In this article, we discuss 5 dividend kings to buy for 2022. If you want our detailed analysis of these stocks, go directly to 10 Dividend Kings to Buy for 2022.
5. Lancaster Colony Corporation (NASDAQ:LANC)
Dividend Yield as of January 19: 1.95%
Number of Hedge Fund Holders: 21
Number of Years of Dividend Increases: 59
Lancaster Colony Corporation (NASDAQ:LANC) is an American manufacturer of food products for the retail and foodservice markets. Lancaster Colony Corporation (NASDAQ:LANC) was incorporated in 1961 and is based in Westerville, Ohio.
On November 10, Lancaster Colony Corporation (NASDAQ:LANC) declared a $0.80 per share quarterly dividend, which reflects a 6.7% increase from the prior dividend of $0.75. The dividend was paid on December 31, to shareholders of record on December 6. Lancaster Colony Corporation (NASDAQ:LANC) distributes 54.47% of its net earnings after tax to shareholders.
Benchmark analyst Todd Brooks initiated coverage of Lancaster Colony Corporation (NASDAQ:LANC) with a Buy rating and a $181 price target on December 8. The analyst expects continued modest growth in owned brands, combined with strong licensed product performance, giving Lancaster Colony Corporation (NASDAQ:LANC) a “highly visible” mid-to-high single digit percentage revenue growth for at least the next several years.
Among the hedge funds tracked by Insider Monkey, 21 hedge funds in the third quarter of 2021 reported owning stakes in Lancaster Colony Corporation (NASDAQ:LANC), worth $251.2 million, as compared to 18 funds in the preceding quarter, holding stakes amounting to $294.4 million in Lancaster Colony Corporation (NASDAQ:LANC).
Jim Simons’ Renaissance Technologies is the largest Lancaster Colony Corporation (NASDAQ:LANC) stakeholder, with 405,863 shares valued at $68.5 million.
4. The Procter & Gamble Company (NYSE:PG)
Dividend Yield as of January 19: 2.13%
Number of Hedge Fund Holders: 69
Number of Years of Dividend Increases: 65
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods corporation, offering beauty, grooming, healthcare, home care, baby, and family care products. The Procter & Gamble Company (NYSE:PG) has offered 65 consistent years of dividend growth, providing a payout ratio of 58.93%.
Publishing its Q4 financial results on January 19, The Procter & Gamble Company (NYSE:PG) posted earnings per share of $1.66, beating estimates by $0.01. Revenue over the period jumped 6.12% year-over-year to $20.95 billion, outperforming estimates by $617.54 million. The management stated that solid quarterly results were driven by strong demand and pricing power.
On January 11, The Procter & Gamble Company (NYSE:PG) declared a $0.8698 per share quarterly dividend, in line with previous. The dividend is payable on February 15, to shareholders of record on January 21.
Evercore ISI analyst Robert Ottenstein on December 1 listed The Procter & Gamble Company (NYSE:PG) as one of the firm’s Best Core Ideas heading into 2022, owing to its best in class supply chain, iconic products, and ability to lean into commercial opportunities. The analyst stated that The Procter & Gamble Company (NYSE:PG)’s valuation does not yet reflect improved company fundamentals.
According to Insider Monkey’s Q3 data, 69 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG), with stakes equaling $6.4 billion. Andy Brown’s Cedar Rock Capital is the largest stakeholder of The Procter & Gamble Company (NYSE:PG), owning 7.4 million shares worth over $1 billion.
3. Cincinnati Financial Corporation (NASDAQ:CINF)
Dividend Yield as of January 19: 2.16%
Number of Hedge Fund Holders: 20
Number of Years of Dividend Increases: 61
Cincinnati Financial Corporation (NASDAQ:CINF) was founded in 1950, and is headquartered in Cincinnati, Ohio. The company offers property and casualty insurance and is one of the leading American insurers. As of January 19, Cincinnati Financial Corporation (NASDAQ:CINF) provides a dividend yield of 2.16%, with a rich history of increasing dividend payments.
On November 19, Cincinnati Financial Corporation (NASDAQ:CINF) declared a $0.63 per share quarterly dividend, in line with previous. The dividend was paid on January 14, to shareholders of record on December 16. The company distributes 43.51% of its net income to shareholders.
