In this article, we discuss 5 best dividend aristocrats to buy for 2022. If you want our detailed analysis of these stocks, go directly to 10 Best Dividend Aristocrats to Buy for 2022.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Dividend Yield as of January 14: 3.52%
Number of Hedge Fund Holders: 37
Number of Years of Dividend Increases: 46
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) owns retail pharmacy chains, pharmaceutical distribution networks, and pharmaceutical manufacturing companies.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced on January 6 its financial results for the fourth quarter of 2021. The company reported earnings per share of $1.68, beating estimates by $0.34. Revenue over the period totaled $33.90 billion, surpassing consensus estimates by $946.75 million.
On October 20, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) declared a quarterly dividend per share of $0.4775, in line with previous. The dividend was paid on December 10. As of January 14, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) offers a dividend yield of 3.52%, making it one of the top dividend aristocrats to purchase for 2022.
Mizuho analyst Ann Hynes raised the price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $56 from $51 and kept a Neutral rating on the shares on January 10. The analyst credited an increased outlook of COVID-19 testing and vaccine rollout for the raised price target.
Of the 37 hedge funds that were bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in the third quarter of 2021, Stephen Dubois’ Camber Capital Management is the biggest stakeholder of the company, owning 4 million shares worth $188.2 million.
Here is what Miller Howard Investments has to say about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
4. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of January 14: 3.70%
Number of Hedge Fund Holders: 36
Number of Years of Dividend Increases: 34
Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare company that manufactures medical and surgical products. The company provides a 3.70% yield as of January 14, offering 34 years of back-to-back dividend increases.
On November 4, Cardinal Health, Inc. (NYSE:CAH) declared a quarterly dividend per share of $0.4908, in line with previous, that was paid on January 15 to shareholders of record on January 3.
Cardinal Health, Inc. (NYSE:CAH) posted its third quarter results on November 9, reporting earnings per share of $1.29, missing estimates by $0.06. Revenue for the period jumped 12.55% year-over-year to $43.97 billion, surpassing estimates by $2.14 billion.
Barclays analyst Steve Valiquette lowered the price target on Cardinal Health, Inc. (NYSE:CAH) to $63 from $65 and kept an Overweight rating on the shares on January 11, since the analyst remains positive on the healthcare distribution subsector in 2022.
Among the hedge funds tracked by Insider Monkey in the third quarter, 36 funds were bullish on Cardinal Health, Inc. (NYSE:CAH), down from 40 funds in the prior quarter. Pzena Investment Management is the largest Cardinal Health, Inc. (NYSE:CAH) stakeholder, with 2.95 million shares worth $146.2 million.
3. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of January 14: 3.71%
Number of Hedge Fund Holders: 24
Number of Years of Dividend Increases: 47
Consolidated Edison, Inc. (NYSE:ED), a leading investor-owned energy company headquartered in New York, is one of the top dividend aristocrats to buy for 2022.
Offering a 3.71% yield, Consolidated Edison, Inc. (NYSE:ED) declared a $0.775 per share quarterly dividend, in line with previous. The company paid the dividend on December 15 to shareholders of record on November 17.
RBC Capital analyst Shelby Tucker raised the price target on Consolidated Edison, Inc. (NYSE:ED) to $85 from $78 but kept a Sector Perform rating on the shares on December 22. The analyst observed that Consolidated Edison, Inc. (NYSE:ED) has the potential to capitalize on meaningful investment opportunities given the state’s “ambitious” clean energy goals, but the regulatory environment in New York is challenging.
On November 4, Consolidated Edison, Inc. (NYSE:ED) posted its third quarter results, reporting earnings per share of $1.41, missing estimates by $0.07. The $3.61 billion revenue gained 8.40% from the prior-year quarter, beating estimates by $152.85 million.
24 hedge funds in the third quarter database of Insider Monkey were bullish on Consolidated Edison, Inc. (NYSE:ED), down from 30 funds in the prior quarter. Electron Capital Partners is the largest Consolidated Edison, Inc. (NYSE:ED) stakeholder, with 1.35 million shares worth $98.4 million.
2. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of January 14: 4.15%
Number of Hedge Fund Holders: 81
Number of Years of Dividend Increases: 50
AbbVie Inc. (NYSE:ABBV), an Illinois-based biopharmaceutical company, reported on January 11 that it expects $15 billion in sales revenue by 2025 for two of its signature drugs, Rinvoq and Skyrizi, meant to deal with inflammation and psoriasis.
On October 29, AbbVie Inc. (NYSE:ABBV) declared a $1.41 per share quarterly dividend, reflecting an 8.5% increase from the prior dividend of $1.30. The dividend is payable on February 15 to shareholders of record on January 14.
Piper Sandler analyst Christopher Raymond on January 14 kept an Overweight rating on AbbVie Inc. (NYSE:ABBV) with a $160 price target after the FDA approved Rinvoq with a “better than expected” atopic dermatitis label, and the analyst expects a $2.15 billion fiscal 2022 U.S. revenue estimate for Rinvoq.
In the third quarter of 2021, 81 hedge funds were long AbbVie Inc. (NYSE:ABBV), with stakes amounting to $4.14 billion. Billionaire Warren Buffett’s Berkshire Hathaway is the largest AbbVie Inc. (NYSE:ABBV) shareholder, with 14.3 million shares worth $1.55 billion.
Here is what Miller Howard Investments has to say about AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
1. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 14: 4.16%
Number of Hedge Fund Holders: 51
Number of Years of Dividend Increases: 34
Chevron Corporation (NYSE:CVX), a California-based multinational energy company operating in 180 countries, is a popular dividend aristocrat among the smart money. 51 hedge funds in the third quarter of 2021 reported owning stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX).
Publishing its Q3 results on October 29, Chevron Corporation (NYSE:CVX) posted earnings per share of $2.96, exceeding estimates by $0.77. The quarterly revenue jumped 82.86% year-over-year to $44.71 billion, beating estimates by $3.86 billion.
Chevron Corporation (NYSE:CVX) paid a $1.34 per share quarterly dividend on December 10, in line with previous, to shareholders of record on November 18.
Truist analyst Neal Dingmann raised the price target on Chevron Corporation (NYSE:CVX) to $167 from $150 and kept a Buy rating on the shares on January 14. The analyst noted that more oil-weighted exploration and production names warrant higher price targets as he increases his 2022 oil price deck by about 10% and his 2023 deck by about 8%.
Fisher Asset Management is one of the biggest Chevron Corporation (NYSE:CVX) stakeholders as of Q3 2021, with 6.25 million shares worth $634.4 million.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
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