In this article, we will be taking a look at 5 dividend stocks that raised their dividend in 2021. To read our detailed analysis of dividend investing, you can go directly to see the 10 Dividend Stocks That Raised Their Dividend in 2021.
5. Walgreens Boots Alliance, Inc. (NASDAQ: WBA)
Number of Hedge Fund Holders: 41
Dividend Yield: 3.9%
Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is a holding company that owns and operates the retail pharmacy chains named Walgreens and Boots. The company ranks 5th on our list of dividend stocks that raised their dividend in 2021.
Truist, as of this July, has a Hold rating on shares of Walgreens Boots Alliance, Inc. (NASDAQ: WBA). The firm holds this rating alongside a price target of $52.
In the fiscal third quarter of 2021, Walgreens Boots Alliance, Inc. (NASDAQ: WBA) had an EPS of $1.38, beating estimates by $0.23. The company’s revenue was $34.03 billion, beating estimates by $526.6 million. Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has gained 19.44% year to date and 42.51% in the past year.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Walgreens Boots Alliance, Inc. (NASDAQ: WBA) worth roughly $1.1 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.
Ariel Investments, an investment management firm, mentioned Walgreens Boots Alliance, Inc. (NASDAQ: WBA) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Walgreens Boots Alliance, Inc. has been essentially flat during our brief holding period. We have successfully owned Walgreens in the past. Recently, its share price has been pressured on concerns that Amazon may enter the prescription drug distribution business. As recently as 2015, Walgreens was a market favorite, trading at more than 20 times forward earnings. The company was expected to grow in good times and bad. Walgreens’ new clinics, designed to treat day-to-day healthcare needs such as flu shots and children’s ear infections, could be part of the solution for expensive emergency room overcrowding. Finally, trends toward generic pharmaceutics that began in 2015 are still considered a positive, as pharmacies have more influence in directing customers toward particular generics than with a patient seeking a patented drug prescribed by a doctor. Walgreens will face new competition going forward, but with its current depressed valuation, we believe the threats are more than discounted in an attractive stock price.”
4. National Retail Properties, Inc. (NYSE: NNN)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.7%
National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, invests in high-quality retail properties subject to long-term, net leases. As of September 2020, the company owned and operated about 3,114 properties in 48 states with a gross leasable area of about 32.4 million square feet. It ranks 4th on our list of dividend stocks that raised their dividend in 2021.
Wells Fargo holds a raised price target of $50 on shares of National Retail Properties, Inc. (NYSE: NNN) as of this July, compared to its previous price target of $44. The firm also reiterated an Equal Weight rating on the stock at the same time.
In the second quarter of 2021, National Retail Properties, Inc. (NYSE: NNN) had an FFO of $0.70, beating estimates by $0.02. The company’s revenue was $179.01 million, up 9.35% year over year and beating estimates by $2.01 million. National Retail Properties, Inc. (NYSE: NNN) has gained 5.38% in the past 6 months and 14.99% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in National Retail Properties, Inc. (NYSE: NNN) worth roughly $188 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $289 million.
3. International Business Machines Corporation (NYSE: IBM)
Number of Hedge Fund Holders: 41
Dividend Yield: 4.8%
International Business Machines Corporation (NYSE: IBM), a technology and computer hardware company, is based in New York. It operates in over 171 countries and ranks 3rd on our list of dividend stocks that raised their dividend in 2o21.
This July, Morgan Stanley raised its price target on shares of International Business Machines Corporation (NYSE: IBM) to $164, while reiterating an Equal Weight rating on the stock.
In the second quarter of 2021, International Business Machines Corporation (NYSE: IBM) had an EPS of $2.33, beating estimates by $0.04. The company’s revenue was $18.75 billion, up 3.43% year over year and beating estimates by $447.5 million. International Business Machines Corporation (NYSE: IBM) has gained 7.77% in the past 6 months and 10.55% year to date.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in International Business Machines Corporation (NYSE: IBM) worth roughly $1.4 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $1.4 billion.
2. Star Group, L.P. (NYSE: SGU)
Number of Hedge Fund Holders: 11
Dividend Yield: 5.5%
Star Group, L.P. (NYSE: SGU) is a utility company that sells home heating and air conditioning products and services to residential and commercial customers in the US. The company ranks 2nd on our list of dividend stocks that raised their dividend in 2021.
In the fiscal third quarter of 2021, Star Group, L.P. (NYSE: SGU) had an EPS of -$0.30. The company’s revenue was $213.01 million, up 43.93% year over year. Star Group, L.P. (NYSE: SGU) has gained 0.39% in the past 6 months and 10.47% year to date.
By the end of the second quarter of 2021, 11 hedge funds out of the 873 tracked by Insider Monkey held stakes in Star Group, L.P. (NYSE: SGU) worth roughly $68 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $60 million.
1. Altria Group, Inc. (NYSE: MO)
Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%
Altria Group, Inc. (NYSE: MO), one of the largest tobacco companies in the world, sells cigarettes and oral tobacco products across the globe. The company ranks 1st on our list of dividend stocks that raised their dividend in 2021.
This July, Stifel reiterated a Buy rating and $56 price target on shares of Altria Group, Inc. (NYSE: MO).
In the second quarter of 2021, Altria Group, Inc. (NYSE: MO) had an EPS of $1.23, beating estimates by $0.06. The company’s revenue was $5.61 billion, up 10.90% year over year and beating estimates by $250.80 million. Altria Group, Inc. (NYSE: MO) has gained 5.86% in the past 6 months and 23.90% year to date.
By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.
Broyhill Asset Management, an investment management firm, mentioned Altria Group, Inc. (NYSE: MO) in its second-quarter 2021 investor letter. Here’s what they said:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
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