Dividend Champions, Contenders and Challengers List: 15 Highest Yielding Stocks
In this article, we discuss 15 highest yielding dividend champions, contenders, and challengers. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read Dividend Champions, Contenders, and Challengers list: 5 Highest Yielding Stocks.
Dividend Champions are companies that have histories of growing their dividends for at least 25 consecutive years and are not part of the S&P 500. Dividend challengers are companies that have raised their dividends for at least 10 years but less than 25 years, while dividend contenders are known to have increased their dividends for at least 5 years but less than 10 years. These companies are popular among investors because of their strong financial health and ability to generate stable income for them.
Companies that regularly grow their dividends become top preferences for investors as they are considered to be stable in comparison to those who don’t increase their payouts. In addition to this, dividend growers deliver strong returns for shareholders, especially during market downturns. In our article, 25 Things Every Dividend Investor Should Know, we reported that dividend growers delivered an annual average return of 11.6% from 1972 to 2014, versus a 3.4% return of dividend cutters during the same period. Dividend stocks also outperformed the broader market during the periods of economic slowdown in July 1981, March 2001, and December 2007.
Target Corporation (NYSE:TGT), Abbott Laboratories (NYSE:ABT), and S&P Global Inc. (NYSE:SPGI) are some of the best dividend stocks that hold decades-long dividend growth streaks. During last year’s high inflationary environment, companies with strong dividend growth grabbed investors’ attention and outperformed the market. In 2022, the S&P 500 had its worst year since the Global Financial Crisis of 2008 and fell by 18.1%. On the other hand, the S&P 500 Dividend Aristocrats Index, which tracks the performance of companies that have raised their dividends for at least 25 years, reported a 6.21% decline last year, which is less harsh when compared with the broad market.
Our Methodology:
For this article, we scoured the lists of Dividend Champions, Contenders, and Challengers and picked stocks with the highest yields. We also measured the hedge fund sentiment around each stock, considering Insider Monkey's database of 943 elite funds as of Q4 2022. The stocks are ranked in ascending order of their dividend yields, as of May 1.
Dividend Champions, Contenders, and Challengers list: 15 Highest Yielding Stocks
15. Peoples Bancorp Inc. (NASDAQ:PEBO)
Dividend Yield as of May 1: 6.06%
Peoples Bancorp Inc. (NASDAQ:PEBO) is an Ohio-based bank holding company that offers banking and related services to its consumers. In the first quarter of 2023, the company reported revenue of nearly $92 million, which showed a 23.6% growth from the same period last year. During the quarter, the company paid $10.6 million in dividends to shareholders, which makes it one of the best dividend stocks on our list. Target Corporation (NYSE:TGT), Abbott Laboratories (NYSE:ABT), and S&P Global Inc. (NYSE:SPGI) are some other best dividend stocks with strong dividend growth track records.
Peoples Bancorp Inc. (NASDAQ:PEBO) is a Dividend Challenger as it has raised its dividends consistently for the past nine years. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 6.06%, as of May 1.
In April, Janney Montgomery initiated its coverage on Peoples Bancorp Inc. (NASDAQ:PEBO) with a Neutral rating and a $28 price target. The firm noted that the company has delivered sound fundamental performance metrics.
At the end of December 2022, 14 hedge funds tracked by Insider Monkey reported having stakes in Peoples Bancorp Inc. (NASDAQ:PEBO), up from 13 in the previous quarter. These stakes have a collective value of nearly $21.8 million. With over 4 million worth of stakes, Elizabeth Park Capital Management was the company's leading stakeholder in Q4.
14. Midland States Bancorp, Inc. (NASDAQ:MSBI)
Dividend Yield as of May 1: 6.13%
Midland States Bancorp, Inc. (NASDAQ:MSBI) provides commercial and personal banking services to its consumers. On February 7, the company hiked its quarterly dividend by 3.4% to $0.30 per share. Through this increase, the company took its dividend growth streak to 23 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.13%, as of May 1.
