In this dividend champions list, we will take a look at some of the best dividend stocks with at least 25 consecutive years of dividend growth and yields above 4%.
Dividend champions are companies that have raised their dividends for at least 25 years. While they share this trait with dividend aristocrats, the key difference is that dividend champions don’t need to be part of the S&P Index, whereas aristocrats do. Despite this distinction, what truly sets these stocks apart is their long-standing history of consistently increasing dividend payments to shareholders over time.
Dividend growth is one of the most appealing qualities a company can have in today’s market. Achieving 25 consecutive years of dividend increases is especially impressive, as these companies were able to boost their payouts even through challenging periods like the recent pandemic.
Although dividend stocks have lagged behind the market due to the growing prominence of tech stocks, the value of steady income remains irreplaceable. Dividend stocks are unlikely to fall out of favor. Analysts continue to express confidence in their potential. Earlier this year, BofA predicted that dividend stocks are set for growth, noting they should perform well even if consumer spending slows or a full recovery doesn’t materialize. Subramanian from BofA added that if the Federal Reserve cuts rates or halts hikes, companies can maintain their dividends by borrowing at lower interest rates. The analyst also highlighted that income investors have plenty of options for investing in dividend-paying stocks, such as broad mutual funds or exchange-traded funds (ETFs). This provides a variety of avenues to tap into dividend income.
US companies have focused on paying dividends to shareholders due to their growing cash reserves. At the end of the fourth quarter of 2023, businesses held $3.61 trillion in cash and equivalents on their balance sheets. This marked a 2% decline from the end of 2021 but an 11% increase compared to 2022, according to S&P Global Market Intelligence. The substantial cash reserves held by US companies had a significant impact on their dividend payments. A report by Janus Henderson highlighted that US businesses paid shareholders $161.5 billion in dividends during the second quarter of 2024, marking an 8.6% increase on an underlying basis. Companies paying dividends for the first time this year made the largest contribution to this growth, raising the US underlying total by 3.6 percentage points. While these companies’ dividends are relatively small compared to their profits, they still contributed a notable $3.8 billion. Excluding this effect, the remaining companies in the index saw a 5.0% growth, which aligns more closely with the nation’s long-term trend. This surge from new dividend payers is expected to continue throughout the year, keeping US payout growth ahead of the global average. The report further mentioned that 96% of the companies either maintained or increased their dividends during the quarter.
When investing in dividend stocks, many investors tend to prioritize dividend yields. However, experts recommend focusing more on stocks with consistent dividend growth rather than simply chasing high yields, which may not always be sustainable. That said, dividend yields aren’t necessarily a bad option. A balanced approach that combines healthy yields with steady dividend growth can provide strong investment opportunities for investors. In this dividend champions list, we will take a look at the highest-yielding stocks with at least 25 consecutive years of dividend growth.
Our Methodology:
For this list, we looked at a group of over 150 dividend champions, which are known for raising dividends for 25 years or more. From this list, we chose companies with the highest dividend yields as of September 24 and arranged them in order from lowest to highest yield.
We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 912 funds as of Q2 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. United Bankshares, Inc. (NASDAQ:UBSI)
Dividend Yield as of September 24: 4.01%
United Bankshares, Inc. (NASDAQ:UBSI) is an American bank holding company that offers a wide range of related services to its consumers. Though the stock is down by 2.2% since the start of 2024, it surged by nearly 3% between July 25 and July 26 when the company impressed investors with its quarterly earnings. In the second quarter of 2024, it saw gains in profitability, capital, loans, and deposits, accompanied by reductions in expenses and non-performing assets. Looking ahead, the company expects continued success in the latter half of the year, and there is enthusiasm surrounding the recent announcement of the acquisition of Piedmont Bancorp, Inc. in Atlanta.
United Bankshares, Inc. (NASDAQ:UBSI) generated revenue of $256 million in Q2 2024, which fell by 3% from the same period last year. However, the revenue beat analysts’ estimates by $202,000. The company’s balance sheet was also strong as it ended the quarter with over $1.1 billion available in cash and cash equivalents. Its consistent dividend history also stems from its cash generation. The company’s trailing twelve-month operating cash flow comes in at $438 million.
