In this article, we discuss 10 dividend achievers to buy in 2022. If you want to see more stocks in this selection, click 5 Dividend Achievers to Buy in 2022.
Dividend achievers are companies that have consistently raised their dividend payouts for at least 10 years. While it may not be as robust a dividend history as dividend aristocrats and dividend kings, it is certainly notable enough for investors to gauge the strength of operations, the robustness of cash flows, and the solid business performance of the companies.
Companies that have offered at least a decade of dividend growth are likely to benefit from inflation, since they are prominent players in their industries and can often benefit from rising inflationary pricing. This means that dividend payments can be increased, further benefiting shareholders.
Since dividends act as a strong hedge against inflation, it is a good idea to diversify a portfolio with dividend paying stocks. Dividend payers like Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO) are popular choices among investors, but in this article, we discuss dividend achievers to buy in 2022.
Our Methodology
We selected the dividend achievers that recently received optimistic analyst ratings and had strong hedge fund sentiment. We have mentioned the latest available earnings, dividend payouts, and number of years of consecutive dividend increases for each stock. Dividend yields as of May 10 are also listed.
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Dividend Achievers to Buy in 2022
10. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of May 10: 3.35%
Number of Hedge Fund Holders: 107
Number of Years of Consecutive Dividend Increases: 11
JPMorgan Chase & Co. (NYSE:JPM), the American multinational financial services company, is one of the most notable dividend achievers to buy in 2022. The company operates via four segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. The company’s Q1 2022 revenue of $30.72 billion outperformed market consensus by $318.51 million.
JPMorgan Chase & Co. (NYSE:JPM)’s dividend yield on May 10 stood at 3.35%, and it has consistently raised its dividend payments for 11 years. The company declared on March 15 a $1.00 per share quarterly dividend, in line with previous. The dividend was distributed on April 30.
JPMorgan Chase & Co. (NYSE:JPM)’s Securities Services business announced on May 10 the launch of “Fusion by J.P. Morgan”, a platform that offers end-to-end data management and reporting solutions for institutional investors. The platform will enable scalability, reduce costs, and allow timely analysis and insights.
On May 3, Oppenheimer analyst Chris Kotowski upgraded JPMorgan Chase & Co. (NYSE:JPM) to Outperform from Perform with a $167 price target. According to the analyst, loan growth and increasing interest rates are feasible for banks, and the banking industry is set to perform well even if the economy were to enter recession. According to Kotowski’s valuation model, JPMorgan Chase & Co. (NYSE:JPM) has more than 30% upside potential in the 12-18 months ahead.
According to Insider Monkey’s Q4 data, 107 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), compared to 101 funds in the last quarter. The collective stakes owned in the fourth quarter of 2021 amounted to $6.5 billion, up from $5.6 billion the prior quarter. Ken Fisher’s Fisher Asset Management held the leading position in the company, with 7.4 million shares worth $1.17 billion.
Like Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), institutional investors are piling into JPMorgan Chase & Co. (NYSE:JPM).
Here is what Ariel Investments has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:
“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.
“In our view, inflation will not just be a 2021 phenomenon.”
Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”
9. Analog Devices, Inc. (NASDAQ:ADI)
Dividend Yield as of May 10: 1.96%
Number of Hedge Fund Holders: 72
Number of Years of Consecutive Dividend Increases: 21
Analog Devices, Inc. (NASDAQ:ADI) is a Massachusetts-based manufacturer of integrated circuits, software, and subsystems that utilize analog, mixed-signal, and digital signal processing technologies. Analog Devices, Inc. (NASDAQ:ADI) has a 21-year history of consistent dividend growth.
Analog Devices, Inc. (NASDAQ:ADI) declared on February 15 a $0.76 per share quarterly dividend, a 10.1% increase from its last dividend of $0.69. The dividend was distributed to shareholders on March 8. The stock delivers a dividend yield of 1.96% as of May 10.
On April 8, Truist analyst William Stein maintained a Buy recommendation on Analog Devices, Inc. (NASDAQ:ADI) but lowered the firm’s price target on the shares to $194 from $208 as part of a broader research note on Semiconductors. The analyst cited “hard evidence” of a sudden downturn in demand signals from a wide range of compute, consumer, and communications OEMs, driving his 2023 models to result in negative growth and lower earnings multiples for the sector.
According to Insider Monkey’s Q4 data, Analog Devices, Inc. (NASDAQ:ADI) was found in the public stock portfolios of 72 hedge funds, with combined stakes worth $4.71 billion. Jean-Marie Eveillard’s First Eagle Investment Management is a significant shareholder of the company, with 3.4 million shares worth $603 million.
