Analysts Are Recommending These 5 Dividend Stocks

3. Pinnacle West Capital Corporation (NYSE:PNW)

Dividend Yield as of January 14: 4.70%

Number of Hedge Fund Holders: 21

Pinnacle West Capital Corporation (NYSE:PNW) is a utility company that owns and operates Arizona Public Service and Bright Canyon Energy, providing energy and electricity primarily to Arizona residents. As of January 14, Pinnacle West Capital Corporation (NYSE:PNW) provides a dividend yield of 4.70%. 

Pinnacle West Capital Corporation (NYSE:PNW) declared a $0.85 per share quarterly dividend on December 16, in line with previous. The dividend is payable on March 1, to shareholders of record on February 1. The company has been providing a steady dividend growth for 10 years, with a payout ratio of approximately 65%. 

Argus analyst Gary Hovis raised the price target on Pinnacle West Capital Corporation (NYSE:PNW) to $80 from $72 and kept a Buy rating on the shares on January 6. Demand for the company’s services has been on the rise as the climate warmed in Arizona, though a recent regulatory decision may hinder Pinnacle West Capital Corporation (NYSE:PNW) from growing earnings and dividends in the near term, the analyst tells investors in a research note. Shares are also inexpensive as compared to Pinnacle West Capital Corporation (NYSE:PNW)’s peer group with a projected 2022 price to earnings multiple of 16-times. 

Among the hedge funds tracked by Insider Monkey in the third quarter of 2021, 21 funds reported owning stakes in Pinnacle West Capital Corporation (NYSE:PNW), worth $175 million, up from 18 funds in the preceding quarter holding stakes amounting to $143.6 million in Pinnacle West Capital Corporation (NYSE:PNW). 

Renaissance Technologies, the largest Pinnacle West Capital Corporation (NYSE:PNW) stakeholder, elevated its position in the company by 58% in the third quarter, with 688,202 shares valued at roughly $50 million.