10 Best Mid-Cap Dividend Aristocrats To Buy

1. Williams-Sonoma, Inc. (NYSE:WSM)

Number of Hedge Fund Holders: 35

Williams-Sonoma, Inc. (NYSE:WSM) is a specialty retailer that owns a portfolio of premium home goods brands, such as its flagship Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, and Rejuvenation. Like many other retailers in the discretionary and home goods sectors, the company has experienced a decline in sales due to inflation in the post-pandemic period, following the surge in home goods demand during the pandemic. However, the stock is generating strong returns this year, surging by nearly 91% since the start of 2024.

Williams-Sonoma, Inc. (NYSE:WSM) generated $1.8 billion in revenues in the third quarter of 2024, which, though fell by 3% on a YoY basis, beat analysts’ estimates by $16 million. The company is attracting investors’ attention as it raises its full-year guidance. It now expects full-year revenues to decrease by between 3% and 1.5% and is increasing its operating margin guidance by 40 basis points, projecting a range of 17.8% to 18.2%.

From a dividend point of view, Williams-Sonoma, Inc. (NYSE:WSM)’s cash generation is very strong. In Q3 2024, the company posted an operating cash flow of $254 million and returned $73 million to shareholders through dividends. It offers a quarterly dividend of $0.57 per share and has a dividend yield of 1.18%, as of December 16. The company has raised its payouts for 15 consecutive years.

Williams-Sonoma, Inc. (NYSE:WSM) was a part of 35 hedge fund portfolios at the end of Q3 2024, as per Insider Monkey’s database. The stakes held by these funds have a collective worth of more than $968 million.

Overall, Williams-Sonoma, Inc. (NYSE:WSM) ranks first on our list of the best dividend stocks. While we acknowledge the potential for WSM to grow, 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 WSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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