In this article, we discuss 5 companies that just increased their dividends. If you want to see some more stocks that raised their dividend payouts, click 10 Companies that Just Increased Their Dividends.
5. Falcon Minerals Corporation (NASDAQ:FLMN)
Number of Hedge Fund Holders: 15
Dividend Yield as of May 5: 9.49%
Falcon Minerals Corporation (NASDAQ:FLMN) owns mineral and royalty interests in oil and natural gas properties across North America. On May 4, Falcon Minerals Corporation (NASDAQ:FLMN) announced a quarterly dividend per share of $0.18, a 24.1% increase from its prior dividend of $0.145. The dividend is payable on May 31, to shareholders of record on May 18.
In 2021, Falcon Minerals Corporation (NASDAQ:FLMN)’s full-year revenue came in at $72.8 million, up from $40.1 million in the prior year. Net income in 2021 grew roughly 71% year-over-year to $13.2 million from $7.7 million in 2020.
Piper Sandler analyst Mark Lear on April 7 raised the price target on Falcon Minerals Corporation (NASDAQ:FLMN) to $8 from $5.40 and kept an Overweight rating on the shares. The analyst believes that the U.S. is one of the few regions to deliver long-term supply growth since Russian oil is off the market, and the IOC’s departure drives longer-term declines despite peace.
Among the elite funds tracked by Insider Monkey, Falcon Minerals Corporation (NASDAQ:FLMN) was found in the public stock portfolios of 15 hedge funds at the end of December 2021, compared to 19 funds in the preceding quarter. Nantahala Capital Management held the largest stake in the company, with 2.3 million shares worth $11.5 million.
4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Dividend Yield as of May 5: 7.57%
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based energy company specializing in the exploration and production of oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation (NYSE:DVN)’s dividend yield on May 5 stood at 7.57%.
Devon Energy Corporation (NYSE:DVN) announced its financial results for the first fiscal quarter of 2022 on May 5, posting earnings per share of $1.88, exceeding market estimates by $0.12. Revenue for the period increased 116.35% year-over-year to $3.81 billion, surpassing analysts’ predictions by $242.30 million.
Devon Energy Corporation (NYSE:DVN) declared on May 2 a $1.27 per share quarterly dividend, a 27% increase from its last dividend of $1.00. The dividend is distributable on June 30, to shareholders of record on June 13. The company also raised its share repurchase authorization by 25% to $2 billion. By April end, Devon Energy Corporation (NYSE:DVN) had bought back 19.1 million shares valued at $891 million.
On May 4, Truist analyst Neal Dingmann raised the price target on Devon Energy Corporation (NYSE:DVN) to $100 from $91 and kept a Buy rating on the shares. The analyst observed that Devon Energy Corporation (NYSE:DVN) will continue its multi-pronged shareholder return scheme of increasing dividends and “meaningful buybacks”. He also added that the quarterly free cash flows are expected to reach $2 billion. The company’s present position of approximately 4,000 low-risk/high-return locations paired with almost 2,500 incremental operated locations could result in significant upside, the analyst told investors.
In the fourth quarter of 2021, 51 hedge funds were long Devon Energy Corporation (NYSE:DVN), up from 48 funds in the preceding quarter. The total stakes held in Q4 amounted to $1.74 billion, compared to $1.40 billion in the last quarter. Rajiv Jain’s GQG Partners is the biggest shareholder of the company, with a position worth roughly $639 million.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
3. Avery Dennison Corporation (NYSE:AVY)
Number of Hedge Fund Holders: 31
Dividend Yield as of May 5: 1.67%
Avery Dennison Corporation (NYSE:AVY) was founded in 1935 and is headquartered in Glendale, California. The company designs and manufactures pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and international markets.
On April 28, Avery Dennison Corporation (NYSE:AVY) declared a $0.75 per share quarterly dividend, a 10.3% increase from its earlier dividend of $0.68. The dividend is payable on June 15, to shareholders of the company as of June 1.
