In this article, we discuss 5 undervalued dividend stocks to buy in 2022. You can see some more undervalued dividend stocks by clicking 10 Undervalued Dividend Stocks to Buy in 2022.
5. BP p.l.c. (NYSE:BP)
Dividend Yield as of April 1: 4.36%
P/E Ratio as of April 1: 13.47
Number of Hedge Fund Holders: 26
BP p.l.c. (NYSE:BP) is a London-based energy company that operates worldwide via four main segments – Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft.
On February 10, BP p.l.c. (NYSE:BP) declared a $0.3276 per share quarterly dividend, in line with previous. The dividend was paid on March 25, to shareholders of record on February 18. The company’s dividend yield as of April 1 came in at 4.36%.
BP p.l.c. (NYSE:BP) posted its fourth quarter results on February 8. The company announced earnings per share of $1.23, beating estimates by $0.09. Revenue over the period jumped 12.87% year-over-year to $50.55 billion, exceeding analysts’ expectations by $26.07 billion.
Deutsche Bank analyst James Hubbard maintained a Buy recommendation on BP p.l.c. (NYSE:BP) but lowered the price target to 450 GBp from 455 GBp on March 23.
According to the Q4 database of Insider Monkey, 26 hedge funds placed long calls on BP p.l.c. (NYSE:BP), compared to 29 funds in the earlier quarter. The total stakes owned in Q4 amounted to $1.2 billion. Fisher Asset Management is the biggest shareholder of the company, with 13.7 million shares worth over $367 million.
4. Kellogg Company (NYSE:K)
Dividend Yield as of April 1: 3.62%
P/E Ratio as of April 1: 14.81
Number of Hedge Fund Holders: 31
Kellogg Company (NYSE:K) is a Michigan-based multinational company that manufactures and markets convenience foods. The company sells its products under brands such as Kellogg’s, Pringles, Crunchy Nut, Nutri-Grain, Special K, Pop-Tarts, Coco Pops, Frosties, and more.
On February 10, Kellogg Company (NYSE:K) reported earnings for the fourth quarter of 2021. The company announced an EPS of $0.83, topping market estimates by $0.04. Kellogg Company (NYSE:K)’s Q4 revenue amounted to $3.42 billion, outperforming consensus by $28.64 million.
UBS analyst Cody Ross on March 30 initiated coverage of Kellogg Company (NYSE:K) with a Buy rating and a $73 price target as part of a broader research note on Packaged Goods. The analyst observed that consumers are presently “the healthiest they have been in some time”, with record high net-worth, increasing salaries, and strong balance sheets. The analyst further noted that Kellogg Company (NYSE:K) exiting its Snacks segment has enabled it to stabilize its position in developed markets.
According to Insider Monkey’s Q4 database, 31 hedge funds were bullish on Kellogg Company (NYSE:K), up from 22 funds in the prior quarter. Renaissance Technologies is the leading stakeholder of the company, owning 2.1 million shares worth $139.2 million.
3. Omnicom Group Inc. (NYSE:OMC)
Dividend Yield as of April 1: 3.24%
P/E Ratio as of April 1: 13.53
Number of Hedge Fund Holders: 33
Omnicom Group Inc. (NYSE:OMC) is a New York-based company that provides corporate communications services, advertising, customer relationship management, and public relations services. Omnicom Group Inc. (NYSE:OMC)’s dividend yield on April 1 came in at 3.24%.
The company published its fourth quarter results on February 8. Omnicom Group Inc. (NYSE:OMC) posted an EPS of $2.11, beating estimates by $0.40. The $3.86 billion revenue also outperformed estimates by $184.27 million.
On March 18, Argus analyst Kristina Ruggeri upgraded Omnicom Group Inc. (NYSE:OMC) to Buy from Hold with a $95 price target. According to the analyst, the company benefits from current trends in e-commerce marketing and data analytics while expanding its capabilities via acquisitions. The analyst also stated that Omnicom Group Inc. (NYSE:OMC) pays an “attractive” dividend yield and has solid share repurchase programs. She also increased her FY22 EPS estimates by $0.30 to $6.70.
Omnicom Group Inc. (NYSE:OMC) declared on February 15 a $0.70 per share quarterly dividend. The dividend is payable on April 8, for shareholders of record on March 10.
According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Omnicom Group Inc. (NYSE:OMC), up from 25 funds in the last quarter. Cliff Asness’ AQR Capital Management is the biggest shareholder of the company, owning 900,756 shares valued at roughly $66 million.
2. Citizens Financial Group, Inc. (NYSE:CFG)
Dividend Yield as of April 1: 3.33%
P/E Ratio as of April 1: 9.08
Number of Hedge Fund Holders: 36
Headquartered in Providence, Rhode Island, Citizens Financial Group, Inc. (NYSE:CFG) operates as the bank holding company for Citizens Bank, specializing in retail and commercial banking products and services.
On March 28, Morgan Stanley analyst Betsy Graseck maintained an Overweight rating on Citizens Financial Group, Inc. (NYSE:CFG), but reduced the price target to $62 from $69. The analyst stated that in the war backdrop, higher inflation increases credit risk and slows economic growth, all of which led the firm to downgrade its industry view to In-Line from Attractive and slash price targets across the Banking group.
Citizens Financial Group, Inc. (NYSE:CFG) declared a $0.3968 per share quarterly dividend, a 1.7% increase from its prior dividend of $0.39. The dividend will be paid on April 6, for shareholders of record on March 22. Citizens Financial Group, Inc. (NYSE:CFG)’s dividend yield on April 1 came in at 3.33%.
According to the Q4 database of Insider Monkey, 36 hedge funds were long Citizens Financial Group, Inc. (NYSE:CFG), compared to 34 funds in the prior quarter. Marshall Wace LLP is the largest shareholder of the company, with 3.8 million shares worth $183.2 million.
1. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of April 1: 4.20%
P/E Ratio as of April 1: 15.58
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is a Texas-based producer of crude oil, petroleum, petrochemicals, and natural gas in the United States and international markets. Exxon Mobil Corporation (NYSE:XOM) delivers a dividend yield of 4.20% as of April 1.
Elite hedge funds are exceedingly bullish on Exxon Mobil Corporation (NYSE:XOM). In Q4 2021, 71 hedge funds were bullish on the company, compared to 64 funds in the prior quarter. GQG Partners is the biggest shareholder of the company, with 32.3 million shares worth approximately $2 billion.
On January 26, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.88 per share. The dividend was distributed on March 10, for shareholders of record on February 10.
Barclays analyst Jeanine Wai on March 9 raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $98 from $91 and kept an Overweight rating on the shares. The analyst updated the company’s model to reflect the current gas price strip, as well as the updated Permian production and capital expenditure assumptions.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
You can also take a look at 10 Fertilizer Stocks to Buy Today and 10 Stocks to Buy Before the Next Recession.
