In this article, we discuss 5 latest dividend hikes to watch. If you want our detailed analysis of these stocks, go directly to 10 Latest Dividend Hikes to Watch.
5. The Gap, Inc. (NYSE:GPS)
Number of Hedge Fund Holders: 30
Percentage of Dividend Increase: 25%
The Gap, Inc. (NYSE:GPS) is an American retailer that designs and markets apparel, accessories, and personal care products under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. The Gap, Inc. (NYSE:GPS)’s dividend yield is 4.16% as of February 28.
On February 24, The Gap, Inc. (NYSE:GPS) raised its per share quarterly dividend to $0.15, a 25% increase from its prior dividend of $0.12. The dividend is distributable on April 27, to shareholders of record on April 6.
Deutsche Bank analyst Gabriella Carbone on February 16 lowered the price target on The Gap, Inc. (NYSE:GPS) to $26 from $29 and kept a Buy rating on the shares. The analyst expects in line reports for Q4 for the apparel retail sector, saying the omicron surge and higher than expected freight and supply chain costs are likely to “keep a lid on any upside.”
In the fourth quarter of 2021, 30 hedge funds were bullish on The Gap, Inc. (NYSE:GPS), with collective stakes amounting to $276.3 million. Pzena Investment Management held the largest stake in the company, with 3.78 million shares worth $66.7 million.
4. Universal Display Corporation (NASDAQ:OLED)
Number of Hedge Fund Holders: 34
Percentage of Dividend Increase: 50%
Founded in 1985 and headquartered in New Jersey, Universal Display Corporation (NASDAQ:OLED) manufactures organic light emitting diodes (OLED) technologies for the display and lighting industries.
Universal Display Corporation (NASDAQ:OLED) on February 23 declared a $0.30 per share quarterly dividend, a 50% increase from its earlier dividend of $0.20. The dividend is payable on March 31, for shareholders of record on March 17. The company posted an above consensus revenue of $146.25 million.
On February 24, Needham analyst James Ricchiuti lowered the price target on Universal Display Corporation (NASDAQ:OLED) to $195 from $245 after its Q4 earnings miss but kept a Buy rating on the shares. The analyst remains positive on Universal Display Corporation (NASDAQ:OLED) as the only pure-play in the OLED display market, stating that it is well-situated to benefit from the ongoing transition from LCD displays in the mobile market to OLED smartphones, tablets, and laptops.
Elite hedge funds hold significant stakes in Universal Display Corporation (NASDAQ:OLED) as of Q4 2021. 34 hedge funds in the database of Insider Monkey were long Universal Display Corporation (NASDAQ:OLED), holding stakes worth $1.35 billion. Citadel Investment Group owned the leading stake in Universal Display Corporation (NASDAQ:OLED) at the end of December 2021, with 690,798 shares worth $114 million.
3. American Homes 4 Rent (NYSE:AMH)
Number of Hedge Fund Holders: 36
Percentage of Dividend Increase: 80%
American Homes 4 Rent (NYSE:AMH) owns single-family properties in selected submarkets in 22 states. On February 17, American Homes 4 Rent (NYSE:AMH) declared a $0.18 per share quarterly dividend, an 80% increase from its prior dividend of $0.10. The dividend is payable on March 31, to shareholders of record on March 15.
On February 1, KeyBanc analyst Austin Wurschmidt initiated coverage of American Homes 4 Rent (NYSE:AMH) with a Sector Weight rating. While the analyst expects American Homes 4 Rent (NYSE:AMH) to deliver attractive internal growth and gain scale via its improving development pipeline and multiple acquisition channels, he thinks the stock is fairly valued given American Homes 4 Rent (NYSE:AMH) is trading at an 11% premium to historical levels.
Among the hedge funds monitored by Insider Monkey, 36 funds were long American Homes 4 Rent (NYSE:AMH) in Q4 2021, up from 33 funds in the preceding quarter. Echo Street Capital Management held the biggest position in American Homes 4 Rent (NYSE:AMH) at the end of December 2021, with 5.6 million shares valued at $244.70 million.
2. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 37
Percentage of Dividend Increase: 25.4%
Prologis, Inc. (NYSE:PLD) is a California-based real estate investment trust that invests in warehouses across North America, South America, Europe, and Asia. In Q4 2021, 37 hedge funds in the database of Insider Monkey were long Prologis, Inc. (NYSE:PLD), up from 32 funds in the quarter earlier.
Prologis, Inc. (NYSE:PLD) increased its dividend on February 25, declaring a $0.79 per share quarterly dividend, a 25.4% increase from its prior dividend of $0.63. The dividend is payable on March 31, to shareholders of record on March 18. The stock yields 2.18% as of February 28.
On January 19, Prologis, Inc. (NYSE:PLD) reported a Q4 FFO of $1.12, beating consensus estimates by $0.02. Revenue for the period came in at $1.28 billion, up 14.3% year-over-year, surpassing market predictions by $230 million. Average occupancy during the fourth quarter was 97.4%, up 80bps from Q3 2021.
Barclays analyst Anthony Powell raised the price target on Prologis, Inc. (NYSE:PLD) on February 2 to $171 from $161 and kept an Overweight rating on the shares. The analyst said the demand environment for logistic real estate continues to be the strongest in his coverage universe. Prologis, Inc. (NYSE:PLD) is increasing development and acquisitions, successfully fundraising strategic capital, and expanding its essential services business, the analyst told investors in a research note.
Jeffrey Furber’s AEW Capital Management is the largest shareholder of Prologis, Inc. (NYSE:PLD), with 2.1 million shares worth over $358 million.
Here is what Third Avenue Management has to say about Prologis, Inc. (NYSE:PLD) in its Q1 2021 investor letter:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 58
Percentage of Dividend Increase: 1200%
Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that supplies oil and condensate, natural gas liquids, and natural gas. The company raised its dividend by 1200% on February 24. Occidental Petroleum Corporation (NYSE:OXY) reported a $0.13 per share quarterly dividend, up from its prior dividend of $0.01. The dividend is payable on April 15, to shareholders of record on March 10.
Shares of Occidental Petroleum Corporation (NYSE:OXY) surged 11% on February 28 after the company announced plans to buy back $2.5 billion of debt, launching a tender offer to repurchase 15 tranches of notes with maturities in the 2023-2049 range.
On February 24, Occidental Petroleum Corporation (NYSE:OXY) posted its Q4 earnings. The company declared an EPS of $1.48, exceeding estimates by $0.38. Revenue over the period jumped 139.25% year-on-year to $8.01 billion, outperforming market predictions by $618.52 million.
Barclays analyst Jeanine Wai on January 31 raised the price target on Occidental Petroleum Corporation (NYSE:OXY) to $44 from $40 and kept an Overweight rating on the shares. According to the analyst, Occidental Petroleum Corporation (NYSE:OXY) is in a good position to discuss a framework for outsized cash returns alongside earnings.
Among the hedge funds tracked by Insider Monkey, 58 elite funds were bullish Occidental Petroleum Corporation (NYSE:OXY), with combined stakes of $3.8 billion. Icahn Capital LP is the biggest stakeholder of the company, with 45 million shares worth $1.30 billion.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
You can also take a look at 10 Oil Stocks To Buy Amid Ukraine Crisis and These 10 Companies Just Increased Their Dividends By Over 10%.