Avery Dennison Corporation (NYSE:AVY) reported its Q1 2022 results on April 26, posting an EPS of $2.40, surpassing estimates by $0.23. Revenue for the period jumped 14.53% from the prior-year quarter to $2.35 billion, topping analysts’ predictions by $71.48 million.
Raymond James analyst Joshua Wilson on April 28 raised the price target on Avery Dennison Corporation (NYSE:AVY) to $200 from $185 and reiterated an Outperform rating on the stock. The analyst expects the ongoing outsized growth in intelligent labels to result in higher sales and EBITDA margin expansion, with the latter suggesting that the shares can further outperform from current levels.
Select Equity Group held the biggest position in Avery Dennison Corporation (NYSE:AVY) in the fourth quarter of 2021, with 1.96 million shares worth $426 million. Overall, 31 hedge funds were bullish on the stock at the end of December 2021.
2. Paychex, Inc. (NASDAQ:PAYX)
Number of Hedge Fund Holders: 35
Dividend Yield as of May 5: 2.54%
Paychex, Inc. (NASDAQ:PAYX) is an American company that offers human capital management solutions for HR, payroll, benefits, and insurance services to small and medium-sized organizations in the United States and Europe. Paychex, Inc. (NASDAQ:PAYX)’s dividend yield on May 5 was 2.54%.
Paychex, Inc. (NASDAQ:PAYX) on April 29 declared a $0.79 per share quarterly dividend, a 19.7% increase from the last dividend of $0.66. The dividend is payable on May 26, to shareholders of the company as of May 12.
On April 6, Citi analyst Peter Christiansen raised the price target on Paychex, Inc. (NASDAQ:PAYX) to $145 from $140 and reiterated a Neutral rating on the shares. The company’s fiscal Q3 results and improved outlook “were impressive”, indicating that Paychex, Inc. (NASDAQ:PAYX) continues to take advantage of solid macro recovery momentum. The analyst also noted that the company benefited “from a number of idiosyncratic factors” like ongoing solid retention and robust new sales strength. However, he sees continued future upside to be more limited due to the stock’s valuation.
According to the database of Insider Monkey, 35 hedge funds held long positions in Paychex, Inc. (NASDAQ:PAYX) at the end of December 2021, with collective stakes worth $1.28 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a notable shareholder of the company, with more than 1 million shares worth $139.5 million.
1. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 45
Dividend Yield as of May 5: 2.02%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, operating mainly out of the Permian Basin in West Texas. Diamondback Energy, Inc. (NASDAQ:FANG)’s dividend yield on May 5 stood at 2.02%.
Diamondback Energy, Inc. (NASDAQ:FANG) reported on May 5 its Q1 2022 results, announcing earnings per share of $5.20, above market consensus by $0.53. The revenue jumped 103.38% year-over-year to $2.41 billion, exceeding analysts’ predictions by $473.12 million.
On April 25, Susquehanna analyst Biju Perincheril raised the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $167 from $152 and maintained a Positive rating on the shares. The analyst increased his oil and gas price target assumptions and said his boosted Diamondback Energy, Inc. (NASDAQ:FANG) target is based on about 5.5x his 2023 earnings, debt-adjusted cash flow at his $80.00 WTI/$4.25 HH price deck, as well as projected dividends over the next two years.
Diamondback Energy, Inc. (NASDAQ:FANG) on May 2 declared a $0.70 per share quarterly dividend, a 16.7% jump from its earlier dividend of $0.60. The dividend will be paid on May 23, to shareholders of record on May 12. The company also announced a Q1 variable cash dividend of $2.35, payable on May 23 as well.
According to Insider Monkey’s Q4 data, Diamondback Energy, Inc. (NASDAQ:FANG) was held by 45 elite hedge funds, compared to 51 funds in the last quarter. Harris Associates owned the biggest stake in the company, with over 3 million shares worth about $328 million.
Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
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