In this article, we discuss the companies that have just increased their dividends. You can skip our detailed analysis of dividend investing, and go directly to read MSFT and 4 Other Companies Just Increased Their Dividends.
After the pandemic-related hiatus, many American companies started raising their dividends to attract shareholders. According to a report by Janus Henderson Group, 94% of the companies in the index grew or maintained their payouts during the second quarter of 2022. The report also mentioned that dividend payments reached their record high during the quarter, amounting to $144.4 billion. Global dividends also notched a new milestone during this time. In the 12 months ending March 2022, the MSCI AC World Index paid out nearly $1.3 trillion in dividends, up 17% from 2020, as reported by abrdn PLC.
Analysts are expecting steady growth in dividend payments for the remaining two quarters of the fiscal year 2022. Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices, talked about the popularity of dividend stocks in his New York Times interview this August. He said that the companies in the S&P 500 will spend a combined $1.5 trillion in dividends and buybacks this year as they are reporting strong cash flows. This admiration of dividend stocks can also be attributed to the current economic circumstances. With rising inflation and interest rate hikes, investors are gravitating towards dividend stocks to ensure regular income. Dividend companies have outdone their peers during the phases of market decline. According to a report by Goldman Sachs, during the periods when inflation was above 5%, companies offering high dividends performed better than the broader market. For example, in the last 20 years ending April 2022, dividends and dividends reinvested represented over half of the total return of the MSCI AC World Index.
When investing in dividend stocks, investors pay attention to companies that have proven histories of consistent dividend growth. In addition to this, investors also assess the companies’ financial health and balance sheets to determine the stability of their payouts. Some popular dividend stocks that have maintained decades-long dividend growth streaks include The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG). In this article, we will discuss some companies that just increased their dividends.
Pixabay/Public Domain
Our Methodology:
For this list, we selected companies that raised their dividends in September 2022. These companies are ranked according to the number of hedge funds holders, according to Insider Monkey’s Q2 2022 data.
MSFT and 9 Other Companies Just Increased Their Dividends
10. Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO)
Number of Hedge Fund Holders: N/A
Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) is an Ohio-based community bank that specializes in traditional banking and digital banking. The company also provides services in commercial lending, online and mobile banking, and personal checking.
In Q2 2022, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) showed strong cash flow as its operating cash flow grew to $14.5 million, from $7.8 million in the previous quarter. The company’s free cash flow stood at $14 million, from $7.4 million in the preceding quarter. It reported revenue of over $25 million, which showed a 25.7% year-over-year growth.
On September 16, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) announced a 10.5% hike in its quarterly dividend to $0.21 per share. This marked the company’s 28th consecutive year of dividend growth. For the first six months of the year, the company’s payout ratio was 30.08%, compared with 38.18% during the same period last year. As of September 21, the stock’s dividend yield is 3.01%.
In addition to popular dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) can be a good addition to dividend portfolios due to its strong dividend growth history.
9. Saga Communications, Inc. (NASDAQ:SGA)
Number of Hedge Fund Holders: 4
Saga Communications, Inc. (NASDAQ:SGA) is an American broadcasting company that acquires and operates radio stations. On September 20, the company raised its quarterly dividend by 25% to $0.25 per share. As of September 21, the stock’s dividend yield stood at 2.94%. The company has been paying uninterrupted dividends since 2012.
In Q2 2022, Saga Communications, Inc. (NASDAQ:SGA) reported revenue of roughly $30 million, up 6.3% from the same period last year. The company’s balance sheet also remained stable as its operating income grew by 13.2% in the first six months of the year to $14.8 million. Its free cash flow came in at $5.1 million for the period and paid approximately $1.2 million in dividends to shareholders. Since 2012, the company has paid a total of $79 million in dividends.
At the end of Q2 2022, 4 hedge funds in Insider Monkey’s database owned stakes in Saga Communications, Inc. (NASDAQ:SGA), the same as in the previous quarter. These stakes hold a collective value of roughly $12 million. Minerva Advisors owned the largest position in the company in Q2.
