10 Best Dividend Aristocrats According to Wall Street Analysts

4. PPG Industries, Inc. (NYSE:PPG)

Analyst Upside Potential as of August 7: 25.1%

PPG Industries, Inc. (NYSE:PPG) is an American paint and coating manufacturing company that provides a wide range of related services and products. The stock is down by over 18% since the start of 2024 due to investors’ disappointment in the company’s quarterly earnings. In the second quarter of 2024, the company’s organic sales were flat but showed growth in different segments. It generated $4.8 billion in revenues, which fell by 1.6% from the same period last year and also missed analysts’ estimates by $130 million. That said, its segment margins increased by 110 basis points compared to the previous year, marking the seventh consecutive quarter of margin growth.

PPG Industries, Inc. (NYSE:PPG) has greatly benefited from its European presence. In the early 1900s, it was among the first U.S. companies to expand into Europe by acquiring a glass plant in Belgium. During the 1920s, it saw steady growth thanks to its glass and paint divisions, which were fueled by the booming automotive industry and the construction of skyscrapers. Looking ahead, the company anticipates demand in Europe to stabilize in the second half of the year, while it expects continued growth in China and Mexico.

When evaluating PPG Industries, Inc. (NYSE:PPG) for dividends, investors view it as a favorable choice. Its trailing twelve-month operating cash flow came in at $2.1 billion and levered free cash flow was $1.37 billion. On July 18, the company hiked its quarterly dividend by 4.6% to $0.68 per share. This marked the company’s 53rd consecutive year of dividend growth, which makes PPG one of the best dividend aristocrat stocks on our list. As of August 7, the stock has a dividend yield of 2.26%.

At the end of the March quarter of 2024, 35 hedge funds tracked by Insider Monkey held stakes in PPG Industries, Inc. (NYSE:PPG), down from 39 in the previous quarter. These stakes are valued at nearly $758 million in total. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q1.