In this article, we will discuss the 5 best DRIP stocks to buy in 2022. To learn about similar DRIP stocks, you can go to 10 Best DRIP Stocks To Buy in 2022.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
Dividend Yield as of April 25: 2.27%
The Procter & Gamble Company (NYSE:PG) is not only a dividend aristocrat, but it is a dividend king as well. The company has rewarded investors with regularly increased dividends for well above 60 years and has been paying dividends for 131 years. Its company’s Shareholder Investment Program is a direct stock purchase and dividend reinvestment plan, requiring an initial minimum investment of $250. The stock is ranked among the top DRIP stocks to buy in 2022 and as of April 25, The Procter & Gamble Company (NYSE:PG) has a forward yield of 2.27% and has appreciated by 24.09% over the past twelve months.
This April, The Procter & Gamble Company (NYSE:PG) reported market-beating earnings for the fiscal third quarter of 2022. The company reported earnings per share of $1.33, beating estimates by $0.04. Moreover, the company reported revenues of $19.38 billion for the quarter, up 7.02% year over year, and beat revenue estimates by $687.76 million.
On April 22, 2022, Barclays analyst Lauren Lieberman raised her price target on The Procter & Gamble Company (NYSE:PG) to $176 from $167 and maintained an Overweight rating on the shares.
According to Insider Monkey’s database, at the close of the fourth quarter of 2021, 67 hedge funds were long The Procter & Gamble Company (NYSE:PG) with stakes of $6.61 billion. This is compared to 69 hedge funds in the third quarter of 2021 with stakes worth $6.41 billion. As of December 31, 2021, GQG Partners is the largest shareholder in the stock, owning over 7.5 million shares of stock which equate to a stake value of roughly $1.23 billion.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
Dividend Yield as of April 25: 2.70%
The Coca-Cola Company (NYSE:KO) has been consistent with hiking its dividends for more than 50 years, and as of April 25, the stock has a forward dividend yield of 2.70% and has gained 21.27% over the past six months. On February 10, The Coca-Cola Company (NYSE:KO) reported earnings for the fiscal fourth quarter of 2021. The company generated revenues of $9.47 billion, up 10.08% year over year, and beat revenue estimates by $570 million. Moreover, the company registered an EPS of $0.45 and outperformed the market consensus by $0.04.
This March, JPMorgan analyst Andrea Teixeira raised her price target on The Coca-Cola Company (NYSE:KO) to $68 from $65 and reiterated an Overweight rating on the shares.
The Coca-Cola Company (NYSE:KO) is an investor’s favorite DRIP stock. At the end of the fourth quarter of 2021, 70 hedge funds held stakes in The Coca-Cola Company (NYSE:KO) worth more than $28.6 billion. This is compared to 61 hedge funds in the previous quarter with total stake of $25.13 billion.
As of December 31, 2021, Berkshire Hathaway is the most prominent hedge fund having stakes in The Coca-Cola Company (NYSE:KO). Warren Buffett’s hedge fund owns 400 million shares of stock which equate to a stake value of $23.68 billion.
Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in the firm’s fourth-quarter 2021 investor letter:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Dividend Yield as of April 25: 4.13%
Exxon Mobil Corporation (NYSE:XOM) has been consistent with benefitting its investors by providing them stable dividends for over 39 years, boasting an average annual growth rate of 6%. As of April 25, the stock’s forward yield sits at 4.13%, with its trailing twelve-month returns peaking at 47.23%. It is one of the best DRIP stocks to buy in 2022.
On February 1, 2022, Exxon Mobil Corporation (NYSE:XOM) reported that its earnings per share for the fiscal fourth quarter of 2021 came to $2.05, beating EPS estimates by $0.11. The company reported quarterly revenues of over $84 billion, up 82.56% year over year, and beat revenue estimates by $6.24 billion.
This April, Truist analyst Neal Dingmann raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $84 from $75 and reiterated a Hold rating on the shares. The analyst views the stock to benefit from soaring commodity prices, effectively driving lucrative shareholder returns.
