In this article, we discuss the 5 best dividend contenders to buy for 2022. If you want our detailed analysis of these stocks, go directly to 10 Best Dividend Contenders to Buy for 2022.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Years of Dividend Increases: 10
Dividend Yield as of January 21: 3.41%
Number of Hedge Fund Holders: 52
Amgen Inc. (NASDAQ:AMGN) is a multinational biopharmaceutical company, headquartered in California. Amgen Inc. (NASDAQ:AMGN) is a market leader in biotechnology, with a particular interest in molecular biology and biochemistry. The company leverages DNA technology to create medicines for chemotherapy and autoimmune diseases.
On December 3, Amgen (NASDAQ:AMGN) declared a $1.94 per share quarterly dividend, which is a 10.2% increase from the prior dividend of $1.76. The dividend is payable on March 8, to shareholders of record on February 15. Offering a dividend yield of 3.41% as of January 21, Amgen Inc. (NASDAQ:AMGN) is one of the top dividend contenders to buy for 2022.
BofA analyst Geoff Meacham on January 5 downgraded Amgen Inc. (NASDAQ:AMGN) to Neutral from Buy with a price target of $255, down from $285.
In the third quarter of 2021, 52 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN), with stakes totaling $1.4 billion. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of Amgen Inc. (NASDAQ:AMGN) as of Q3 2021, with 1.85 million shares worth approximately $394 million.
Here is what ClearBridge Sustainability Leaders Strategy has to say about Amgen, Inc. (NASDAQ:AMGN) in its Q3 2021 investor letter:
“In health care, Amgen, a biotechnology company, has endured several pipeline setbacks recently, including a slow transition of its Lumakras treatment into first-line lung cancer, a slower than expected development of its treatment for myeloma as well as the company’s asthma treatment Tezepelumab missing its primary endpoint in a Phase III study. We remain positive on the stock, with Amgen’s investments in biosimilars and its pipeline part of our long-term thesis.”
4. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Years of Dividend Increases: 12
Dividend Yield as of January 21: 3.47%
Number of Hedge Fund Holders: 36
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the leading American investor-owned electric utility companies, which supplies electricity to approximately 5 million customers, across 11 states. In addition to owning the largest electricity transmission system in the US, American Electric Power Company, Inc. (NASDAQ:AEP) is also one of the leading generators of electricity in the country.
American Electric Power Company, Inc. (NASDAQ:AEP) on January 18 declared a $0.78 per share quarterly dividend, in line with previous. The dividend is payable on March 10, to shareholders of record on February 10.
On October 27, Mizuho analyst Paul Fremont lowered the price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $86 from $91 and kept a Buy rating on the shares. This was after American Electric Power Company, Inc. (NASDAQ:AEP) announced that it sold its Kentucky Power subsidiary for $1.625 billion. The analyst reduced the price target to reflect market multiples.
A total of 36 hedge funds monitored by Insider Monkey were long American Electric Power Company, Inc. (NASDAQ:AEP), up from 29 funds in the preceding quarter. Renaissance Technologies is the biggest stakeholder of the company, owning 2.33 million shares worth $189.75 million.
3. Avista Corporation (NYSE:AVA)
Number of Years of Dividend Increases: 19
Dividend Yield as of January 21: 3.86%
Number of Hedge Fund Holders: 14
Avista Corporation (NYSE:AVA) is an energy company from Washington that supplies electricity and natural gas for residential, commercial, and industrial applications.
On November 5, Avista Corporation (NYSE:AVA) declared a $0.4225 per share quarterly dividend, in line with previous. The dividend was paid on December 15, to shareholders of record on November 19. As of January 21, Avista Corporation (NYSE:AVA) delivers a 3.86% dividend yield, with a history of 19 consistent years of dividend growth.
Avista Corporation (NYSE:AVA) and Chelan County Public Utility District on December 30 announced that they have finalized a 20-year contract for renewable hydropower. This contract will increase Avista Corporation (NYSE:AVA)’s carbon-free resources and accelerate its 2030 renewable energy goals.
14 hedge funds monitored by Insider Monkey in Q3 2021 were bullish on Avista Corporation (NYSE:AVA), with stakes totaling $42.1 million, as compared to 17 funds in the preceding quarter, holding stakes worth $44.7 million in Avista Corporation (NYSE:AVA).
Paul Tudor Jones’ Tudor Investment Corporation is the biggest stakeholder of Avista Corporation (NYSE:AVA), and the hedge fund owns 162,179 shares of the company, valued at $6.34 million.
2. Edison International (NYSE:EIX)
Number of Years of Dividend Increases: 18
Dividend Yield as of January 21: 4.45%
Number of Hedge Fund Holders: 25
Edison International (NYSE:EIX) is a California-based public utility company that supplies electricity and energy solutions to millions of customers. Edison International (NYSE:EIX) offers a dividend yield of 4.45% as of January 21, making it one of the best dividend contenders to buy for 2022.
On December 10, Edison International (NYSE:EIX) declared a $0.70 per share quarterly dividend, which is a 5.7% increase from the prior dividend of $0.66. The dividend was payable on January 31, to shareholders of record on December 31.
Argus analyst Gary Hovis raised the price target on Edison International (NYSE:EIX) to $73 from $68 and kept a Buy rating on the shares on December 29. The analyst is positive on Edison International (NYSE:EIX)’s forward earnings visibility, favorable regulatory environment, and improving financial strength.
In the third quarter of 2021, 25 hedge funds were long Edison International (NYSE:EIX), up from 18 funds in the preceding quarter. Pzena Investment Management is the biggest Edison International (NYSE:EIX) stakeholder, with an $814.6 million position in the company.
1. Algonquin Power & Utilities Corp. (NYSE:AQN)
Number of Years of Dividend Increases: 11
Dividend Yield as of January 21: 4.87%
Number of Hedge Fund Holders: 15
Algonquin Power & Utilities Corp. (NYSE:AQN) is a renewable energy company from Canada, focused on electricity generation, transmission, natural gas, and water supply. Algonquin Power & Utilities Corp. (NYSE:AQN) made it to our list of the best dividend contenders to buy for 2022, delivering a dividend yield of 4.87%.
Algonquin Power & Utilities Corp. (NYSE:AQN) on November 11 declared a $0.1706 per share quarterly dividend, in line with previous, which was paid on January 14. The company has paid increasing dividends for 11 years consecutively.
BMO Capital analyst Ben Pham upgraded Algonquin Power & Utilities Corp. (NYSE:AQN) on November 10 to Outperform from Market Perform with an unchanged price target of $17. The analyst upgraded the stock following Algonquin Power & Utilities Corp. (NYSE:AQN)’s acquisition of Kentucky Power and associated $650 million equity offering. The analyst sees “attractive” 24% potential total return in the shares.
A total of 15 hedge funds were long Algonquin Power & Utilities Corp. (NYSE:AQN) in the third quarter of 2021, down from 24 funds in the preceding quarter. Citadel Investment Group is the biggest Algonquin Power & Utilities Corp. (NYSE:AQN) stakeholder as of Q3 2021, with 1.10 million shares worth $53.5 million.
You can also take a look at 11 Best Blue Chip Stocks To Buy Now and Charlie Munger’s Daily Journal Portfolio: Top Stock Picks.
