In this article, we discuss 5 best dividend stocks to buy in 2022. If you want to read our detailed analysis of dividend investment and performance of dividend stocks, go directly to read 10 Best Dividend Stocks to Buy in 2022.
5. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield as of July 21: 3.15%
Amgen Inc. (NASDAQ:AMGN) is a California-based multinational biopharmaceutical company that manufactures medicines for patients with serious diseases.
In Q1 2022, Amgen Inc. (NASDAQ:AMGN) generated $2 billion in free cash flow, compared with $1.9 billion during the same period last year. Its operating cash flow came in at $2.2 billion at the end of the quarter, up from $2.1 billion in the prior-year quarter. The company paid $1.1 billion in dividends to shareholders in Q1, representing a 10% increase from 2021. Amgen Inc. (NASDAQ:AMGN) has been raising its payout consecutively for the last ten years, with a five-year CAGR of 11.97%. The company currently pays a quarterly dividend of $1.94 per share, with a yield of 3.15%, as of the close of July 21.
In June, Oppenheimer raised its price target on Amgen Inc. (NASDAQ:AMGN) to $290 with an Outperform rating on the shares, highlighting the company’s strong financials.
The number of hedge funds tracked by Insider Monkey owning stakes in Amgen Inc. (NASDAQ:AMGN) grew to 56 in Q1 2022, from 52 in the previous quarter. The collective value of these stakes stood at over $1.88 billion. Two Sigma Advisors was the company’s largest stakeholder in Q1, owning over 1.7 million shares.
ClearBridge Investments mentioned Amgen Inc. (NASDAQ:AMGN) in its Q3 2021 investor letter. Here is what the firm has to say:
“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. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of July 21: 3.20%
Broadcom Inc. (NASDAQ:AVGO) manufactures products for wireless and broadband communication industries. The technology company also specializes in semiconductors and infrastructure software solutions.
Broadcom Inc. (NASDAQ:AVGO) presented solid results in the fiscal Q2 of 2022 and expects its financials to remain strong for the coming quarters as well. The company reported $4.2 billion in free cash flow, up from $3.4 billion during the same period last year. Its cash flow from operations stood at $4.24 billion, compared with $3.5 billion in the prior-year period. Moreover, Broadcom Inc. (NASDAQ:AVGO) returned $1.7 billion worth of cash dividends to shareholders during the quarter. The company maintains an 11-year track record of dividend growth. In fiscal Q2, it paid out 50% of its free cash flow as dividends, signaling further dividend growth. Its quarterly payout stands at $4.10 per share, with a yield of 3.20%, as of July 21.
Highlighting the supply chain issues, Deutsche Bank lowered its price target on Broadcom Inc. (NASDAQ:AVGO) in July to $635 but kept a Buy rating on the shares.
Insider Monkey’s Q1 2022 database reported increased hedge fund interest for Broadcom Inc. (NASDAQ:AVGO), with 71 hedge funds holding stakes in the company, up from 62 in the previous quarter. These stakes are collectively valued at over $5.4 billion.
ClearBridge Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here is what the firm has to say:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
3. Darden Restaurants, Inc. (NYSE:DRI)
Dividend Yield as of July 21: 3.97%
Darden Restaurants, Inc. (NYSE:DRI) is an American multi-brand restaurant company that operates in over 1800 locations across the country. In July, BofA named DRI as one of the most resilient restaurant stocks as recession risks rise. The firm raised its price target on the stock to $145 with a Buy rating on the shares.
In fiscal Q4 2022, Darden Restaurants, Inc. (NYSE:DRI) paid $563 million in dividends to shareholders, up from $202.6 million paid during the same period last year. In FY22, the company generated $1.3 billion of cash from operations. Darden Restaurants, Inc. (NYSE:DRI) suspended its dividends during the pandemic of 2020 but raised its quarterly payouts four times since then. It currently pays a dividend of $1.21 per share every quarter, with a yield of 3.97%, as of the close of July 21.
At the end of Q1 2022, 32 hedge funds tracked by Insider Monkey presented a bullish stance on Darden Restaurants, Inc. (NYSE:DRI), up from 30 in the previous quarter. These hedge funds held a total stake worth $241.8 million in the Florida-based restaurant company. Ken Griffin and Ray Dalio were the company’s most prominent shareholders in Q1.
2. Triton International Limited (NYSE:TRTN)
Dividend Yield as of July 21: 4.52%
Triton International Limited (NYSE:TRTN) specializes in the acquisition, leasing, and re-leasing of various types of intermodal containers. In addition to this, the company also operates in equipment trading.
At the end of 2021, Triton International Limited (NYSE:TRTN) resumed its shares buyback program and repurchased over 3.3 million shares during the first quarter of 2022. The company paid roughly $42 million in dividends to shareholders during Q1, up from $38.1 million during the same period last year. Triton International Limited (NYSE:TRTN) pays a quarterly dividend of $0.65 per share, with a dividend yield of 4.52%, as recorded on July 21. Due to the company’s payout ratio of 25%, its dividend growth is likely to remain strong in the upcoming quarters.
According to Insider Monkey’s Q1 2022 database, 17 hedge funds owned stakes in Triton International Limited (NYSE:TRTN), worth $303.8 million. In comparison, 21 hedge funds owned positions in the company in the previous quarter, with stakes valued at $254.2 million.
1. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of July 21: 4.56%
Franklin Resources, Inc. (NYSE:BEN) is one of the largest investment management companies in the world, that provides services related to mutual funds, retirement, institutional and individual accounts.
Over the past four quarters, Franklin Resources, Inc. (NYSE:BEN) generated $869 million in free cash flow. At the end of Q1 2022, the company reported $6.8 billion available in cash and cash equivalents. On June 8, Franklin Resources, Inc. (NYSE:BEN) declared a quarterly dividend of $0.29 per share, consistent with its previous dividend. The company has been raising its dividend consecutively for the past 42 years. As of July 21, the stock’s dividend yield came in at 4.56%.
In July, UBS lowered its price target on Franklin Resources, Inc. (NYSE:BEN) to $24 with a Neutral rating on the shares, highlighting pressures on the sector due to the Q2 market pull.
At the end of Q1 2022, 30 hedge funds tracked by Insider Monkey held investments in Franklin Resources, Inc. (NYSE:BEN) worth roughly $250 million. In the previous quarter, 29 hedge funds held stakes in the company, valued at $401 million.
You can also take a look at 10 Semiconductor Stocks to Buy Today According to Billionaire Ken Fisher and 10 Best Vanguard ETFs to Invest In
