYSE:VZ), Star Group, L.P. (NYSE:SGU) is a significant dividend stock to watch.
Click to continue reading and see 5 Best Long-Term Dividend Stocks with Over 4% Yield.
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Disclosure: None. 10 Best Long-Term Dividend Stocks with Over 4% Yield is originally published on Insider Monkey.
