In this article, we discuss 10 companies that just increased their dividends by over 10%. If you want to skip our detailed analysis of these stocks, go directly to These 5 Companies Just Increased Their Dividends By Over 10%.
The S&P 500 is heading into correction territory as the Russian attack on Ukraine has severely impacted market sentiment. Sam Stovall, chief investment strategist at CFRA Research, joined CNBC on February 24, stating that markets will see a deeper correction but that a bear market is not expected. According to Stovall, amid geopolitical instability and a rising interest rate environment, it is important to look out for stocks in beaten down sectors like semiconductors and software, whereas technology and consumer staples would make for a defensive investment approach in this market.
According to Brenda Vingiello, the chief investment officer at Sand Hill Global Advisors, investors should turn the stock market crash into a buying opportunity, investing in high-quality names given that historically, the S&P 500 has always rebounded after periods of instability, which suggests that the market volatility is temporary.
Dan Genter, CEO and chief investment officer of RNC Genter Capital Management, stated that investors need to focus on the long-term and consider the current market situation as an entry point. He pointed to sectors that are poised to succeed as a result of the ongoing market crisis, naming energy, healthcare, and financial stocks as his primary contenders. In addition to that, he mentioned that investors should seek companies paying solid dividends, which indicates strong balance sheets that might help them weather these choppy market conditions.
Dividend paying stocks have long been considered a hedge against inflationary pressure and rising rates, and it is important to look out for companies that are still increasing their payouts even amid the tough market conditions. These stocks include eBay Inc. (NASDAQ:EBAY), The Home Depot, Inc. (NYSE:HD), and Thermo Fisher Scientific Inc. (NYSE:TMO), among others discussed at length below.
Our Methodology
We selected companies that have recently hiked their dividends by over 10%, mentioning important metrics such as latest earnings, analyst ratings, and the hedge fund sentiment around the stocks. All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Photo by Vitaly Taranov on Unsplash
These Companies Just Increased Their Dividends By Over 10%
10. Silgan Holdings Inc. (NASDAQ:SLGN)
Number of Hedge Fund Holders: 15
Percentage of Dividend Increase: 14.3%
Silgan Holdings Inc. (NASDAQ:SLGN) is a consumer goods packaging company based in Stamford, Connecticut. On January 25, Silgan Holdings Inc. (NASDAQ:SLGN) reported above consensus earnings and revenue for the fourth quarter. The company’s EPS came in at $0.79, while Silgan Holdings Inc. (NASDAQ:SLGN)’s revenue for the period was $1.44 billion. The company’s strong cash flow position allows for investments in growth as well as returning some of that surplus cash to shareholders.
On February 23, Silgan Holdings Inc. (NASDAQ:SLGN) did just that, declaring a $0.16 per share quarterly dividend, a 14.3% increase from its prior dividend of $0.14. Offering a forward yield of 1.53%, the dividend will be paid on March 31 to shareholders of record on March 17.
RBC Capital analyst Arun Viswanathan raised the firm’s price target on Silgan Holdings Inc. (NASDAQ:SLGN) to $57 from $50 on January 27 and kept an ‘Outperform’ rating on the shares after the company’s Q4 earnings beat. The analyst cites the company’s M&A tailwinds and volume growth, adding that despite the near-term headwinds around tough annual comps and cost inflation, he believes Silgan Holdings Inc. (NASDAQ:SLGN) is positioned well for growth in FY22/23.
Among the hedge funds tracked by Insider Monkey, 15 funds were bullish on Silgan Holdings Inc. (NASDAQ:SLGN) in Q4 2021, with collective stakes amounting to $232.5 million. Cardinal Capital held the largest stake in Silgan Holdings Inc. (NASDAQ:SLGN) with 3.5 million shares worth $153.6 million.
In addition to eBay Inc. (NASDAQ:EBAY), The Home Depot, Inc. (NYSE:HD), and Thermo Fisher Scientific Inc. (NYSE:TMO), Silgan Holdings Inc. (NASDAQ:SLGN) recently raised its dividend payout.
9. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)
Number of Hedge Fund Holders: 20
Percentage of Dividend Increase: 25%
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is an American conglomerate that operates in the broadcast media, telecommunications, and mass media industries. The company offers services including sports and news programming, broadcast television, television production, digital media, radio, and live event promotion.
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) announced a $0.25 per share quarterly dividend on February 23, a 25% increase from its previous dividend of $0.20. The dividend will be distributed on March 21 to shareholders of record on March 7. The company’s shares offer a dividend yield of 3.88% as of February 24.
HG Vora Capital Management owned the leading stake in Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) at the end of Q4 2021, with 4.75 million shares worth $125.5 million. Overall, the Q4 database of Insider Monkey suggested that 20 hedge funds were bullish on the stock.
