In this article, we will be looking at the 5 best dividend aristocrats to buy according to hedge funds. If you want to see our detailed analysis of dividend aristocrats, and dividend investing, go directly to the 10 Best Dividend Aristocrats to Buy According to Hedge Funds.
5. S&P Global Inc. (NYSE: SPGI)
Number of Hedge Fund Holders: 66
Number of Years of Consecutive Dividend Increases: 48
Dividend Yield: 0.7%
S&P Global Inc. (NYSE: SPGI) is a company that provides analytics and ratings alongside other data for use by the capital and commodity markets across the world. The company operates through its S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts, and S&P Global Dow Jones Indices segments, and ranks 5th on our list of the best dividend aristocrats to buy according to hedge funds.
This July, RBC Capital’s Ashish Sabadra initiated coverage of S&P Global Inc. (NYSE: SPGI) shares with an Outperform rating and a $476 price target. Sabadra expects double-digit earnings growth from the company, alongside an acceleration in its normalized revenue growth profile, in light of S&P Global Inc. (NYSE: SPGI) acquiring IHS Markit.
In the first quarter of 2021, S&P Global Inc. (NYSE: SPGI) had an EPS of $3.39, beating estimates by $0.31. The company’s revenue was $2.02 billion, up 12.88% year over year and also beating estimates by $77.50 million. S&P Global Inc. (NYSE: SPGI) has gained about 32.92% in the past 6 months and 25.61% year to date as well.
By the end of the first quarter of 2021, 66 hedge funds out of the 866 tracked by Insider Monkey held stakes in S&P Global Inc. (NYSE: SPGI) worth roughly $6.24 billion. This is compared to 75 hedge funds in the previous quarter with stakes worth approximately $3.807 billion.
Baron Funds, an asset management firm, mentioned S&P Global Inc. (NYSE: SPGI) in its first-quarter 2021 investor letter. Here’s what they said:
“S&P Global Inc. provides credit ratings, indexes, data, and analytics to the financial and commodities markets. Shares increased on strong fourth quarter results and 2021 guidance that exceeded Street expectations. Although bond issuance is expected to moderate after two years of exceptional growth, management still expects revenue to grow mid-single-digits this year. Also, shareholders overwhelmingly voted to approve the merger with IHS Markit. We continue to own the stock as we see a long runway for growth and significant competitive advantages for the company.”
4. McDonald’s Corporation (NYSE: MCD)
Number of Hedge Fund Holders: 67
Number of Years of Consecutive Dividend Increases: 45
Dividend Yield: 2.2%
McDonald’s Corporation (NYSE: MCD) is a leading food retailer operating in the US and globally through its McDonald’s franchises. The company is based in Chicago and ranks 4th on our list of the best dividend aristocrats to buy according to hedge funds.
Dennis Geiger, an analyst at UBS, retained his Buy rating and $260 price target on McDonald’s Corporation (NYSE: MCD) shares this July. Geiger commented in a research note that the company’s shares have even more upside in the foreseeable future.
In the first quarter of 2021, McDonald’s Corporation (NYSE: MCD) had an EPS of $1.92, beating estimates by $0.10. The company’s revenue was $5.12 billion, up 8.7% year over year and also beating estimates by $89.33 million. McDonald’s Corporation (NYSE: MCD) has gained about 11.87% in the past 6 months and 13.53% year to date as well.
By the end of the first quarter of 2021, 67 hedge funds out of the 866 tracked by Insider Monkey held stakes in McDonald’s Corporation (NYSE: MCD) worth roughly $3.78 billion. This is compared to 62 hedge funds in the previous quarter with stakes worth approximately $2.88 billion.
3. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 70
Number of Years of Consecutive Dividend Increases: 65
Dividend Yield: 2.6%
The Procter & Gamble Company (NYSE: PG) is a global company operating in the household products industry to provide branded consumer packaged goods. The company is headquartered in Ohio and ranks 3rd on our list of the best dividend aristocrats to buy according to hedge funds.
Peter Grom from UBS initiated coverage of The Procter & Gamble Company (NYSE: PG) shares just this July with a $138 price target and a Neutral rating.
In the fiscal third quarter of 2021, The Procter & Gamble Company (NYSE: PG) had an EPS of $1.26, beating estimates by $0.07. The company’s revenue was $18.11 billion, up 5.2% year over year and also beating estimates by $147.79 million. The Procter & Gamble Company (NYSE: PG) has gained about 4.2% in the past 6 months and 9.23% in the past year.
By the end of the first quarter of 2021, 70 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Procter & Gamble Company (NYSE: PG) worth roughly $8.53 billion. This is compared to 83 hedge funds in the previous quarter with stakes worth approximately $10.42 billion.
2. AbbVie Inc. (NYSE: ABBV)
Number of Hedge Fund Holders: 72
Number of Years of Consecutive Dividend Increases: 49
Dividend Yield: 4.5%
AbbVie Inc. (NYSE: ABBV) is next on our list of the best dividend aristocrats to buy according to hedge funds and ranks 2nd. It is another healthcare company operating in the biotechnology industry to develop pharmaceuticals, like its HUMIRA therapy product, for patients across the globe.
Daiwa has initiated coverage of AbbVie Inc. (NYSE: ABBV) shares with an Outperform rating alongside a $126 price target as of this July, while Piper Sandler has retained its Overweight rating on the stock as of this June.
In the first quarter of 2021, AbbVie Inc. (NYSE: ABBV) had an EPS of $2.95, beating estimates by $0.12. The company’s revenue was $12.94 billion, up 50.08% year over year and also beating estimates by $160.24 million. AbbVie Inc. (NYSE: ABBV) has gained about 6.37% in the past 6 months and 11.51% year to date as well.
By the end of the first quarter of 2021, 72 hedge funds out of the 866 tracked by Insider Monkey held stakes in AbbVie Inc. (NYSE: ABBV) worth roughly $5.91 billion. This is compared to 83 hedge funds in the previous quarter with stakes worth approximately $6.96 billion.
1. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Number of Years of Consecutive Dividend Increases: 58
Dividend Yield: 2.5%
Johnson & Johnson (NYSE: JNJ) is yet another medical company, ranking 1st on our list of the best dividend aristocrats to buy according to hedge funds. The company operates through its Consumer Health, Pharmaceutical, and Medical Devices segments.
This July, Johnson & Johnson (NYSE: JNJ) raised its adjusted EPS view for the financial year of 2021 to $9.50-$9.60, while also raising its revenue view to $93.8 billion-$94.6 billion, versus the estimates of $91.3 billion. Additionally, Cantor Fitzgerald has maintained an Overweight rating on Johnson & Johnson (NYSE: JNJ) shares with a $200 price target as well.
In the second quarter of 2021, Johnson & Johnson (NYSE: JNJ) had an EPS of $2.48, beating estimates by $0.20. The company’s revenue was $23.31 billion, up 27.14% year over year and also beating estimates by $802.29 million. Johnson & Johnson (NYSE: JNJ) has gained about 2.41% in the past 6 months and 8.61% year to date as well.
By the end of the first quarter of 2021, 81 hedge funds out of the 866 tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE: JNJ) worth roughly $6.91 billion. This is compared to 81 hedge funds in the previous quarter with stakes worth approximately $5.82 billion.
You can also take a peek at 10 Best Dividend Champions to Buy Now and 10 Best Dividend Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management.
