1. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 98
Danaher Corporation (NYSE:DHR) is an American global conglomerate that designs, manufactures, and markets products and services belonging to various industries. As is typical for a biotechnology, life sciences, and diagnostics company, the company’s revenue and earnings have fluctuated in recent years, largely due to the pandemic. In addition to producing PCR tests for COVID-19 detection, Danaher also supplied life sciences equipment used in vaccine research. The stock has surged by over 5% in the past 12 months.
The decline in demand following the surge during the pandemic presents short-term challenges for Danaher Corporation (NYSE:DHR). As a result, management anticipates a year of modest, low single-digit core revenue declines. However, the third quarter earnings suggest that investors may need to adjust their expectations in the near future. The company reported $5.8 billion in revenues in Q3, up 3.2% from the same period last year. The revenue also beat analysts’ estimates by $210 million.
Madison Investments highlighted DHR in its Q3 2024 investor letter. Here is what the firm has to say:
“Danaher Corporation (NYSE:DHR) released its 2024 Corporate Sustainability Report. It highlighted several milestones across its three pillars of sustainability (building the best team, innovating products that improve lives and the planet, and protecting the environment). The company has committed to setting greenhouse gas emission reduction targets in line with the Science Based Targets initiatives (SBTi), including reaching net-zero value chain emissions by 2050.”
Danaher Corporation (NYSE:DHR) currently offers a quarterly dividend of $0.27 per share, having raised it by 12.5% in February 2024. The stock has a dividend yield of 0.44%, as of January 22.
Danaher Corporation (NYSE:DHR) was included in 98 hedge fund portfolios at the end of Q3 2024, growing from 83 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are worth over $6 billion in total.
Overall Danaher Corporation (NYSE:DHR) ranks first on our list of the best diversified dividend stocks. While we acknowledge the potential for DHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
