In this article we discuss top 5 dividend champions of 2021. To see a comprehensive list of dividend champions, go to 30 Dividend Champions of 2021 (Part III).
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the top 5 dividend champions of 2021:
5. First of Long Island Corp (NASDAQ: FLIC)
Dividend Yield: 4.19%
First of Long Island is one of the 30 dividend champions of 2021. The company operates The First National Bank of Long Island and provides financial, personal money orders, bill payment, remote deposit and cash management services. The bank has about 51 branches. In the fourth quarter of 2020, FLIC posted GAAP EPS of $0.44, beating the Street’s estimates by $0.02. Revenue in the quarter jumped 3.1% to $28.16 million.
At the end of the third quarter, Jim Simons’ Renaissance Technologies reported owning 753,850 shares of the company, worth $11.17 million.
4. International Business Machines (NYSE:IBM)
Dividend Yield: 5.39%
IBM became a dividend champion in 2021. The computing giant’s shares have gained over 4% in the last 3 months. However, IBM shares recently plummeted after the company missed revenue estimates for the fourth quarter, amid weaknesses in Cloud & Cognitive segment. Total cloud revenue still jumped about 10% on a year-over-year basis to reach $7.5 billion. In 2021, the company expects annual revenue growth with FCF of $11 billion to $12 billion.
As of the end of the third quarter, 40 hedge funds tracked by Insider Monkey were long IBM. The total value of these stakes is $639.2 million.
3. Chevron Corporation (NYSE: CVX)
Dividend Yield: 5.61%
Energy giant Chevron has been increasing its dividend consistently for the last 33 years despite the flux in the oil markets. It also has a high dividend yield. The Wall Street Journal recently reported that ExxonMobil and Chevron in 2020 discussed a potential merger.
As of the end of the fourth quarter of 2020, Ken Fisher’s Fisher Asset Management reported owning 5.64 million shares of Chevron. This stake’s total worth is about $476.61 million.
2. Exxon Mobil (NYSE: XOM)
Dividend Yield: 6.98%
Oil giant Exxon Mobil is one of the top 30 dividend champions of 2021. XOM shares have gained about 40% over the last 3 months. S&P Global recently lowered its credit ratings for XOM. The firm cited problems posed by climate change for the cut. The rating agency had already warned of declining revenues in the oil industry amid heavy levels of debt, worsened by a global transition away from fossil fuels.
At the end of the third quarter, 52 hedge funds tracked by Insider Monkey were long XOM.
1. AT&T Inc. (NYSE: T)
Dividend Yield: 7.25%
Telecom giant AT&T Inc. (NYSE: T) ranks 1st on our list of top 30 dividend champions of 2021. The company has increased its dividend consistently over the last 34 years. The stock has lost about 24% in value over the last 12 months. A recent SEC filing showed that the company has entered into a $14.7 billion term loan credit agreement with Bank of America. In January, Bloomberg reported that the company was in talks with lenders as it plans to buy more 5G airwaves.
As of the end of the third quarter, 51 hedge funds tracked by Insider Monkey reported owning stakes in AT&T at the end of the September quarter, down from 57 funds a quarter earlier.
Distillate Capital, in their Q4 2020 Investor Letter, highlighted a few stocks and AT&T Inc. (NYSE:T) is one of them. Here is what Distillate Capital stated:
“AT&T and IBM exited the portfolio as they no longer met the quality criteria for inclusion with AT&T exceeding the debt limit and IBM falling out due to deteriorating long-term fundamental stability.”
You can also read 15 Largest Electronics Companies in the World and 20 Most Diverse Cities in the US.
Also, you can go to 30 Dividend Champions of 2021 (Part I).