8. Shutterstock, Inc. (NYSE:SSTK)
Number of Hedge Fund Holders: 21
Percentage of Dividend Increase: 14.3%
Shutterstock, Inc. (NYSE:SSTK) is a New York-based company that provides royalty-free stock images, music, vector graphics, and illustrations to customers across the globe.
On February 10, Shutterstock, Inc. (NYSE:SSTK) reported its Q4 earnings, posting EPS of $0.77, exceeding estimates by $0.29. Revenue for the period jumped 13.73% year-on-year to $205.78 million, outperforming the market consensus by $3.87 million.
Shutterstock, Inc. (NYSE:SSTK) declared a per share quarterly dividend of $0.24 on January 25, a 14.3% increase from the prior dividend of $0.21. The dividend will be paid on March 17 to shareholders of record on March 3.
Needham analyst Bernie McTernan lowered his price target on Shutterstock, Inc. (NYSE:SSTK) to $115 from $145 to reflect a lower target multiple but kept a ‘Buy’ rating on the shares after the company’s Q4 earnings beat.
At the end of 2021, 21 hedge funds were bullish on Shutterstock, Inc. (NYSE:SSTK), up from 19 funds a quarter earlier. Renaissance Technologies is the biggest stakeholder of Shutterstock, Inc. (NYSE:SSTK) among that group with 894,501 shares worth over $99 million.
Here is what Bernzott Capital Advisors US Small Cap Value had to say about Shutterstock, Inc. (NYSE:SSTK) in its Q4 2021 investor letter:
“Shutterstock (SSTK): This market share-gaining provider of stock media posted a string of solid earnings during the year with strong gains in subscriber growth and a rising mix of subscription revenue. It has acquired smaller companies which enhance its product capabilities with tools and data insights and improve customer workflow. It recently announced Creative Flow, a suite of products fostering collaboration. The company’s competitive position is strengthening.”
7. Tronox Holdings plc (NYSE:TROX)
Number of Hedge Fund Holders: 40
Percentage of Dividend Increase: 25%
Tronox Holdings plc (NYSE:TROX) is a chemical manufacturing company that produces titanium dioxide pigment, specialty-grade titanium dioxide products, pure titanium chemicals, and zircon. Tronox Holdings plc (NYSE:TROX)’s Q4 revenue of $884 million outperformed the market consensus by $24.61 million.
On February 23, Tronox Holdings plc (NYSE:TROX) reported a quarterly dividend per share of $0.125, a 25% increase from its prior dividend of $0.10. The dividend will be distributed on April 8 to shareholders of record on March 7.
Barclays analyst Duffy Fischer lifted his price target on Tronox Holdings plc (NYSE:TROX) on February 18 to $27 from $25 and kept an ‘Overweight’ rating on the shares after its fourth quarter results. The analyst said that Tronox Holdings plc (NYSE:TROX) could generate more than half its market cap in free cash flow over the next four years.
According to the database of Insider Monkey, 40 hedge funds held long positions in Tronox Holdings plc (NYSE:TROX) on December 31, up from 38 funds in the preceding quarter. Millennium Management was the largest shareholder with close to 2 million shares worth $46.5 million.
6. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 45
Percentage of Dividend Increase: 20%
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based company supplying petroleum, natural gas, and natural gas liquids. On February 22, the company posted earnings per share of $3.63 and $2.02 billion in revenue, both above the market consensus.
On February 25, RBC Capital analyst Scott Hanold raised his price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $160 from $150 and kept an ‘Outperform’ rating on the shares. The analyst is positive on the company’s commitment to maintenance, production, and “exceptional” cost control, adding that its shareholder return strategy is underpinned by Diamondback Energy, Inc. (NASDAQ:FANG)’s flexibility and discipline.
On February 22, Diamondback Energy, Inc. (NASDAQ:FANG) declared a $0.60 per share quarterly dividend, a 20% increase from its earlier dividend of $0.50. The dividend is payable on March 11 to shareholders of record on March 4.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 45 funds were bullish on Diamondback Energy, Inc. (NASDAQ:FANG) at the end of December, down from 51 funds in the prior quarter. Harris Associates is the biggest Diamondback Energy, Inc. (NASDAQ:FANG) shareholder with a $328 million stake.
Diamondback Energy, Inc. (NASDAQ:FANG) is rising in popularity among smart investors, just like eBay Inc. (NASDAQ:EBAY), The Home Depot, Inc. (NYSE:HD), and Thermo Fisher Scientific Inc. (NYSE:TMO).
Here is what Miller Opportunity Equity had to say about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
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Disclosure: None. These 10 Companies Just Increased Their Dividends By Over 10% is originally published on Insider Monkey.
