In this article, we discuss 5 income stocks with over 10 years of dividend increases. If you want our detailed analysis of these stocks, go directly to 10 Income Stocks with Over 10 Years of Dividend Increases.
5. AXIS Capital Holdings Limited (NYSE:AXS)
Dividend Yield as of January 19: 3.04%
Number of Hedge Fund Holders: 26
Number of Years of Dividend Increases: 18
AXIS Capital Holdings Limited (NYSE:AXS) is a holding company that operates via its subsidiaries, conducting operations in Bermuda, the United States, Canada, Europe, and Singapore. AXIS Capital Holdings Limited (NYSE:AXS) line of business includes property, professional lines, terrorism, marine, energy, environmental, and other categories of insurance and reinsurance.
AXIS Capital Holdings Limited (NYSE:AXS) on December 2 declared a $0.43 per share quarterly dividend, which reflects a 2.4% increase from the prior dividend of $0.42. The dividend was paid on January 18 to shareholders of record on December 30. The company also announced a share repurchase program of $100 million in common stock, effective until December 31, 2022.
On January 4, Wells Fargo analyst Elyse Greenspan upgraded AXIS Capital Holdings Limited (NYSE:AXS) to Equal Weight from Underweight with a price target of $57, up from $54. The analyst believes that AXIS Capital Holdings Limited (NYSE:AXS) should be able to benefit from the continued favorable market conditions. Further, she notes AXIS Capital Holdings Limited (NYSE:AXS) recently announced a new buyback authorization, which will enable the company to return excess capital to shareholders, while still taking advantage of organic growth opportunities. Lastly, the shares trade at a cheap valuation.
Pzena Investment Management is the largest AXIS Capital Holdings Limited (NYSE:AXS) stakeholder as of Q3 2021, owning 7.1 million shares of the company, worth $327 million. Overall, 26 hedge funds were long AXIS Capital Holdings Limited (NYSE:AXS) in the third quarter, up from 19 funds in the prior quarter.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of January 19: 3.33%
Number of Hedge Fund Holders: 74
Number of Years of Dividend Increases: 13
Bristol-Myers Squibb Company (NYSE:BMY), one of the largest American multinational pharmaceutical companies, is a solid dividend stock that offers a 3.33% yield and has had 13 consistent years of dividend increases. The company performed well in Q3 2021, beating market consensus estimates for earnings and revenue.
On December 13, Bristol-Myers Squibb Company (NYSE:BMY) announced a quarterly dividend per share of $0.54, representing a 10.2% increase from the prior dividend of $0.49. The dividend is payable on February 1, to shareholders of record on January 7. Bristol-Myers Squibb Company (NYSE:BMY) also reported a share repurchase authorization of $15 billion in common stock, which brings the total outstanding amount available for repurchase to $15.2 billion.
JPMorgan analyst Chris Schott on December 20 kept an Overweight rating on Bristol-Myers Squibb Company (NYSE:BMY) with an $80 price target. The analyst says that while investor concerns around new product “controversies” and the company’s ongoing loss of exclusivity cycle are understandable, these appear “well reflected” with the shares trading at eight times estimated 2022 earnings. The analyst sees Bristol-Myers Squibb Company (NYSE:BMY) rebounding in 2022, owing to multiple new launches and pipeline catalysts.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 74 funds reported owning stakes in Bristol-Myers Squibb Company (NYSE:BMY), worth $4.75 billion. Warren Buffett’s Berkshire Hathaway is the leading Bristol-Myers Squibb Company (NYSE:BMY) stakeholder, with over 22 million shares, valued at $1.30 billion.
Wedgewood Partners mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2020 investor letter. Here is what they had to say:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
3. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of January 19: 3.45%
Number of Hedge Fund Holders: 36
Number of Years of Dividend Increases: 12
American Electric Power Company, Inc. (NASDAQ:AEP) is an investor-owned electric utility company that provides electricity to millions of customers in 11 states. The company was founded in 1906 and is headquartered in Ohio, Columbus.
