S&P 500 Dividend Aristocrats List: Top 10 Picks by Hedge Funds

In this article, we will discuss the 10 best dividend aristocrat stocks sorted by hedge fund popularity. If you want to read our detailed analysis of dividend aristocrats and their past performance, go directly to read S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Popularity. 

10. The Sherwin-Williams Company (NYSE:SHW)

Number of Hedge Fund Holders: 68

The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based manufacturing company that is mainly engaged in paint and coating products. Jefferies upgraded the stock to Buy in May and also raised its price target on the stock to $275, appreciating the company’s sales and earnings growth.

The Sherwin-Williams Company (NYSE:SHW) offers a quarterly dividend of $0.605 per share and has a dividend yield of 1.06%, as of May 29. The company raised its dividends for 44 years consecutively. It is among the best dividend aristocrat stocks on our list.

The Sherwin-Williams Company (NYSE:SHW) was a part of 68 hedge fund portfolios in Q1 2023, up from 64 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds are collectively valued at nearly $2.8 billion.

9. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 70

PepsiCo, Inc. (NASDAQ:PEP) is a multinational food, beverage, and snack company, headquartered in New York. In May 2023, the company hiked its dividend for the 51st consecutive year, which makes it one of the best dividend aristocrat stocks on our list. It currently pays a quarterly dividend of $1.265 per share and offers a dividend yield of 2.76%, as of May 29.

The number of hedge funds tracked by Insider Monkey owning stakes in PepsiCo, Inc. (NASDAQ:PEP) stood at 70 in Q1 2023, the same as in the previous quarter. The total value of these stakes is over $4 billion.

8. Linde plc (NYSE:LIN)

Number of Hedge Fund Holders: 70

Linde plc (NYSE:LIN) is a multinational chemicals company. HSBC raised its price target on the stock in May with a Buy rating on the shares, highlighting the company’s pricing and productivity initiatives.

On April 24, Linde plc (NYSE:LIN) announced a quarterly dividend of $1.275 per share, consistent with its previous dividend. In 2022, the company stretched its dividend growth streak to 28 years. With a dividend yield of 1.43%, LIN is one of the best dividend aristocrat stocks on our list.

Linde plc (NYSE:LIN) experienced an upward trend in hedge fund positions in Q1 2023. According to Insider Monkey’s database, 70 hedge funds owned stakes in the company in Q1, up from 56 in the preceding quarter. These stakes are worth over $5.03 billion collectively.

7. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 70

An American multinational healthcare company, Abbott Laboratories (NYSE:ABT) is next on our list of the best dividend aristocrat stocks. The company was a part of 70 hedge fund portfolios in Q1 2023, up from 60 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $2.37 billion.

Abbott Laboratories (NYSE:ABT) offers a quarterly dividend of $0.51 per share for a dividend yield of 1.98%. The company has raised its dividends for 51 years without interruption.

Polen Capital mentioned Abbott Laboratories (NYSE:ABT) in its Q1 2023 investor letter. Here is what the firm has to say:

“As stated below in the portfolio activity section, Abbott Laboratories (NYSE:ABT) is expected to see roughly $6 billion in COVID test sales evaporate this year, creating a headwind for margins and underlying earnings per share. As long-term owners of the business, these test sales were never part of our original investment case. The core business, our primary focus, has a clear path of growing high single digits in 2023 with durable growth beyond, in our view. We believe the current price of 23x NTM P/E , while reasonable, is also misleading considering earnings this year will be artificially depressed because of the drop in COVID testing sales. On normalized earnings, the price is lower. We anticipate underlying EPS growth of at least low-teens over the next three to five years.

Lastly, we trimmed Abbott Laboratories, bringing it back to a more average position size and to also fund our increase in Thermo Fisher. Abbott is entering a year in which the company is expected to see approximately $6bn in COVID-19 test sales disappear, thus, creating a headwind for margins and EPS. That said, the core business has a clear path to growing high single digits in FY23. EPS grew at a 20% CAGR from 2019-2022, far beyond our expectations when we initiated our investment. Now, we expect a more normal growth rate of low teens EPS beyond this year. Further, management’s adeptness at allocating capital continues to impress us. We expect Abbott to drive top line growth without heavily investing in R&D and SG&A this year— management effectively “front-loaded” those investments in 2021 and 2022 when COVID test sales created a bolus of cash. We believe this should allow for leverage on the operating margin going forward. Combined, Abbott and Thermo Fisher now represent 7% of the Portfolio.”

6. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 73

Exxon Mobil Corporation (NYSE:XOM) has a 100-year run of paying regular dividends to shareholders. Moreover, the American natural gas company has raised its payouts for 40 years in a row. The company’s quarterly dividend stands at $0.91 per share for a dividend yield of 3.47%, as of May 29.

In May, Piper Sandler raised its price target on Exxon Mobil Corporation (NYSE:XOM) to $145 and maintained an Overweight rating on the shares. The firm presented a neutral stance on the energy sector following the earnings season.

Of the 943 hedge funds in Insider Monkey’s database, 73 funds owned stakes in Exxon Mobil Corporation (NYSE:XOM) in Q1 2023. The consolidated value of these stakes is over $4.3 billion.

5. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 75

The Procter & Gamble Company (NYSE:PG) specializes in a wide range of personal care and hygiene products. On April 11, the company declared a quarterly dividend of $0.9407 per share, having raised it by 3%. Through this increase, the company took its dividend growth streak to 67 years, which places it as one of the best dividend aristocrat stocks on our list. The stock delivers a dividend yield of 2.59%, as of May 29.

At the end of Q1 2023, 75 hedge funds in Insider Monkey’s database owned stakes in The Procter & Gamble Company (NYSE:PG), up from 74 a quarter earlier. These stakes have a total value of $4.66 billion.

4. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 75

AbbVie Inc. (NYSE:ABBV) is an Illinois-based pharmaceutical company. In April, Morgan Stanley raised its price target on the stock to $181 with an Overweight rating on the shares. The firm believes that the company can deliver growth in the second half of the year.

AbbVie Inc. (NYSE:ABBV) has been raising its dividends for 50 years consistently and currently pays a quarterly dividend of $1.48 per share. With a dividend yield of 4.30%, as of May 29, ABBV is one of the best dividend aristocrat stocks on our list.

At the end of the March quarter of 2023, 75 hedge funds in Insider Monkey’s database owned stakes in AbbVie Inc. (NYSE:ABBV), up from 73 in the previous quarter. Citadel Investment Group was the company’s leading stakeholder in Q1.

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 86

Johnson & Johnson (NYSE:JNJ) ranks third on our list of the best dividend aristocrat stocks according to hedge funds. The company maintains a 62-year track record of consistent dividend growth. It pays a quarterly dividend of $1.19 per share and has a dividend yield of 3.08%, as of May 29.

The number of hedge funds tracked by Insider Monkey owning stakes in Johnson & Johnson (NYSE:JNJ) grew to 86 in Q1 2023, from 84 in the previous quarter. These stakes have a consolidated value of over $4.5 billion.

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

Number of Hedge Fund Holders: 90

An American private banking company, S&P Global Inc. (NYSE:SPGI) has raised its dividends for 50 years in a row. The company offers a quarterly dividend of $0.90 per share for a dividend yield of 1.00%, as recorded on May 29.

S&P Global Inc. (NYSE:SPGI) is one of the best dividend aristocrat stocks according to hedge funds, as 90 funds in Insider Monkey’s database held stakes in the company in Q1 2023. These stakes have a total value of over $7.3 billion.

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 91

Walmart Inc. (NYSE:WMT) experienced huge growth in hedge fund positions in the most recent quarter. According to Insider Monkey’s database, 91 hedge funds owned stakes in the retail corporation in Q1 2023, up from 66 in the preceding quarter. These stakes are collectively worth over $5.6 billion.

Walmart Inc. (NYSE:WMT) pays a quarterly dividend of $0.57 per share for a dividend yield of 1.56%. In 2023, the company stretched its dividend growth streak to 50 years. It tops our list of the best dividend aristocrat stocks according to hedge funds.

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