In this article, we discuss 5 stocks for dividend growth investing in 2022. If you want our detailed analysis of dividend growth investing and these stocks, go directly to 10 Stocks for Dividend Growth Investing in 2022.
5. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of January 24: 2.90%
Number of Years of Consistent Dividend Increases: 18
Number of Hedge Fund Holders: 29
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics retailer operating in the United States, Canada, and Puerto Rico. Best Buy Co., Inc. (NYSE:BBY) has had 18 consecutive years of dividend growth, and the stock offers a 2.90% yield as of January 24.
On November 24, Best Buy Co., Inc. (NYSE:BBY) declared a $0.70 per share quarterly dividend, in line with previous. The dividend was paid on January 4, to shareholders of record on December 14.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 29 funds were bullish on Best Buy Co., Inc. (NYSE:BBY), with stakes totaling roughly $680 million. AQR Capital Management is the biggest stakeholder of the company, owning 1.6 million shares worth $176.9 million.
4. Lockheed Martin Corporation (NYSE:LMT)
Dividend Yield as of January 24: 3.02%
Number of Years of Consistent Dividend Increases: 19
Number of Hedge Fund Holders: 51
Lockheed Martin Corporation (NYSE:LMT) is an American aerospace company with multiple divisions including aeronautics, missiles and fire control, rotary and mission systems, and space. Lockheed Martin Corporation (NYSE:LMT) has consistently elevated its dividend payments for 19 years, and the company delivers a 3.02% yield.
On September 23, Lockheed Martin Corporation (NYSE:LMT) declared a $2.80 per share quarterly dividend, which reflects a 7.7% increase from its prior dividend of $2.60. The dividend was paid on December 27, to shareholders of record on December 1.
Wells Fargo analyst Matthew Akers raised the price target on Lockheed Martin Corporation (NYSE:LMT) to $379 from $340 and kept an Equal Weight rating on the shares on January 10. The analyst noted that Lockheed Martin Corporation (NYSE:LMT)’s large exposure to the F-35 aircraft family is now a liability after driving outsized growth for the past several years, although new programs transitioning to production could offset risk to legacy rotorcraft platforms. Future Vertical Lift FLRAA program remains a big opportunity, the analyst added in a research note.
Among the hedge funds monitored by Insider Monkey in the third quarter of 2021, 51 funds were bullish on Lockheed Martin Corporation (NYSE:LMT), down from 58 funds in the prior quarter. Israel Englander’s Millennium Management is one of the leading Lockheed Martin Corporation (NYSE:LMT) stakeholders. Englander’s fund boosted its stake in the company by 4753% in the third quarter, holding a total of 561,512 shares worth $193.7 million.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q4 2021 investor letter:
“Of course, not all of our companies are doing better than we expected. Lockheed Martin fell somewhat short of our expectations last year. In the cases of Lockheed disruptions in the supply and logistics chains. Lockheed uses a great many subcontractors from various countries and could not avoid issues with continuity of supplies. As a result, production will be slightly lower than we had expected.”
3. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield as of January 24: 3.41%
Number of Years of Consistent Dividend Increases: 10
Number of Hedge Fund Holders: 52
Headquartered in California, Amgen Inc. (NASDAQ:AMGN) is one of the largest multinational biopharmaceutical companies in the world that uses recombinant DNA technology to create cures for autoimmune diseases and cancer.
On December 3, Amgen Inc. (NASDAQ:AMGN) declared a $1.94 per share quarterly dividend, which is a 10.2% increase from the prior dividend of $1.76. The dividend will be paid on March 8, to shareholders of record on February 15.
John Overdeck and David Siegel’s Two Sigma Advisors is the biggest Amgen Inc. (NASDAQ:AMGN) stakeholder as of Q3 2021, with 1.85 million shares worth roughly $394 million. Overall, 52 hedge funds in the third quarter database of Insider Monkey were bullish on Amgen Inc. (NASDAQ:AMGN), with stakes totaling $1.4 billion.
Here is what ClearBridge Sustainability Leaders Strategy has to say about Amgen, Inc. (NASDAQ:AMGN) in its Q3 2021 investor letter:
“In health care, Amgen, a biotechnology company, has endured several pipeline setbacks recently, including a slow transition of its Lumakras treatment into first-line lung cancer, a slower than expected development of its treatment for myeloma as well as the company’s asthma treatment Tezepelumab missing its primary endpoint in a Phase III study. We remain positive on the stock, with Amgen’s investments in biosimilars and its pipeline part of our long-term thesis.”
2. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of January 24: 3.45%
Number of Years of Consistent Dividend Increases: 12
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) has consistently increased its dividends for the past 12 years, and offers a 3.45% yield as of January 24, making it one of the top dividend growth stocks heading into 2022. Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based pharmaceutical company that develops medicines, vaccines, biologic therapies, and animal health products.
On November 30, Merck & Co., Inc. (NYSE:MRK) declared a $0.69 per share quarterly dividend, which reflects an increase of 6.2% from its prior dividend of $0.65. The dividend was distributed on January 7, to shareholders of record on December 15.
Goldman Sachs analyst Chris Shibutani on December 17 initiated coverage of Merck & Co., Inc. (NYSE:MRK) with a Buy rating and a $93 price target. The analyst also added the shares to the firm’s Conviction List with the price target implying 22% upside from current levels. Further, Keytruda is one of Merck & Co., Inc. (NYSE:MRK)’s products that is competitively positioned to capture commercial gains, according to the analyst.
In the third quarter of 2021, elite hedge funds were keen on Merck & Co., Inc. (NYSE:MRK). The Q3 database of Insider Monkey indicated that 77 funds were bullish on Merck & Co., Inc. (NYSE:MRK), holding stakes totaling $4.55 billion. Fisher Asset Management is the largest Merck & Co., Inc. (NYSE:MRK) stakeholder, with 10.6 million shares worth approximately $799 million.
Here is what Miller Howard Investments has to say about Merck & Co., Inc. (NYSE:MRK) in its Q3 2021 investor letter:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
1. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of January 24: 3.82%
Number of Years of Consistent Dividend Increases: 47
Number of Hedge Fund Holders: 24
Consolidated Edison, Inc. (NYSE:ED) is a leading American energy company that is entirely investor-owned, supplying electricity, gas, and steam to the New York metropolitan area. Consolidated Edison, Inc. (NYSE:ED) has been distributing increasing dividends for 47 consecutive years.
On January 20, Consolidated Edison, Inc. (NYSE:ED) declared a $0.79 per share quarterly dividend, which is a 1.9% increase from its prior dividend of $0.78. As of January 24, Consolidated Edison, Inc. (NYSE:ED) delivers a 3.82% dividend yield, making it one of the top plays for dividend growth investing in 2022.
RBC Capital analyst Shelby Tucker on December 22 raised the price target on Consolidated Edison, Inc. (NYSE:ED) to $85 from $78 but kept a Sector Perform rating on the shares. The company has the potential to capitalize on meaningful investment opportunities given the state’s “ambitious” clean energy goals, but New York’s challenging regulatory environment remains an issue, the analyst tells investors in a research note.
In the third quarter of 2021, 24 hedge funds were long Consolidated Edison, Inc. (NYSE:ED), with stakes totaling $364.1 million. Electron Capital Partners owns 1.35 million Consolidated Edison, Inc. (NYSE:ED) shares as of Q3, valued at $98.4 million, and is the biggest stakeholder of the company.
You can also take a look at Retirement Stock Portfolio: 10 Safe Tech Stocks To Consider and 10 Best Dividend Aristocrats to Buy for 2022.
