In this article, we discuss 10 dividend stocks to buy for retirement in 2022 according to Reddit. If you want to skip our detailed analysis of dividend investing, go directly to 5 Dividend Stocks to Buy for Retirement in 2022 According to Reddit.
Dividend stocks are all the rage as inflationary pressures plague the economy and investors are grappling for strategies to hedge against the rising inflation. Dividend stocks with seemingly high yields must not be chased blindly, and it is imperative to hold a quality portfolio with companies that provide strong balance sheets, attractive valuations, and a healthy but sustainable dividend payout ratio.
Dividend investing for retirement is extremely popular among young investors active on Reddit. In this article we will mention some stocks that Redditors have been talking about in Reddit threads about smart ways to retire early.
Overall, investors prefer quality names for a retirement portfolio for stability and reliability during turbulent stock market periods, and the most common stocks preferred for a retirement portfolio by Redditors included JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and 3M Company (NYSE:MMM).
Photo by Karolina Grabowska from Pexels
Our Methodology
We scoured multiple Reddit discussion threads regarding retirement stocks to invest in, and chose quality names with attractive yields and rich dividend histories. We have ranked the list according to the dividend yield, from lowest to highest.
The hedge fund sentiment around each stock was gauged from the 867 elite funds tracked by Insider Monkey’s third quarter database.
Dividend Stocks to Buy for Retirement in 2022 According to Reddit
10. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of January 28: 2.73%
Number of Hedge Fund Holders: 101
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based multinational financial services company and investment bank that specializes in asset management, commodities, equities trading, insurance, investment management, mortgage loans, mutual funds, private equity, and risk management. JPMorgan Chase & Co. (NYSE:JPM) is considered to be one of the largest American banks.
On January 14, JPMorgan Chase & Co. (NYSE:JPM) announced its earnings for the fourth quarter of 2021. The company posted an EPS of $3.33, beating estimates by $0.30. The $29.26 billion revenue missed estimates by approximately $521 million.
JPMorgan Chase & Co. (NYSE:JPM) on December 14 declared a $1.00 per share quarterly dividend, in line with previous. The dividend is payable on January 31, to shareholders of record on January 6.
JPMorgan Chase & Co. (NYSE:JPM) announced on January 25 that it has entered into an agreement with Viva Wallet, a European cloud-based payments fintech company, and its existing shareholders to acquire an ownership stake of approximately 49%, subject to regulatory approvals. The financial terms were not disclosed yet.
UBS analyst Erika Najarian lowered the price target on JPMorgan Chase & Co. (NYSE:JPM) to $197 from $210 and kept a Buy rating on the shares on January 18. The analyst noted that the market was already expecting JPMorgan Chase & Co. (NYSE:JPM) to deliver a 2022 expense outlook that is higher than expectations. However, she still likes the stock as its near-term negatives now appear to be out.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 101 funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), with stakes totaling $5.6 billion. Fisher Asset Management is the largest stakeholder of JPMorgan Chase & Co. (NYSE:JPM), with 7.10 million shares worth $1.16 billion.
Vltava Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2021 investor letter. Here is what the fund said:
“While all the previous names could be categorized as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include Jamie Dimon and Herman Gref.
We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.
The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”
9. Citigroup Inc. (NYSE:C)
Dividend Yield as of January 28: 3.15%
Number of Hedge Fund Holders: 79
Citigroup Inc. (NYSE:C) is an American multinational financial services company and it is one of the Big Four banking institutions of the United States. The financial services provided by Citigroup Inc. (NYSE:C) include asset management, banking, commodities, insurance, risk management, and wealth management, among others.
Citigroup Inc. (NYSE:C) reported its Q4 results on January 14. The company posted GAAP earnings per share of $1.46, beating estimates by $0.02. Revenue for the quarter came in at $17.02 billion, exceeding estimates by approximately $240 million.
On January 12, Citigroup Inc. (NYSE:C) declared a $0.51 per share quarterly dividend, in line with previous. The dividend will be paid on February 25, to shareholders of record on February 7. Citigroup Inc. (NYSE:C) offers a dividend yield of 3.15% as of January 28.
Oppenheimer analyst Chris Kotowski lowered the price target on Citigroup Inc. (NYSE:C) to $114 from $120 and kept an Outperform rating on the shares on January 18, after its quarterly results. The analyst notes that there will be multiple divestitures and a major re-cutting of the financials at Citigroup Inc. (NYSE:C).
Harris Associates is the biggest Citigroup Inc. (NYSE:C) stakeholder, owning more than 28 million shares worth $1.97 billion. Overall, 79 hedge funds in the Q3 database of Insider Monkey reported owning stakes in Citigroup Inc. (NYSE:C), totaling $5.5 billion.
