5 Dividend Knights that Beat the Market Last 5 Years

In this article, we discuss 5 dividend stocks that beat the market last five years. If you want to read our detailed analysis of dividend investments and their performance over the years, go directly to read 15 Dividend Knights that Beat The Market Last 5 Years. 

5. W.W. Grainger, Inc. (NYSE:GWW)

5-Year Share Price Gains as of February 8: 153.7%

W.W. Grainger, Inc. (NYSE:GWW) is an American company that specializes in the distribution of industrial supplies and other equipment. On January 25, the company declared a quarterly dividend of $1.72 per share, consistent with its previous dividend. The stock has a dividend yield of 1.01%, as of February 8. It’s one of the best dividend stocks on our list as it has raised its payouts for 52 years in a row.

In the fourth quarter of 2022, W.W. Grainger, Inc. (NYSE:GWW) reported revenue of $3.8 billion, which showed a 13.1% growth from the same period last year. During FY22, the company generated $1.3 billion in operating cash flow and returned $949 million in dividends and share repurchases to shareholders.

Following the company’s good performance in Q4, both RBC Capital and Baird raised their price targets on W.W. Grainger, Inc. (NYSE:GWW) in February to $502 and $730, respectively.

W.W. Grainger, Inc. (NYSE:GWW) was a part of 34 hedge fund portfolios in Q3 2022, compared with 30 in the previous quarter, as per Insider Monkey’s data. Renaissance Technologies was the company’s largest stakeholder in Q3.

Third Avenue Management mentioned W.W. Grainger, Inc. (NYSE:GWW) in its Q1 2022 investor letter. Here is what the firm has to say:

“Held in the Fund since 2019, Grainger plc (“Grainger”) is a UK-based real estate operating company that is the leading owner, manager, and developer of multi-family properties in the supply-constrained markets of the UK (where the multi-family business is more commonly referred to as the private-rental sector or “PRS”). At the end of the 2021 calendar year, the company owned a portfolio of 7,100 PRS units that were 95.0% leased with two-thirds of the value in the greater London area and the remaining one-third in the other UK regions. (Click here to view the full text)

4. Albemarle Corporation (NYSE:ALB)

5-Year Share Price Gains as of February 8: 159.3%

Albemarle Corporation (NYSE:ALB) is an American chemical manufacturing company, based in North Carolina. Mizuho raised its price target on the stock to $325 with a Neutral rating on the shares, providing a constructive update on the company’s estimates in 2023.

Albemarle Corporation’s (NYSE:ALB) five-year return came in at 159.3%, as of February 8. The company offers a quarterly dividend of $0.395 per share and has raised its payouts for 28 years straight. The stock’s dividend yield on February 8 came in at 0.57%. Its strong dividend growth streak makes it one of the best dividend stocks on our list.

Albemarle Corporation (NYSE:ALB) was a popular stock among elite funds in Q3 2022, as 49 hedge funds tracked by Insider Monkey owned investments in the company, up from 39 in the previous quarter. These investments are collectively worth $621.4 million.

Carillon Tower Advisers mentioned Albemarle Corporation (NYSE:ALB) in its Q4 2022 investor letter. Here is what the firm has to say:

“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The stock gave back some of its recent gains amid investor concerns about how the future price of lithium could be affected by a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and Albemarle plays a critical role in the battery value chain and remains well-positioned for the overall continued global adoption of EVs.”

3. Nucor Corporation (NYSE:NUE)

5-Year Share Price Gains as of February 8: 170.6%

Nucor Corporation (NYSE:NUE) is another best dividend stock on our list with a five-year return of 170.6%, as of February 8. The steel manufacturing company pays a quarterly dividend of $0.51 per share, having raised it by 2% in December 2022. This was the company’s 50th consecutive year of dividend growth. The company’s shares yield at 1.22%, as of February 8.

BofA gave a positive stance on the steel industry and initiated its coverage on Nucor Corporation (NYSE:NUE) in January with a Buy rating and a $172 price target.

Nucor Corporation (NYSE:NUE) was a popular stock among hedge funds in the third quarter of 2022, as 41 funds tracked by Insider Monkey reported owning stakes in the company, compared with 32 in the previous quarter. The collective value of these stakes is roughly $403 million.

2. Cintas Corporation (NASDAQ:CTAS)

5-Year Share Price Gains as of February 8: 190.1%

Cintas Corporation (NASDAQ:CTAS) is a business services company, based in Ohio. Following the company’s strong quarterly earnings, Deutsche Bank raised its price target on the stock to $507 in December and maintained a Buy rating on the shares.

Cintas Corporation (NASDAQ:CTAS), one of the best dividend stocks on our list, offers a quarterly dividend of $1.15 per share and has a dividend yield of 1.04%, as of February 8. The company has been rewarding investors with increased dividends since its IPO in 1983. The stock’s five-year returns came in at 190.1%, as recorded on February 8.

At the end of September 2022, 42 hedge funds in Insider Monkey’s database reported having stakes in Cintas Corporation (NASDAQ:CTAS), jumping from 32 in the previous quarter. These stakes are worth roughly $1.3 billion collectively.

TimesSquare Capital Management mentioned Cintas Corporation (NASDAQ:CTAS) in its Q3 2022 investor letter. Here is what the firm has to say:

“Cintas Corporation (NASDAQ:CTAS), a supplier of corporate identity uniforms and facility services, gained 4%. Fiscal first quarter results featured beats to revenue and earnings estimates. The company is successfully winning new business and cross-selling into existing customers.”

1. West Pharmaceutical Services, Inc. (NYSE:WST)

5-Year Share Price Gains as of February 8: 198.5%

West Pharmaceutical Services, Inc. (NYSE:WST) specializes in the packaging and distribution of pharmaceuticals. The stock outperformed the market in the past five years with a 198.5% return during this time. The company maintains a 30-year streak of consistent dividend growth, which places it as one of the best dividend stocks on our list. It pays a quarterly dividend of $0.19 per share and has a dividend yield of 0.28%, as of February 8.

As of the close of Q3 2022, 39 hedge funds tracked by Insider Monkey reported owning stakes in West Pharmaceutical Services, Inc. (NYSE:WST), up from 34 in the previous quarter. These stakes are worth $817.5 million collectively.

Conestoga Capital Advisors mentioned West Pharmaceutical Services, Inc. (NYSE:WST) in its Q3 2022 investor letter. Here is what the firm has to say:

“West Pharmaceutical Services, Inc. (NYSE:WST): Similar to its industry peers, WST saw its share price decline despite solid overall results. WST reported 23% organic growth (ex-COVID) in the second quarter as the biologics market continues to perform well. WST did reduce full-year guidance by $100 million to account for greater foreign currency headwinds ($75mm impact) and slowing COVID demand ($85mm impact). This implies a guidance raise of $60 million on the base business, which we view as important to driving long term appreciation. WST also set expectations for COVID revenue to decline by 30-50% in 2023 after declining 20% to $375 million in 2022.”

You can also take a look at 12 Best S&P 500 Dividend Stocks To Buy and 12 Cheap Biotech Stocks To Buy

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