8. New Jersey Resources Corporation (NYSE:NJR)
Number of Hedge Fund Holders: 8
Another stock that just increased its dividend is New Jersey Resources Corporation (NYSE:NJR), which is an American energy services holding company that provides reliable energy services to its consumers. In September, JPMorgan maintained a $46 price target on the stock as its renewables capital deployment remained efficient.
During the first nine months of 2022, New Jersey Resources Corporation’s (NYSE:NJR) operating cash flow stood at $236 million, down from $341.8 million during the same period last year. The company’s revenue in fiscal Q3 2022 came in at $552.3 million, up 50.3% from the prior-year quarter. Its consolidated net income was $13.1 million and its home services and other operations generated over $0.2 million during the quarter.
New Jersey Resources Corporation (NYSE:NJR) holds a strong dividend history. The company has been paying dividends since its inception in 1952 and has raised its payouts 29 times in the last 27 years. On September 14, the company announced a 7.6% hike in its quarterly dividend to $0.39 per share. As of September 21, the company’s shares boast a yield of 3.46%.
At the end of June 2022, 8 hedge funds tracked by Insider Monkey reported owning stakes in New Jersey Resources Corporation (NYSE:NJR), compared with 12 in the previous quarter. These stakes hold a collective value of over $47.2 million, compared with $55.8 million worth of stakes owned by hedge funds in the preceding quarter.
7. Ladder Capital Corp (NYSE:LADR)
Number of Hedge Fund Holders: 8
Ladder Capital Corp (NYSE:LADR) is an internally-managed real estate investment trust corporation. The company’s main goal is to protect shareholders’ capital while producing attractive risk-adjusted returns. In Q2 2022, the company’s revenue surged by 107% to $83.8 million, as commercial real estate is gaining ground after the pandemic. The company generated roughly $44 million in free cash flow and paid $29 million in dividends during the quarter. Moreover, it had over $217.3 million available in cash and cash equivalents.
On September 15, Ladder Capital Corp (NYSE:LADR) declared a 4.5% growth in its quarterly dividend to $0.23 per share. This marked the company’s second consecutive quarterly dividend raise. As of September 21, the stock has a dividend yield of 8.17%.
At the end of Q2 2022, Millennium Management owned over 1.4 million shares in Ladder Capital Corp (NYSE:LADR), worth $15.7 million, and was the company’s largest stakeholder. In addition to this, 8 hedge funds in Insider Monkey’s database owned stakes in the company in Q2, the same as in the previous quarter. The total value of these stakes is over $32 million.
6. Trinity Capital Inc. (NASDAQ:TRIN)
Number of Hedge Fund Holders: 8
Trinity Capital Inc. (NASDAQ:TRIN) is an Arizona-based capital market company that provides services in venture debt financing and strategic financing. The company was a part of 8 hedge fund public portfolios in Q2 2022, down from 12 in the previous quarter, as per Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $18.3 million.
In Q2 2022, Trinity Capital Inc. (NASDAQ:TRIN) reported a total investment income of $33.4 million, which shows a 71.8% growth from the same period last year. At the end of June, the company had approximately $93.2 million in available liquidity, including $13.2 million in cash and cash equivalents. It also had $80 million in the available credit facility.
Trinity Capital Inc. (NASDAQ:TRIN) started paying dividends in November 2020 and has raised its payouts five times since then. On September 16, the company raised its quarterly dividend by 7% to $0.45 per share. This marked the company’s fifth consecutive quarter of dividend growth. In addition to this, it also declared a supplemental dividend of $0.15 per share. The stock’s dividend yield came in at 11.85%, as of September 21.
In September, B. Riley assumed its coverage on Trinity Capital Inc. (NASDAQ:TRIN) with a Buy rating, presenting a positive stance on business development companies. Moreover, the firm also appreciated the company’s initiative of paying special dividends.
Trinity Capital Inc. (NASDAQ:TRIN) is another dividend stock to consider due to its steadily growing payouts alongside popular stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
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.”