In this article, we discuss 10 income stocks with over 10 years of dividend increases. If you want to skip our detailed analysis of these stocks, go directly to 5 Income Stocks with Over 10 Years of Dividend Increases.
Owing to strong earnings in 2022, companies are set to spend even more on distribution of funds to shareholders and share buybacks. Many dividend paying companies have rebounded from the effects of the COVID-19 pandemic on sales volume and consequent earnings, which enables them to give back to their shareholders.
At the end of the third quarter of 2021, the S&P 500 constituents reported holding $3.78 trillion in cash and cash equivalents, as compared to $3.41 trillion in 2020 and $2.19 trillion in 2019. This influx of cash will help these companies regain shareholder confidence by reimbursing them for the slashed dividends during 2020 and the first half of 2021.
Jeremy Siegel, a finance professor from the Wharton School, told CNBC in an interview on January 12 that he expects investors to gravitate towards dividend stocks in 2022, since they will be looking to protect themselves from the rising inflationary pressures. According to Siegel, the FED has underestimated inflation levels, and the blue chip tech stocks will not be the focus for investors heading into 2022, and dividend-paying stocks will be of primary interest to traders.
The most notable dividend stocks with rich dividend histories include AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO).
Photo by Dan Dennis on Unsplash
Our Methodology
We selected stocks that increased their dividends consistently for over 10 years. We have ranked the companies according to their dividend yields. The hedge fund sentiment is also mentioned with each security, in addition to the years of dividend growth.
Income Stocks with Over 10 Years of Dividend Increases
10. Air Products and Chemicals, Inc. (NYSE:APD)
Dividend Yield as of January 19: 2.10%
Number of Hedge Fund Holders: 32
Number of Years of Dividend Increases: 39
Air Products and Chemicals, Inc. (NYSE:APD) is an American company that sells gases and chemicals for industrial applications. The company is headquartered in Pennsylvania, and has been distributing increasing dividends for 39 consecutive years, offering a yield of 2.10%.
On November 18, Air Products and Chemicals, Inc. (NYSE:APD) declared a $1.50 per share quarterly dividend, in line with previous. The quarterly dividend was increased 12% by the company in FY2021. The dividend is payable on February 14, to shareholders of record on January 3.
Vertical Research analyst Kevin McCarthy upgraded Air Products and Chemicals, Inc. (NYSE:APD) to Buy from Hold with a $335 price target on January 4.
Among the hedge funds monitored by Insider Monkey in Q3 2021, Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of Air Products and Chemicals, Inc. (NYSE:APD), with 351,940 shares worth $90.1 million. Overall, 32 hedge funds were bullish on Air Products and Chemicals, Inc. (NYSE:APD) in the third quarter, down from 40 funds in the preceding quarter.
Just like AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Air Products and Chemicals, Inc. (NYSE:APD) has a notable dividend history.
9. The Allstate Corporation (NYSE:ALL)
Dividend Yield as of January 19: 2.63%
Number of Hedge Fund Holders: 27
Number of Years of Dividend Increases: 11
The Allstate Corporation (NYSE:ALL) is an American insurance company that operates in the United States and Canada. The company specializes in auto insurance, homeowners insurance, comprehensive personal liability, estate planning products, business succession planning products, family protection insurance, asset management and accumulation, life insurance, and retirement.
On November 19, The Allstate Corporation (NYSE:ALL) declared a quarterly per share dividend of $0.80, in line with previous. The dividend was paid on January 3, for shareholders of record on November 30. The Allstate Corporation (NYSE:ALL) has offered 11 years of dividend increases to its shareholders, delivering a dividend payout ratio of 24.10%.
The Allstate Corporation (NYSE:ALL) announced on November 29 that it is selling the majority of its Illinois headquarters to Dermody Properties for $232 million, since most employees are now working remotely. This will lower The Allstate Corporation (NYSE:ALL)’s real estate expenses and allow the company to accelerate its multi-year Transformative Growth initiative “to increase property-liability market share by building a low cost insurer with broad distribution”. The company will maintain its physical presence via its Chicago office space.
Barclays analyst Tracy Benguigui on January 6 lowered the firm’s price target on The Allstate Corporation (NYSE:ALL) to $119 from $123 and kept an Equal Weight rating on the shares. The analyst says the property and casualty pricing cycle is past its peak with reserves and inflation in focus.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Cliff Asness’ AQR Capital Management is the largest stakeholder of The Allstate Corporation (NYSE:ALL), with roughly 3 million shares worth $377 million. Overall, 27 hedge funds were bullish on the stock in the third quarter.
