10 Stocks That Are Close To Becoming Dividend Aristocrats

1. Eversource Energy (NYSE:ES)

Consecutive Years of Dividend Growth: 24 Years

Eversource Energy (NYSE:ES) is an American electric services company, based in Boston. The company mainly provides essential energy services to its consumers. It operates in a variety of utility sectors, including regulated electric, water, and natural gas utilities, as well as transmission assets. However, it isn’t a leader in any of these areas. While it serves the Northeast, an important region in the US, it doesn’t attract as large a population as the Sunbelt. In the past 12 months, the stock has surged by nearly 5%.

In the third quarter of 2024, Eversource Energy (NYSE:ES) reported $3.06 billion in revenues, up 9.7% from the same period last year. The company’s Water Distribution segment earned $23.7 million during the quarter, growing from $16.6 million in the prior-year period. Its cash flow generation is solid, with a trailing twelve-month operating cash flow of $1.99 billion.

Eversource Energy (NYSE:ES) currently offers a quarterly dividend of $0.715 per share, having raised it by 6% in February this year. The company is just one year away from becoming a dividend aristocrat, with 24 consecutive years of dividend growth under its belt. The stock offers a dividend yield of 4.49%, as of December 2.

Eversource Energy (NYSE:ES) was a part of 33 hedge fund portfolios at the end of Q3 2024, up from 26 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of roughly $452 million.

Overall, Eversource Energy (NYSE:ES) ranks first on our list of the best dividend aristocrat stocks. While we acknowledge the potential for ES 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 ES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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