In this article, we discuss 5 important dividend increases to watch in August. If you want to read our detailed analysis of dividend stocks and their importance, go directly to read 10 Important Dividend Increases to Watch in August.
5. AdvanSix Inc. (NYSE:ASIX)
Dividend Yield as of August 15: 1.45%
AdvanSix Inc. (NYSE:ASIX) is a New Jersey-based chemical company that specializes in the production of fertilizers. In Q2 2022, the company reported $95.8 million in operating cash flow, up from $49 million in the previous quarter. Its free cash flow grew to $78 million, from $28 million in the preceding quarter. The dividend payments for the quarter amounted to over $3.5 million.
On August 5, AdvanSix Inc. (NYSE:ASIX) declared a 16% hike in its quarterly dividend to $0.145 per share. As of August 15, the stock’s dividend yield stood at 1.45%.
Piper Sandler analyst Charles Neivert mentioned that the uncertain economy could have some impact on the nylon end markets. Given this, the analyst lowered his price target on AdvanSix Inc. (NYSE:ASIX) in August to $60 but kept an Overweight rating on the shares.
At the end of Q1 2022, 17 hedge funds in Insider Monkey’s database owned stakes in AdvanSix Inc. (NYSE:ASIX), down from 20 in the previous quarter. The collective value of these stakes is over $72 million. Scopus Asset Management was the company’s leading stakeholder in Q1, owning a stake worth over $12.7 million.
4. Microchip Technology Incorporated (NASDAQ:MCHP)
Dividend Yield as of August 15: 1.63%
Microchip Technology Incorporated (NASDAQ:MCHP) manufactures microcontrollers, mixed-signal, and integrated circuits. The company initiated its dividends in 2003 and has raised its dividends 71 times since its inception. On August 2, it declared a quarterly dividend of $0.301 per share, up 9% from the previous dividend. The stock’s dividend yield was recorded at 1.63% on August 15.
In fiscal Q1 2023, Microchip Technology Incorporated (NASDAQ:MCHP) generated $718.5 million in free cash flow, up from $633 million in the previous quarter. Its operating cash flow came in at $840.4 million, compared with $747.7 million in the preceding quarter. The company’s revenue of $1.96 billion also presented a 25% year-over-year growth.
Following the company’s strong fiscal Q1 results, B.Riley lifted its price target on Microchip Technology Incorporated (NASDAQ:MCHP) in August to $86 with a Buy rating on the shares.
The number of hedge funds tracked by Insider Monkey owning stakes in Microchip Technology Incorporated (NASDAQ:MCHP) stood at 42 in Q1 2022, down from 48 in the previous quarter. The collective value of these stakes is over $993.4 million.
3. Papa John’s International, Inc. (NASDAQ:PZZA)
Dividend Yield as of August 15: 1.83%
Papa John’s International, Inc. (NASDAQ:PZZA) is an Indiana-based American pizza restaurant chain. On August 4, the company announced a 20% hike in its quarterly dividend to $0.42 per share. As of August 15, the stock’s dividend yield came in at 1.83%.
In Q2 2022, Papa John’s International, Inc. (NASDAQ:PZZA) reported a 1.5% year-over-year growth in its revenue to $522.7 million. During the quarter, the company paid $12.5 million in dividends to shareholders. Moreover, it also repurchased $42.8 million worth of shares and had $329.8 million available for repurchase under the outstanding authorization.
Starboard Value LP owned a stake worth over $290.5 million in Papa John’s International, Inc. (NASDAQ:PZZA), becoming the company’s largest stakeholder in Q1 2022. Overall, 27 hedge funds in Insider Monkey’s database owned stakes in the pizza company in Q1, valued collectively at over $608.6 million.
2. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Dividend Yield as of August 15: 2.19%
Skyworks Solutions, Inc. (NASDAQ:SWKS) is a California-based semiconductor manufacturing company that also specializes in mobile communications systems. The company’s cash flow remained resilient in fiscal Q3 2022, generating $86.3 million in free cash flow while its operating cash flow came in at over $213.8 million. It paid $90 million in dividends to shareholders, up from $82 million paid during the same period last year.
On August 4, Skyworks Solutions, Inc. (NASDAQ:SWKS) declared a quarterly dividend of $0.62 per share, raising it by 11%. The stock’s dividend yield came in at 2.19%, as of August 15.
Street analysts remained positive on Skyworks Solutions, Inc. (NASDAQ:SWKS)’s fiscal Q3 results and its business models. In August, both B. Riley and BMO Capital raised their price targets on the stock to $120 and $135, respectively.
As per Insider Monkey’s Q1 2022 database, 39 hedge funds owned stakes in Skyworks Solutions, Inc. (NASDAQ:SWKS), down from 41 in the previous quarter. The collective value of these stakes is over $780.5 million. With over 1.2 million shares, Citadel Investment Group was the company’s leading stakeholder in Q1.
1. Murphy Oil Corporation (NYSE:MUR)
Dividend Yield as of August 15: 2.84%
An American natural gas liquids company, Murphy Oil Corporation (NYSE:MUR) raised its dividend by 43% on August 3 to $0.25 per share. The company has been paying dividends to shareholders for over 60 years. As of August 15, the stock’s dividend yield stood at 2.84%.
In Q2 2022, Murphy Oil Corporation (NYSE:MUR) reported revenue of $1.1 billion, up 100% from the same period last year. The company’s free cash flow for the quarter came in at over $266.5 million, compared with $93.4 million in the previous quarter. Murphy Oil Corporation (NYSE:MUR) aims to utilize 75% of its adjusted free cash flow to reduce long-term debt.
In July, MKM Partners initiated its coverage of Murphy Oil Corporation (NYSE:MUR) with a Buy rating and a $38 price target.
As of the close of Q1 2022, 20 hedge funds tracked by Insider Monkey owned stakes in Murphy Oil Corporation (NYSE:MUR), valued at over $167 million. In the previous quarter, 24 hedge funds owned stakes in the company, worth $136.6 million.
You can also take a look at 10 Best Blue Chip Dividend Stocks to Buy in August and Low-Risk Retirement Portfolio: Top 10 Stocks