In the first quarter of 2023, Midland States Bancorp, Inc. (NASDAQ:MSBI) generated over $76.2 million in revenue, up 5.3% from the same period last year. At the end of March 2023, the company had over $138.3 million available in cash and cash equivalents.
At the end of Q4 2022, 10 hedge funds tracked by Insider Monkey reported having stakes in Midland States Bancorp, Inc. (NASDAQ:MSBI), the same as in the previous quarter. The collective value of these stakes is over $11.7 million.
13. Community Healthcare Trust Incorporated (NYSE:CHCT)
Dividend Yield as of May 1: 6.20%
Community Healthcare Trust Incorporated (NYSE:CHCT) is a self-managed healthcare real estate company that owns real estate properties leased to hospitals and other healthcare providers. In February, Baird raised its price target on the stock to $43 with an Outperform rating on the shares, highlighting the company's growth last year.
On April 28, Community Healthcare Trust Incorporated (NYSE:CHCT) declared a 1% hike in its quarterly dividend to $0.45 per share. This marked the company's eighth consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. Moreover, it has raised its payouts for every quarter since its IPO in 2015. The stock's dividend yield on May 1 came in at 6.20%.
As of the close of Q4 2022, 9 hedge funds tracked by Insider Monkey reported having stakes in Community Healthcare Trust Incorporated (NYSE:CHCT), up from 8 a quarter earlier. These stakes have a consolidated value of over $54.2 million.
12. Universal Health Realty Income Trust (NYSE:UHT)
Dividend Yield as of May 1: 6.54%
Universal Health Realty Income Trust (NYSE:UHT) is an American real estate investment trust company that specializes in healthcare and human service-related facilities. The company currently offers a quarterly dividend of $0.715 per share and has a dividend yield of 6.54%, as recorded on May 1. It is a Dividend Champion with consecutive 38 years of dividend growth.
At the end of December 2022, 4 hedge funds in Insider Monkey’s database reported owning stakes in Universal Health Realty Income Trust (NYSE:UHT), the same as in the previous quarter. The collective value of these stakes is roughly $13 million.
11. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of May 1: 6.62%
An American energy company, Kinder Morgan, Inc. (NYSE:KMI) ranks eleventh on our list of the best dividend stocks. In the first quarter of 2023, the company reported a strong cash position with its distributable cash flow amounting to over $1.3 billion. The company's free cash flow after dividend payments came in at roughly $200 million.
On April 19, Kinder Morgan, Inc. (NYSE:KMI) announced a 1.8% increase in its quarterly dividend to $0.2825 per share. This marked the company's sixth consecutive year of dividend growth, making it one of the best dividend stocks on our list. The stock has a dividend yield of 6.62%, as of May 1.
Barclays maintained an Equal Weight rating on Kinder Morgan, Inc. (NYSE:KMI) in April with a $20 price target, highlighting the company's near-term gas production outlook.
At the end of the fourth quarter of 2022, 34 hedge funds tracked by Insider Monkey reported owning stakes in Kinder Morgan, Inc. (NYSE:KMI), with a consolidated value of over $1.11 billion. Among these elite funds, Orbis Investment Management was the company’s largest stakeholder in Q4.
10. Atlantica Sustainable Infrastructure plc (NASDAQ:AY)
Dividend Yield as of May 1: 6.71%
Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is a sustainable infrastructure company based in the UK. The company provides renewable energy solutions to its consumers. In April, National Bank initiated its coverage on the stock with a Sector Perform rating and a $31 price target. The firm appreciated the company's production of renewable power last year.
Atlantica Sustainable Infrastructure plc (NASDAQ:AY), one of the best dividend stocks, currently pays a quarterly dividend of $0.445 per share. This Dividend Challenger has raised its dividends for five years in a row. The stock's dividend yield on May 1 came in at 6.71%.
In the fourth quarter of 2022, Atlantica Sustainable Infrastructure plc (NASDAQ:AY) reported a strong cash position with a 16% growth in its operating cash flow at $586.3 million. The company's distributable cash flow for the year also showed a 5.5% year-over-year growth at $238 million.
