In this article, we discuss 5 dividend stocks that raised their dividends in 2022. If you want to read our detailed discussion on dividend stocks as well as the risk/reward and methodology of this list, go directly to read 10 Dividend Stocks That Raised Their Dividends in 2022.
5. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 44
Dividend Yield as of September 20: 2.93%
Cardinal Health, Inc. (NYSE:CAH) is an Ohio-based multinational healthcare services company that provides medical devices and related products to its consumers. On May 10, the company hiked its quarterly dividend from $0.4908 to $0.4957 per share. This was the company’s 36th consecutive year of dividend growth. The stock’s dividend yield came in at 2.93%, as of September 20.
In fiscal Q4 2022, Cardinal Health, Inc. (NYSE:CAH) generated $3.1 billion in operating cash flow, up from $2.4 billion in the previous year. The company’s free cash flow came in at $2.73 billion, compared with $2 billion in 2021. In addition to this, it also returned $1.6 billion to shareholders through share repurchases and dividends during the year.
In August, UBS raised its price target on Cardinal Health, Inc. (NYSE:CAH) to $78 with a Buy rating on the shares, appreciating the company’s efficient capital deployment and growth in its Pharma segment. In addition to this, the firm also appreciated the company’s balance sheet and free cash flow yield.
Cardinal Health, Inc. (NYSE:CAH) was a popular buy among elite funds in Q2 2022, as 44 hedge funds owned stakes in the company, up from 38 in the previous quarter. These stakes hold a collective value of $814.8 million. With nearly 3 million shares, Pzena Investment Management owned the largest position in the company in Q2.
4. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 55
Dividend Yield as of September 20: 2.50%
Colgate-Palmolive Company (NYSE:CL) is an American multinational consumer products company that specializes in the production and distribution of household, healthcare, and personal care products. In August, Barclays appreciated the company’s organic sales growth in Q2 which also enabled the company to raise its full-year guidance. The firm maintained its Equal Weight rating on the stock.
In Q2 2022, Colgate-Palmolive Company (NYSE:CL) reported revenue of $4.48 billion, which showed a 5.2% growth from the same period last year. The company’s organic sales also grew by 9% from the prior-year quarter. It generated $350 million in free cash flow, up from $264 million in the previous quarter. The company’s operating cash flow also jumped to $528 million, from $386 million in the preceding quarter.
Colgate-Palmolive Company (NYSE:CL) currently pays a quarterly dividend of $0.47 per share, raising it from $0.45 in March. The company maintains a 60-year track record of dividend growth. In the past five years, it has raised its dividends at a CAGR of 3.09%. As of September 20, the stock has a yield of 2.50%.
At the end of Q2 2022, 55 hedge funds tracked by Insider Monkey owned stakes in Colgate-Palmolive Company (NYSE:CL), growing from 50 in the previous quarter. These stakes hold a combined value of roughly $3 billion.
First Eagle Investments mentioned Colgate-Palmolive Company (NYSE:CL) in its Q2 2022 investor letter. Here is what the firm has to say:
“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
Dividend Yield as of September 20: 2.66%
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company, headquartered in Ohio. The company was in 71 hedge fund public portfolios in Q2 2022, down from 72 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds are collectively valued at over $5.5 billion. Among these hedge funds, Bridgewater Associates was the company’s leading stakeholder in Q2.
In fiscal Q4 2022, The Procter & Gamble Company (NYSE:PG) posted revenue of $19.5 billion, up 3% from the same period last year. The company’s organic sales also presented a 7% year-over-year growth. In FY22, it returned nearly $19 billion to shareholders and $8.8 billion of this amount represented dividend payments. At the end of the year, the company had over $10.8 billion available in cash and cash equivalents.
In April, The Procter & Gamble Company (NYSE:PG) declared a 5% hike in its quarterly dividend to $0.9133 per share. Through this increase, the company extended its dividend growth streak to 66 years, which is one of the highest growth track records in the market. As of September 20, the stock’s dividend yield came in at 2.66%.
In August, Barclays maintained its Overweight rating on The Procter & Gamble Company (NYSE:PG), following the company’s fiscal Q4 results. The firm also appreciated the company’s business model in this current market cycle.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield as of September 20: 2.74%
Johnson & Johnson (NYSE:JNJ) is one of the most prominent pharmaceutical companies in the US. The company specializes in medical devices, vaccines, and other healthcare products. In April, it raised its quarterly dividend to $1.13 per share, from its previous dividend of $1.06 per share. This was the company’s 60th consecutive year of dividend growth. The company’s shares yield at 2.74%, as of September 20.
In Q2 2022, Johnson & Johnson (NYSE:JNJ) reported total year-over-year sales growth of 3% to $24 billion. The company’s operating cash flow for the quarter came in at $5.58 billion, up from roughly $4 billion in the previous quarter. Its free cash flow generation also remained strong at $4.7 billion, growing from $3.3 billion in the preceding quarter. For FY22, the company expects its revenue to fall between $93.3 billion to $94.3 billion.
At the end of June 2022, 83 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter, as per Insider Monkey’s data. The total value of these stakes over $6.7 billion. Rajiv Jain, Ken Fisher, and Ray Dalio were some of the company’s most prominent stakeholders in Q2.
Mayar Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:
“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.
To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…”
1. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 84
Dividend Yield as of September 20: 1.00%
S&P Global Inc. (NYSE:SPGI) is an American multinational company that specializes in financial information and analytics. As the company reported strong results in its recent quarter, Oppenheimer lifted its price target on the stock to $419 with an Outperform rating on the shares. The firm also sees the company as an attractive buying opportunity for income investors.
S&P Global Inc. (NYSE:SPGI) has been making uninterrupted dividend payments since 1937. In March, the company raised its quarterly dividend to $0.85 to share, presenting a 10.5% increase from its previous dividend of $0.77 per share. The company holds a 49-year run of raising its dividends consistently. As of September 20, the stock’s dividend yield stood at 1.00%.
As of the close of Q2 2022, 84 hedge funds owned stakes in S&P Global Inc. (NYSE:SPGI), down from 97 in the previous quarter. These stakes hold a collective value of over $7.2 billion.
Baron Funds mentioned S&P Global Inc. (NYSE:SPGI) in its Q2 2022 investor letter. Here is what the firm has to say:
“Another example is S&P Global (NYSE:SPGI), the leading rating agency and data provider, whose stock declined 29.0% year-to-date and 17.5% during the second quarter as a result of growing investor concerns over the slowdown in debt issuance. While debt issuance volumes have seen a dramatic decline – the worst quarterly decline in a decade (down 41% year-over-year in the second quarter based on Goldman Sachs estimates), – and this led management to withdraw its 2022 guidance in early June, we do not believe it would result in a permanent loss of capital.
First, ratings represent only about 30% of S&P Global’s total revenues. Second, despite inherent volatility in quarterly or annual issuance, over the long-term issuance volumes follow the trends in levels of debt outstanding, which has compounded in the mid-single digits for many years. Lastly, we believe that S&P Global’s strong competitive positioning will enable it to continue benefiting from pricing power, while taking advantage of secular tailwinds such as the growth in passive and ESG investing, international expansion, and the growing demand for data analytics.”
You can also take a look at 10 Best Cheap DRIP Stocks to Buy Now and 10 High-Yield Dividend Stocks for Stable Income