United Bankshares, Inc. (NASDAQ:UBSI) offers a quarterly dividend of $0.37 per share. The company has been growing its dividends consistently for the past 50 years. Its payout ratio of 52% reflects its confidence in maintaining future dividend payments. With a dividend yield of 4.01% as of September 24, UBSI is one of the best stocks on our dividend champions list.
As of the close of Q2 2024, 13 hedge funds tracked by Insider Monkey reported owning stakes in United Bankshares, Inc. (NASDAQ:UBSI), up from 12 in the previous quarter. These stakes have a consolidated value of nearly $85 million.
14. Eversource Energy (NYSE:ES)
Dividend Yield as of September 24: 4.30%
Eversource Energy (NYSE:ES) is a Boston-based electric services company that provides essential energy services to its consumers. The company launched the nation’s first networked geothermal pilot project and the initial phase of the Cape Cod Solution transmission project, aimed at improving reliability and facilitating the integration of more renewable energy. It is progressing with its Electric Sector Modernization Plan in Massachusetts and collaborating with Connecticut and New Hampshire to promote a low-carbon future.
In the second quarter of 2024, Eversource Energy (NYSE:ES) has completed the sale of the Sunrise Wind Project to Ørsted and anticipates finalizing the sale of the Revolution and South Fork Wind Projects to Global Infrastructure Partners later this quarter. These transactions align with their commitment to exit the offshore wind business and concentrate resources on regulated growth opportunities to meet customer demand. The company reported revenue of $2.5 billion in Q2, down slightly by 3.6% on a YoY basis.
On September 12, Eversource Energy (NYSE:ES) declared a quarterly dividend of $0.715 per share, which was in line with its previous dividend. In February this year, the company achieved its 26th consecutive year of dividend growth, which makes ES one of the best stocks on our dividend champions list. In addition to strong dividend growth, the stock also has an impressive dividend yield of 4.30%, as of September 24.
At the end of Q2 2024, 26 hedge funds in Insider Monkey’s database owned stakes in Eversource Energy (NYSE:ES), compared with 32 in the previous quarter. These stakes are worth over $622 million. With over 5.3 million shares, Zimmer Partners was the company’s leading stakeholder in Q2.
13. Norwood Financial Corp. (NASDAQ:NWFL)
Dividend Yield as of September 24: 4.32%
Norwood Financial Corp. (NASDAQ:NWFL) is a Pennsylvania-based bank holding company that provides various banking products and services. In the second quarter of 2024, the company’s core operating expenses were effectively managed, staying at 2% of average assets for the quarter. Its capital base continues to exceed “Well-Capitalized” targets, and credit quality metrics remained robust in the second quarter, which is expected to support future performance. The company is actively serving customers at Wayne Bank, as well as at the Bank of the Finger Lakes and Bank of Cooperstown locations.
Norwood Financial Corp. (NASDAQ:NWFL) has a strong balance sheet. At the end of the quarter, it had $2.3 billion in total assets and had total deposits of $1.8 billion. The company ended the quarter with nearly $70 million available in cash and cash equivalents, up from $33 million in the prior year period.
Norwood Financial Corp. (NASDAQ:NWFL), one of the best dividend stocks, currently offers a quarterly dividend of $0.30 per share. The stock made it to our dividend champions list as the company has been rewarding shareholders with growing dividends for the past 32 consecutive years. The stock has a dividend yield of 4.32%, as of September 24.
According to Insider Monkey’s database of Q2 2024, 2 hedge funds owned stakes in Norwood Financial Corp. (NASDAQ:NWFL), compared with 3 in the previous quarter. These stakes are worth over $1.4 million in total. Among these two, Renaissance Technologies was the company’s leading stakeholder in Q2.
12. Chevron Corporation (NYSE:CVX)
Dividend Yield as of September 24: 4.42%
Chevron Corporation (NYSE:CVX) ranks twelfth on our dividend champions list. The Texas-based multinational energy company specializes in oil and gas. The company’s operations include oil and natural gas production (upstream), energy transportation (midstream), and chemicals and refining (downstream), with each segment performing differently depending on market conditions. For example, lower oil and gas prices can boost the downstream segment, while negatively impacting the upstream. At the same time, midstream pipelines provide steady cash flow regardless of energy market fluctuations. This diversified structure helps Chevron navigate the inherent volatility of the energy sector.
