10 Undervalued Dividend Aristocrats To Buy According to Analysts

In this article, we discuss 10 undervalued dividend aristocrats to buy according to analysts. If you want to read our detailed analysis of dividend aristocrats and their performance over the years, go directly to read 30 Undervalued Dividend Aristocrats To Buy According to Analysts. 

10. General Dynamics Corporation (NYSE:GD)

Average Analyst Rating Score: 2.1
P/E Ratio as of March 16: 22.9

General Dynamics Corporation (NYSE:GD) is a Virginia-based aerospace and defense company. It plays a significant role in the defense industry, supplying equipment and services to the United States military and other armed forces around the world. On March 6, the company declared a 7.6% hike in its quarterly dividend to $1.42 per share. This marked the company’s 27th consecutive annual dividend hike. The stock offers a dividend yield of 2.06%, as of March 16. With a P/E ratio of 22.9, GD is one of the best dividend aristocrat stocks on our list.

The number of hedge funds owning stakes in General Dynamics Corporation (NYSE:GD) jumped to 49 in Q4 2023, from 39 in the previous quarter, as per Insider Monkey’s database. These stakes have a collective value of over $8.6 billion.

9. Dover Corporation (NYSE:DOV)

Average Analyst Rating Score: 2.1
P/E Ratio as of March 16: 23.3

Dover Corporation (NYSE:DOV) is a diversified global manufacturer that operates in various industries. The company pays a quarterly dividend of $0.51 per share and has a dividend yield of 1.16%, as of March 16. It is one of the best dividend aristocrat stocks on our list as the company has raised its payouts for 67 years in a row.

With a collective stake value of roughly $670 million, 21 hedge funds tracked by Insider Monkey held positions in Dover Corporation (NYSE:DOV), which remained the same as in the previous quarter. Among these hedge funds, Adage Capital Management was the company’s leading stakeholder in Q4.

8. Chevron Corporation (NYSE:CVX)

Average Analyst Rating Score: 2.1
P/E Ratio as of March 16: 13.62

Chevron Corporation (NYSE:CVX) is next on our list of the best dividend aristocrat stocks as it is trading at a P/E multiple of 13.62. The American energy company has recently achieved its 37th consecutive annual dividend hike and it offers a quarterly dividend of $1.63 per share. As of March 16, the stock has a dividend yield of 4.19%.

As of the end of Q4 2023, 71 hedge funds in Insider Monkey’s database reported having stakes in Chevron Corporation (NYSE:CVX), compared with 72 in the preceding quarter. These stakes have a total value of over $21.6 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company, worth nearly $19 billion.

7. NextEra Energy, Inc. (NYSE:NEE)

Average Analyst Rating Score: 2
P/E Ratio as of March 16: 16.38

NextEra Energy, Inc. (NYSE:NEE) is an American leading clean energy company that is known for its significant investments in renewable energy infrastructure, particularly in wind and solar power. The company was included in 65 hedge fund portfolios at the end of Q4 2023, up significantly from 58 in the previous quarter. The stakes held by these funds are collectively valued at roughly $960 million.

NextEra Energy, Inc. (NYSE:NEE) declared a 10% hike in its quarterly dividend on February 16. It now pays a quarterly dividend of $0.515 per share for a dividend yield of 3.43%, as of March 16.

6. The Coca-Cola Company (NYSE:KO)

Average Analyst Rating Score: 2
P/E Ratio as of March 16: 24.3

An American multinational beverage company, The Coca-Cola Company (NYSE:KO) declared a 5.4% increase in its quarterly dividend to $0.485 per share on February 15. Through this dividend hike, the company stretched its dividend growth streak to 62 years, which makes KO one of the best dividend aristocrat stocks on our list. The stock’s dividend yield on March 16 came in at 3.24%.

Insider Monkey’s database of Q4 2023 indicated that 62 hedge funds owned stakes in The Coca-Cola Company (NYSE:KO), up from 58 a quarter earlier. These stakes are collectively valued at nearly $17 billion. With 400 million shares, Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.