Exxon Mobil Corporation (NYSE:XOM) is rising in popularity among analysts and hedge funds investors. At the close of the fourth quarter of 2021, 71 hedge funds were long Exxon Mobil Corporation (NYSE:XOM) with stakes of $5.38 billion. This is compared to 64 positions in the third quarter of 2021, with stakes of $4.64 billion.
As of December 31, 2021, GQG Partners is the most prominent shareholder in Exxon Mobil Corporation (NYSE:XOM). The fund’s stakes in the company amounted to $1.98 billion which represents 4.91% of GQG Partners’ 13F portfolio.
Saturna Capital shared its insights on Exxon Mobil Corporation (NYSE:XOM) in the firm’s fourth-quarter 2021 investor letter. Here is what the firm had to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
Dividend Yield as of April 25: 3.64%
AbbVie Inc. (NYSE:ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers investors the option to purchase additional shares, commission-free, through a dividend reinvestment or optional cash investments as part of its dividend reinvestment plan. Moreover, AbbVie Inc. (NYSE:ABBV) has increased its dividends by more than 250% since 2013 and is a member of the S&P Dividend Aristocrats Index. The stock is among the top DRIP stocks to buy in 2022.
This February, AbbVie Inc. (NYSE:ABBV) released a report which detailed the company’s earnings for the fiscal fourth quarter of 2021. The company registered an EPS of $3.31, beating expert estimates by $0.03. Moreover, the company’s revenues grew 7.42% year over year and came to $14.89 billion. On February 17, 2022, AbbVie Inc. (NYSE:ABBV) declared a quarterly cash dividend of $1.41 per share of common stock which is payable on May 16, to investors of record on April 15.
On April 12, 2022, Barclays analyst Carter Gould raised his price target on AbbVie Inc. (NYSE:ABBV) to $174 from $150 and reiterated an Equal Weight rating on the shares.
AbbVie Inc. (NYSE:ABBV) is rising in popularity among elite hedge funds. As of the fourth quarter of 2021, 82 hedge funds held long positions in AbbVie Inc. (NYSE:ABBV) with stakes of $374.43 million. Of these, Berkshire Hathaway was the top stakeholder, owning over 3 million shares of stock which make up 0.12% of Warren Buffett’s hedge fund portfolio.
Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter in which it mentioned AbbVie Inc. (NYSE:ABBV). Here is what the firm had to say:
“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. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield as of April 25: 2.49%
Johnson & Johnson (NYSE:JNJ) is a favorite DRIP stock pick of legendary value investors. The company offers a commission-free dividend reinvestment plan to registered shareholders which allows for the reinvestment of all or a portion of dividends into additional shares of common stock.
On April 19, 2022, Johnson & Johnson (NYSE:JNJ) reported earnings for the fiscal first quarter of 2022 in which the company beat EPS estimates by $0.10. The company reported earnings per share of $2.67 and generated revenues of $23.43 billion, up 4.95% year over year from $22.32 billion. As of April 25, the stock’s trailing-twelve-month returns are up 12.55% and the company boasts 59 years of consistent dividend increases, with a 5-year dividend growth rate of 5.79%.
On April 19, Johnson & Johnson (NYSE:JNJ) announced that its board of directors has authorized a dividend increment of 6.6%, bringing its quarterly common stock cash dividend to $1.13, from $1.06. The dividend is payable on June 7, to investors of record at the close of business on May 23. Moreover, this April, Credit Suisse analyst Matt Miksic raised his price target on Johnson & Johnson (NYSE:JNJ) to $205 from $200 and reiterated an Outperform rating on the shares.
As of December 31, Terry Smith’s Fundsmith LLP remains the most bullish on Johnson & Johnson (NYSE:JNJ), owning more than 7.2 million shares of the stock. This amounts to a stake value of $1.23 billion, which covers 3.01% of Terry Smith’s investment portfolio.
See also 10 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility and 10 Best Dividend Stocks for Long Term.
