In this article, we will be looking at the 5 best dividend champions to buy now. If you want to see our detailed analysis of dividend investing, you can go directly to the 10 Best Dividend Champions to Buy Now.
5. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 65
Dividend Yield: 5.68%
Consecutive Years of Dividend Growth: 38
Exxon Mobil Corporation (NYSE: XOM) is a company working in the exploration and production of crude oil and natural gas in the US and internationally. The company ranks 5th on our list of the best dividend champions to buy now.
This June, Wells Fargo raised its price target on Exxon Mobil Corporation (NYSE: XOM) from $67 to $72, while keeping an Overweight rating on the shares. Citigroup also raised its price target on the stock to $62 in the same month.
In the first quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $0.65, beating estimates by $0.05, and the company’s revenue was $59.15 billion, up 5.32% year over year and beating estimates by $2.89 billion. Exxon Mobil Corporation (NYSE: XOM) has a gross profit margin of 32.49% and has gained 27.88% in the past 6 months and 47.54% year to date as well.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Exxon Mobil Corporation (NYSE: XOM). The total value of their stakes was roughly $2.77 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.20 billion.
4. Medtronic plc (NYSE: MDT)
Number of Hedge Fund Holders: 65
Dividend Yield: 1.97%
Consecutive Years of Dividend Growth: 44
Medtronic plc (NYSE: MDT) is a healthcare company developing device-based medical therapies for hospitals, physicians, clinicians, and patients across the globe. The company ranks 4th on our list of the best dividend champions to buy now.
This June, Medtronic plc’s (NYSE: MDT) price target was raised from $135 to $15o at Argus, with the firm keeping a Buy rating on the shares. Analyst David Toung is reportedly optimistic on the company’s potential to reinvest operating cash flow in product launches and development while profiting off of its robust market position in the Minimally Invasive Therapies market.
In the fiscal fourth quarter of 2021, Medtronic plc (NYSE: MDT) had an EPS of $1.50, beating estimates by $0.08. The company’s revenue was $8.19 billion, up 36.51% year over year and beating estimates by $59.18 million. Medtronic plc (NYSE: MDT) has a gross profit margin of 65.62% and has gained 9.28% in the past 6 months and 10.47% year to date.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Medtronic plc (NYSE: MDT). The total value of their stakes was roughly $3.62 billion. This is compared to 59 hedge funds in the previous quarter with a total stake value of approximately $2.81 billion.
3. Becton, Dickinson and Company (NYSE: BDX)
Number of Hedge Fund Holders: 65
Dividend Yield: 1.33%
Consecutive Years of Dividend Growth: 49
Becton, Dickinson and Company (NYSE: BDX) is a healthcare company manufacturing and selling medical supplies, devices, lab equipment, and diagnostic products across the globe. The company ranks 3rd on our list of the best dividend champions to buy now.
This May, Becton, Dickinson and Company (NYSE: BDX) was initiated with an Equal Weight rating and a $270 price target at Barclays. Analyst Travis Steed seemed optimistic on the medical devices sector, saying that we could be seeing more outperformance when it came to medical technology stocks in the coming few years. Becton, Dickinson and Company (NYSE: BDX) is also benefitting from higher demand for its products in light of vaccination campaigns, as witnessed by its receipt of an order for 2 billion injection devices this June.
In the fiscal second quarter of 2021, Becton, Dickinson and Company (NYSE: BDX) had an EPS of $3.19, beating estimates by $0.15. The company’s revenue was $4.91 billion, up 15.58% year over year and beating estimates by $27.48 million. Becton, Dickinson and Company (NYSE: BDX) has a gross profit margin of 47.32% as well.
By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Becton, Dickinson and Company (NYSE: BDX). The total value of their stakes was roughly $3.73 billion. This is compared to 65 hedge funds in the previous quarter with a total stake value of approximately $3.96 billion.
2. S&P Global Inc. (NYSE: SPGI)
Number of Hedge Fund Holders: 66
Dividend Yield: 0.74%
Consecutive Years of Dividend Growth: 48
S&P Global Inc. (NYSE: SPGI) provides ratings, benchmarks, analytics, and data to the capital and commodity markets across the globe. It ranks 2nd on our list of the best dividend champions to buy now.
This July, S&P Global Inc. (NYSE: SPGI) was initiated with an Outperform rating at RBC Capital alongside a $476 price target. Analyst Ashish Sabadra commented that S&P Global Inc.’s (NYSE: SPGI) acquisition of IHS Markit (NYSE: INFO) would deliver synergies and accelerate the company’s revenue growth. Morgan Stanley has also raised its price target on the shares from $460 to $476 in the same month, keeping an Overweight rating on S&P Global Inc. (NYSE: SPGI).
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 beating estimates by $77.50 million. S&P Global Inc. (NYSE: SPGI) has a gross profit margin of 72.61% and has gained 31.29% in the past 6 months and 24.44% year to date.
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). The total value of their stakes was roughly $6.24 billion. This is compared to 75 hedge funds in the previous quarter with a total stake value of approximately $3.80 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.”
1. McDonald’s Corporation (NYSE: MCD)
Number of Hedge Fund Holders: 67
Dividend Yield: 2.19%
Consecutive Years of Dividend Growth: 46
McDonald’s Corporation (NYSE: MCD) is a food and beverage company operating franchises under the McDonald’s brand in the US and internationally. The company ranks 1st on our list of dividend champions to buy now.
This June, Tigress Financial reiterated its Buy rating on McDonald’s Corporation (NYSE: MCD) with a 12-month target price of $271. The firm’s analyst Ivan Feinseth commented that the company will benefit during the post-pandemic recovery period as people return to work and begin eating out again. In the same month, Wells Fargo raised its price target on McDonald’s Corporation (NYSE: MCD) to $268 with an Overweight rating as well.
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 8.70% year over year and beating estimates by $89.33 million. McDonald’s Corporation (NYSE: MCD) has a gross profit margin of 51.37% and has gained 11.38% in the past 6 months and 12.11% 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). The total value of their stakes was roughly $3.78 billion. This is compared to 62 hedge funds in the previous quarter with a total stake value of approximately $2.88 billion.
You can also take a peek at 14 Best European Dividend Stocks To Buy and 10 Best Technology Stocks That Pay Dividends.