5. Linde plc (NASDAQ:LIN)

Average Analyst Rating Score: 2
P/E Ratio as of March 16: 34.8

Linde plc (NASDAQ:LIN) is a multinational industrial gases and engineering company. Its products and services are vital to sectors such as manufacturing, healthcare, energy, and environmental protection. The company’s quarterly dividend comes in at $1.39 per share, having raised it by 9% in February this year. This was the company’s 29th consecutive year of dividend growth, which makes LIN one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 1.19%, as of March 16.

As per Insider Monkey’s database of Q4 2023, 74 hedge funds held stakes in Linde plc (NASDAQ:LIN), up from 71 in the preceding quarter. These stakes are collectively valued at nearly $4 billion.

4. McDonald’s Corporation (NYSE:MCD)

Average Analyst Rating Score: 2
P/E Ratio as of March 16: 24.2

An American multinational fast-food chain, McDonald’s Corporation (NYSE:MCD) ranks fourth on our list of the best dividend aristocrat stocks. The company has been growing its dividends for 47 consecutive years and offers a quarterly dividend of $1.67 per share. The stock has a dividend yield of 2.39%, as of March 16.

At the end of the fourth quarter of 2023, 63 hedge funds in Insider Monkey’s database owned stakes in McDonald’s Corporation (NYSE:MCD), compared with 70 in the previous quarter. The total worth of these investments is over $2 billion. With roughly 2 million shares, Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q4.

3. Abbott Laboratories (NYSE:ABT)

Average Analyst Rating Score: 2
P/E Ratio as of March 16: 34.8

Abbott Laboratories (NYSE:ABT) is a global healthcare company that is committed to advancing healthcare through innovation, research, and the development of products and services that address unmet medical needs and improve patient outcomes. The company offers a quarterly dividend of $0.55 per share and has a dividend yield of 1.90%, as of March 16. With a dividend growth streak of 52 years, ABT is one of the best dividend aristocrat stocks on our list.

As of the end of the December quarter of 2023, 64 hedge funds tracked by Insider Monkey reported having stakes in Abbott Laboratories (NYSE:ABT), down from 69 in the previous quarter. These stakes have a consolidated value of nearly $2.5 billion.

2. Emerson Electric Co. (NYSE:EMR)

Average Analyst Rating Score: 1.9
P/E Ratio as of March 16: 32.2

Emerson Electric Co. (NYSE:EMR) is a multinational corporation that specializes in providing technology and engineering solutions for a wide range of industries. On February 7, the company declared a quarterly dividend of $0.525 per share, which was in line with its previous dividend. Its dividend growth streak currently spans over 67 years. With a dividend yield of 1.90%, EMR is one of the best dividend aristocrat stocks on our list.

Of the 900+ hedge funds tracked by Insider Monkey owning investments in Emerson Electric Co. (NYSE:EMR) stood at 50 in Q4 2023, down from 53 in the previous quarter. The total value of these stakes is over $1.44 billion.

1. Walmart Inc. (NYSE:WMT)

Average Analyst Rating Score: 1.8
P/E Ratio as of March 16: 31.7

Walmart Inc. (NYSE:WMT) tops our list of the best dividend aristocrat stocks. The multinational retail corporation increased its dividend by 9% on February 20 after adjusting for a stock split, resulting in a new quarterly dividend payout of $0.2075 per share. As of March 16, the stock has a dividend yield of 1.37%.

The number of hedge funds in Insider Monkey’s database owning stakes in Walmart Inc. (NYSE:WMT) grew to 85 in Q4 2023, from 80 in the previous quarter. These stakes have a total value of over $6.24 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q4.

You can also take a look at 10 Cheap Clean Energy Stocks To Buy According to Wall Street Analysts and 11 Most Undervalued Cybersecurity Stocks To Buy According To Analysts