Appleseed Fund mentioned The Allstate Corporation (NYSE:ALL) in its Q2 2021 investor letter. Here is what they had to say:
“The Allstate Corporation (NYSE:ALL) is the second-largest personal insurance company in the United States with a 9.3% share in auto insurance (4th largest) and an 8.0% share in homeowner’s insurance (2nd largest). The company sells products primarily through its captive agents though this business line is shrinking as the company’s direct (Esurance.com and, more recently, Allstate.com) and independent agent businesses grow more quickly. The personal insurance industry is relatively consolidated, and competition has historically been rational, allowing The Allstate Corporation (NYSE:ALL) to earn attractive mid-teen returns on equity in this business over the past decade. Allstate also recently announced plans to divest their low-growth, low-return life and annuity businesses. This will free up capital to reinvest into the more attractive personal insurance segment and result in improvements on consolidated returns on equity of approximately 2.5%.
8. Cambridge Bancorp (NASDAQ:CATC)
Dividend Yield as of January 19: 2.70%
Number of Hedge Fund Holders: 6
Number of Years of Dividend Increases: 18
Cambridge Bancorp (NASDAQ:CATC) made it to our list of income stocks with over 10 years of dividend increases, since the company has been consistently growing dividends for 18 years. Cambridge Bancorp (NASDAQ:CATC) is a federally registered American bank holding company that operates via its subsidiary, Cambridge Trust Company, offering private banking and wealth management services to its customers.
Cambridge Bancorp (NASDAQ:CATC) declared on October 19 a quarterly per share dividend of $0.61, in line with previous, which was paid on November 18 to shareholders of record on November 4. Cambridge Bancorp (NASDAQ:CATC) also announced its Q3 earnings on October 19, beating market consensus estimates on EPS and revenue.
Keefe Bruyette analyst Christopher O’Connell took over coverage of Cambridge Bancorp (NASDAQ:CATC) with an Outperform rating and a $110 price target on January 9.
Polaris Capital Management is the largest Cambridge Bancorp (NASDAQ:CATC) stakeholder as of the third quarter of 2021, with a $16.3 million position in the company. Overall, 6 hedge funds were long Cambridge Bancorp (NASDAQ:CATC) in Q3, with stakes totaling $21.4 million.
In addition to AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Cambridge Bancorp (NASDAQ:CATC) is a notable dividend stock.
7. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of January 19: 2.84%
Number of Hedge Fund Holders: 50
Number of Years of Dividend Increases: Over 10
Broadcom Inc. (NASDAQ:AVGO) is an American manufacturer of semiconductors and infrastructure software. The company serves the software, broadband, wireless, storage, and industrial markets with its products. As of January 19, Broadcom Inc. (NASDAQ:AVGO) offers a dividend yield of 2.84%, and the company has been increasing dividends for 10 years.
On December 9, Broadcom Inc. (NASDAQ:AVGO) announced a quarterly dividend per share of $4.10, which reflects a 13.9% increase from the prior dividend of $3.60. The dividend was paid on December 31, to shareholders of record on December 22. The company also authorized a share repurchase program of $10 billion in common stock, effective until December 31, 2022.
Piper Sandler analyst Harsh Kumar on January 3 raised the price target on Broadcom Inc. (NASDAQ:AVGO) to $750 from $680 and kept an Overweight rating on the shares.
According to Insider Monkey’s Q3 data, 50 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), up from 47 funds in the preceding quarter. William Von Mueffling’s Cantillon Capital Management is one of the leading stakeholders of Broadcom Inc. (NASDAQ:AVGO), holding over 1 million shares worth $525 million.
Here is what Miller Howard Investments has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q3 2021 investor letter:
“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold Broadcom (AVGO) of which have strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”
6. Fulton Financial Corporation (NASDAQ:FULT)
Dividend Yield as of January 19: 2.98%
Number of Hedge Fund Holders: 14
Number of Years of Dividend Increases: 28
Fulton Financial Corporation (NASDAQ:FULT) is a regional American financial services company, headquartered in Lancaster, Pennsylvania. The corporation specializes in branch banking, consumer lending, commercial banking, investment advisory services, and mortgage.
On November 19, Fulton Financial Corporation (NASDAQ:FULT) declared a special dividend of $0.08 per share, which was paid on December 15. Fulton Financial Corporation (NASDAQ:FULT), on December 21, announced a quarterly per share dividend of $0.14, in line with previous. The dividend was paid on January 14, to shareholders of record on December 31.
Fulton Financial Corporation (NASDAQ:FULT) reported its Q4 earnings on January 18, posting an EPS of $0.37, in line with market consensus estimates. Revenue for the fourth quarter came in at $229.49 million, outperforming estimates by $4.36 million.
Billion Ken Griffin’s Citadel Investment Group is one of the leading Fulton Financial Corporation (NASDAQ:FULT) stakeholders. Ken Griffin’s fund increased its position in the company by 419% in Q3 2021, holding 614,922 shares worth $9.3 million. Overall, 14 hedge funds in the third quarter database were bullish on Fulton Financial Corporation (NASDAQ:FULT).
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Disclosure: None. 10 Income Stocks with Over 10 Years of Dividend Increases is originally published on Insider Monkey.
