In this article, we discuss 10 latest dividend hikes to watch. If you want to skip our detailed analysis of these stocks, go directly to 5 Latest Dividend Hikes to Watch.
As the stock market struggles amid interest rate hikes, rising inflation, and the Ukraine war, investors are gravitating towards reliable businesses that pay shareholders in cash, diversifying portfolios with income stocks from multiple industries.
According to Sandy Villere, portfolio manager at the wealth management firm Villere & Co., “dividend-oriented companies” offer a safe investment option in the current situation. He purchased more shares of Chevron Corporation (NYSE:CVX), Newell Brands Inc. (NASDAQ:NWL), and PepsiCo, Inc. (NASDAQ:PEP) for his clients.
The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average slid 9.55%, 13.86%, and 7.88% year-to-date as of February 28, suffering record lows as big tech stocks declined. However, dividend stocks like Exxon Mobil Corporation (NYSE:XOM) and People’s United Financial, Inc. (NASDAQ:PBCT) have experienced double-digit growth over the last six months.
“Focus on Dividend Growth When Picking Stocks”
David Bahnsen, The Bahnsen Group founder & CIO, told CNBC that dividend growth should be prioritized, as increasing free cash flows are the best indicators of a stable company. Dividend payers have outperformed the overall market over the years, without compromising their returns to shareholders. Bahnsen also advised investors to keep screening for dividend stocks, specially during market turbulence, to ensure that companies have not cut their shareholder returns, and to seek out firms that have hiked their dividend payouts.
Some of the most notable latest dividend hikes were announced by Occidental Petroleum Corporation (NYSE:OXY), eBay Inc. (NASDAQ:EBAY), and The Home Depot, Inc. (NYSE:HD), among other companies that are discussed extensively below.
Our Methodology
We screened for stocks that recently announced dividend hikes of more than 15%. In addition to latest dividend increases, we have mentioned available earnings for the quarter ending December 2021, the hedge fund sentiment around the stocks, and analyst ratings to allow investors a better understanding of these companies.
Photo by lucas Favre on Unsplash
Latest Dividend Hikes to Watch
10. Acadia Realty Trust (NYSE:AKR)
Number of Hedge Fund Holders: 8
Percentage of Dividend Increase: 20%
Acadia Realty Trust (NYSE:AKR) is an American real estate investment trust that buys street retail properties across New York, Chicago, Los Angeles, San Francisco, Washington DC, and Boston. On December 1, Truist analyst Ki Bin Kim raised the price target on Acadia Realty Trust (NYSE:AKR) to $26 from $25 and kept a Buy rating on the shares.
Acadia Realty Trust (NYSE:AKR) on February 15 declared a $0.18 per share quarterly dividend, a 20% increase from its prior dividend of $0.15. The dividend will be paid on April 14, to shareholders of record on March 31. The stock delivers a yield of 3.31% as of February 28.
In an earnings press release on February 15, Acadia Realty Trust (NYSE:AKR) reported a Q4 GAAP EPS of $0.03, beating consensus estimates by $0.02. The company’s revenue of $79.36 million jumped 16.9% year-on-year, outperforming market consensus by $17.57 million.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on Acadia Realty Trust (NYSE:AKR), with combined stakes of $21.60 million. Citadel Investment Group was the leading shareholder of the company, with 570,182 shares worth $12.4 million.
In addition to Occidental Petroleum Corporation (NYSE:OXY), eBay Inc. (NASDAQ:EBAY), and The Home Depot, Inc. (NYSE:HD), Acadia Realty Trust (NYSE:AKR) is on the radar of smart investors.
9. Cohen & Steers, Inc. (NYSE:CNS)
Number of Hedge Fund Holders: 14
Percentage of Dividend Increase: 22.2%
Cohen & Steers, Inc. (NYSE:CNS) is a New York-based asset management company that deals in public equity, fixed income, and multi-asset and commodity portfolios for clients via its subsidiaries. As of Q4 2021, 14 hedge funds in the database of Insider Monkey were bullish on Cohen & Steers, Inc. (NYSE:CNS), with collective stakes amounting to $99.3 million.
Cohen & Steers, Inc. (NYSE:CNS) reported on February 24 a $0.55 per share quarterly dividend, a 22.2% increase from its earlier dividend of $0.45. The dividend is payable on March 17, to shareholders of record on March 7. Cohen & Steers, Inc. (NYSE:CNS)’s dividend yield on February 28 stood at 2.74%.
In its Q4 earnings report, published on January 26, Cohen & Steers, Inc. (NYSE:CNS) announced above consensus earnings and revenue. The EPS came in at $1.24, exceeding estimates by $0.26. Revenue over the period jumped 37% year-over-year to $159.63 million, surpassing estimates by $12.50 million.
Billionaire Mario Gabelli’s GAMCO Investors is the biggest shareholder of Cohen & Steers, Inc. (NYSE:CNS), with 403,745 shares worth $37.35 million.
8. Kinsale Capital Group, Inc. (NYSE:KNSL)
Number of Hedge Fund Holders: 17
Percentage of Dividend Increase: 18.2%
Kinsale Capital Group, Inc. (NYSE:KNSL) is a Virginia-based company that specializes in providing property and casualty insurance products, serving customers across the United States.
