This article presents an overview of 5 Magnificent Dividend Growth Stocks to Buy and Hold Forever. For a detailed overview of such stocks, read our article, 11 Magnificent Dividend Growth Stocks to Buy and Hold Forever.
5. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Investors: 64
In December last year, healthcare company Abbott Laboratories (NYSE:ABT) increased its dividend by 7.8%, marking the 52nd consecutive year of dividend increases. Abbott Laboratories (NYSE:ABT) recently said it received an approval from the FDA for its i-STAT TBI test cartridge to be used with whole blood in the evaluation of patients with suspected concussions, allowing for lab-quality results within 15 minutes.
As of the end of the fourth quarter of 2023, 64 hedge funds tracked by Insider Monkey had stakes in Abbott Laboratories (NYSE:ABT).
Polen Global Growth Strategy stated the following regarding Abbott Laboratories (NYSE:ABT) in its fourth quarter 2023 investor letter:
“Abbott Laboratories (NYSE:ABT), a globally dominant healthcare business serving a broad range of end markets, was another position we added to in the period. The stock has come under pressure in recent quarters as the company has experienced a significant (and expected) decline in sales tied to pandemic-era COVID testing. However, we feel this amounts to little more than a distraction, as the core business continues to perform very well. Nothing has changed around our expectations for long-term growth, yet the stock’s valuation has compressed, making for an attractive opportunity to add to the position given the long-term durable growth profile of this business.”
4. Lowe’s Companies Inc (NYSE:LOW)
Number of Hedge Fund Investors: 68
Lowe’s Companies Inc (NYSE:LOW) recently made it to the list of companies that have paid high dividend across time, published by Wells Fargo.
As of the end of the last quarter of 2023, 68 hedge funds had stakes in Lowe’s Companies Inc (NYSE:LOW). The biggest stakeholder of Lowe’s Companies Inc (NYSE:LOW) during this period was Eric W. Mandelblatt’s Soroban Capital Partners which owns a $451 million stake in Lowe’s Companies Inc (NYSE:LOW).
Pershing Square Holdings stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its fourth quarter 2023 investor letter:
“As discussed in the February Annual Investor Presentation, we exited our investment in Lowe’s Companies, Inc. (NYSE:LOW) after a highly successful, nearly six-year holding period, thereby freeing up capital for new opportunities. Lowe’s is a high-quality business with significant long-term earnings growth potential that has been successfully executing a multi-faceted business transformation in recent years.
We initiated the position in 2018 on the thesis that Lowe’s refreshed board of directors would hire a world-class management team capable of closing the substantial operational and financial performance gap that then-existed relative to its direct competitor, Home Depot. We viewed the operating discrepancies with Home Depot to be largely a byproduct of poor focus and suboptimal management which could be fixed with excellent new leadership and renewed focus on operational excellence…” (Click here to read the full text)
3. AbbVie Inc (NYSE:ABBV)
Number of Hedge Fund Investors: 76
With a decent dividend yield of 3.4% and 52 years of consistent dividend growth under its belt, AbbVie Inc (NYSE:ABBV) is a magnificent dividend growth stock with a lot of growth catalysts since AbbVie Inc (NYSE:ABBV) is investing heavily in new drugs and R&D. Over the past decade AbbVie Inc (NYSE:ABBV) increased its dividend by 300%.
A total of 76 hedge funds tracked by Insider Monkey had stakes in AbbVie Inc (NYSE:ABBV). The most notable stake in AbbVie Inc (NYSE:ABBV) belongs to Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $492 million stake in AbbVie Inc (NYSE:ABBV).
Carillon Eagle Mid Cap Growth Fund made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q3 2023 investor letter:
“AbbVie Inc. (NYSE:ABBV) reported strong, broad-based second-quarter performance that exceeded analysts’ expectations. The company’s raised guidance was a nice recovery after its mildly disappointing first-quarter report.”
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Investors: 81
With over six decades of dividend increases and a diversified revenue stream, Johnson & Johnson (NYSE:JNJ) ranks second in our list of the magnificent dividend growth stocks to buy and hold forever according to hedge funds.
A total of 81 hedge funds tracked by Insider Monkey had stakes in Johnson & Johnson (NYSE:JNJ).
ClearBridge Large Cap Value Strategy made the following comment about Johnson & Johnson (NYSE:JNJ) in its Q3 2023 investor letter:
“The health care space provided some opportunities in the quarter, as we increased our exposure to medical device company Becton, Dickinson as well as large cap pharmaceutical company Johnson & Johnson (NYSE:JNJ). Johnson & Johnson recently spun out its consumer health care business, becoming a more focused yet broadly diversified pharmaceutical and medtech company.”
1. S&P Global Inc (NYSE:SPGI)
Number of Hedge Fund Investors: 82
S&P Global Inc (NYSE:SPGI) is one of the top dividend growth stocks out there, with 51 years of consistent dividend growth. With a payout ratio of about 43% and a wide moat, SPGI is a safe dividend stock.
Out of the 933 hedge funds tracked by Insider Monkey, 82 hedge funds had stakes in the financial data and technology company S&P Global Inc (NYSE:SPGI).
Baron FinTech Fund stated the following regarding S&P Global Inc. (NYSE:SPGI) in its fourth quarter 2023 investor letter:
“Shares of rating agency and data provider S&P Global Inc. (NYSE:SPGI) increased due to higher debt issuance amid more favorable market conditions. Billed issuance rose 47% in October and 26% in November against subdued levels last year, with issuance boosted by declining interest rates and tighter bond spreads. Positive equity market performance in the fourth quarter benefited asset-based fees. In addition, the company reported strong quarterly financial results with double-digit growth in revenue and earnings and raised full-year earnings guidance. We continue to own the stock due to the company’s long runway for growth and significant competitive advantages.”
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