In this article, we discuss 5 dividend stocks for beginners. If you want to see more income stocks for investors starting out their investment journey, click 10 Dividend Stocks For Beginners.
5. Compass Diversified (NYSE:CODI)
Dividend Yield as of May 6: 4.33%
Number of Hedge Fund Holders: 11
Compass Diversified (NYSE:CODI) is a private equity company engaged in acquisitions, buyouts, industry consolidation, recapitalization, and late stage and middle market investments. The firm invests through its balance sheet and generally has an investment horizon of five to seven years.
Compass Diversified (NYSE:CODI) reported its financial results for the first fiscal quarter of 2022 on May 5, posting earnings per share of $0.52, beating market estimates by $0.21. The revenue grew 10.60% year-over-year to $510.51 million, ahead of consensus estimates by $29.26 million.
On April 4, Compass Diversified (NYSE:CODI) declared a quarterly dividend of $0.25 per share, in line with previous. The dividend was paid on April 28, to shareholders of the company as of April 21. Compass Diversified (NYSE:CODI)’s dividend yield on May 6 came in at 4.33%. The investment advisory firm B. Riley initiated coverage of the stock on April 8 with a Buy rating and a $33 price target.
According to Insider Monkey’s Q4 data, Compass Diversified (NYSE:CODI) was found in the public portfolios of 11 hedge funds, compared to 8 funds in the last quarter. Chuck Royce’s Royce & Associates is the biggest shareholder of the company, with 961,239 shares worth $29.3 million.
4. Crescent Energy Company (NYSE:CRGY)
Dividend Yield as of May 6: 2.85%
Number of Hedge Fund Holders: 5
Crescent Energy Company (NYSE:CRGY) was founded in 2020 and is based in Houston, Texas, operating as a provider of crude oil, natural gas, and natural gas liquids. Priced at $16.86, Crescent Energy Company (NYSE:CRGY) offers a dividend yield of 2.85% as of May 6, which merits its inclusion in out list of the top dividend stocks for beginners.
On March 10, Crescent Energy Company (NYSE:CRGY) declared a quarterly dividend of $0.12 per share. The dividend was distributed on March 31, for shareholders of record on March 18. The company also announced a full-year revenue of $1.48 billion for 2021, up 96.2% year-over-year. Crescent Energy Company (NYSE:CRGY) expects to activate 32 to 38 wells in the Eagle Ford in 2022, with more than 90% average working interest. The company guided for levered free cash flow of $325 million to $375 million this year.
Truist analyst Neal Dingmann on April 8 initiated coverage of Crescent Energy Company (NYSE:CRGY) with a Buy rating and a $24 price target. The analyst remains positive on Crescent Energy Company (NYSE:CRGY)’s “diversified” asset base and “stable” production and cash flow, along with a “notable accretive” acquisition history. The company has already raised its dividend to nearly 4% in the short time since its reverse merger, and given its robust free cash flows, the yield could increase further, the analyst told investors in a bullish thesis.
Among the hedge funds tracked by Insider Monkey, 5 funds were long Crescent Energy Company (NYSE:CRGY) in the fourth quarter of 2021, with collective stakes worth over $5 million.
3. Deluxe Corporation (NYSE:DLX)
Dividend Yield as of May 6: 4.50%
Number of Hedge Fund Holders: 12
Deluxe Corporation (NYSE:DLX) operates through four segments – Payments, Cloud Solutions, Promotional Solutions, and Checks, offering technology solutions to small and enterprise-level businesses and financial institutions in the United States, Canada, Australia, South America, and Europe.
On May 5, Deluxe Corporation (NYSE:DLX) declared a $0.30 per share quarterly dividend, in line with previous. The dividend is distributable on June 6, to shareholders of the company as of May 23. Deluxe Corporation (NYSE:DLX)’s dividend yield on May 6 came in at 4.50%.
Deluxe Corporation (NYSE:DLX) announced its Q1 results on May 5, posting earnings per share of $1.05, beating estimates by $0.03. The revenue grew 26% from the prior-year quarter, reaching $556 million, surpassing market consensus by $23.87 million.
Cowen analyst Lance Vitanza maintained an Outperform rating on Deluxe Corporation (NYSE:DLX) but lowered the price target on the shares to $42 from $50 on April 27. The analyst noted that revenue forecasts remain unchanged but he cut his profitability projections in 1H22 to reflect the rising inflationary pressures. He expects margins to improve later in the year and beyond as the company benefits from inherent operating leverage, the analyst added.
Select Equity Group is the largest stakeholder of Deluxe Corporation (NYSE:DLX), with 1.5 million shares worth $49.2 million. Overall, 12 hedge funds were bullish on the stock at the end of December 2021.
2. Invesco Ltd. (NYSE:IVZ)
Dividend Yield as of May 6: 4.06%
Number of Hedge Fund Holders: 34
Invesco Ltd. (NYSE:IVZ) is a Georgia-based public investment manager that specializes in equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. Invesco Ltd. (NYSE:IVZ) serves retail and institutional clients, high-net worth individuals, public corporations, unions, non-profit organizations, endowments, pension funds, financial institutions, and sovereign wealth funds.
On April 26, Invesco Ltd. (NYSE:IVZ) declared a $0.1875 per share quarterly dividend, a 10.3% increase from its prior dividend of $0.17. The dividend is payable on June 2, for shareholders of record on May 10. Deutsche Bank analyst Brian Bedell on April 27 maintained a Buy recommendation on Invesco Ltd. (NYSE:IVZ) but lowered the firm’s price target on the stock to $24 from $26 following the “good” Q1 results.
Among the hedge funds tracked by Insider Monkey, 34 funds were bullish on Invesco Ltd. (NYSE:IVZ) at the end of Q4 2021, with collective stakes worth $1.6 billion. Nelson Peltz’s Trian Partners is the largest shareholder of the company, with a position worth $1.18 billion.
1. EnLink Midstream, LLC (NYSE:ENLC)
Dividend Yield as of May 6: 4.27%
Number of Hedge Fund Holders: 8
EnLink Midstream, LLC (NYSE:ENLC) is a Texas-based midstream energy company that deals in natural gas, crude oil, and natural gas liquids. The company also offers brine disposal services. EnLink Midstream, LLC (NYSE:ENLC)’s dividend yield on May 6 was 4.27%.
On April 19, EnLink Midstream, LLC (NYSE:ENLC) declared a $0.1125 per share quarterly dividend, in line with previous. The dividend is payable on May 13, to shareholders of the company as of the close of business on April 29.
EnLink Midstream, LLC (NYSE:ENLC) reported its Q1 results on May 3, posting earnings per share of $0.13, beating estimates by $0.03. Revenue for the period increased 78.44% year-over-year to $2.23 billion, surpassing analysts’ predictions by $493.15 million.
Raymond James analyst Justin Jenkins on May 4 reiterated an Outperform rating on EnLink Midstream, LLC (NYSE:ENLC) and raised the price target on the shares to $12 from $11 following the “impressive beat and raise” in Q1. The analyst believes EnLink Midstream, LLC (NYSE:ENLC)’s relative valuation should improve, resulting in an attractive total return value proposition.
According to Insider Monkey’s Q4 data, 8 hedge funds were bullish on EnLink Midstream, LLC (NYSE:ENLC), with combined stakes of $20.3 million. Ken Griffin’s Citadel Investment Group is the leading shareholder of the company, with 1.4 million shares worth $10 million.
You can also take a look at 10 LNG Shipping Stocks to Buy Now and 12 Best US Stocks to Buy Now.
