In this article, we discuss 5 best-performing dividend stocks in 2022. If you want to read our detailed analysis of dividend investing and returns of dividend stocks in the past, go directly to read 12 Best Performing Dividend Stocks in 2022.
5. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of December 21: 2.48%
Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare services company. In fiscal Q1 2023, the company reported revenue of nearly $50 billion, which showed a 13% growth from the same period last year. It had $3.5 billion available in cash and cash equivalents and its total current assets came in at $32.7 billion.
Cardinal Health, Inc. (NYSE:CAH) holds a 36-year streak of consistent dividend growth, which makes it one of the best dividend stocks on our list. The company currently pays a quarterly dividend of $0.4957 per share and has a dividend yield of 2.48%, as of December 21.
In November, Baird raised its price target on Cardinal Health, Inc. (NYSE:CAH) to $82 with a Neutral rating on the shares, highlighting the company’s improving underlying business fundamentals.
At the end of Q3 2022, 45 hedge funds in Insider Monkey’s database owned stakes in Cardinal Health, Inc. (NYSE:CAH), up from 44 a quarter earlier. The stakes owned by these hedge funds have a total value of over $1.03 billion.
Ariel Investments mentioned Cardinal Health, Inc. (NYSE:CAH) in its Q3 2022 investor letter. Here is what the firm has to say:
“Additionally, distributor of pharmaceutical and medical products Cardinal Health, Inc. (NYSE:CAH) advanced in the period as leadership changes were viewed to be a positive for shares. Management provided a new profit outlook for Fiscal 2023 and announced an improvement plan for the medical segment. We are encouraged by these changes and think CAH’s underlying fundamentals and competitive advantages around preventative maintenance screenings and medication management will continue to improve. We believe valuations of health care companies like CAH that focus on cost optimization and promote technological efficiency across the supply chain will be rewarded over the long term.”
4. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of December 21: 2.76%
An American multinational beverage company, The Coca-Cola Company (NYSE:KO) reported a 4% growth in its global unit case volume in the third quarter of 2022. Year-to-date, the company’s cash flow came in at $8.1 billion and its free cash flow amounted to $7.3 billion. Its revenue for Q3 also showed an 11% growth from the same period last year.
Atlantic Equities raised its price target on The Coca-Cola Company (NYSE:KO) to $69 in December with an Overweight rating on the shares, highlighting the company’s strong execution and elevated growth.
The Coca-Cola Company (NYSE:KO) currently pays a quarterly dividend of $0.44 per share. The company holds one of the longest dividend growth streaks of 60 years, which places it as one of the best dividend stocks on our list. The stock has a dividend yield of 2.76%, as of December 21.
As of the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), with a collective value of $25 billion. Berkshire Hathaway was the company’s largest stakeholder with 400 million shares.
Carillon Tower Advisers mentioned The Coca-Cola Company (NYSE:KO) in its Q3 2022 investor letter. Here is what the firm has to say:
“Shares of The Coca-Cola Company (NYSE:KO) sold off with consumer staples even as the company reported strong pricing for the second quarter. On average, product prices rose with management hinting at further momentum.”
3. Chevron Corporation (NYSE:CVX)
Dividend Yield as of December 21: 3.25%
Chevron Corporation (NYSE:CVX) is a California-based multinational energy company. Since the start of 2022, the stock delivered a 44.29% return to shareholders, and its 12-month return came in at 47.8%, as of the close of December 20.
In the third quarter of 2022, Chevron Corporation (NYSE:CVX) distributed $2.7 billion in dividends to shareholders, up 6% from the same period last year. It currently pays a quarterly dividend of $1.42 per share and has a dividend yield of 3.25%, as recorded on December 21. The company has raised its dividends for 25 years in a row, which makes it one of the best dividend stocks on our list.
The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion. Berkshire Hathaway was the company’s leading stakeholder in Q3.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
2. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of December 21: 3.37%
Exxon Mobil Corporation (NYSE:XOM) specializes in the distribution of natural gas. Citigroup presented a positive outlook on energy stocks considering the current market situation. In view of this, the firm raised its price target on the stock to $110 in November with a Neutral rating on the shares.
Exxon Mobil Corporation (NYSE:XOM) has a 40-year run of raising its dividends, which places it as one of the best dividend stocks on our list. It currently offers a per-share dividend of $0.91 every quarter, with a dividend yield of 3.37%, as of December 21.
As of the close of Q3 2022, 75 hedge funds tracked by Insider Monkey owned stakes in Exxon Mobil Corporation (NYSE:XOM), up from 72 in the previous quarter. The collective value of these stakes is $5.5 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.
1. ConocoPhillips (NYSE:COP)
Dividend Yield as of December 21: 4.46%
ConocoPhillips (NYSE:COP) is a Texas-based petroleum refineries company that produces crude oil. In December, Piper Sandler raised its price target on the stock to $157 with an Overweight rating on the shares, appreciating the company’s performance this year.
ConocoPhillips (NYSE:COP) pays a quarterly dividend of $0.51 per share, having raised it by 11% in November. The company has been making regular dividend payments to shareholders since 1993. Its consistent dividend policy makes it one of the best dividend stocks on our list. The stock has a dividend yield of 4.46%, as of December 21.
As of the close of Q3 2022, 64 hedge funds in Insider Monkey’s database owned stakes in ConocoPhillips (NYSE:COP), worth over $2.66 billion collectively.
ClearBridge Investments mentioned ConocoPhillips (NYSE:COP) in its Q3 2022 investor letter. Here is what the firm has to say:
“ConocoPhillips (NYSE:COP) handily outperformed the energy sector, which led the value benchmark. Its exposure to natural gas helped the stock perform more in line with natural gas E&Ps, which led the sector due to the European energy crisis and U.S. shale gas being considered a secure long-term source of liquid natural gas. In addition to COP’s low-cost resource base, conservative balance sheet and experienced management team, we appreciate its strong focus on ESG measures, which we believe is a good indicator of the quality of a company’s business model and management team.
Specifically, we appreciate solid governance practices with compensation metrics emphasizing ROCE and relative total shareholder return, the board’s effective oversight of management as well as the company’s methane flaring leadership. COP is investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with a CO2 intensity of sub-5 kg/BOE, which would be one of the lowest emission sources of supply in the world.”
You can also take a look at Best Dogs of the Dow Stocks Ranked By Hedge Fund Sentiment and 10 Biggest Dividend Cuts and Suspensions of 2022
