In this article, we discuss 5 best blue chip dividend stocks to invest in. If you want to read our detailed analysis of dividend stocks and their performance, go directly to read 10 Best Blue Chip Dividend Stocks to Invest In.
5. Hormel Foods Corporation (NYSE:HRL)
Dividend Yield as of August 26: 2.02%
Hormel Foods Corporation (NYSE:HRL) is an American food processing company that specializes in packaging and selling various food products. The company’s Q2 results came in strong as its revenue of $3.1 billion showed an 18.8% year-over-year growth. Its cash flow from operations also grew by 24% to $193 million. The company ended the quarter with $861.7 million available in cash and cash equivalents.
Hormel Foods Corporation (NYSE:HRL) currently pays a quarterly dividend of $0.26 per share, raising it by 6% in November 2021. Through this increase, the company extended its dividend growth streak to 56 years. As of August 26, the stock’s dividend yield stood at 2.02%.
In August, Stephens presented a positive outlook of Hormel Foods Corporation (NYSE:HRL), highlighting the underlying growth of its business. The firm raised its price target on the stock to $55 while maintaining an Equal Weight rating on the shares.
At the end of Q2 2022, 27 hedge funds in Insider Monkey’s database owned stakes in Hormel Foods Corporation (NYSE:HRL), compared with 30 a quarter earlier. These stakes are valued at over $434.5 million. With nearly 3 million shares, Renaissance Technologies was the company’s leading stakeholder in Q2.
4. The Hanover Insurance Group, Inc. (NYSE:THG)
Dividend Yield as of August 26: 2.24%
The Hanover Insurance Group, Inc. (NYSE:THG) provides auto, home, and business insurance services to its consumers. Morgan Stanley initiated its coverage on the stock in June with an Equal Weight rating and a $155 price target. The firm appreciated the company’s strong balance sheet in the current environment.
At the end of June, The Hanover Insurance Group, Inc. (NYSE:THG) held over $9.6 billion in cash and invested assets and it has nearly $146 million available in cash and cash equivalents. The company’s revenue for the second quarter jumped by 9.9% year-over-year to $1.33 billion. The Hanover Insurance Group, Inc. (NYSE:THG) has been raising its dividends for 17 consecutive years. It pays a quarterly dividend of $0.75 per share, with a dividend yield of 2.24%, as of August 26.
As per Insider Monkey’s Q2 2022 database, 15 hedge funds owned stakes in The Hanover Insurance Group, Inc. (NYSE:THG), valued at nearly $64 million. In the previous quarter, 21 hedge funds owned stakes in the insurance company, worth over $97.4 million.
3. Sonoco Products Company (NYSE:SON)
Dividend Yield as of August 26: 2.98%
Sonoco Products Company (NYSE:SON) is a South Carolina-based international provider of consumer packaging and industrial products. The company was a popular stock among hedge funds in Q2 2022, as 22 funds were bullish on the company, compared with 17 in the previous quarter, according to Insider Monkey’s data. The total value of these stakes is nearly $187 million.
In Q2 2022, Sonoco Products Company (NYSE:SON) reported revenue of $1.91 billion, showcasing a 38.4% year-over-year growth. For the first half of 2022, the company’s cash flow from operations came in at $184.5 million, up from $102 million during the same period last year. Its free cash flow also jumped to $40.3 million, from $9.4 million generated in the prior-year period. The company’s dividend payments at the end of June amounted to $91.5 million.
Sonoco Products Company (NYSE:SON) holds one of the longest records of dividend payments in the packaging industry and has been raising its dividends for 38 years straight. It pays a quarterly dividend of $0.49 per share and has a yield of 2.98%, as of August 26.
In July, Citigroup initiated its coverage of Sonoco Products Company (NYSE:SON) with a Buy rating and a $66 price target, as the company increased its exposure to more defensive consumer markets.
2. State Street Corporation (NYSE:STT)
Dividend Yield as of August 26: 3.52%
State Street Corporation (NYSE:STT) is one of the oldest financial services companies, headquartered in Boston. The company has been making dividend payments for the past 24 years while maintaining a 12-year streak of dividend growth. It currently pays a quarterly dividend of $0.63 per share with a dividend yield of 3.52%, as of August 26.
In Q2 2022, State Street Corporation (NYSE:STT) reported a 25% year-over-year growth in its net interest income because of growth in loan balances. At the end of the quarter, the company’s assets under management stood at over $3.5 trillion, with continued inflows in cash. In addition to this, it paid $210 million in dividends to shareholders during the quarter.
Appreciating the company’s relatively sound fundamentals evidenced in Q2, Deutsche Bank raised its price target on State Street Corporation (NYSE:STT) to $74 while maintaining a Hold rating on the shares.
The number of hedge funds tracked by Insider Monkey owning stakes in State Street Corporation (NYSE:STT) grew to 41 in Q2 2022, from 29 in the previous quarter. The collective value of these stakes is over $667.6 million. With over 6 million shares, Harris Associates was the largest stakeholder of the Boston-based company in Q2.
1. Lincoln National Corporation (NYSE:LNC)
Dividend Yield as of August 26: 3.63%
Lincoln National Corporation (NYSE:LNC) is an American insurance company that offers multiple insurance and investment management businesses through its subsidiary companies. The company remained a popular buy among elite funds in Q2 2022, with 34 hedge fund positions, up from 25 in the previous quarter. The stakes owned by these funds have a total value of $451.4 million.
In July, JPMorgan set a $77 price target on Lincoln National Corporation (NYSE:LNC) with an Overweight rating on the shares, highlighting the insurance group’s advantage to declining Covid cases and higher rates.
Lincoln National Corporation (NYSE:LNC) pays a quarterly dividend of $0.45 per share, with a dividend yield of $3.63%. The company maintains an 11-year track record of consistent dividend growth.
You can also take a look at 10 Large-Cap Dividend Stocks with Over 5% Yield and 10 Best Blue Chip Dividend Stocks to Buy in August
