25 Best Dividend Aristocrats to Buy According to Analysts

1. West Pharmaceutical Services, Inc. (NYSE:WST)

Upside Potential as of May 26: 29.6%

West Pharmaceutical Services, Inc. (NYSE:WST) is a global healthcare products packaging and delivery systems company. It tops our list of the best dividend aristocrat stocks on our list as analysts see a nearly 30% upside potential in the stock. The company has been growing its dividends consistently for the past 31 years and offers a quarterly dividend of $0.20 per share. The stock’s dividend yield on May 26 came in at 0.24%.

The products of West Pharmaceutical Services, Inc. (NYSE:WST) are crucial for the pharmaceutical industry which helps the company to maintain its earnings growth. The company’s core business of delivering injectables has the ability to remain resilient during periods of economic downturns. The stock’s valuation is very high with a P/E multiple of 43.10, especially with a dividend yield of 0.24%. Israel Englander has adopted a comprehensive strategy for his healthcare portfolio. His hedge fund increased its stake in WST by 1,864% during the first quarter of 2024.

ClearBridge Investments solidified the company’s position as the market leader in its Q1 2024 investor letter. Here is what the firm has to say:

“We also added a new position in West Pharmaceutical Services, Inc. (NYSE:WST), in the health care sector, which designs, manufactures and sells containment and delivery systems for injectable drugs and health care products. The company commands a substantial market share for stopper caps for intravenously (‘IV’) administered drugs, biologics and gene therapies, which are regulated by FDA mandates, and which we believe give it very strong competitive dynamics within the industry and a wide moat around its core businesses. As the outlook and proliferation of IV-administered drugs and therapies continues to grow, driven by the blockbuster market for GLP-1 diabetes and obesity treatments, we believe the company’s attractive cash flows and impressive margins can sustain its growth trajectory.”

As of the end of Q1 2024, 46 hedge funds in Insider Monkey’s database owned stakes in West Pharmaceutical Services, Inc. (NYSE:WST), up from 42 in the previous quarter. These stakes have a total value of nearly $2 billion.

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