5 Best Dividend Aristocrat Stocks To Buy Now

1. S&P Global Inc. (NYSE:SPGI)

Number of Hedge Fund Holders: 97

S&P Global Inc. (NYSE:SPGI) is an American private banking company. It pays a per-share dividend of $0.90 every quarter, raising it by 6% in January 2023. This marked the company’s 50th consecutive year of dividend growth, which places it as one of the best dividend aristocrat stocks on our list. The stock’s dividend yield on March 20 came in at 1.08%.

S&P Global Inc. (NYSE:SPGI) was a part of 97 hedge fund portfolios in Q4 2022, up from 90 in the previous quarter, as tracked by Insider Monkey. The stakes owned by these hedge funds have a total value of over $7.8 billion.

Andvari Associated mentioned S&P Global Inc. (NYSE:SPGI) in its Q4 2022 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) is another company we own that is part of a duopoly in the business of credit rating. S&P and Moody’s have roughly equal market shares and rate more than 90% of all bonds worldwide. The service provides high value for the cost. A company that chooses to issue debt without a rating will pay an interest rate that could be higher by half of a percent. The cost of a higher interest rate far exceeds any savings gained by not using the services of S&P.

We think of S&P as a toll road that earns fees from its customers in exchange for cost-effective access to capital. As such, the company has extraordinary margins and pricing power and requires little of its own capital to grow. Even after fully reinvesting in its business, S&P still has an excess of cash. In 2021, S&P produced $3.5 billion of free cash from $8.3 billion of revenues. The company returns the majority of its free cash to investors in the form of dividends and share repurchases.”

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