In this article, we discuss 10 stocks with over 30 years of dividend hikes. If you want to skip our detailed analysis of dividend investing and these stocks, go directly to 5 Stocks With Over 30 Years of Dividend Hikes.
According to AFH Wealth Management, in the 10-year period ending 2016, the FTSE 100 index had returns valued at under 15% excluding dividends and about 67% including dividends, which stresses the significance of dividend stocks. This does not just suggest that dividend stocks can potentially outperform the market, but it also means that these stocks can become reliable passive income avenues for investors. AFH Wealth Management also observed that stocks with a yield of more than 4% can allow income investors to generate a sizable amount from their portfolios.
The most sought-after dividend stocks with over 30 years of dividend hikes include The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), Johnson & Johnson (NYSE:JNJ), and Chevron Corporation (NYSE:CVX). These stocks are immensely popular among hedge funds as well.
Our Methodology
Let’s dive into the 10 stocks with over 30 years of dividend hikes. For each stock we have mentioned its yield, along with the number of hedge funds holding a stake in it, ranking them based on their dividend yields.
Why should we pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Stocks With Over 30 Years of Dividend Hikes
10. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 16
Dividend Yield: 3.89%
Amcor plc (NYSE:AMCR) is an Australian-American packaging company, producing flexible packaging, rigid containers, specialty cartons, food and beverages, pharmaceutical, medical-device, home and personal-care, and other products.
Polaris Capital Management is the leading stakeholder in Amcor plc (NYSE:AMC), with 13.2 million shares worth $152.2 million. Overall, 16 hedge funds in Insider Monkey’s database reported owning stakes in Amcor plc (NYSE:AMCR) at the end of June.
9. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 41
Dividend Yield: 3.93%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a holding company that owns and manages the retail pharmacy chains, namely Walgreens and Boots, including other pharmaceutical manufacturing companies. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the top stocks with over 30 years of dividend hikes, with a yield of 3.93%.
On October 15, Truist analyst David MacDonald kept a Hold rating on the shares, and raised the price target from $52 to $52.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Walgreens Boots Alliance, Inc. (NASDAQ: WBA) worth almost $1.1 billion.
On October 14, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) issued its quarterly earnings report, declaring its EPS at $1.17, beating estimates by $0.15, while the company’s revenue was reported to be $34.26 billion, exceeding estimates by $869.13 million.
Here is what Ariel Investments has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in their Q4 2020 investor letter:
“Walgreens Boots Alliance, Inc. has been essentially flat during our brief holding period. We have successfully owned Walgreens in the past. Recently, its share price has been pressured on concerns that Amazon may enter the prescription drug distribution business. As recently as 2015, Walgreens was a market favorite, trading at more than 20 times forward earnings. The company was expected to grow in good times and bad. Walgreens’ new clinics, designed to treat day-to-day healthcare needs such as flu shots and children’s ear infections, could be part of the solution for expensive emergency room overcrowding. Finally, trends toward generic pharmaceutics that began in 2015 are still considered a positive, as pharmacies have more influence in directing customers toward particular generics than with a patient seeking a patented drug prescribed by a doctor. Walgreens will face new competition going forward, but with its current depressed valuation, we believe the threats are more than discounted at an attractive stock price.”
8. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 40
Dividend Yield: 3.98%
Cardinal Health, Inc. (NYSE:CAH) is a multinational healthcare services company that offers pharmaceutical products and medical services to pharmacies and hospitals across the United States. Cardinal Health, Inc. (NYSE:CAH) provides its products to around 75% of the American hospitals.
As of the end of the second quarter of 2021, 40 hedge funds out of the 873 tracked by Insider Monkey held stakes in Cardinal Health, Inc. (NYSE: CAH) worth roughly $897 million, up from 39 hedge funds in the previous quarter with a total stake value of approximately $967 million.
7. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 30
Dividend Yield: 4.06%
Consolidated Edison, Inc. (NYSE:ED) operates one of the world’s largest energy delivery systems. The electric, gas, and steam service at Consolidated Edison, Inc. (NYSE:ED) offers energy to around 10 million people residing in New York City and Westchester County. It is one of the top stocks on our list of stocks with over 30 years of dividend hikes, with a yield of 4.06%.
At the end of June, 30 hedge funds in Insider Monkey’s database were bullish on Consolidated Edison, Inc. (NYSE:ED), up from 22 in the previous quarter.
6. Northwest Natural Holding Company (NYSE:NWN)
Number of Hedge Fund Holders: 11
Dividend Yield: 4.10%
Northwest Natural Holding Company (NYSE:NWN) is a natural gas distributor to the residential, commercial, and industrial customers in Western Oregon and Southwest Washington in the Pacific Northwest.
Ken Griffin’s Citadel Investment Group is the leading stakeholder in Northwest Natural Holding Company (NYSE:NWN), with 102,471 shares worth roughly $5.38 million. Overall, 11 hedge funds in Insider Monkey’s database were long Northwest Natural Holding Company (NYSE:NWN) at the end of June, up from 10 in Q1.
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Disclosure: None. Stocks With Over 30 Years of Dividend Hikes is originally published on Insider Monkey.