American Electric Power Company, Inc. (NASDAQ:AEP) on January 18 declared a $0.78 per share quarterly dividend, in line with previous, payable on March 10 to shareholders of record on February 10.
On November 5, American Electric Power Company, Inc. (NASDAQ:AEP) announced its 2022 guidance. The company stated that the operating EPS would equal $4.85-$5.05, in line with consensus EPS of $4.98. The annual projected operating earnings growth rate is expected to reach 5%-7%. American Electric Power Company, Inc. (NASDAQ:AEP) also plans to spend $38 billion over the upcoming five years to make energy transmission and distribution more efficient, and invest in renewable energy grids and projects.
Mizuho analyst Paul Fremont on October 27 lowered the price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $86 from $91 and kept a Buy rating on the shares after the company announced the sale of its Kentucky Power subsidiary for $1.625 billion. The analyst reduced the price target to account for market multiples at the time.
Of the 36 hedge funds that were long American Electric Power Company, Inc. (NASDAQ:AEP) in the third quarter of 2021, Renaissance Technologies is the leading stakeholder of the company, with 2.3 million shares worth $189.75 million.
2. Edison International (NYSE:EIX)
Dividend Yield as of January 19: 4.39%
Number of Hedge Fund Holders: 25
Number of Years of Dividend Increases: 18
Edison International (NYSE:EIX) is a California-based public utility holding company providing electricity and energy solutions via its subsidiaries, namely Southern California Edison and Edison Energy.
On December 10, Edison International (NYSE:EIX) declared a $0.70 per share quarterly dividend, which is a 5.7% increase from the prior dividend of $0.66. The dividend will be paid on January 31, to shareholders of record on December 31. This marks the 18th year of consecutive dividend increases by the company.
Argus analyst Gary Hovis raised the price target on Edison International (NYSE:EIX) to $73 from $68 and kept a Buy rating on the shares on December 29. The analyst is positive on Edison International (NYSE:EIX)’s forward earnings visibility, favorable regulatory environment, and improving financial strength while noting that the company is seeing increased revenue from the recovery of its investments in infrastructure projects and alternative energy facilities.
Among the hedge funds tracked by Insider Monkey, Zimmer Partners is one of the leading Edison International (NYSE:EIX) stakeholders, with 4.3 million shares worth $240.4 million. Overall, 25 hedge funds were long Edison International (NYSE:EIX) in Q3 2021, up from 18 funds in the preceding quarter.
1. Healthcare Services Group, Inc. (NASDAQ:HCSG)
Dividend Yield as of January 19: 4.73%
Number of Hedge Fund Holders: 21
Number of Years of Dividend Increases: 18
Healthcare Services Group, Inc. (NASDAQ:HCSG) operates in the healthcare industry, working on housekeeping, laundry, dining, and nutritional services. Healthcare Services Group, Inc. (NASDAQ:HCSG) aims to improve the operational and financial outcomes of companies in the healthcare sector.
On October 20, Healthcare Services Group, Inc. (NASDAQ:HCSG) declared a $0.21 per share quarterly dividend, in line with previous, which was paid on December 23. As of January 19, Healthcare Services Group, Inc. (NASDAQ:HCSG) offers a dividend yield of 4.73%, and has been increasing its dividends consistently for 18 years.
RBC Capital analyst Sean Dodge on October 21 lowered the price target on Healthcare Services Group, Inc. (NASDAQ:HCSG) to $20 from $29 and kept a Sector Perform rating on the shares. The company’s Q3 earnings fell “well short” of consensus due to higher-than-expected labor and food costs stemming from the tight U.S. labor markets, along with the rising wage rate inflation and food supply chain disruptions.
21 hedge funds in the third quarter database of Insider Monkey were long Healthcare Services Group, Inc. (NASDAQ:HCSG), up from 18 funds in the preceding quarter. Cliff Asness’ AQR Capital Management is the largest Healthcare Services Group, Inc. (NASDAQ:HCSG) stakeholder, with 1.28 million shares, worth $32 million.
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