In this article, we discuss the companies that have just increased their dividends. If you want to read our detailed analysis of dividend investing, go directly to read MSFT and 9 Other Companies Just Increased Their Dividends.
5. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 16
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a California-based real estate investment trust company that provides capital for the medical-use cannabis industry. In September, Compass Point upgraded the stock to Buy while lifting its price target to $175. The firm appreciated the company’s agreement with tenants in California which will enhance its portfolio. The firm also highlighted the company’s recent dividend growth.
Innovative Industrial Properties, Inc. (NYSE:IIPR) reported strong results in Q2 2022. The company generated over $62 million in free cash flow, up from $59 million in the previous quarter. Its revenue jumped by 44.3% year-over-year to $70.5 million. At the end of June, the company had $45.4 million available in cash and cash equivalents, and its total assets amounted to over $2.4 billion.
On September 15, Innovative Industrial Properties, Inc. (NYSE:IIPR) announced a quarterly dividend of $1.80 per share, raising it by 2.9%. This was the company’s second dividend hike this year and it also maintains a 4-year track of consistent dividend growth. The stock’s dividend yield stood at 7.34%, as of September 21.
The number of hedge funds tracked by Insider Monkey owning stakes in Innovative Industrial Properties, Inc. (NYSE:IIPR) stood at 16 in Q2 2022, up from 15 in the previous quarter. The total value of these stakes is over $291.6 million. With over 1.5 million shares, Zimmer Partners was the company’s leading stakeholder in Q2.
4. STORE Capital Corporation (NYSE:STOR)
Number of Hedge Fund Holders: 22
STORE Capital Corporation (NYSE:STOR) is a publicly traded real estate investment trust company based in Arizona. The company is the leader in the middle market real estate capital and net lease solutions. In Q2 2022, the company generated nearly $167 million in free cash flow, up from $160 million in the previous quarter. It reported revenue of $223.8 million, which showed a 16.6% growth from the same period last year. The company’s net income for the quarter came in at $90.5 million and its AFFO stood at $163.8 million.
STORE Capital Corporation (NYSE:STOR) has been raising its dividends consistently for the past 6 years and has boosted its payouts at a CAGR of 5.83% in the last five years. On September 19, the company announced a 7% hike in its quarterly dividend to $0.41 per share. The stock’s dividend yield came in at 5.41%, as of September 21.
In September, Evercore ISI initiated its coverage of STORE Capital Corporation (NYSE:STOR) with an Outperform rating and a $32 price target, up from $29.
At the end of Q2 2022, 22 hedge funds tracked by Insider Monkey owned investments in STORE Capital Corporation (NYSE:STOR), worth $422.7 million. In the previous quarter, 24 hedge funds owned stakes in the company, with a total value of over $748.2 million.
3. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 36
APA Corporation (NASDAQ:APA) is a Texas-based holding company that is engaged in the exploration of hydrocarbon. The company derives its revenues from the operation of energy infrastructure assets and businesses. On September 14, it declared a 100% growth in its quarterly dividend to $0.25 per share. In addition to this, the company also approved 40 million shares of additional repurchase authorization. The stock has a yield of 2.52%, as recorded on September 21.
In Q2 2022, APA Corporation (NASDAQ:APA) posted revenue of $3.05 billion, up 73.3% from the same period last year. The company’s operating cash flow for the quarter came in at $1.5 billion, compared with $891 million in the previous quarter. Its free cash flow also jumped to $1.1 billion, from $512 million a quarter earlier. If recent strip prices hold, the company expects to generate over $3 billion in free cash flow in FY22.
In September, Truist lifted its price target on APA Corporation (NASDAQ:APA) to $75 and maintained a Buy rating on the shares. The firm believes that the stock’s outperformance is expected to continue due to its diversified operations and growth in free cash flows.
As of the close of Q2 2022, 36 hedge funds tracked by Insider Monkey reported owning stakes in APA Corporation (NASDAQ:APA), down from 46 in the previous quarter. These stakes are collectively worth over $745 million. Harris Associates was the company’s largest stakeholder in Q2.
Oakmark Funds mentioned APA Corporation (NASDAQ:APA) in its Q1 2022 investor letter. Here is what the firm has to say:
“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
2. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 55
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor manufacturing company that also produces various integrated circuits. The company was a popular buy among elite funds in Q2 2022, as 55 hedge funds tracked by Insider Monkey were bullish on the stock, up from 46 in the previous quarter. The stakes owned by these hedge funds hold a consolidated value of over $1.62 billion.
Texas Instruments Incorporated (NASDAQ:TXN)’s cash position remained strong in Q2 2022. The company generated $1.7 billion in operating cash flow and its free cash flow came in at $1.17 billion. Its free cash flow represented 30.1% of the company’s revenue. The company paid over $2.2 billion to shareholders during the quarter, $1.06 billion of which accounted for dividend payments.
On September 15, Texas Instruments Incorporated (NASDAQ:TXN) declared an 8% hike in its quarterly dividend to $1.24 per share. Through this increase, the company extended its dividend growth streak to 19 years. As of September 21, the stock’s dividend yield came in at 2.96%.
In July, Citigroup raised its price target on Texas Instruments Incorporated (NASDAQ:TXN) to $165 and maintained a Neutral rating on the shares, highlighting the company’s strong quarterly earnings and guidance above consensus.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is one of the most popular tech companies that pay dividends to shareholders. On September 20, the company declared a 10% hike in its quarterly dividend to $0.68 per share. This was the company’s 16th consecutive year of dividend growth. As of September 21, the stock has a yield of 1.01%.
Microsoft Corporation (NASDAQ:MSFT) generated revenue of $51.8 billion in fiscal Q4 2022, which showed a 12.4% year-over-year growth. The company’s operating cash flow stood at over $24.6 billion while its free cash flow came in at $17.7 billion. During the quarter, it paid $12.4 billion to shareholders and dividend payments amounted to over $4.6 billion.
In July, BMO Capital raised its price target on Microsoft Corporation (NASDAQ:MSFT) to $320 with an Outperform rating on the shares. The firm appreciated the company’s results and also highlighted the management’s affirmation of double-digit constant currency growth and strong booking for the next fiscal year.
At the end of Q2 2022, 258 hedge funds owned positions in Microsoft Corporation (NASDAQ:MSFT), compared with 259 in the previous quarter. The stakes owned by these hedge funds hold a collective value of over $56 billion.
Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter. Here is what the firm has to say:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.
As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”
You can also take a look at 10 Monthly Dividend Stocks with Highest Yields and 10 Dividend Stocks to Buy According to Billionaire Cliff Asness
