In this article, we discuss 5 best dividend aristocrat stocks to buy heading into recession. If you want to see more stocks in this selection, click 11 Best Dividend Aristocrat Stocks To Buy Heading Into Recession.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 63
Dividend Yield as of May 6: 1.50%
Number of Years of Consecutive Dividend Increases: 49
Walmart Inc. (NYSE:WMT), an American multinational retailer, is one of the best dividend aristocrat stocks to buy heading into recession. The company’s discount department stores and grocery stores still see traffic despite changing macro backdrops. Walmart Inc. (NYSE:WMT)’s dividend yield on May 6 came in at 1.50%, and the company has grown dividend payments for 49 years consecutively.
On February 17, Walmart Inc. (NYSE:WMT) declared a $0.56 per share quarterly dividend, a 1.8% increase from its earlier dividend of $0.55. The dividend was paid on April 4. The next payment is due on May 21, for shareholders of record on May 6.
DA Davidson analyst Michael Baker on April 8 maintained a Buy recommendation on Walmart Inc. (NYSE:WMT) and raised the firm’s price target on the shares to $171 from $168. The analyst cited a potential $70 billion valuation for Flipkart for the price target upgrade. Walmart Inc. (NYSE:WMT) has been one of the best performers in 2022 after last year’s underperformance, rising 7.5% as retailers of basic products have outperformed discretionary retailers, the analyst told investors in a research note.
According to Insider Monkey’s fourth quarter database, 63 hedge funds were long Walmart Inc. (NYSE:WMT), compared to 71 funds in the last quarter. The total stakes owned in Q4 amounted to $7.1 billion. Rajiv Jain’s GQG Partners is the biggest shareholder of the company, with 10.4 million shares worth $1.50 billion.
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
Dividend Yield as of May 6: 2.34%
Number of Years of Consecutive Dividend Increases: 66
The Procter & Gamble Company (NYSE:PG) offers branded consumer packaged goods to customers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. The Procter & Gamble Company (NYSE:PG) has a rich dividend history, increasing its payments consistently for 66 years.
On April 20, The Procter & Gamble Company (NYSE:PG) posted earnings for Q1 2022, posting an EPS of $1.33, beating consensus estimates by $0.04. The $19.38 billion revenue grew 7.02% year-over-year, surpassing analysts’ predictions by roughly $688 million.
The Procter & Gamble Company (NYSE:PG) declared on April 12 a $0.9133 per share quarterly dividend, a 5% increase from its last dividend of $0.8698. The dividend is payable on May 16, to shareholders of the company as of April 22. The Procter & Gamble Company (NYSE:PG)’s dividend yield on May 6 stood at 2.34%.
Barclays analyst Lauren Lieberman on April 22 reiterated an Overweight rating on The Procter & Gamble Company (NYSE:PG) and raised the firm’s price target on the stock to $176 from $167. The analyst expects the company’s results to “set an extremely high bar” for the industry and ultimately serve to reinforce The Procter & Gamble Company (NYSE:PG)’s “widened fundamental performance gap”.
According to Insider Monkey’s database, 67 hedge funds held long positions in The Procter & Gamble Company (NYSE:PG) at the end of December 2021, with collective stakes worth $6.6 billion. Andy Brown’s Cedar Rock Capital is a prominent shareholder of the company, with a position worth $986 million.
3. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 25
Dividend Yield as of May 6: 2.38%
Number of Years of Consecutive Dividend Increases: 54
Sysco Corporation (NYSE:SYY) is an American provider of food-away-from-home services. The company also offers food products and kitchen equipment to restaurants, healthcare and educational facilities, and hospitality businesses. Sysco Corporation (NYSE:SYY) has paid consistently increasing dividends to shareholders for 54 years.
On April 28, Sysco Corporation (NYSE:SYY) declared a $0.49 per share quarterly dividend, a 4.3% increase from its earlier dividend of $0.47. The dividend will be paid on July 22, to shareholders of record on July 1. Sysco Corporation (NYSE:SYY)’s dividend yield on May 6 was 2.38%.
Barclays analyst Jeffrey Bernstein maintained an Overweight rating on Sysco Corporation (NYSE:SYY) and raised the firm’s price target on the stock to $100 from $90 on April 25. The analyst believes restaurants are well positioned in a slowing economy. He expects ongoing fundamental outperformance from more defensive franchise names.
Among the hedge funds tracked by Insider Monkey, Sysco Corporation (NYSE:SYY) was found in the public stock portfolios of 25 funds, compared to 29 funds in the last quarter. Nelson Peltz’s Trian Partners is the biggest shareholder of the company, with 12.85 million shares worth $1 billion.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Dividend Yield as of May 6: 2.56%
Number of Years of Consecutive Dividend Increases: 60
Johnson & Johnson (NYSE:JNJ) is an American healthcare corporation operating in three segments – Consumer Health, Pharmaceutical, and Medical Devices. Johnson & Johnson (NYSE:JNJ) reported Q1 earnings per share of $2.67 on April 19, beating market consensus estimates by $0.10.
Johnson & Johnson (NYSE:JNJ) has a 60-year history of consistent dividend growth, and the stock delivers a dividend yield of 2.56% as of May 6. Johnson & Johnson (NYSE:JNJ) on April 19 declared a $1.13 per share quarterly dividend, a 6.6% increase from its prior dividend of $1.06. The dividend is payable on June 7, to shareholders of record on May 24.
On April 20, Credit Suisse analyst Matt Miksic reiterated an Outperform rating on Johnson & Johnson (NYSE:JNJ) and raised the firm’s price target on the stock to $205 from $200. The analyst noted that the company’s Q1 results led off Med Supplies and Devices earnings with better-than-expected growth across almost all of its MedTech businesses, including Interventional Solutions, DePuy-Synthes, Advanced/General Surgery, and Vision.
According to Insider Monkey’s Q4 database, 83 hedge funds were long Johnson & Johnson (NYSE:JNJ), compared to 88 funds in the last quarter. Terry Smith’s Fundsmith LLP held the largest stake in the company, with 7.2 million shares worth $1.2 billion.
1. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 57
Dividend Yield as of May 6: 2.20%
Number of Years of Consecutive Dividend Increases: 43
McDonald’s Corporation (NYSE:MCD) is an American multinational fast food company that operates and franchises McDonald’s restaurants in the United States and internationally. The corporation also has a strong foothold in the real estate industry. McDonald’s Corporation (NYSE:MCD) has a solid history of consistent dividend increases for 43 years.
McDonald’s Corporation (NYSE:MCD) declared on January 20 a $1.38 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on March 15. McDonald’s Corporation (NYSE:MCD)’s dividend yield on May 6 stood at 2.20%.
On April 28, McDonald’s Corporation (NYSE:MCD) reported its financial results for the first fiscal quarter of 2022. The company announced earnings per share of $2.28, beating estimates by $0.11. Revenue for the year grew 10.56% year-over-year to $5.67 billion, topping market consensus by $94.35 million.
JPMorgan analyst John Ivankoe on May 3 maintained an Overweight rating on McDonald’s Corporation (NYSE:MCD) and raised the firm’s price target on the shares to $275 from $260 after the Q1 results. The analyst said that McDonald’s Corporation (NYSE:MCD)’s “offers relative sanctuary” in an “unstable world.”
According to Insider Monkey’s Q4 data, 57 hedge funds were long McDonald’s Corporation (NYSE:MCD), with collective stakes valued at $2.24 billion. Jim Simons’ Renaissance Technologies is the biggest shareholder of the company, with 1.75 million shares worth $470.45 million.
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