In this article, we discuss the 5 dividend aristocrats to buy for 2022. If you want our detailed analysis of these stocks, go directly to the 10 Dividend Aristocrats to Buy for 2022.
5. People’s United Financial, Inc. (NASDAQ:PBCT)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.14%
Number of Years of Consecutive Dividend Growth: 28
People’s United Financial, Inc. (NASDAQ:PBCT), a bank holding company offering financial services including personal banking, credit cards, mortgages, loans, investment, and insurance solutions, is one of the best dividend aristocrats to buy for 2022, with a forward yield of 4.14%.
Out of the 867 hedge funds monitored by Insider Monkey in Q3, 19 funds were long People’s United Financial, Inc. (NASDAQ:PBCT), with total stakes amounting to $222.65 million. Alec Litowitz and Ross Laser’s Magnetar Capital is the largest stakeholder of People’s United Financial, Inc. (NASDAQ:PBCT), with 6.35 million shares worth over $111 million.
People’s United Financial, Inc. (NASDAQ:PBCT), on October 21, posted its Q3 results. EPS in the quarter equaled $0.33, beating estimates by $0.01. The quarterly revenue totaled $470.70 million, missing estimates by $6.78 million.
M&T Bank Corporation (NYSE:MTB) announced on October 21 that it has received approval from the New York State Department of Financial Services and the Connecticut Department of Banking to complete the merger of M&T Bank Corporation (NYSE:MTB) with People’s United Financial, Inc. (NASDAQ:PBCT), which will allow customers an expanded network of branches and an increased array of products and services.
4. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield: 4.41%
Number of Years of Consecutive Dividend Growth: 26
Realty Income Corporation (NYSE:O) reported its Q3 results on November 1. EPS in the quarter came in at $0.38, in line with analysts’ estimates. Revenue over the period jumped 26.70% year-over-year to $486.34 million, exceeding estimates by $27.36 million.
Realty Income Corporation (NYSE:O) has increased its dividend 113 times since the company became publicly listed in 1994, and its monthly dividends are supported by the income from more than 7,000 real estate properties owned by the REIT under long-term lease agreements with commercial customers, making it one of the best dividend aristocrats to buy for 2022.
Mizuho analyst Haendel St. Juste on November 30 raised the price target on Realty Income Corporation (NYSE:O) to $82 from $81 and kept a Buy rating on the shares, stating increased competition for assets and the feasible macro environment for real estate.
Israel Englander’s Millennium Management is the largest Realty Income Corporation (NYSE:O) stakeholder as of Q3 2021, with 934,068 shares valued at $60.5 million. Overall, 22 hedge funds in the database of Insider Monkey were bullish on Realty Income Corporation (NYSE:O), with total stakes worth $275 million.
3. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 81
Dividend Yield: 4.50%
Number of Years of Consecutive Dividend Growth: 49
AbbVie Inc. (NYSE:ABBV) is an extremely popular dividend aristocrat among the hedge funds, with 81 funds being bullish on the stock in the third quarter, holding stakes worth $4.14 billion. Billionaire Warren Buffett’s Berkshire Hathaway is the leading stakeholder of AbbVie Inc. (NYSE:ABBV), with $14.39 million shares worth $1.55 billion.
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company that was created in 2013 as a result of a corporate spin off from Abbott Laboratories (NYSE:ABT). AbbVie Inc. (NYSE:ABBV) is engaged in clinical research and medical pipelines, with therapeutic focus areas including immunology, oncology, neuroscience, virology, and eye care.
On October 29, AbbVie Inc. (NYSE:ABBV) announced earnings for Q3. EPS in the quarter totaled $3.33, exceeding estimates by $0.11. Revenue over the period jumped 11.33% to $14.34 billion, outperforming estimates by $43.28 million.
Wells Fargo analyst Mohit Bansal on December 8 initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Overweight rating and a $165 price target.
Here is what Artisan Value Fund has to say about AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter:
“Our sales included Abbvie, a biopharmaceutical company. Abbvie was a smaller position in the portfolio. We had concerns about its capital allocation and a stretched balance sheet, so we chose to move on.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Dividend Yield: 4.53%
Number of Years of Consecutive Dividend Growth: 34
Chevron Corporation (NYSE:CVX), an American multinational energy corporation, posted solid Q3 results on October 29. EPS in the quarter equaled $2.96, topping estimates by $0.77. Revenue over the period jumped 82.86% to $44.71 billion, exceeding estimates by $3.86 billion.
Chevron Corporation (NYSE:CVX) is one of the top dividend aristocrats to buy for 2022, with a forward yield of 4.53%, reporting consecutive dividend growth throughout 34 years.
RBC Capital analyst Biraj Borkhataria on November 24 upgraded Chevron Corporation (NYSE:CVX) to Outperform from Sector Perform with a price target of $145, up from $130. The analyst observed that Chevron Corporation (NYSE:CVX) is in a position to benefit from a “strong” commodity cycle over the coming years, and its business plans “suggest much more stability in its portfolio than peers.”
Fisher Asset Management is one of the largest Chevron Corporation (NYSE:CVX) stakeholders, holding a $634.45 million position in the company in the third quarter. Overall, 51 hedge funds were long Chevron Corporation (NYSE:CVX) in Q3, up from 50 funds in the prior quarter.
Here is what ClearBridge Investments has to say about Chevron Corporation (NYSE:CVX) 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) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Dividend Yield: 5.59%
Number of Years of Consecutive Dividend Growth: 37
Exxon Mobil Corporation (NYSE:XOM), a multinational Texas-based oil and gas corporation, is one of the highest yielding dividend aristocrats to buy for 2022, offering an attractive yield of 5.59%. Exxon Mobil Corporation (NYSE:XOM) announced earnings for the third quarter on October 29, posting an EPS of $1.58, beating estimates by $0.06. Revenue for the period increased 59.71% year-over-year to $73.79 billion, outperforming estimates by $2.09 billion.
JPMorgan analyst Phil Gresh on December 9 raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $83 from $81 and kept an Overweight rating on the shares. The analyst stated that Exxon Mobil Corporation (NYSE:XOM) is “turning a corner, with newfound discipline and good progress on reducing debt from peak levels.”
Rajiv Jain’s GQG Partners is the leading Exxon Mobil Corporation (NYSE:XOM) stakeholder, holding $26.58 million shares worth $1.56 billion. Overall, 64 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), with total stakes amounting to $4.64 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
You can also take a look at 10 Dividend Stocks That Have Doubled Their Payouts and Bill Gates Portfolio: Most Recent Investments.