Chevron Corporation (NYSE:CVX) is a strong dividend payer. In the second quarter of 2024, the company returned $6 billion to shareholders through dividends and share repurchases. This marks the ninth consecutive quarter in which the company has returned over $5 billion to shareholders. Moreover, it has been growing its payouts for 37 consecutive years. The company offers a quarterly dividend of $1.62 per share and has a dividend yield of 4.42%, as of September 24.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 64 funds owned stakes in Chevron Corporation (NYSE:CVX), up from 62 in the preceding quarter. The total value of these stakes is more than $22.4 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company in Q2.
11. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Dividend Yield as of September 24: 4.53%
T. Rowe Price Group, Inc. (NASDAQ:TROW) is an American asset management company that offers a wide range of related services to institutions, individuals, and businesses. In August, the company reported that its assets under management grew to $1.61 trillion, from $1.59 trillion at the end of July. Its net outflows for the month of August were $5.3 billion. Although continued outflows are anticipated in the second half of the year, there is optimism for improvement driven by increased sales and fewer redemptions.
Earlier this year, T. Rowe Price Group, Inc. (NASDAQ:TROW) revealed its shift towards corporate debt from countries such as the Philippines, Brazil, and Mexico as it enters the new year while steering away from the more unpredictable frontier-market bonds that performed well in 2023. Samy Muaddi, who oversees the firm’s $25 billion emerging-market debt strategy, explained that this approach allows investments in companies from more stable nations, especially as the surge in high-risk government bonds begins to taper off. He prefers bonds from commodity producers, utilities, and banks in key developing markets that either generate US dollars or are adept at managing currency risks.
T. Rowe Price Group, Inc. (NASDAQ:TROW) offers a quarterly dividend of $1.24 per share and has a dividend yield of 4.53%, as of September 24. It is one of the best stocks on our dividend champions list as the company has raised its payouts for 38 consecutive years. In Q2 2024, the company returned $396 million to shareholders through dividends and share repurchases.
As per Insider Monkey’s database of Q2 2024, 28 hedge funds owned stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), growing from 24 in the previous quarter. These stakes have a total value of nearly $500 million.
10. NNN REIT, Inc. (NYSE:NNN)
Dividend Yield as of September 24: 4.83%
NNN REIT, Inc. (NYSE:NNN) is a Florida-based real estate investment trust company that mainly invests in high-quality properties. The company’s net leases provide steady income for the landlord, as the tenant is responsible for all operating expenses, such as maintenance, insurance, and property taxes. It secures long-term lease agreements, typically lasting 10 to 20 years, with reliable national and regional retailers. Its portfolio is also well-diversified across different tenants and sectors.
In the second quarter of 2024, NNN REIT, Inc. (NYSE:NNN) reported revenue of $217 million, which showed a 7% growth from the same period last year. The revenue also beat analysts’ estimates by $2.6 million. The company’s balance sheet was also strong as it ended the quarter with $2.1 million available in cash and cash equivalents, up from $1.2 million six months ago.
The company’s strong business momentum was also highlighted by Artisan Partners in its Q4 2023 investor letter. Here is what the firm has to say about NNN:
“In the first few days of October, we made our sole new purchase of the quarter: NNN REIT, Inc. (NYSE:NNN). NNN is a real estate investment trust (REIT) that executes triple net leases—a type of lease in which the tenant pays, in addition to rent and utilities, three other property expenses: insurance, maintenance and taxes. Typical advantages of triple net lease REITs versus other REITs involve lower leverage, lower capital intensity and a more stable rent roll that contribute to the ability to smartly fund growth. NNN focuses on free-standing single-tenant buildings whose tenants are in service retail industries (e.g., convenience stores, restaurants, gyms and car washes). Overall, NNN has been in the triple net business for 40+ years, has a seasoned and conservative management team and has operated successfully in and out of cycles. NNN’s approach is one of focus, discipline and creating economic value per share, which are traits often lacking in the real estate industry. As evidence, during a period of low cap rates and cheap leverage, NNN didn’t aggressively pursue acquisitions to improve short-term earnings but instead extended the duration of its borrowings to lock in low financing costs. NNN has an average duration on its debt of 12 years, which is more than double the peer average. Importantly, this provides NNN balance sheet protection in a rising rate environment, allowing the company to go on the offensive while other industry participants pull back due to soaring borrowing costs. At our time of purchase, the market’s desire to exit businesses with interest rate risk wasn’t differentiating between individual REITs and how they would perform in a higher for longer interest rate environment. In the case of NNN, our purchase was well timed as the stock rose 25% in Q4 as inflation data indicated we are probably past the peak of a rate tightening cycle.”
