In this article, we discuss 5 companies that recently raised their dividends. If you want to read our detailed discussion on dividend stocks, go directly to read These 10 Companies Recently Increased Their Dividends.
5. Bank of America Corporation (NYSE:BAC)
Dividend Yield as of July 21: 2.52%
Bank of America Corporation (NYSE:BAC) is a multinational investment bank and financial services holding company headquartered in North Carolina.
In Q2 2022, Bank of America Corporation (NYSE:BAC) reported average deposits of $2 trillion, up 7% from the previous quarter. The company returned $2.7 billion to shareholders in dividends and share buybacks during the quarter. On July 20, Bank of America Corporation (NYSE:BAC) declared a 5% hike in its quarterly dividend to $0.22 per share. This was the company’s 9th consecutive year of dividend increase. As of July 21, the stock’s dividend yield came in at 2.52%.
In July, Societe Generale upgraded Bank of America Corporation (NYSE:BAC) to Buy with a $37.5 price target, highlighting the company’s loan portfolio and sensitivity to rising interest rates.
At the end of Q1 2022, 99 hedge funds in Insider Monkey’s database owned stakes in Bank of America Corporation (NYSE:BAC), up from 84 in the previous quarter. These stakes are collectively valued at over $45.4 billion. Berkshire Hathaway held the largest stake in the company in Q1, worth $41.6 billion.
Miller Value Partners mentioned Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter. Here is what the firm has to say:
“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.
A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).
We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”
4. Community Bank System, Inc. (NYSE:CBU)
Dividend Yield as of July 21: 2.63%
Community Bank System, Inc. (NYSE:CBU) is a New York-based commercial bank, that offers a range of commercial and retail banking services.
At the end of Q1 2022, Community Bank System, Inc. (NYSE:CBU) reported cash and cash equivalents of over $1.02 billion, with total assets amounting to $15.6 billion, up from $15.4 billion in the previous quarter. On July 20, the company raised its quarterly dividend by 2.3% to $0.44 per share. The dividend is payable on October 10, for shareholders of record on September 15. The company has been raising its dividends consistently for the past 30 years. As of July 21, the stock’s dividend yield came in at 2.63%.
At the end of March 2022, 14 hedge funds held stakes in Community Bank System, Inc. (NYSE:CBU), the same as in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are collectively valued at $36.6 million. GLG Partners was the company’s leading shareholder in the first quarter of 2022.
3. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of July 21: 2.75%
An American manufacturing company, Stanley Black & Decker, Inc. (NYSE:SWK) has been making dividend payments since 1876 and maintains a 54-year streak of dividend growth. In the first quarter of 2022, the company’s free cash flow was recorded at $246.1 million, and expects the number to fall between $1 billion to $1.5 billion in FY22. Stanley Black & Decker, Inc. (NYSE:SWK) paid over $116 million in dividends to shareholders during the quarter, up from $110.1 million paid during the same period last year.
On July 20, Stanley Black & Decker, Inc. (NYSE:SWK) declared a quarterly dividend of $0.80 per share, up 1.3% from the previous dividend. The dividend is payable on September 20, for shareholders of the company on September 6. As of July 21, the stock’s dividend yield came in at 2.75%.
In July, Deutsche Bank lowered its price target on Stanley Black & Decker, Inc. (NYSE:SWK) to $128, highlighting a challenging Q2 earnings season. However, the firm has a Buy rating on the stock due to expected growth in the demand for industrial products.
According to Insider Monkey’s data, Stanley Black & Decker, Inc. (NYSE:SWK) was a part of 38 hedge fund portfolios in Q1, down from 42 in the previous quarter. These hedge funds owned stakes worth over $922 million in the company. Gates Capital Management was the company’s largest stakeholder in Q1, owning nearly 1.5 million SWK shares.
Saturna Capital mentioned Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2021 investor letter. Here is what the firm has to say:
“Stanley Black &Decker performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”
2. Regions Financial Corporation (NYSE:RF)
Dividend Yield as of July 21: 3.35%
Regions Financial Corporation (NYSE:RF) is an American bank holding company that provides services related to saving, mortgages, and investing.
Regions Financial Corporation (NYSE:RF) has been a dividend-payer for the past 32 years and has raised its payouts consecutively for 9 years. In 2017, the company grew its dividends twice, when the Feds raised the interest rates. In Q2 2022, it paid $159 million in dividends to shareholders and also repurchased 1 million shares of common stock, valued at over $15 million. On July 20, Regions Financial Corporation (NYSE:RF) hiked its quarterly dividend by 18% to $0.20 per share. As of July 21, the stock’s dividend yield stood at 3.35%.
In July upgraded Regions Financial Corporation (NYSE:RF) to Buy with a $23 price target, due to the company’s maintenance of its portfolio and balance sheet.
At the end of Q1 2022, 30 hedge funds tracked by Insider Monkey reported owning stakes in Regions Financial Corporation (NYSE:RF), worth $221.6 million. In the previous quarter, 32 hedge funds held stakes in the company, valued at $202.6 million.
1. Lake Shore Bancorp, Inc. (NASDAQ:LSBK)
Dividend Yield as of July 21: 4.60%
Lake Shore Bancorp, Inc. (NASDAQ:LSBK) is a New York-based bank holding company that has been serving its consumers for the past 130 years.
In Q2 2022, Lake Shore Bancorp, Inc. (NASDAQ:LSBK) paid $625,000 in dividends to shareholders, up 14.1% from the same period last year. On July 21, the company raised its quarterly dividend by 12.5% to $0.18 per share. The dividend is payable on August 19, to shareholders of record on August 2. As of July 21, the stock’s dividend yield came in at 4.60%.
At the end of Q1 2022, Minerva Advisors was the only stakeholder of Lake Shore Bancorp, Inc. (NASDAQ:LSBK), owning a stake worth $293,000.
You can also take a look at 10 Dividend Aristocrats to Buy for 2022 and 10 Cheap Value Stocks to Buy for 2022
