In this article, we will discuss the 5 safe dividend stocks to buy in 2022. If you want to read our comprehensive analysis of dividend stocks, go directly to 10 Safe Dividend Stocks for 2022.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 37
Dividend Yield: 3.55% (as of January 4)
No. of Years of Consecutive Dividend Increase: 6
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a pharmacy-led health and beauty retail chain, with almost 9000 retail drugstores in the United States, and 4000 stores in 8 other countries. The firm has raised its dividend payout for 46 consecutive years, and has seen its share price rise since the sale of its Alliance Healthcare Business in late 2020. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is investing heavily towards growth and expansion.
The retail giant posted an EPS of $1.17 for the third quarter, beating estimates by $0.15. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) raked in $34.26 billion in quarterly revenue, outperforming estimates by $869.13 million.
On October 15, Truist analyst David MacDonald raised the firm’s price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $56 from $52, reiterating a ‘Hold’ rating on the company shares. The analyst cites the company’s strategic initiative into healthcare with the launch of Walgreens Health segment as a positive catalyst, and notes that its investments into key areas should drive long-term growth.
37 hedge funds were long Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of the third quarter. In comparison, 41 hedge funds were bullish on the company stock a quarter ago.
4. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 24
Dividend Yield: 3.63% (as of January 4)
No. of Years of Consecutive Dividend Increase: 47
Next up on our list of safe dividend stocks to buy in 2022 is Consolidated Edison, Inc. (NYSE:ED), a New York-based company that offers regulated electric, gas, and steam delivery services. The firm has grown its dividend payout for 16 consecutive years, offering a 3.63% yield that is high relative to peers. Consolidated Edison, Inc. (NYSE:ED) was reported in the portfolio of 24 hedge funds at the end of the third quarter, down from 30 hedge funds in the preceding quarter.
Consolidated Edison, Inc. (NYSE:ED) posted earnings per share of $1.41, which missed estimates by $0.07. However, quarterly revenue was $3.61 billion, outperforming estimates by $152.85 million.
On December 8, research firm Citigroup maintained its ‘Neutral’ rating on Consolidated Edison, Inc. (NYSE:ED) stock, setting the price target at $84. Having expanded its footprint in the renewable energy segment in recent years, the company is well-positioned to benefit from the decarbonization mega-trend.
3. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Dividend Yield: 4.78% (as of January 4)
No. of Years of Consecutive Dividend Increase: 8
Verizon Communications Inc. (NYSE:VZ) is a telecommunication giant based in the United States, offering communications, technology, information and entertainment products and services. The company has invested heavily in 5G technology, and shareholders are expected to continue reaping the benefits as the high dividend yield provides good downside protection in the near term. Verizon Communications Inc. (NYSE:VZ) is also continuing to see net additions to its broadband and postpaid phone segments.
For the third quarter, Verizon Communications Inc. (NYSE:VZ) reported earnings per share of $1.41, exceeding analysts’ forecasts by $0.05. In December, the firm declared quarterly dividend of $0.64 per share, with shares trading at $53.52 as of January 4.
On October 21, Cowen analyst Colby Synesael raised the price target on Verizon Communications Inc. (NYSE:VZ) stock to $71 from $68, reiterating an ‘Outperform’ rating. The analyst holds that the stock is meaningfully undervalued at current levels.
As of the end of the third quarter, 57 hedge funds held positions in Verizon Communications Inc. (NYSE:VZ) worth $10.35 billion, down from 63 hedge funds in the second quarter of 2021.
2. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Dividend Yield: 6.93% (as of January 4)
No. of Years of Consecutive Dividend Increase: 8
Enbridge Inc. (NYSE:ENB) is an energy infrastructure company based in Canada, operating through its segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The company declared a quarterly dividend of CAD 0.860 per share, which is a 3% increase from prior dividend of CAD 0.835. Yield stands at an impressive 6.93%, which appears sustainable given the company’s incredibly stable cash flows and significant growth potential in the renewables segment.
Investors are loading up on Enbridge Inc. (NYSE:ENB), which is the largest midstream company in North America. 24 hedge funds held Enbridge Inc. (NYSE:ENB) stock in their portfolios at the end of the third quarter, up from 19 in the preceding quarter.
On November 8, RBC Capital analyst Robert Kwan kept an ‘Outperform’ rating on Enbridge Inc. (NYSE:ENB) stock, raising the price target to C$61 from C$57
1. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Dividend Yield: 7.86% (as of January 4)
No. of Years of Consecutive Dividend Increase: 22
Enterprise Products Partners L.P. (NYSE:EPD) deals in the production and sale of natural gas and petrochemicals. For the third quarter, Enterprise Products Partners L.P. (NYSE:EPD) posted an EPS of $0.54, beating estimates by $0.03. Quarterly revenue amounted to $10.83 billion, exceeding analysts’ forecasts by $2.33 billion.
Enterprise Products Partners L.P. (NYSE:EPD) has increased its payout for 23 consecutive years, and returned more than $40 billion in capital to shareholders.
As of the third quarter, 25 hedge funds were bullish on Enterprise Products Partners L.P. (NYSE:EPD) stock, in comparison to 28 stocks a quarter ago.
In October, Mizuho analyst Gabriel Moreen reiterated a ‘Buy’ rating on Enterprise Products Partners L.P. (NYSE:EPD) stock, raising the price target to $29 from $28. The analyst noted that the company was positioned to benefit in a $75 per barrel crude environment, similar to other midstream outperformers, and has the ability to translate earnings to cash return.
You can also take a look at Bill Gates’ Stock Portfolio: Top 15 Picks and 10 Best Dividend Stocks Under $20
