10 S&P 500 Dividend Aristocrats To Avoid

In this article, we discuss 10 dividend aristocrats to avoid according to hedge funds. If you want to read our detailed analysis of dividend stocks and their performance, go directly to read 25 S&P 500 Dividend Aristocrats To Avoid. 

10. Essex Property Trust, Inc. (NYSE:ESS)

Number of Hedge Fund Holders: 26

Essex Property Trust, Inc. (NYSE:ESS) is a real estate investment trust company, based in California. On May 12, the company declared a quarterly dividend of $2.31 per share, which was consistent with its previous dividend. Its dividend growth streak stands at 28 years. The stock has a dividend yield of 4.35%, as of May 30.

In May, Piper Sandler raised its price target on Essex Property Trust, Inc. (NYSE:ESS) to Overweight with a $271 price target, up from $242. The firm appreciated the company’s business model and its earnings.

Of the 943 hedge funds tracked by Insider Monkey, 26 hedge funds owned stakes in Essex Property Trust, Inc. (NYSE:ESS), worth collectively over $1204 million. AEW Capital Management was the largest stakeholder of the company in Q1.

9. Brown & Brown, Inc. (NYSE:BRO)

Number of Hedge Fund Holders: 25

Brown & Brown, Inc. (NYSE:BRO) is an American insurance brokerage that provides risk management solutions to its consumers. In 2022, the company raised its dividends for the 29th consecutive year. It currently pays a quarterly dividend of $0.115 per share. The dividend aristocrat stock’s dividend yield came in at 0.73%, as of May 30.

According to Insider Monkey’s database of Q1 2023, 25 hedge funds held stakes in Brown & Brown, Inc. (NYSE:BRO), compared with 29 in the previous quarter. The total value of these stakes is more than $1.1 billion.

TimesSquare Capital Management mentioned Brown & Brown, Inc. (NYSE:BRO) in its Q4 2022 investor letter. Here is what the firm has to say:

“With the improving backdrop for insurance companies, we began a position in Brown & Brown, Inc. (NYSE:BRO). An independent insurance broker specializing in property, casualty, employee benefits, personal lines, and ancillary services, we believe that Brown will benefit as insurance pricing broadly increases and the company has consistently higher margins than peers. The recent weakness in its shares provided a particularly attractive opportunity for building our position.”

8. Nordson Corporation (NASDAQ:NDSN)

Number of Hedge Fund Holders: 25

An American manufacturing company, Nordson Corporation (NASDAQ:NDSN) has been raising its dividends for 59 years running. The company pays a quarterly dividend of $0.65 per share and has a dividend yield of 1.18%. It is among the dividend aristocrat stocks on our list.

Baird raised its price target on Nordson Corporation (NASDAQ:NDSN) to $251 in May with an Outperform rating on the shares, following the company’s Q2 earnings beat.

At the end of March 2023, 25 hedge funds owned stakes in Nordson Corporation (NASDAQ:NDSN), the same as in the previous quarter, as per Insider Monkey’s data. These stakes are valued at over $161.4 million collectively.

7. Stanley Black & Decker, Inc. (NYSE:SWK)

Number of Hedge Fund Holders: 22

Stanley Black & Decker, Inc. (NYSE:SWK) is a manufacturing company that deals in industrial tools and household products. The company’s quarterly dividend stands at $0.80 per share for a dividend yield of 4.12%, as of May 30. It has a 146-year long history of paying dividends with a 55-year track record of consecutive dividend growth.

As of March 2023, 22 hedge funds tracked by Insider Monkey reported having stakes in Stanley Black & Decker, Inc. (NYSE:SWK), down from 25 in the previous quarter. These stakes have a consolidated value of over $337.8 million.

6. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 22

Realty Income Corporation (NYSE:O) is another dividend aristocrat stock on our list. The company is a real estate investment trust company, which is famous for paying monthly dividends to shareholders. It pays a monthly dividend of $0.255 per share for a dividend yield of 5.17%, as recorded on May 30.

