S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Sentiment

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

Number of Hedge Fund Holders: 90

S&P Global Inc. (NYSE:SPGI) is a New York-based capital market company that operates in the areas of financial information and analytics. Credit-rating agencies play a vital role in the bond markets by providing investors with insights into a company’s financial health, its ability to meet debt obligations, and the risks associated with holding that debt. The industry is notoriously difficult to penetrate, which gives S&P Global Inc. (NYSE:SPGI) a strong competitive edge. After experiencing a downturn in 2022, the credit ratings industry is now seeing signs of recovery. The stock has gained nearly 17% since the start of 2024 and its 12-month returns came in at roughly 31%.

S&P Global Inc. (NYSE:SPGI) reported strong earnings in the second quarter of 2024. The company’s revenue for the quarter came in at $3.55 billion, which showed a 14.45% growth from the same period last year. The revenue also beat Street estimates by $134 million. The company has also raised its guidance on various fronts for FY24. Its cash flow outlook for the year is particularly well-received by investors. It expects to generate $4.4 billion in operating cash flow in 2024, up from its prior expectation of $4.2 billion. In addition, the company forecasts adjusted free cash flow of $4.7 billion, compared with a prior guidance of $4.5 billion. It revised its cash flow guidance because of the higher expected net income. The company also plans to remain committed to shareholder obligation, anticipating returning around 85% of its adjusted free cash flow to shareholders in 2024 through dividends and share buybacks.

In the first six months of 2024, S&P Global Inc. (NYSE:SPGI) reported an operating cash flow of $2.5 billion, up significantly from $1.36 billion in the prior year period. The company has been increasing its payouts consistently for the past 51 years, which makes SPGI one of the best dividend aristocrat stocks on our list. It pays a per-share dividend of $0.91 every quarter and has a dividend yield of 0.73%, as of August 19.

S&P Global Inc. (NYSE:SPGI) was a part of 90 hedge fund portfolios at the end of Q2 2024, down from 97 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $10 billion.