10 Best Mid-Cap Dividend Aristocrats To Buy

2. The Toro Company (NYSE:TTC)

Number of Hedge Fund Holders: 33

The Toro Company (NYSE:TTC) ranks second on our list of the best mid-cap dividend aristocrat stocks. The American company manufactures outdoor products for residential, commercial, and agricultural use. The company’s sales include a variety of products, such as mowers, turf maintenance equipment, irrigation systems, underground construction tools, and snow and ice management solutions.

According to analysts, cyclical inventory fluctuations will always impact The Toro Company’s (NYSE:TTC) stock, but with most of its products having a replacement cycle of three to five years, the effects tend to balance out over time. Trusted to maintain some of the world’s most prestigious fields, the company’s equipment continues to be considered best in class. The stock is down by over 8% since the start of 2024.

In the third quarter of 2024, The Toro Company (NYSE:TTC) reported revenue of $1.16 billion, which saw a 7% growth from the same period last year. The company experienced significant growth in its residential segment, driven by a strong performance in the mass channel, as anticipated following last year’s aggressive destocking, along with the strategic addition of Lowe’s this year. In its professional segment, which includes underground construction, golf, and grounds businesses, the company successfully boosted output and shipments to meet sustained demand and address the high order backlog. However, as the summer went on, both segments saw increased caution from homeowners and lawn care dealers due to macroeconomic factors, leading to lower-than-expected shipments of residential and professional lawn care products to the dealer channel.

In the first nine months of the year, The Toro Company (NYSE:TTC) generated $330 million in operating cash flow, up from $154.7 million in the same period last year. On December 10, the company declared a 5.6% increase in its quarterly dividend to $0.38 per share. Through this increase, the company stretched its dividend growth streak to 16 years. The stock offers a dividend yield of 1.76%, as of December 16.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 33 hedge funds held stakes in The Toro Company (NYSE:TTC), the same as in the previous quarter. These stakes have a total value of over $1 billion. Select Equity Group owned the largest stake in the company in Q3.