At the end of Q1 2023, 22 hedge funds in Insider Monkey’s database held stakes in Realty Income Corporation (NYSE:O). These stakes are collectively valued at over $325.7 million. Ken Griffin’s Citadel Investment Group was the company’s largest stakeholder in Q1.

5. Federal Realty Investment Trust (NYSE:FRT)

Number of Hedge Fund Holders: 21

Federal Realty Investment Trust (NYSE:FRT) is an American real estate investment trust company that mainly invests in shopping centers across the country. It is another dividend aristocrat stock on our list with 55 years of consecutive dividend growth. The company offers a quarterly dividend of $1.08 per share and has a dividend yield of 4.94%.

Mizuho reiterated a Buy rating on Federal Realty Investment Trust (NYSE:FRT) in May with a $91 price target, expecting a potential earnings upside in the second half of the year.

The number of hedge funds tracked by Insider Monkey owning stakes in Federal Realty Investment Trust (NYSE:FRT) grew to 21 in Q1 2023, from 16 in the previous quarter. These stakes have a total value of over $82.6 million.

4. T. Rowe Price Group, Inc. (NASDAQ:TROW)

Number of Hedge Fund Holders: 21

T. Rowe Price Group, Inc. (NASDAQ:TROW) is an American investment management company, based in Maryland. The company offers funds, account management, and retirement plan services to individuals and institutional consumers. Wells Fargo called the stock a strong franchise and maintained an Equal Weight rating on the stock in May. The firm kept a $108 price target on the dividend aristocrat stock.

T. Rowe Price Group, Inc. (NASDAQ:TROW) currently pays a quarterly dividend of $1.22 per share and has a dividend yield of 4.53%, as of May 30. The company has raised its dividends for 37 years running.

Insider Monkey’s Q1 2023 database shows that 21 hedge funds owned investments in T. Rowe Price Group, Inc. (NASDAQ:TROW), worth collectively nearly $314 million. With nearly 1 million shares, Balyasny Asset Management was the company’s leading stakeholder in Q1.

3. Atmos Energy Corporation (NYSE:ATO)

Number of Hedge Fund Holders: 21

Atmos Energy Corporation (NYSE:ATO) is a Texas-based natural gas distribution company that also manages proprietary pipeline and storage assets. On May 3, the company declared a quarterly dividend of $0.74 per share, which was in line with its previous dividend. The company maintains a 38-year streak of dividend growth. The stock’s dividend yield on May 30 came in at 2.57%.

As of the close of Q1 2023, 21 hedge funds in Insider Monkey’s database owned stakes in Atmos Energy Corporation (NYSE:ATO), compared with 22 in the previous quarter. The total value of these stakes is over $291.7 million. Zimmer Partners was the company’s largest stakeholder in Q1.

2. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)

Number of Hedge Fund Holders: 17

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is an American transport company that offers a wide range of related services and products to its consumers. The company has been growing its dividends for over 25 years and currently pays a quarterly dividend of $0.61 per share. With a dividend yield of 2.49%, it is among dividend aristocrat stocks on our list.

As per Insider Monkey’s Q1 2023 database, 17 hedge funds owned stakes in C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), worth collectively over $451.7 million. Jean-Marie Eveillard, Frederick Disanto, and Cliff Asness were some of the company’s leading stakeholders in Q1.

1. Leggett & Platt, Incorporated (NYSE:LEG)

Number of Hedge Fund Holders: 11 

Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturing company that specializes in products related to homes and automobiles. On May 4, the company declared a 4.5% hike in its quarterly dividend to $0.46 per share. This marked the company’s 52nd consecutive year of dividend growth. The stock has a dividend yield of 5.84%, as of May 30.

At the end of Q1 2023, 11 hedge funds tracked by Insider Monkey owned stakes in Leggett & Platt, Incorporated (NYSE:LEG), compared with 12 in the previous quarter. These stakes have a collective value of nearly $32 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q1.

You can also take a look at 10 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli and 14 Best Healthcare Dividend Stocks to Buy

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