As of the close of Q4 2022, 15 hedge funds tracked by Insider Monkey reported having stakes in Atlantica Sustainable Infrastructure plc (NASDAQ:AY), compared with 21 in the previous quarter. The collective value of these stakes is over $76.6 million. Among these hedge funds, Marshall Wace LLP was the company's leading stakeholder in Q4.
9. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of May 1: 6.72%
Enbridge Inc. (NYSE:ENB), a Canadian multinational energy and pipeline company, is a Dividend Champion with 28 consecutive years of dividend growth. The company currently offers a quarterly dividend of $0.8875 per share and has a dividend yield of 6.72%, as of May 1. Moreover, it has been making regular dividend payments to shareholders for the past 67 years, which makes it one of the best dividend stocks on our list.
Morgan Stanley maintained an Equal Weight rating on Enbridge Inc. (NYSE:ENB) in April with a C$63 price target. The firm expects the sector to remain stable in the current inflationary environment.
Insider Monkey's database of Q4 2022 shows that 21 hedge funds owned stakes in Enbridge Inc. (NYSE:ENB), compared with 24 in the previous quarter. The consolidated value of these stakes is over $2.6 billion.
8. Medifast, Inc. (NYSE:MED)
Dividend Yield as of May 1: 7.28%
Medifast, Inc. (NYSE:MED) is an American multi-level marketing company that produces and sells weight loss and health-related products. In the first quarter of 2023, the company's cash balance remained strong with over $123.7 million in cash and cash equivalents. The company's net income came in at $40 million. In addition to this, it also paid nearly $18 million to shareholders in dividends during the quarter, which makes it one of the best dividend stocks on our list.
On March 16, Medifast, Inc. (NYSE:MED) declared a 0.6% increase in its quarterly dividend to $1.65 per share. The company has raised its dividends every year since 2015. The stock has a dividend yield of 7.28%, as of May 1.
At the end of Q4 2022, 18 hedge funds in Insider Monkey's database reported having stakes in Medifast, Inc. (NYSE:MED), the same as in the previous quarter. These stakes have a value of over $112.3 million collectively.
7. Telephone and Data Systems, Inc. (NYSE:TDS)
Dividend Yield as of May 1: 7.41%
Telephone and Data Systems, Inc. (NYSE:TDS) is an American telecommunications company, based in Illinois. It mainly provides wireless products and services to its consumers. The company currently pays a quarterly dividend of $0.185 per share for a dividend yield of 7.41%, as of May 1. It is one of the best dividend stocks on our list as it has raised its payouts for 48 years in a row, falling into the category of dividend champions.
The number of hedge funds tracked by Insider Monkey having stakes in Telephone and Data Systems, Inc. (NYSE:TDS) grew to 20 in Q4 2022, from 13 in the preceding quarter. These stakes are collectively valued at over $67.8 million.
6. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of May 1: 7.43%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. On April 6, the company declared a quarterly dividend of $0.49 per share, which was in line with its previous dividend. It maintains a 23-year streak of consistent dividend growth, which makes it one of the best dividend stocks on our list. The company's shares boast a yield of 7.43%, as recorded on May 1. It can be added to dividend portfolios alongside some of the best dividend stocks such as Target Corporation (NYSE:TGT), Abbott Laboratories (NYSE:ABT), and S&P Global Inc. (NYSE:SPGI).
At the end of Q4 2022, 24 hedge funds in Insider Monkey's database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), growing from 21 in the previous quarter. These stakes are collectively valued at over $242.4 million.
Legacy Ridge Capital Management, LLC mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter. Here is what the firm has to say:
“Enterprise Products Partners L.P. (NYSE:EPD) is still owned in the fund and remains one of our largest positions, as it has been since the partnership was founded. This has not been a great investment. Shares are down about 6% since I first wrote about it. However, we have received $8.93 per share in dividends, which is about 34% of the 2018 share price. So, with dividends included we’ve made 28% cumulatively over 5-years. Still not good, but not an impairment of capital either.
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Disclosure. None. Dividend Champions, Contenders, and Challengers List: 5 Highest Yielding Stocks is originally published on Insider Monkey.