In this article, we discuss the top 5 dividend increases of 2021. If you want our detailed analysis of dividend investing and these stocks, go directly to Top 10 Dividend Increases of 2021.
5. Morgan Stanley (NYSE:MS)
Dividend Yield as of January 20: 2.80%
Dividend Increase in 2021: 100%
Number of Hedge Fund Holders: 65
Morgan Stanley (NYSE:MS) is a New York-based multinational investment bank and financial services company, offering a range of services including investment banking, sales and trading, commodities, prime brokerage, wealth management, and investment management.
On July 15, 2021, Morgan Stanley (NYSE:MS) increased its dividend by 100%, doubling the quarterly dividend from $0.35 to $0.70. On January 20, Morgan Stanley (NYSE:MS) declared that it would distribute a $0.70 per share dividend on February 15, to shareholders of record on January 31.
Morgan Stanley (NYSE:MS) published its Q4 results on January 19, posting earnings per share of $2.08, beating estimates by $0.12. Revenue over the period equaled $14.52 billion, missing estimates by $66.39 million. The stock climbed 2.7% after the Q4 earnings beat and when Morgan Stanley (NYSE:MS) boosted its target for the return on tangible common equity to over 20%.
Barclays analyst Jason Goldberg raised the price target on Morgan Stanley (NYSE:MS) to $123 from $110 and kept an Overweight rating on the shares on January 3. The analyst expects bank stocks to continue to outperform the market in 2022. He expects loan growth to accelerate and net interest margins to benefit from higher interest rates.
Among the hedge funds tracked by Insider Monkey, Eagle Capital Management is the largest Morgan Stanley (NYSE:MS) stakeholder, with over 15 million shares worth $1.46 billion. Overall, 65 hedge funds were bullish on the stock in the third quarter of 2021.
Here is what Artisan Value Fund has to say about Morgan Stanley (NYSE:MS) in its Q3 2021 investor letter:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
4. Suncor Energy Inc. (NYSE:SU)
Dividend Yield as of January 20: 4.65%
Dividend Increase in 2021: 100%
Number of Hedge Fund Holders: 32
Suncor Energy Inc. (NYSE:SU) is a Canadian energy company that produces synthetic crude oil, petroleum, natural gas, and petrochemicals. As of January 20, Suncor Energy Inc. (NYSE:SU) offers a dividend yield of 4.65%.
Suncor Energy Inc. (NYSE:SU) declared a C$0.42 per share quarterly dividend on October 28, which is a 100% increase from the prior dividend of C$0.21. The dividend was paid on December 24, to shareholders of record on December 3.
BofA analyst Doug Leggate reinstated coverage of Suncor Energy Inc. (NYSE:SU) on January 10 with a Buy rating and price target of $34. The “old school” integrated company with a strategy intended to maximize value of regional crude through refining now offers about a 5% yield that “pays investors to wait on the ‘show me’ story”. He sees Suncor Energy Inc. (NYSE:SU) reaching a $2 billion free cash expansion that will support a fair value about 30% above current levels, Leggate tells investors.
According to Insider Monkey’s Q3 data, Arrowstreet Capital is the biggest Suncor Energy Inc. (NYSE:SU) stakeholder from the 32 hedge funds that were bullish on the stock, with 8.8 million shares worth $184 million.
3. SLM Corporation (NASDAQ:SLM)
Dividend Yield as of January 20: 2.42%
Dividend Increase in 2021: 267%
Number of Hedge Fund Holders: 27
SLM Corporation (NASDAQ:SLM) is a consumer banking company, commonly referred to as Sallie Mae, that deals in private student loans, credit cards, college planning tools, and retail banking.
SLM Corporation (NASDAQ:SLM) on October 20 declared a $0.11 per share quarterly dividend, which is a 266.7% increase from the prior dividend of $0.03. The dividend was paid on December 15, to shareholders of record on December 3. As of January 20, the stock delivers a yield of 2.42%.
On January 10, Barclays analyst Mark DeVries raised the price target on SLM Corporation (NASDAQ:SLM) to $27 from $25 and kept an Overweight rating on the shares. The analyst expects a “strong” economy and housing market to drive solid fundamentals for consumer finance not levered to refinance activity.
ValueAct Capital is the biggest SLM Corporation (NASDAQ:SLM) stakeholder, with 16.9 million shares worth $297.6 million. Overall, 27 hedge funds in the Q3 2021 database of Insider Monkey reported owning stakes in SLM Corporation (NASDAQ:SLM), with stakes totaling $891.5 million.
2. Advance Auto Parts, Inc. (NYSE:AAP)
Dividend Yield as of January 20: 1.74%
Dividend Increase in 2021: 300%
Number of Hedge Fund Holders: 35
Advance Auto Parts, Inc. (NYSE:AAP) is an American provider of replacement automotive parts and accessories, serving customers in the United States and Canada. In the third quarter of 2021, 35 hedge funds were bullish on Advance Auto Parts, Inc. (NYSE:AAP), with stakes amounting to roughly $900 million.
On April 20, 2021, Advance Auto Parts, Inc. (NYSE:AAP) lifted its quarterly per share dividend by 300%, up from its prior dividend of $0.25. On December 16, Advance Auto Parts, Inc. (NYSE:AAP) announced a $1 dividend per share, which was paid on January 3, to shareholders of record on December 17.
Truist analyst Scot Ciccarelli initiated coverage of Advance Auto Parts, Inc. (NYSE:AAP) with a Buy rating and a $273 price target on January 12. The recent industry drivers including increased personal vehicle usage, suburban/rural migration, and elevated vehicle prices will continue into the foreseeable future, the analyst told investors in a research note. After years of heavy investment, Advance Auto Parts, Inc. (NYSE:AAP) has finally laid the groundwork to capitalize on its “substantial margin expansion opportunity”.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Citadel Investment Group is the leading Advance Auto Parts, Inc. (NYSE:AAP) stakeholder, with 591,694 shares worth $123.5 million. Overall, 35 hedge funds were long Advance Auto Parts, Inc. (NYSE:AAP) in the third quarter.
1. Harley-Davidson, Inc. (NYSE:HOG)
Dividend Yield as of January 20: 1.75%
Dividend Increase in 2021: 650%
Number of Hedge Fund Holders: 33
Harley-Davidson, Inc. (NYSE:HOG) is a Wisconsin-based manufacturer of motorcycles which was founded in 1903, and it is one of the two American motorcycle companies that survived the Great Depression. Harley-Davidson, Inc. (NYSE:HOG) distributes its merchandise worldwide.
On February 2, 2021 Harley-Davidson, Inc. (NYSE:HOG) announced a 650% increase from its prior dividend of $0.02. On November 22, Harley-Davidson (NYSE:HOG) declared a $0.15 per share quarterly dividend, which was paid on December 23, to shareholders of record on December 8.
BMO Capital analyst Gerrick Johnson on October 28 raised the price target on Harley-Davidson (NYSE:HOG) to $62 from $54 and kept an Outperform rating on the shares. The company’s Q3 results were better than expected, with retail sales, motorcycle shipment, and financial services performance all ahead of estimates, the analyst told investors in a research note.
Rehan Jaffer’s H Partners Management is the largest Harley-Davidson (NYSE:HOG) shareholder, owning 11.20 million shares worth $410 million. Overall, 33 hedge funds in the third quarter database of Insider Monkey were bullish on the stock.
You can also take a look at Analysts Are Recommending These 10 Dividend Stocks and 13 Best Cloud Stocks To Buy Now.