RBC Capital analyst Mark Dwelle on December 9 downgraded Cincinnati Financial Corporation (NASDAQ:CINF) to Sector Perform from Outperform with a price target of $130, down from $135. Although Cincinnati Financial Corporation (NASDAQ:CINF) continues to benefit from a favorable rate environment and strong exposure unit growth, the recent years have also seen an increase in exposure to catastrophe risk as well as industry-wide pressures on loss trends. Cincinnati Financial Corporation (NASDAQ:CINF)’s “excellent reserving” and reliable dividend growth are now captured in the current multiple.
In the third quarter of 2021, 20 hedge funds in the database of 867 elite funds maintained by Insider Monkey were bullish on Cincinnati Financial Corporation (NASDAQ:CINF), with stakes amounting to approximately $662 million. Select Equity Group is the leading stakeholder of the company, with 4.79 million shares worth $547.5 million.
2. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of January 19: 2.52%
Number of Hedge Fund Holders: 88
Number of Years of Dividend Increases: 59
Johnson & Johnson (NYSE:JNJ) is an American multinational corporation that deals in medical devices, pharmaceuticals, and consumer packaged goods. Johnson & Johnson (NYSE:JNJ) has a prime credit rating of AAA, and it is one of the most valuable companies in the world.
Johnson & Johnson (NYSE:JNJ) on January 4 declared a $1.06 per share quarterly dividend, in line with previous. The dividend is payable on March 8, to shareholders of record on February 22. As of January 19, Johnson & Johnson (NYSE:JNJ) offers a 2.52% dividend yield, and is one of the top dividend kings to buy for 2022.
Credit Suisse analyst Matt Miksic on December 29 reiterated an Outperform rating and a $200 price target on the Johnson & Johnson (NYSE:JNJ) shares. His updated intra-quarter analysis of October and November sales shows approximately $588 million of upside to his estimate for Johnson & Johnson (NYSE:JNJ)’s fourth quarter U.S. pharma business.
Among the hedge funds monitored by Insider Monkey in Q3 2021, Terry Smith’s Fundsmith LLP is the largest Johnson & Johnson (NYSE:JNJ) shareholder, owning 7.20 million shares worth $1.16 billion. Overall, 88 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) in the third quarter of 2021, with stakes totaling $6.8 billion.
Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm has to say:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
1. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of January 19: 2.76%
Number of Hedge Fund Holders: 61
Number of Years of Dividend Increases: 59
The Coca-Cola Company (NYSE:KO) is one of the most notable dividend kings to buy for 2022, offering a dividend payout ratio of 73.28%, with 59 years of consistent dividend increases. The Coca-Cola Company (NYSE:KO) is a multinational beverage corporation, headquartered in Atlanta, Georgia, distributing a portfolio of alcoholic and non-alcoholic drinks worldwide.
The Coca-Cola Company (NYSE:KO) announced on January 18 in a virtual Capital Markets Day that the African business of The Coca-Cola Company (NYSE:KO) is expected to be set free in an IPO sometime in 2022. The organic revenue for the African division in Q3 2021 was 13.9% and the organic EBITDA growth was up by 19.4%.
On October 21, The Coca-Cola Company (NYSE:KO) declared a quarterly dividend of $0.42 per share, in line with previous. The dividend was paid on December 15, to shareholders of record on December 1.
Guggenheim analyst Laurent Grandet upgraded The Coca-Cola Company (NYSE:KO) to Buy from Neutral with a price target of $66, up from $61 on January 4. The company is exiting the fiscal 2021 transition year “stronger”, the analyst told investors in a research note. The Coca-Cola Company (NYSE:KO)’s portfolio rationalization should lead to a “more focused and agile organization” with gross margin benefits and the valuation is “compelling” at current share levels. He sees 12% annual earnings growth through fiscal 2023.
According to the third quarter database of Insider Monkey, 61 hedge funds were long The Coca-Cola Company (NYSE:KO), with stakes equaling $25.1 billion. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of The Coca-Cola Company (NYSE:KO), with 400 million shares worth approximately $21 billion.
You can also take a look at 10 High Yield Monthly Dividend Stocks and 10 ESG Dividend Stocks to Buy.
