In this article, we discuss 5 safe dividend stocks to buy today. If you want our detailed analysis of the important role dividend stocks play in any portfolio, in addition to our first five safe dividend stock picks, don’t miss 10 Safe Dividend Stocks to Buy Today.
5. Sonoco Products Company (NYSE:SON)
Number of Hedge Fund Holders: 24
Dividend Yield as of March 4: 3.16%
Number of Years of Dividend Increases: 38
Sonoco Products Company (NYSE:SON) manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.
Sonoco Products Company (NYSE:SON) has a rich history of increasing dividends, which currently stretches to 38 consecutive years. Sonoco Products Company (NYSE:SON) on February 9 declared a quarterly dividend of $0.45 per share, in line with previous. The dividend will be paid on March 10, to shareholders of record on February 23.
On February 10, in its Q4 earnings report, Sonoco Products Company (NYSE:SON) posted EPS of $0.90, beating estimates by $0.01. The $1.44 billion revenue also surpassed estimates by $38.86 million.
Seaport Global analyst Salvator Tiano upgraded Sonoco Products Company (NYSE:SON) on December 21 to ‘Buy’ from ‘Neutral’ with a $66 price target after the company announced the acquisition of Ball MetalPack, a leading supplier of sustainable metal packaging, for $1.35 billion and the market reacted “very negatively” by sending the shares down over 6%. Though still somewhat concerned about fit, he likes the EPS and free cash flow accretion opportunity and his view of the acquisition has shifted to positive, the analyst told investors.
A total of 24 hedge funds were bullish on Sonoco Products Company (NYSE:SON) in Q4 2021, up from 16 funds in the earlier quarter. Impax Asset Management held the leading stake in the company among the funds in our database, with 1.26 million shares worth $73.2 million.
4. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 4: 3.44%
Number of Years of Dividend Increases: 36
Rowe Price Group, Inc. (NASDAQ:TROW) manages equity and fixed income mutual funds for individuals, institutional investors, retirement plans, financial intermediaries, and institutions. In Q4 2021, 30 hedge funds were long T. Rowe Price Group, Inc. (NASDAQ:TROW), as compared to 35 funds in the previous quarter. Of those 30 funds, AQR Capital Management held the largest stake in the company, with 710,753 shares worth roughly $140 million.
On January 27, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported its Q4 results, announcing EPS of $3.17, surpassing consensus estimates by $0.04. Revenue over the period came in at $1.96 billion, up 13.20% year-on-year, and surpassing market predictions by $19.12 million.
Rowe Price Group, Inc. (NASDAQ:TROW) declared on February 8 a $1.20 per share quarterly dividend, an 11.1% increase from its prior dividend of $1.08. The dividend is payable on March 30, for shareholders of record on March 15. T. Rowe Price Group, Inc. (NASDAQ:TROW) delivers a yield of 3.44% as of March 4.
BMO Capital analyst James Fotheringham lowered the price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) to $198 from $240 on January 28 but kept an ‘Outperform’ rating on the shares. The company’s Q4 earnings were roughly in line, but its asset flows disappointed, with further outflows expected in the near term, the analyst told investors in a research note. He sees upside in the stock’s valuation, which now implies that outflows will persist.
3. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 31
Dividend Yield as of March 4: 3.79%
Number of Years of Dividend Increases: 34
UGI Corporation (NYSE:UGI) is a Pennsylvania-based company that transports and markets energy products and related services in the United States and internationally. UGI Corporation (NYSE:UGI)’s history of consistently increasing dividends dates back 34 years.
UGI Corporation (NYSE:UGI) declared a $0.345 per share quarterly dividend on February 2, in line with previous. The dividend is payable on April 1, to shareholders of record on March 15. The stock delivers a dividend yield of 3.79% as of March 4.
On January 4, UGI Corporation (NYSE:UGI) announced that its subsidiary, UGI Energy Services, has entered into a definitive agreement to acquire Stonehenge Appalachia from Stonehenge Energy Holdings for approximately $190 million. This investment is expected to be immediately accretive to adjusted earnings.
Among the hedge funds tracked by Insider Monkey, 31 funds were bullish on UGI Corporation (NYSE:UGI) at the end of December 2021, up from 20 funds in the prior quarter. First Eagle Investment Management is a major shareholder of the company, with 8.6 million shares worth $396.2 million.
2. PPG Industries, Inc. (NYSE:PPG)
Number of Hedge Fund Holders: 34
Dividend Yield as of March 4: 1.91%
Number of Years of Dividend Increases: 50
PPG Industries, Inc. (NYSE:PPG) was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania. The company, which manufactures and distributes paints, coatings, and specialty materials worldwide, has 50 consecutive years of dividend increases under its belt.
On January 20, PPG Industries, Inc. (NYSE:PPG) reported its fourth quarter results, posting earnings per share of $1.26, topping estimates by $0.07. The company’s revenue of $4.19 billion exceeded the market consensus by $142.27 million. PPG (NYSE:PPG) also declared a $0.59 per share quarterly dividend, payable on March 11.
Mizuho analyst Christopher Parkinson defended PPG Industries, Inc. (NYSE:PPG) on March 1, keeping a ‘Buy’ rating on the shares with a $182 price target. Parkinson said PPG Industries, Inc. (NYSE:PPG)’s Russian exposure is not material, as he estimates it to be 0.5% of 2022 EBITDA. While market turmoil will likely persist given the macro backdrop, the share pullback is resulting in a “very attractive risk/reward for shares,” contends the analyst. PPG shares are down by 27% in 2022.
According to the Q4 database of Insider Monkey, 34 hedge funds held long positions in PPG Industries, Inc. (NYSE:PPG), up from 30 funds in the prior quarter. Citadel Investment Group is a prominent shareholder of the company, with 713,282 shares worth approximately $123 million.
Here is what Saturna Capital Amana Funds had to say about PPG Industries, Inc. (NYSE:PPG) in its Q3 2021 investor letter:
“The industrial coatings manufacturer PPG was the Fund’s worst performer in the quarter, as the supply chain backups impacted its earnings outlook. The supply chain issues impacting the global economy raised questions about the fragility of the trade and logistics management practices that have been embraced by operations teams for decades. The amount of time it could take to untie these knots is unknown, and if companies choose to rethink their approach to inventory and supply management, the transition could mean several years of pressure on margins and lower returns on capital.”
1. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 66
Dividend Yield as of March 4: 3.12%
Number of Years of Dividend Increases: 13
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based manufacturer that sells biopharmaceutical products worldwide. In Q4 2021, 66 hedge funds were bullish on Bristol-Myers Squibb Company (NYSE:BMY), and Two Sigma Advisors held the largest position in the company among that group, with 6.6 million shares worth $412.5 million.
On March 1, Bristol-Myers Squibb Company (NYSE:BMY) declared a quarterly dividend of $0.54 per share, in line with previous. The dividend will be paid on May 2, to shareholders of record on April 1. The stock delivers a 3.12% dividend yield as of March 4.
Wells Fargo analyst Mohit Bansal raised the price target on Bristol-Myers Squibb Company (NYSE:BMY) to $65 from $60 on March 2 ahead of key readouts for Factor XI drugs. The analyst kept an ‘Equal Weight’ rating on the shares.
Wedgewood Partners mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2020 investor letter. Here is what the fund 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.”
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