NNN REIT, Inc. (NYSE:NNN) also maintains a strong dividend history, which makes it one of the best stocks on our dividend champions list. In July, the company raised its common stock dividend by almost 3% to $0.58 per share, while maintaining a low dividend payout ratio. This marks the 35th consecutive year of annual dividend increases, a milestone achieved by only two other publicly traded REITs. The stock has a dividend yield of 4.83%, as of September 24.
At the end of June 2024, 16 hedge funds in Insider Monkey’s database owned stakes in NNN REIT, Inc. (NYSE:NNN), compared with 17 in the previous quarter. These stakes have a total value of $195 million.
9. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of September 24: 4.88%
Northwest Natural Holding Company (NYSE:NWN) ranks ninth on the dividend champions list. The natural gas distribution company offers a wide range of related services and products to its consumers. In the most recent quarter, the company continued to perform strongly and remains on track for the year. Looking ahead to 2024, its priorities include maintaining safe and reliable operations, executing the capital plan, managing regulatory dockets, and pursuing growth opportunities. The stock has surged by nearly 3% in the past 12 months.
Though Northwest Natural Holding Company (NYSE:NWN) reported an 11% YoY decline in its revenue at $212 million, the company showed progress on various other fronts. The company added nearly 16,000 gas and water utility connections over the past 12 months, resulting in a combined growth rate of 1.8% as of June 30, 2024, largely driven by strong water acquisitions. Additionally, they signed an agreement to acquire Puttman and ICH water, adding 4,200 customers and strengthening their pipeline of growth opportunities.
Palm Valley Capital Management also highlighted strengths in Northwest Natural Holding Company (NYSE:NWN) in its Q1 2024 investor letter. Here is what the firm has to say:
“During the quarter, we purchased Northwest Natural Holding Company (NYSE:NWN). Founded in 1859, NW Natural is a natural gas utility operating in Oregon and Washington. While the company targets long-term earnings growth of 4%-6%, earnings per share in 2024 are expected to decline by 7% to 15%. Earnings are being pressured by above average investments in the utility’s infrastructure and higher than expected inflation. In response, management filed for a rate increase with regulators in December 2023, which would provide the utility with a 10.1% return on equity. If approved, new rates are expected to go into effect in November and should move earnings in 2025 closer to our normalized estimate of $2.80/share. NW Natural is currently trading at 13x our normalized EPS estimate and 1.2x tangible book value—both near historical lows. The firm has increased its dividend for 68 years in a row, and the stock offers a 5.3% yield. While there remains uncertainty related to regulatory decisions and interest rates, at its current price, we believe we’re being adequately compensated for risk assumed.”
Northwest Natural Holding Company (NYSE:NWN) also holds a strong cash position. In the first six months of the year, the company generated over $246 million in operating cash flow. Its cash generation has made it possible for the company to grow its dividends by 68 consecutive years. The company offers a quarterly dividend of $0.4875 per share and has a dividend yield of 4.88%, as of September 24.
Insider Monkey’s database of Q2 2024 indicated that 11 hedge funds owned stakes in Northwest Natural Holding Company (NYSE:NWN), up from 9 in the previous quarter. These stakes are worth over $45.8 million in total.
8. Realty Income Corporation (NYSE:O)
Dividend Yield as of September 24: 5.05%
Realty Income Corporation (NYSE:O) has always grabbed the attention of income investors because the company pays monthly dividends to shareholders. The real estate investment trust company mainly invests in commercial properties across the US. The company’s portfolio covers 90 different industries and includes over 1,500 clients. In addition to its US properties, it owns several locations in Europe. Key clients include Dollar Tree, Walgreens, and Dollar General. This level of diversification helps minimize overall risk by avoiding heavy exposure to specific industries, while also contributing to long-term stability. The stock has surged by nearly 7% since the start of 2024.
Realty Income Corporation (NYSE:O) has a strong balance sheet, largely supported by its portfolio. In the second quarter of 2024, the company reported a high occupancy rate of 98.8%, collected 105.7% of rent from re-leased properties, and saw a 0.2% rise in same-store rental revenue. Quarterly revenue reached $1.28 billion, reflecting a 29% year-over-year growth.