Here is what Artisan Value Fund has to say about Citigroup Inc. (NYSE:C) in their Q4 2020 investor letter:
“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
8. 3M Company (NYSE:MMM)
Dividend Yield as of January 28: 3.63%
Number of Hedge Fund Holders: 46
3M Company (NYSE:MMM) is a multinational conglomerate headquartered in Minnesota, with business groups that focus on safety and industrial, transportation, electronics, health care, and consumer products.
On January 25, 3M Company (NYSE:MMM) posted its Q4 financial results. The company reported earnings per share of $2.31, beating estimates by $0.29. 3M Company (NYSE:MMM)’s revenue for the period totaled $8.61 billion, outperforming estimates by $31.63 million.
Argus analyst John Eade on January 26 lowered the price target on 3M Company (NYSE:MMM) to $190 from $225 but kept a Buy rating on the shares. 3M Company (NYSE:MMM)’s earnings in recent quarters have been “inconsistent”, but its outlook is “improving” following a restructuring, the analyst tells investors in a research note.
3M Company (NYSE:MMM) on November 9 declared a quarterly dividend of $1.48 per share, in line with previous. The dividend was paid on December 12, to shareholders of record on November 19. 3M Company (NYSE:MMM) offers a dividend yield of 3.63% as of January 28, and the company has a rich dividend history, making it one of the best dividend stocks to buy for retirement in 2022 according to Reddit.
According to Insider Monkey’s Q3 database, 46 hedge funds were bullish on 3M Company (NYSE:MMM), with stakes equaling $1.62 billion. AQR Capital Management is one of the leading company stakeholders, with a position worth roughly $231 million.
7. Realty Income Corporation (NYSE:O)
Dividend Yield as of January 28: 4.26%
Number of Hedge Fund Holders: 22
Realty Income Corporation (NYSE:O) was a popular dividend choice for retirement heading into 2022 according to Redditors. Realty Income Corporation (NYSE:O) is a California-based real estate investment trust that leases out commercial properties in the United States, Spain, and the United Kingdom, offering a dividend yield of 4.26% as of January 28.
On January 12, Realty Income Corporation (NYSE:O) declared a $0.2465 per share monthly dividend, in line with previous. The dividend will be distributed on February 15, to shareholders of record on January 31.
Mizuho analyst Vikram Malhotra lowered the price target on Realty Income Corporation (NYSE:O) to $76 from $82 and kept a Buy rating on the shares on January 20. The analyst stated that “lofty” valuations and “resilient, but modestly decelerating” fundamentals imply multiple contraction risk in the REIT sector. The analyst emphasizes stock selectivity with a focus on pricing power and duration.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 22 funds were long Realty Income Corporation (NYSE:O), with stakes amounting to $275 million. Millennium Management is the largest Realty Income Corporation (NYSE:O) stakeholder, with 934,068 shares worth $60.5 million.
In addition to JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and 3M Company (NYSE:MMM), Realty Income Corporation (NYSE:O) is a notable stock to diversity an income portfolio according to Redditors.
6. British American Tobacco p.l.c. (NYSE:BTI)
Dividend Yield as of January 28: 4.90%
Number of Hedge Fund Holders: 9
British American Tobacco p.l.c. (NYSE:BTI) is a British multinational corporation that manufactures cigarettes, cigars, and nicotine pouches, with operations in approximately 180 countries. UBS analyst Nik Oliver lowered the price target on British American Tobacco p.l.c. (NYSE:BTI) to £3,600 from £3,700 and kept a Buy rating on the shares on January 20.
On July 28, British American Tobacco p.l.c. (NYSE:BTI) declared £0.539 per share quarterly dividend, in line with previous. The dividend was paid on November 16, to shareholders of record on October 1. British American Tobacco p.l.c. (NYSE:BTI)’s dividend yield as of January 28 came in at 4.90%.
Among the hedge funds tracked by Insider Monkey, Orbis Investment Management is the largest British American Tobacco p.l.c. (NYSE:BTI) stakeholder as of the third quarter of 2021, owning over 16 million shares worth $573.2 million. Overall, 9 hedge funds were bullish on British American Tobacco p.l.c. (NYSE:BTI), with stakes totaling $724.3 million.
British American Tobacco p.l.c. (NYSE:BTI) is a notable dividend stock to hold in a retirement portfolio heading into 2022 according to Reddit, in addition to JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and 3M Company (NYSE:MMM).
Click to continue reading and see 5 Dividend Stocks to Buy for Retirement in 2022 According to Reddit.
Suggested articles:
- Top Dividend Stock Picks of Billionaire George Soros
- 10 Notable Earnings Reports to Watch
- 9 Stocks That Credit Markets Expert Steve Ketchum Likes
Disclosure: 10 Dividend Stocks to Buy for Retirement in 2022 According to Reddit is originally published on Insider Monkey.
