10 Undervalued Dividend Aristocrats to Buy According to Hedge Funds

7. Consolidated Edison, Inc. (NYSE:ED)

Dividend Yield as of December 23: 3.69%

Number of Hedge Fund Holders: 29

P/E Ratio: 16.92

Consolidated Edison, Inc. (NYSE:ED) is an American utility company providing regulated electric, gas, and steam delivery services. Consolidated Edison, Inc. (NYSE:ED) operates extensive infrastructure, including transmission lines, substations, transformers, and distribution networks for both electricity and natural gas. Established in 1823 and headquartered in New York City, the company caters to residential, commercial, industrial, and government clients.

Consolidated Edison, Inc. (NYSE:ED) reported a third-quarter net income for 2024 of $588 million, or $1.70 per share, compared to $526 million, or $1.53 per share, in the same period last year. Adjusted earnings for Q3 2024 were $583 million, or $1.68 per share, up from $561 million, or $1.62 per share, in Q3 2023. These figures exclude the impact related to the sale of Con Edison’s former subsidiary, Con Edison Clean Energy Businesses. For the full year 2024, Con Edison expects adjusted earnings per share to range from $5.30 to $5.40, slightly raised from the previous forecast of $5.20 to $5.40 per share.

Consolidated Edison, Inc. (NYSE:ED) has proudly increased its dividend for 50 straight years, with an impressive annual growth rate of 5.65%. The company aims to pay out 55% to 65% of its adjusted earnings in dividends. This is why the company holds a strong position on our list of the best dividend aristocrat stocks. For 2024, Con Edison plans to issue up to $3.25 billion in long-term debt for its utilities but does not expect to issue common equity, except for what is required under its dividend reinvestment, employee stock purchase, and long-term incentive programs.

According to Insider Monkey’s Q3 2024 database, 29 hedge funds held stakes in Consolidated Edison, Inc. (NYSE:ED) worth nearly $602 million.