By the end of the quarter, Realty Income Corporation (NYSE:O) had about $443 million in cash and cash equivalents. On September 10, the company announced a 0.2% increase in its monthly dividend to $0.2635 per share, marking its 127th dividend hike since going public in 1994. Overall, the company has raised its payouts for 30 consecutive years, which makes O one of the best stocks on our dividend champions list. The stock supports a dividend yield of 5.05%, as of September 24.
Realty Income Corporation (NYSE:O) was a part of 19 hedge fund portfolios at the end of Q2 2024, compared with 25 in the previous quarter, according to Insider Monkey’s database of Q2 2024. The consolidated value of these stakes is over $135.3 million.
7. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of September 24: 5.89%
An American multinational asset management company, Franklin Resources, Inc. (NYSE:BEN) ranks seventh on our dividend champions list. The company reported mixed results in fiscal Q3 2024. Its revenue of $2.1 billion fell slightly by 1% on a YoY basis. However, the company’s operating income surged by 72% to $222.5 million compared to the same period last year. Its cash position remained strong, with $6.8 billion in total cash and investments by the end of the quarter. The company has greatly benefited from its acquisitions, gaining cost efficiencies and expanding its customer base. The acquisition of Putnam Investments in January notably boosted its investment capabilities, contributing to strong investment performance.
As of August 31, 2024, Franklin Resources, Inc. (NYSE:BEN) reported preliminary assets under management totaling $1.68 trillion, a 1.1% rise from $1.66 trillion on July 31, 2024. This growth was mainly driven by positive market conditions, though it was partially offset by long-term net outflows.
What sets Franklin Resources, Inc. (NYSE:BEN) apart from its peers is its strong dividend history. The company has consistently demonstrated a commitment to rewarding shareholders through regular dividend payments. In the most recent quarter, it returned $168 million to shareholders through dividends. Moreover, the company has raised its payouts for 48 years in a row. Its trailing twelve-month dividend amount jumped $656 million in the most recent quarter, from $610 million in the same period last year. Its quarterly dividend comes in at $0.31 per share and has a dividend yield of 5.89%, as of September 24.
At the end of June 2024, 27 hedge funds owned stakes in Franklin Resources, Inc. (NYSE:BEN), down from 31 in the preceding quarter. These stakes have a total value of $323 million.
6. UGI Corporation (NYSE:UGI)
Dividend Yield as of September 24: 6.01%
UGI Corporation (NYSE:UGI) is an American natural gas and electric power distribution company that offers safe, reliable, and affordable energy to its consumers. The company has achieved one of its strongest year-to-date financial performances in over 140 years, driven by record earnings from its resilient, growth-focused natural gas operations and improved results from UGI International. Efforts to secure sustainable cost savings across the organization have also significantly boosted financial outcomes. Additionally, the company remains focused on stabilizing and optimizing the AmeriGas business by implementing cost-reduction measures and addressing inefficiencies.
In fiscal Q3 2024, UGI Corporation (NYSE:UGI) reported revenue of $1.4 billion, which fell by 17% from the same period last year. Despite recent challenges, the company remains focused on its long-term objectives, actively addressing the issues by utilizing all available resources. The board has prioritized restructuring and enhancing operations at AmeriGas, with a focus on retaining customers, increasing free cash flow, controlling costs, and maintaining disciplined capital allocation. Additionally, it has outlined a plan to return $1.3 billion to shareholders between fiscal 2024 and 2027.
First Pacific Advisors also mentioned reasons to invest in UGI Corporation (NYSE:UGI) in its Q1 2024 investor letter. Here is what the firm said:
“UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. Despite its disparate parts, UGI has increased consolidated earnings at a relatively steady high- single-digit rate while distributing excess cash through dividends. UGI’s share price has declined because of a combination of poor execution and too much debt at AmeriGas, UGI’s U.S. propane business. On August 30, 2023 UGI announced a review of strategic alternatives. We believe the company’s stock price is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position.”
UGI Corporation (NYSE:UGI) has raised its payouts for 37 years straight. The company currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 6.01%, as of September 24.
