In this article, we discuss 5 blue chip dividend stocks with over 4% yield. If you want our detailed analysis of these stocks, go directly to 15 Blue Chip Dividend Stocks With Over 4% Yield.
5. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of January 28: 7.19%
Number of Hedge Fund Holders: 45
Altria Group, Inc. (NYSE:MO) is a Virginia-based company that produces and markets tobacco, cigarettes, and similar products. Altria Group, Inc. (NYSE:MO) owns a number of companies in its portfolio that specialize in smokeless tobacco, cannabis, and e-cigarettes.
On January 27, Altria Group, Inc. (NYSE:MO) reported its Q4 results. The company posted earnings per share of $1.09, beating estimates by $0.01. The $5.09 billion revenue outperformed estimates by $88.06 million.
Altria Group, Inc. (NYSE:MO) on December 8 declared a $0.90 per share quarterly dividend, in line with previous. The dividend was paid on January 10, to shareholders of record on December 23. Altria Group, Inc. (NYSE:MO)’s dividend yield as of January 28 stands at 7.19%.
BofA analyst Lisa Lewandowski downgraded Altria Group, Inc. (NYSE:MO) to Neutral from Buy with a price target of $50, down from $56 on January 5. According to the analyst, Altria Group, Inc. (NYSE:MO) is likely to remain a “steady” earnings performer with limited input inflation and margin expansion, but her expectations of regulatory news flow may be an overhang on the stock in 2022.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 45 funds reported owning stakes in Altria Group, Inc. (NYSE:MO), amounting to approximately $830 million. Harris Associates is the biggest Altria Group, Inc. (NYSE:MO) stakeholder, with 5.1 million shares worth $232.6 million.
Here is what Broyhill Asset Management has to say about Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
4. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of January 28: 7.90%
Number of Hedge Fund Holders: 25
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based natural gas and crude oil pipeline company that specializes in oil and gas transportation and refined products. Enterprise Products Partners L.P. (NYSE:EPD)’s dividend yield as of January 28 came in at 7.90%.
Enterprise Products Partners (NYSE:EPD) on January 6 declared a quarterly dividend of $0.465 per share, which is a 3.3% increase from its prior dividend of $0.450. The dividend is payable on February 11, to shareholders of record on January 31. During Q4 2021, Enterprise Products Partners (NYSE:EPD) purchased $125 million of its common units in the open market, bringing the total amount of common unit buybacks during 2021 to $200 million.
Mizuho analyst Gabriel Moreen raised the price target on Enterprise Products Partners (NYSE:EPD) to $30 from $29 and kept a Buy rating on the shares on January 11 after the company announced its intention to acquire privately owned Navitas Midstream.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 25 funds were long Enterprise Products Partners (NYSE:EPD), with stakes totaling $233.2 million. First Eagle Investment Management is the largest stakeholder of the company, with 2.82 million shares worth $61.1 million.
Here is what ClearBridge Investments has to say about Enterprise Products Partners L.P. (NYSE:EPD) in its Q1 2021 investor letter:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Holly Energy Partners, L.P. (NYSE:HEP)
Dividend Yield as of January 28: 7.65%
Number of Hedge Fund Holders: 4
Holly Energy Partners, L.P. (NYSE:HEP) is a pipeline transportation company for crude oil and petroleum products, based in Texas. The company also owns refineries, tankers, and terminals across multiple states.
On January 24, Holly Energy Partners, L.P. (NYSE:HEP) declared a per share quarterly dividend of $0.35, in line with previous. The dividend is payable on February 11, to shareholders of record on February 1. Holly Energy Partners, L.P. (NYSE:HEP) delivers a dividend yield of 7.65% as of January 28.
Barclays analyst Theresa Chen downgraded Holly Energy Partners, L.P. (NYSE:HEP) to Underweight from Equal Weight with a price target of $17, down from $20 on January 20. While the analyst has a generally positive outlook for the sector in 2022, she expects “more variability” across refining results in Q4.
Marshall Wace LLP is the biggest Holly Energy Partners, L.P. (NYSE:HEP) stakeholder as of Q3 2021, with 104,291 shares worth $1.91 million. Overall, 4 hedge funds were bullish on the stock in the third quarter.
2. Magellan Midstream Partners, L.P. (NYSE:MMP)
Dividend Yield as of January 28: 8.63%
Number of Hedge Fund Holders: 12
Based in Tulsa, Oklahoma, Magellan Midstream Partners, L.P. (NYSE:MMP) owns major ammonia and petroleum pipelines across Arkansas, Kansas, Louisiana, New Mexico, Oklahoma, and Texas.
On January 25, Magellan Midstream Partners, L.P. (NYSE:MMP) declared a $1.0375 per share quarterly dividend, in line with previous. The dividend is payable on February 14, to shareholders of record on February 7. Magellan Midstream Partners, L.P. (NYSE:MMP)’s dividend yield came in at 8.63% as of January 28.
Barclays analyst Theresa Chen on January 20 downgraded Magellan Midstream Partners, L.P. (NYSE:MMP) to Equal Weight from Overweight with a price target of $51, down from $53.
Magellan Midstream Partners, L.P. (NYSE:MMP) announced on January 21 that it has been awarded a 4-year $100.5 million fixed price contract for contractor-owned and operated fuel storage facilities with capabilities to receive, store, protect, and ship aviation turbine fuel and naval distillate. The contract was awarded by the Defense Logistics Agency Energy.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 12 funds were bullish on Magellan Midstream Partners, L.P. (NYSE:MMP), with stakes totaling $92 million. 683 Capital Partners is one of the largest stakeholders of the company, and it owns more than 1 million shares, worth $46.8 million.
1. Omega Healthcare Investors, Inc. (NYSE:OHI)
Dividend Yield as of January 28: 8.91%
Number of Hedge Fund Holders: 15
Omega Healthcare Investors, Inc. (NYSE:OHI) is a triple-net, equity real estate investment trust that finances skilled nursing facilities and assisted living facilities. Omega Healthcare Investors, Inc. (NYSE:OHI)’s portfolio of assets includes rental facilities, mortgage notes, and lease income.
Omega Healthcare Investors, Inc. (NYSE:OHI) on January 27 declared a $0.67 per share quarterly dividend, in line with previous. The dividend will be distributed on February 15, to shareholders of record on February 7. The company also announced that a repurchase up to $500 million of its outstanding common stock through March 2025 has been approved by the board of directors..
On January 20, Mizuho analyst Haendel Malhotra lowered the price target on Omega Healthcare Investors, Inc. (NYSE:OHI) to $34 from $39 and kept a Neutral rating on the shares. After outperforming the S&P 500 Index in 2021, the real estate investment trust sector faces a “tricky macro set-up” in 2022, Malhotra tells investors in a research note. He downgraded his REIT sector view to Equal weight and emphasizes stock selectivity with a focus on pricing power and duration.
D E Shaw is the biggest Omega Healthcare Investors, Inc. (NYSE:OHI) stakeholder as of Q3 2021, holding 1.46 million shares of the company, valued at $43.85 million. Overall, 15 hedge funds were bullish on the stock in the third quarter of 2021.
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