In this article, we will be taking a look at 5 high yield dividend champions. To read our detailed analysis of dividend investing, you can go directly to see the 10 High Yield Dividend Champions.
5. Universal Corporation (NYSE: UVV)
Number of Hedge Fund Holders: 9
Dividend Yield: 6.3%
Number of Years of Consistent Dividend Increases: 50
Universal Corporation (NYSE: UVV) is a renowned tobacco company operating globally to provide leaf tobacco and plant-based ingredients. It ranks 5th on our list of the high yield dividend champions.
In the fiscal first quarter of 2022, Universal Corporation (NYSE: UVV) had an EPS of $0.30. The company’s revenue was $350 million, up 10.8% year over year.
By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Universal Corporation (NYSE: UVV) worth roughly $87 million. This is compared to 1o hedge funds in the previous quarter with a total stake value of approximately $93 million.
4. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 68
Dividend Yield: 6.3%
Number of Years of Consistent Dividend Increases: 38
Exxon Mobil Corporation (NYSE: XOM), an energy company, manufactures and transports crude oil, natural gas, petroleum products, petrochemicals, and other specialty products. The company ranks 4th on our list of high yield dividend champions.
Piper Sandler raised its price target on shares of Exxon Mobil Corporation (NYSE: XOM) this July from $63 to $69, while reiterating a Neutral rating on the shares.
In the second quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $1.10, beating estimates by $0.11. The company’s revenue was $67.74 billion, up 107.77% year over year and beating estimates by $3.02 billion.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in Exxon Mobil Corporation (NYSE: XOM) worth roughly $3.7 billion. This is compared to 65 hedge funds in the previous quarter with a total stake value of approximately $2.8 billion.
3. Enbridge Inc. (NYSE: ENB)
Number of Hedge Fund Holders: 19
Dividend Yield: 6.82%
Number of Years of Consistent Dividend Increases: 26
Enbridge Inc. (NYSE: ENB), an energy company, operates through its Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. It ranks 3rd on our list of high yield dividend champions.
RBC Capital, this August, reiterated an Outperform rating on shares of Enbridge Inc. (NYSE: ENB). BMO Capital also holds an Outperform rating on Enbridge Inc. (NYSE: ENB).
In the second quarter of 2021, Enbridge Inc. (NYSE: ENB) had an EPS of $0.54, beating estimates by $0.08. The company’s revenue was $8.77 billion, up 47.12% year over year and beating estimates by $1.61 billion
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Enbridge Inc. (NYSE: ENB) worth roughly $166 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $144 million.
ClearBridge Investments, an investment management firm, mentioned Enbridge Inc. (NYSE: ENB) in its first-quarter 2021 investor letter. Here’s what they said:
“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”
2. Altria Group, Inc. (NYSE: MO)
Number of Hedge Fund Holders: 47
Dividend Yield: 7.1%
Number of Years of Consistent Dividend Increases: 51
Altria Group, Inc. (NYSE: MO) is one of the largest tobacco companies in the world, selling cigarettes under the Marlboro and cigars under the Black & Mild brands. The company is based in Richmond, Virginia, and ranks 2nd on our list of high yield dividend champions.
Stifel holds a Buy rating and $56 price target on shares of Altria Group, Inc. (NYSE: MO) as of this July.
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.
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.”
1. AT&T Inc. (NYSE: T)
Number of Hedge Fund Holders: 68
Dividend Yield: 7.56%
Number of Years of Consistent Dividend Increases: 36
AT&T Inc. (NYSE: T), a telecommunications company, is next and last on our list of high yield dividend champions, ranking 1st. The company operates through its Communications, WarnerMedia, and Latin America segments.
RBC Capital holds a Sector Perform rating on shares of AT&T Inc. (NYSE: T) as of this July. The firm also has a price target of $30 on the stock.
In the second quarter of 2021, AT&T Inc. (NYSE: T) had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.7 billion.
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