Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Stocks That Are Close To Becoming Dividend Aristocrats

In this article, we will take a look at companies that are close to becoming dividend aristocrats.

Income investors are drawn to Dividend Aristocrats because these stocks have consistently increased their dividends for decades. However, it’s possible to achieve even better returns by investing in stocks that are on the path to becoming Aristocrats—those that are increasing payouts but haven’t yet reached the 25-year mark required to qualify. This is where the real potential for wealth lies. The downside of some Aristocrats is that their most rewarding growth years may be behind them. Once a company reaches a certain level of dividend stability, its payout ratios can become inflated, and dividend hikes may slow, often limited to modest profit growth.

That said, dividend aristocrats are special. Among the approximately 6,000 stocks listed on the NYSE and NASDAQ, only around 67 companies have earned the distinction of being Dividend Aristocrats. These stocks have consistently outperformed other asset classes over time. Since the inception of the Dividend Aristocrats Index in 2005 through September 2023, it has delivered a total return of 10.35%, outperforming the broader market, which returned 9.54% during the same period.

READ ALSO: Dividend Aristocrats: Top 7 Companies by Yield for November 2024

In recent years, dividend investing has become an increasingly popular strategy, largely due to periods of heightened market volatility. The annual dividend payouts from the broader market have been on the rise, growing from $420 billion in 2017 to $522 billion in 2021. By 2023, these payments reached a record high of $588.2 billion. This trend demonstrates that investing in dividend stocks offers the potential for long-term growth and income generation. In addition, dividends have played a key role in overall market returns. From 2013 to 2022, dividends contributed around 17% of the total return of the broader market, according to a Morgan Stanley report.

While growth tech stocks have been in the spotlight this year, dividend stocks still have the potential to outperform as companies keep raising their payouts. Analysts remain optimistic about the continued growth of dividend stocks. Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, made the following comment in this regard:

“Given the FOMC’s interest rate reduction start and record earnings for Q2, and projected record earnings for both Q3 and Q4, companies may be more at ease to commit funds to larger dividend increases. The notable conclusion is that many companies have the ability and cash-flow to increase their dividend payments, but remain concerned over the economy, government spending and taxing policy.”

Analysts support dividend stocks due to their long-term growth potential. When discussing dividend stocks from this aspect, reinvesting dividends is a key strategy for compounding returns over time. From 1978 to 2020, dividends and their reinvestment contributed to 69% of the market’s total returns. This means that a $10,000 investment, with dividends reinvested consistently, would have grown to more than $1.2 million during this period. Given investors’ preference for dividend stocks, many companies have implemented dividend policies and are consistently increasing their payouts with the goal of achieving 25 years of dividend growth. In this article, we will take a look at 10 companies that are close to becoming dividend aristocrats.

Photo by andres perez on Unsplash

Our Methodology

For this list, we selected companies from the S&P 500 that have raised their dividends for 18 years or more and are on the steady path to becoming dividend aristocrats. These companies would be achieving their dividend aristocrat status in seven years or less. The stocks are ranked in ascending order of their consecutive years of dividend growth. We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 900 as of Q3 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

10. Bristol-Myers Squibb Company (NYSE:BMY)

Consecutive Years of Dividend Growth: 18 Years

Bristol-Myers Squibb Company (NYSE:BMY) is an American multinational pharmaceutical industry company. Since 2019, the company has introduced numerous new medications, and Bristol Myers continues to make strides. In September, the US Food and Drug Administration approved Cobenfy, a treatment for schizophrenia. While this approval is not recent news, Bristol Myers’ shares have surged lately due to encouraging updates surrounding Cobenfy. The stock is up by over 12% since the start of 2024.

In the third quarter of 2024, Bristol-Myers Squibb Company (NYSE:BMY) reported revenue of nearly $12 billion, which showed an 8.5% growth from the same period last year. The robust quarterly performance was driven by increased sales in the company’s expanded oncology portfolio and efficient operational execution. These results highlighted its ability to navigate competitive pressures while achieving significant revenue growth. By the quarter’s close, the company had approximately $8 billion in cash and cash equivalents.

Bristol-Myers Squibb Company (NYSE:BMY) has been growing its dividends consistently for the past 18 years. It is just seven years away from becoming a dividend aristocrat. The company’s strong cash reserves provide greater flexibility to enhance its payouts further. Its trailing twelve-month operating cash flow comes in at $15 billion and its levered free cash flow for the period was $17.52 billion. The company pays a quarterly dividend of $0.60 per share and has a dividend yield of 4.05%, as of December 2.

Bristol-Myers Squibb Company (NYSE:BMY) was a popular buy among elite funds at the end of Q3 2024 with hedge fund positions growing to 70, from 61 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $3.3 billion. With over 14.2 million shares, Pzena Investment Management owned the largest stake in the company in Q3.

9. Verizon Communications Inc. (NYSE:VZ)

Consecutive Years of Dividend Growth: 18 Years

Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company, based in New York. The company offers services in communications, technology, information, and entertainment. The company’s interest in acquiring Frontier aligns with its strategy to gain a stronger foothold in the growing fiber-optic internet market. The rising demand for high-speed internet, driven by data-heavy activities like video conferencing and streaming, underscores this move. One major advantage of the acquisition would be the expansion of Verizon’s fiber network. Frontier currently offers fiber-optic services across 25 states, which would increase Verizon’s coverage to 31 states. Investors have also responded positively to this deal as VZ has surged by over 14% in 2024 so far.