Here is what Madison Funds has to say about Analog Devices, Inc. (NASDAQ:ADI) in its Q3 2021 investor letter:
“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”
8. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of May 10: 3.17%
Number of Hedge Fund Holders: 34
Number of Years of Consecutive Dividend Increases: 13
American Electric Power Company, Inc. (NASDAQ:AEP) was incorporated in 1906 and is headquartered in Columbus, Ohio. It operates as an electric public utility holding company, catering to retail and wholesale customers in the United States. American Electric Power Company, Inc. (NASDAQ:AEP) has consecutively increased its dividend payments for 13 years, and the company delivers a dividend yield of 3.17% as of May 10.
On April 28, American Electric Power Company, Inc. (NASDAQ:AEP) reported earnings for the first fiscal quarter of 2022. The company posted an EPS of $1.22, beating market estimates by $0.02. The Q1 revenue grew 7.28% year-over-year to $4.59 billion, topping analysts’ predictions by approximately $200 million.
Credit Suisse analyst Nicholas Campanella initiated coverage of American Electric Power Company, Inc. (NASDAQ:AEP) on April 25 with an Outperform rating and a $113 price target. The company has a diversified operating portfolio of regulated electric utilities and regulated T&D operations serving about 5.5 million customers in 11 states, noted the analyst, who thinks investors should focus on American Electric Power Company, Inc. (NASDAQ:AEP)’s recent strategic divestment of underearning assets.
According to the fourth quarter database of Insider Monkey, American Electric Power Company, Inc. (NASDAQ:AEP) was found in the public stock portfolios of 34 hedge funds, compared to 36 funds in the last quarter. Jim Simons’ Renaissance Technologies is the biggest shareholder of the company, with a position worth $148.3 million.
Here is what ClearBridge Investments Value Equity has to say about American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter:
“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.”
7. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of May 10: 2.84%
Number of Hedge Fund Holders: 62
Number of Years of Consecutive Dividend Increases: 13
Broadcom Inc. (NASDAQ:AVGO) is headquartered in San Jose, California, providing semiconductor solutions and infrastructure software. Broadcom Inc. (NASDAQ:AVGO)’s products are used in multiple applications, such as enterprise and data center networking, home connectivity, telecommunication equipment, smartphones and base stations, factory automation, power generation, alternative energy systems, and electronic displays.
On March 3, Broadcom Inc. (NASDAQ:AVGO) declared a $4.10 per share quarterly dividend, in line with previous. The dividend was distributed on March 31. The stock delivers a dividend yield of 2.84% as of May 10, and the company has raised its dividends for 13 years in a row.
Truist analyst William Stein on April 8 reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) and lowered the firm’s price target on the shares to $657 from $686 as part of a broader research note on the Semiconductor industry.
Among the hedge funds tracked by Insider Monkey, 62 funds were long Broadcom Inc. (NASDAQ:AVGO) at the end of December 2021, up from 50 funds in the last quarter. William Von Mueffling’s Cantillon Capital Management is a prominent shareholder of the company, with 1 million shares worth $669.40 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
6. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of May 10: 2.83%
Number of Hedge Fund Holders: 66
Number of Years of Consecutive Dividend Increases: 16
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based biopharmaceutical company that offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. Bristol-Myers Squibb Company (NYSE:BMY)’s dividend on May 10 came in at 2.83%.
Bristol-Myers Squibb Company (NYSE:BMY) reported earnings for Q1 2022 on April 29, posting an EPS of $1.96, beating estimates by $0.07. Revenue for the period grew 5.19% year-over-year to $11.65 billion, outperforming market consensus by $308.41 million.
On May 2, Truist analyst Robyn Karnauskas kept a Buy recommendation on Bristol-Myers Squibb Company (NYSE:BMY) and raised the firm’s price target to $81 from $76 after its Q1 earnings beat. Investors may be concerned with Revlimid erosion, but the recent approval of three drugs in September could negate the loss of exclusivity, the analyst told investors in a research note. The analyst added that she sees potential upside from expansion opportunities across the Bristol-Myers Squibb Company (NYSE:BMY) portfolio.
Bristol-Myers Squibb Company (NYSE:BMY) declared on March 1 a $0.54 per share quarterly dividend, in line with previous. The dividend was distributed on May 2, to shareholders of record on April 1. The company has a history of 16 years of dividend growth.
Among the hedge funds tracked by Insider Monkey, 66 funds were long Bristol-Myers Squibb Company (NYSE:BMY) at the end of December 2021, with combined stakes amounting to $3.3 billion. John Overdeck and David Siegel’s Two Sigma Advisors is the largest shareholder of the company, with 6.6 million shares worth $412.5 million.
In addition to Apple Inc. (NASDAQ:AAPL), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Bristol-Myers Squibb Company (NYSE:BMY) is a notable dividend stock to watch.
Here is what Saturna Capital Amana Funds has to say about Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our positions in Bristol Myers. We believe there are better opportunities than Bristol in pharmaceuticals.”
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Disclosure: None. 10 Dividend Achievers to Buy in 2022 is originally published on Insider Monkey.
