In this article, we discuss the 10 dividend aristocrats to buy for 2022. If you want to skip our detailed analysis of these stocks, go directly to the 5 Dividend Aristocrats to Buy for 2022.
Dividend aristocrats are some of the most lucrative investment options, since these stocks have raised their dividends consistently for more than 25 years and these companies have long-term stable performance.
The global COVID-19 pandemic influenced company earnings significantly, which compelled many businesses to slash their dividends, or lower them significantly, impacting dividend investors all over the world.
However, as economic recovery is underway in 2021, income investing is gaining its mojo back. The highest yielding industries are the oil and gas sectors, with average yields over 5%. Attractive dividend opportunities are also seen in the banking sector, utilities with exposure to solar and wind energy, as well as the property and casualty insurance industries.
Legendary value investor Warren Buffett is considered the greatest investor of all time, and much of his investment strategy relies on collecting dividend payments. A large amount of profits flowing into Berkshire Hathaway Inc. (NYSE:BRK-A) is attributed to dividend investments. In 2021 alone, the company is expected to collect $3.8 billion in dividend payments.
Dividend investing will never truly fall out of favor, especially for passive income investors who have long term investment horizons. Retirees, people who are switching employment, and individuals who run into unexpected financial trouble always fall back on their dividend stock portfolio as a reliable income source.
Some of the notable dividend aristocrats from 2021 include AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO), among others discussed in detail below.
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Our Methodology
For selecting the 10 best dividend aristocrats to buy for 2022, we focused on companies that offer more than 3% dividend yield, have mostly positive analyst ratings, strong growth catalysts, and solid company fundamentals.
We have ranked the companies according to their dividend yield, mentioning the number of years of consecutive dividend growth, and the hedge fund sentiment around each stock.
Dividend Aristocrats to Buy for 2022
10. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 21
Dividend Yield: 3.28%
Number of Years of Consecutive Dividend Growth: 49
Federal Realty Investment Trust (NYSE:FRT) is a Maryland-based real estate investment trust that invests in retail centers and mixed-use neighborhoods in the Northeastern United States, the Mid-Atlantic states, California, and South Florida.
Federal Realty Investment Trust (NYSE:FRT), on November 4, posted its Q3 results. EPS in the third quarter totaled $0.64, beating estimates by $0.23. The revenue amounted to $247.02 million, up 19.10% year-over-year, exceeding estimates by $18.80 million.
Truist analyst Ki Bin Kim on December 10 raised the price target on Federal Realty Investment Trust (NYSE:FRT) to $130 from $125 and kept a Hold rating on the shares, updating his estimates to reflect the company’s Q3 earnings and assumptions for revenue growth and expenses.
With a forward dividend yield of 3.28%, Federal Realty Investment Trust (NYSE:FRT) is one of the best dividend aristocrats to buy for 2022, offering 49 years of consistent dividend growth.
The largest stakeholder of Federal Realty Investment Trust (NYSE:FRT) from the third quarter is Waterfront Capital Partners, holding 605,515 shares worth $71.4 million. Overall, 21 hedge funds tracked by Insider Monkey were bullish on Federal Realty Investment Trust (NYSE:FRT), up from 16 funds in the preceding quarter.
Federal Realty Investment Trust (NYSE:FRT) is one of the notable dividend aristocrats, in addition to AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO).
9. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 24
Dividend Yield: 3.75%
Number of Years of Consecutive Dividend Growth: 47
Consolidated Edison, Inc. (NYSE:ED) is one of the biggest investor-owned energy companies in the US, offering an extensive portfolio of energy products and services to customers via its subsidiaries in New York, Manhattan, and Westchester County. With 47 years of consecutive dividend growth, Consolidated Edison, Inc. (NYSE:ED) is one of the best dividend aristocrats to buy for 2022.
On November 4, Consolidated Edison, Inc. (NYSE:ED) announced earnings for Q3, posting an EPS of $1.41, missing estimates by $0.07. Revenue for the quarter increased 8.40% year-over-year to $3.61 billion, outperforming estimates by $152.85 million.
At the end of September, 24 hedge funds were long Consolidated Edison, Inc. (NYSE:ED), with total stakes amounting to $364.1 million. Electron Capital Partners is the largest Consolidated Edison, Inc. (NYSE:ED) stakeholder, acquiring the security in the third quarter, with 1.35 million shares worth $98.46 million.
Citi analyst Ryan Levine on December 15 raised the price target on Consolidated Edison, Inc. (NYSE:ED) to $84 from $77 and kept a Neutral rating on the shares. The analyst stated that over the next 5 to 10 years, it seems reasonable to assume that 100% of Consolidated Edison, Inc. (NYSE:ED)’s gas supply will become certified.
8. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 36
Dividend Yield: 4.01%
Number of Years of Consecutive Dividend Growth: 34
Cardinal Health, Inc. (NYSE:CAH) posted earnings for the third quarter on November 9. The company reported a loss per share of $1.29, missing estimates by $0.06. The quarterly revenue was up 12.55% from the prior year quarter, amounting to $43.97 billion, exceeding estimates by $2.14 billion.
Cardinal Health, Inc. (NYSE:CAH) is engaged in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations, offering medical products to more than 75% of the hospitals in the United States.
On December 16, Cardinal Health, Inc. (NYSE:CAH) announced a collaboration with Zipline, a privately held on-demand delivery provider, to offer autonomous aircraft delivery to pharmacies. Cardinal Health, Inc. (NYSE:CAH) will use Zipline’s service for on-demand replenishment of pharmaceutical products to retail pharmacy locations, making deliveries within 15-30 minutes. The companies plan to start with the North Carolina region, and expand to additional locations following the initial launch.
Deutsche Bank analyst George Hill on November 12 raised the price target on Cardinal Health, Inc. (NYSE:CAH) to $59 from $51 and kept a Hold rating on the shares after the “modest beat” in the third quarter.
Stocks like Cardinal Health, Inc. (NYSE:CAH) , AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO) offer investors a strong hedge against inflation and economic uncertainty.
The leading Cardinal Health, Inc. (NYSE:CAH) stakeholder in Q3 is Pzena Investment Management, holding 2.95 million shares worth $146.2 million. Overall, 36 hedge funds in the third quarter database of Insider Monkey were bullish on Cardinal Health, Inc. (NYSE:CAH), with total stakes valued at approximately $665 million.
7. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 16
Dividend Yield: 4.02%
Number of Years of Consecutive Dividend Growth: 50
Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturer of engineered components and products, offering furniture, flooring, and textiles for households, in addition to aerospace tubing, ducting, hydraulic cylinders, and fabricated assemblies for the material handling, construction, and transportation industries.
Leggett & Platt, Incorporated (NYSE:LEG), on November 1, posted Q3 earnings. EPS in the period totaled $0.71, missing estimates by $0.06. The quarterly revenue equaled $1.32 billion, increasing 9.24% year-over-year, surpassing estimates by $3.02 million.
On November 9, Leggett & Platt, Incorporated (NYSE:LEG) announced a quarterly dividend of $0.42 per share, offering a 5% increase from the prior dividend of $0.40, payable on January 14 to shareholders of record on December 15. Leggett & Platt, Incorporated (NYSE:LEG) is an underappreciated dividend stock, which has proven to be resilient amidst secular tailwinds, making it one of best dividend stocks to buy for 2022.
The largest Leggett & Platt, Incorporated (NYSE:LEG) stakeholder from Q3 2021 is Balyasny Asset Management, holding a $10.3 million position in the company. Overall, 16 hedge funds in the third quarter reported owning stakes in Leggett & Platt, Incorporated (NYSE:LEG), up from 14 funds in the preceding quarter.
6. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.14%
Number of Years of Consecutive Dividend Growth: 38
Amcor plc (NYSE:AMCR), an Australian company specializing in flexible packaging, rigid containers, and specialty cartons for the food, beverage, pharmaceutical, medical, and household sectors, is one of the most notable dividend aristocrats, offering a forward yield of 4.14% and 38 years of consecutive dividend growth.
Amcor plc (NYSE:AMCR) announced Q3 earnings on November 2. EPS in the quarter equaled $0.18, in line with analysts’ consensus estimates. The $3.42 billion revenue also outperformed estimates by $143.99 million.
Payable on December 14 to shareholders of record on November 24, Amcor plc (NYSE:AMCR) declared a $0.12 per share quarterly dividend, reflecting a 2.1% increase from the prior-quarter dividend of $0.1175.
Polaris Capital Management was the largest Amcor plc (NYSE:AMCR) stakeholder at the end of September, with 13.2 million shares worth $153.93 million. Overall, 19 hedge funds were bullish on Amcor plc (NYSE:AMCR), up from 16 funds in the prior quarter.
Amcor plc (NYSE:AMCR) is one of the notable dividend aristocrats, in addition to AbbVie Inc. (NYSE:ABBV), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and The Coca-Cola Company (NYSE:KO).
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Disclosure: None. 10 Dividend Aristocrats to Buy for 2022 is originally published on Insider Monkey.