Kinsale Capital Group, Inc. (NYSE:KNSL) posted its fourth quarter earnings on February 17, reporting an EPS of $1.76, exceeding estimates by $0.38. The $183.60 million revenue surpassed market consensus by $16.62 million.
On February 15, Kinsale Capital Group, Inc. (NYSE:KNSL) announced a $0.13 per share quarterly dividend, an 18.2% increase from its earlier dividend of $0.11. The dividend will be paid on March 14, to shareholders of record on March 2.
Truist analyst Mark Hughes raised the price target on Kinsale Capital Group, Inc. (NYSE:KNSL) on February 16 to $255 from $230 and kept a Buy rating on the shares. The stock’s premium to the wider specialty P&C group is appropriate in light of the company’s strong returns, its potential for further ROE improvement, and its prospects for long-term growth, the analyst told investors in a research note.
Driehaus Capital is the leading shareholder of Kinsale Capital Group, Inc. (NYSE:KNSL) as of Q4 2021, with 150,756 shares worth $35.8 million. Overall, 17 hedge funds were bullish on the stock in the fourth quarter of 2021.
Here is what Baron Discovery Fund has to say about Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q4 2021 investor letter:
“Specialty insurer Kinsale Capital Group, Inc. outperformed after reporting better-than-expected quarterly results. Gross written premiums grew 36% and EPS nearly quadrupled as the underwriting margin expanded to the highest level in the company’s history. Market conditions remain favorable with rate increases well above loss cost trends, leading to better margins and favorable reserve development. We continue to own the stock because we believe Kinsale has a long runway for growth in an attractive segment of the insurance market.”
7. Reliance Steel & Aluminum Co. (NYSE:RS)
Number of Hedge Fund Holders: 18
Percentage of Dividend Increase: 27.3%
Reliance Steel & Aluminum Co. (NYSE:RS) offers metal solutions and operates metal service centers in the United States, Canada, and internationally. Elite hedge funds hold significant stakes in Reliance Steel & Aluminum Co. (NYSE:RS) as of December 2021. 18 funds were bullish on the stock in the fourth quarter, with combined stakes worth roughly $541 million.
Publishing its Q4 financial results on February 17, Reliance Steel & Aluminum Co. (NYSE:RS) reported earnings per share of $6.83, topping consensus estimates by $1.61. The company’s revenue gained approximately 87% year-on-year, reaching $3.99 billion, surpassing market estimates by $160.83 million.
The company declared a quarterly cash dividend of $0.875 per share of common stock on February 17, an increase of 27.3% from its prior dividend of $0.6875, payable on March 25, to stockholders of record as of March 11.
On February 22, KeyBanc analyst Philip Gibbs raised the price target on Reliance Steel & Aluminum Co. (NYSE:RS) to $200 from $180 and kept an Overweight rating on the shares following “impressive” Q4 results. The analyst is “encouraged” by Reliance Steel & Aluminum Co. (NYSE:RS)’s robust dividend hike, strong FCFE, under-leveraged balance sheet, and willingness to benefit from adjacent M&A opportunities.
Yacktman Asset Management held the leading stake in Reliance Steel & Aluminum Co. (NYSE:RS), with more than 1 million shares worth approximately $171 million.
6. Steven Madden, Ltd. (NASDAQ:SHOO)
Number of Hedge Fund Holders: 27
Percentage of Dividend Increase: 40%
Steven Madden, Ltd. (NASDAQ:SHOO) is a New York-based designer of branded and private label footwear for women, men, and children in the United States and internationally. Steven Madden, Ltd. (NASDAQ:SHOO) posted above consensus earnings and revenue for the quarter ending December 2021.
Hedge fund sentiment grew around Steven Madden, Ltd. (NASDAQ:SHOO) in the fourth quarter of 2021. According to the Q4 database of Insider Monkey, 27 hedge funds were bullish on Steven Madden, Ltd. (NASDAQ:SHOO), up from 23 funds in the quarter earlier. Marshall Wace LLP held the biggest stake in the company in Q4 2021, with 1.2 million shares worth $56.4 million.
Steven Madden, Ltd. (NASDAQ:SHOO) on February 24 declared a $0.21 quarterly per share dividend, a 40% increase from its prior dividend of $0.15. The dividend is payable on March 25, to shareholders of record on March 11. Steven Madden, Ltd. (NASDAQ:SHOO)’s dividend yield on February 28 was 1.96%.
Loop Capital analyst Laura Champine on January 11 upgraded Steven Madden, Ltd. (NASDAQ:SHOO) to Buy from Hold with an unchanged price target of $50. The analyst stated that she is “increasingly optimistic” near-term given positive preannouncements from fellow footwear providers Caleres and Crocs.
Steven Madden, Ltd. (NASDAQ:SHOO) recently hiked its dividend significantly, just like Occidental Petroleum Corporation (NYSE:OXY), eBay Inc. (NASDAQ:EBAY), and The Home Depot, Inc. (NYSE:HD).
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Disclosure: None. 10 Latest Dividend Hikes to Watch is originally published on Insider Monkey.
