10 Stocks That Are Close To Becoming Dividend Aristocrats

7. Analog Devices, Inc. (NASDAQ:ADI)

Consecutive Years of Dividend Growth: 20 Years

Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor manufacturing company that specializes in integrated circuits and systems. The company caters to a variety of sectors, including industrial, automotive, communications, and consumer applications. Prioritizing innovation, it allocates significant resources to research and development to sustain its technological advantage. The company’s strategy focuses on a customer-first mindset, expanding into new markets through acquisitions, and maintaining a leading position in analog solutions. The stock has delivered an over 12% return to shareholders since the start of 2024.

Analog Devices, Inc. (NASDAQ:ADI) reported strong earnings in fiscal Q4 2024. The company’s revenue for the quarter came in at $2.44 billion, which, though, fell by over 10% on a YoY basis, exceeded analysts’ estimates by over $37.65 million. The company sustained operating margins above 40%, highlighting the resilience of its business model. It also remained committed to strategic, long-term investments in areas such as engineering, manufacturing, and enhancing the overall customer experience.

Analog Devices, Inc.’s (NASDAQ:ADI)  cash position makes it a strong dividend payer. In FY24, the company generated $3.9 billion in operating cash flow and its free cash flow came in at $3.1 billion. Moreover, it returned $2.4 billion to shareholders during the year, including $1.8 billion in dividends. The company has raised its payouts for 20 consecutive years and is just five years away from becoming a dividend aristocrat. It pays a quarterly dividend of $0.92 per share and has a dividend yield of 1.69%, as of December 2.

Insider Monkey’s database of Q3 2024 indicated that 63 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 64 in the preceding quarter. The consolidated value of these stakes is over $4.4 billion. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q3.