10 Best Dividend Aristocrat Stocks To Buy Right Now

5. The Sherwin-Williams Company (NYSE:SHW)

Number of Hedge Fund Holders: 78

The Sherwin-Williams Company (NYSE:SHW) ranks fifth on our list of the best dividend aristocrat stocks. The Ohio-based paint and coating manufacturing company specializes in the manufacturing and production of related products. It reported mixed earnings in the third quarter of 2024, with revenues of $6.16 billion growing by a modest 0.75% on a YoY basis. Sales in the Consumer Brands Group decreased due to ongoing weakness in the North American DIY market. However, the Paint Stores Group experienced growth, particularly driven by a high single-digit increase in protective and marine products. Previous investments in residential repainting helped sustain mid-single-digit growth despite a challenging market.

The Sherwin-Williams Company (NYSE:SHW)’s cash generation remained strong in the first nine months of 2024. During this period, the company reported an operating cash flow of $2.22 billion and returned $1.97 billion to shareholders through dividends. ClearBridge Investments highlighted the strong performance of SHW in its Q3 2024 investor letter. Here is what the firm has to say:

“Despite these stock-specific headwinds, we’re confident our portfolio continues to own high-quality franchises able to generate excess returns in various economic environments. The Sherwin-Williams Company (NYSE:SHW), for example, has seen its shares rise even while its end markets have not really recovered. As the Fed raised rates aggressively to combat inflation, existing homes turnover came to a halt. Turnover of existing housing stock is Sherwin-Williams’s bread and butter business as homeowners typically paint as they are ready to sell and new owners repaint when they buy. Despite slow end market demand and because Sherwin-Williams is a best-in-class operator, it continues to execute well and gain share, taking advantage of some disarray among competitors, allowing it to hold on to pricing and benefit from some raw material deflation.”

The Sherwin-Williams Company (NYSE:SHW) offers a quarterly dividend of $0.715 per share, having raised it by 18.2% in February this year. The company maintains a 45-year streak of consistent dividend growth. The stock’s dividend yield on November 25 came in at 0.72%.

Insider Monkey’s database of Q3 2024 indicated that 78 hedge funds owned stakes in The Sherwin-Williams Company (NYSE:SHW), up from 76 in the previous quarter. These stakes have a consolidated value of over $4.63 billion. With over 1.3 million shares, Viking Global was the company’s leading stakeholder in Q3.