At the end of Q2 2024, 32 hedge funds tracked by Insider Monkey held stakes in UGI Corporation (NYSE:UGI), up from 29 in the previous quarter. The consolidated value of these stakes is over $310.6 million. With over 5.3 million shares, Zimmer Partners was the company’s leading stakeholder in Q2.
5. Universal Corporation (NYSE:UVV)
Dividend Yield as of September 24: 6.18%
Universal Corporation (NYSE:UVV) is a global leaf tobacco supplier that operates in various segments of the tobacco industry, including procuring, processing, packaging, storing, and shipping leaf tobacco. In fiscal Q1 2025, the company reported revenue of $597 million, which showed a 15.3% growth from the same period last year.
The revenue growth in the Tobacco Operations segment was fueled by increased sales volumes and prices. Following an outstanding fiscal year of 2024, the company experienced continued strong demand from its tobacco customers. It is believed that this demand will persist, contributing to solid results for the segment in fiscal year 2025. Strategic decisions to accelerate tobacco crop purchasing enabled the company to secure contracted tobacco in certain dynamic markets, positioning it well to meet customer needs. Similar to previous fiscal years, it is anticipated that the timing of tobacco shipments and related revenue recognition will be more concentrated in the second half of fiscal year 2025.
Universal Corporation (NYSE:UVV) also has a strong balance sheet. The company ended the quarter with $102 million available in cash and cash equivalent, up from $80.5 million in the prior-year period. It currently offers a quarterly dividend of $0.81 per share, having raised it by 1% in May this year. This marked the company’s 54th consecutive year of dividend growth, which makes UVV one of the best dividend stocks on our dividend champions list. The stock’s dividend yield on September 24 came in at 6.18%.
At the end of the second quarter of 2024, 12 hedge funds tracked by Insider Monkey held stakes in Universal Corporation (NYSE:UVV), compared with 13 in the previous quarter. These stakes have a total value of over $70 million.
4. Universal Health Realty Income Trust (NYSE:UHT)
Dividend Yield as of September 24: 6.28%
Universal Health Realty Income Trust (NYSE:UHT) ranks fourth on our dividend champions list. The American real estate investment trust company mainly invests in healthcare and human service-related facilities. It reported strong earnings in the first six months of the year. The company’s FFO for the period came in at $24.8 million, up from $22 million in the same period last year. The company’s net income of $10.6 million also showed a growth from $7.9 million on a YoY basis. The increase was primarily due to the healthcare sector, which presents appealing investment opportunities because of its countercyclical nature and its ties to innovation and research. The stock has surged by over 4.5% since the start of 2024 and its 12-month returns came in at over 13%.
Universal Health Realty Income Trust (NYSE:UHT) had a struggling start to the year because of high interest rates. Artisan Partners also highlighted this in its Q1 2024 investor letter. Here is what the firm has to say:
“Our bottom contributors were Cable One, Philips and Universal Health Realty Income Trust (NYSE:UHT). Universal Realty Income Trust (UHT) is a health care REIT (real estate investment trust) specializing in health care facilities, including acute care hospitals, behavioral health centers and medical office buildings. Our initial purchase was in June 2023. Like other high income producing stocks, UHT has been out of favor given higher interest rates. Besides the stock selling at low levels relative to its historical valuation and other REITs, we liked UHT’s track record of execution, low leverage, reduced cyclicality and consistent annual dividend growth. It currently yields nearly 8%. Recent results have been strong, with revenue growth up over 5% driven by annual lease price escalators, a better mix of assets, increased occupancy and M&A. However, UHT was down in Q1 along with the broader real estate sector as interest-rate sensitive areas badly lagged the rest of the market.”
That said, the company’s dividend payments have remained unaffected by high interest rates and other macroeconomic conditions over the years. On September 4, the company declared a quarterly dividend of $0.73 per share, which fell in line with its previous dividend. Overall, it has been growing its payouts for 40 consecutive years. The stock has a dividend yield of 6.28%, as of September 24.
The number of hedge funds tracked by Insider Monkey owning stakes in Universal Health Realty Income Trust (NYSE:UHT) grew to 12 in Q2 2024, from 8 in the previous quarter. The total value of these stakes is over $17.3 million.
3. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of September 24: 6.52%
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline and energy company. The company is in the final stages of acquiring three natural gas utilities in the US for US$14 billion. This acquisition will position Enbridge as the largest natural gas utility operator in North America. The demand for natural gas is projected to increase as power producers and technology firms incorporate gas-fired electricity generation to meet the growing needs of AI data centers and electric vehicles. With its extensive natural gas transmission and storage networks, along with the newly acquired utilities, Enbridge is well-positioned to capitalize on the rising usage of natural gas. The stock has surged by nearly 14% since the start of 2024.
In the second quarter of 2024, Enbridge Inc. (NYSE:ENB) reported revenue of $8.18 billion, which showed a 5% growth from the same period last year. The revenue also beat analysts’ estimates significantly by $4 billion. The company’s cash flow was also strong for the quarter. It generated $2.8 billion in operating cash flow and its distributable cash flow came in at $2.9 billion, which showed a 3% YoY growth.
Enbridge Inc. (NYSE:ENB) maintains a 29-year track record of consistent dividend growth, which makes it one of the best stocks on our dividend champions list. The company currently offers a quarterly dividend of C$0.915 per share and has a dividend yield of 6.5%, as of September 24.
With a collective stake value of over $2.2 billion, 32 hedge funds in Insider Monkey’s database owned positions in Enbridge Inc. (NYSE:ENB) in Q2 2024. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q2.
2. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of September 24: 7.12%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company that offers related products and petrochemicals. The company is a strong dividend payer, having raised its dividends for 26 consecutive years. Its quarterly dividend currently sits at $0.525 per share for an impressive dividend yield of 7.12%, as of September 24.
Unlike many other energy companies that depend on commodity prices for their revenue and earnings, Enterprise Products Partners L.P. (NYSE:EPD) generates income by charging fees for the use of its assets. As a result, the demand for energy is more crucial to its performance than the prices of the products transported through its midstream system. This model offers a degree of stability, as energy demand remains strong even when prices are low. In the second quarter of 2024, the company reported revenue of $13.5 billion, reflecting a 27% increase from the same period last year.
Enterprise Products Partners L.P. (NYSE:EPD) also saw its operating income rise to $1.8 billion in Q2 2024, up from $1.5 billion in the previous year. Its robust cash flow supports its dividend payments, with the company generating $1.8 billion in distributable cash flow (DCF) in the latest quarter, an increase from $1.7 billion in the same period last year. Operating cash flow was $2.1 billion, compared to $1.9 billion in Q2 2023. Additionally, the company maintains a sustainable payout ratio; for the twelve months ending June 30, the payout ratio, which includes distributions to common unitholders and buybacks of partnership common units, stood at 55% of the adjusted cash flow from operations.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 23 funds owned stakes in Enterprise Products Partners L.P. (NYSE:EPD). These stakes are worth $310 million in total.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of September 24: 7.97%
Altria Group, Inc. (NYSE:MO) is an American tobacco company that manufactures a wide range of related products including cigarettes and other nicotine products. The company reported mixed earnings in Q2 2024. It reported revenue of $5.28 billion, reflecting a modest decline of 3% compared to the same period last year. Nevertheless, its traditional tobacco businesses proved to be resilient despite a challenging operating environment. These cash-generating operations continued to provide support for the company’s investments in innovative product initiatives. By the end of the quarter, the company had $1.8 billion in cash and cash equivalents available.
Altria Group, Inc. (NYSE:MO) is making significant strides in its mission to lead adult smokers toward a smoke-free future responsibly. In the second quarter of 2024, its innovative smoke-free products experienced substantial growth in market share and volume, reaching important milestones that are anticipated to contribute to future success. NJOY achieved the first-ever FDA marketing granted orders for menthol e-vapor products, and the company also submitted PMTA applications to the FDA for the next generation of its NJOY and on! products.
Altria Group, Inc. (NYSE:MO) announced a quarterly dividend of $1.02 per share on September 13, which was consistent with its previous dividend. In August this year, the company achieved its 55th consecutive year of dividend growth. In Q2, it also returned $1.7 billion to shareholders through dividends. With a dividend yield of nearly 8%, as of September 24, MO tops our dividend champions list.
Insider Monkey’s database of Q2 2024 showed that 36 hedge funds owned stakes in Altria Group, Inc. (NYSE:MO), compared with 38 in the previous quarter. These stakes are collectively valued at nearly $960 million.
Overall, Altria Group, Inc. (NYSE:MO) ranks first on our list. While we acknowledge the potential for MO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