Third Point Management also highlighted the company’s acquisition in its Q3 2024 investor letter. Here is what the firm said:

“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”

Verizon Communications Inc. (NYSE:VZ) is a strong dividend payer, having raised its payouts for 18 years in a row. Year-to-date, the company generated $26.5 billion in operating cash flow and its free cash flow for the period came in at 14.5 billion. Currently, it pays a quarterly dividend of $0.6775 per share for an attractive dividend yield of 6.11%, as of December 2.

At the end of Q3 2024, 57 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc. (NYSE:VZ), compared with 67 in the previous quarter. The collective value of these stakes is over $3.2 billion. Rajiv Jain’s GQG Partners owned the largest stake in the company, worth over $1.1 billion.

8. Edison International (NYSE:EIX)

Consecutive Years of Dividend Growth: 20 Years

Edison International (NYSE:EIX) is a California-based public utility company that is involved in the generation of electricity through various sources, including natural gas, nuclear, and renewable energy. The stock is gaining a lot due to growing energy demand. Since the start of 2024, it has surged by over 22% and its 12-month returns came in at nearly 33%.

In the third quarter of 2024, Edison International (NYSE:EIX) reported revenue of $5.2 billion, up 10.6% from the same period last year. The revenue beat analysts’ estimates by $192.4 million. The company expressed confidence in narrowing its 2024 core EPS guidance, supported by strong year-to-date performance. Over the past several years, it has successfully navigated significant climate challenges, strengthened its operational resilience, and positioned itself well for future growth. ClearBridge Investments also highlighted the company’s strong business in its Q3 2024 investor letter. Here is what the firm has to say:

“From a sector perspective, meanwhile, our utilities overweight was positive, with Edison International (NYSE:EIX) our top individual contributor. The company reached a tentative deal to recoup $1.7 billion of wildfire and mudslide expenses in California, bolstering its balance sheet, increasing earnings and demonstrating the favorable regulatory environment in California, benefiting both Edison as well as Sempra, our largest utility holding. Another rate-sensitive area — real estate — was the second-best sector performer as rate cuts boosted valuations in this area. Our REITs underweight, however, was a headwind during the period.”

In addition to its strong performance on other fronts, Edison International (NYSE:EIX) also showed a solid cash position. The company ended the quarter with $200 million available in cash and cash equivalents. Its operating cash flow for the first nine months of the year came in at $3.8 billion, compared with $2.5 billion in the prior-year period.

On September 24, Edison International (NYSE:EIX) declared a quarterly dividend of $0.78 per share, which was in line with its previous dividend. Overall, the company maintains a 20-year streak of consistent dividend growth. With a strong balance sheet, it could be one of the best dividend aristocrat stocks in the future. The stock supports a dividend yield of 3.53%, as of December 2.

As of the close of Q3 2024, 29 hedge funds tracked by Insider Monkey held stakes in Edison International (NYSE:EIX), compared with 32 in the previous quarter. These stakes are worth nearly $1.4 billion in total.

7. Analog Devices, Inc. (NASDAQ:ADI)

Consecutive Years of Dividend Growth: 20 Years

Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor manufacturing company that specializes in integrated circuits and systems. The company caters to a variety of sectors, including industrial, automotive, communications, and consumer applications. Prioritizing innovation, it allocates significant resources to research and development to sustain its technological advantage. The company’s strategy focuses on a customer-first mindset, expanding into new markets through acquisitions, and maintaining a leading position in analog solutions. The stock has delivered an over 12% return to shareholders since the start of 2024.

Analog Devices, Inc. (NASDAQ:ADI) reported strong earnings in fiscal Q4 2024. The company’s revenue for the quarter came in at $2.44 billion, which, though, fell by over 10% on a YoY basis, exceeded analysts’ estimates by over $37.65 million. The company sustained operating margins above 40%, highlighting the resilience of its business model. It also remained committed to strategic, long-term investments in areas such as engineering, manufacturing, and enhancing the overall customer experience.

Analog Devices, Inc.’s (NASDAQ:ADI)  cash position makes it a strong dividend payer. In FY24, the company generated $3.9 billion in operating cash flow and its free cash flow came in at $3.1 billion. Moreover, it returned $2.4 billion to shareholders during the year, including $1.8 billion in dividends. The company has raised its payouts for 20 consecutive years and is just five years away from becoming a dividend aristocrat. It pays a quarterly dividend of $0.92 per share and has a dividend yield of 1.69%, as of December 2.

Insider Monkey’s database of Q3 2024 indicated that 63 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 64 in the preceding quarter. The consolidated value of these stakes is over $4.4 billion. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q3.

6. QUALCOMM Incorporated (NASDAQ:QCOM)

Consecutive Years of Dividend Growth: 20 Years

QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor company. It holds a leading position in the smartphone chip market and is well-positioned to capitalize on the rapid expansion of the generative AI smartphone segment. This market is projected to grow at an annual rate of 78% through 2028, reaching 912 million units in yearly shipments by the end of the forecast period, as per IDC estimates. Additionally, the company ranks as the second-largest player in the smartphone application processor market, commanding a 31% share, according to Counterpoint Research. QCOM has surged by over 11.5% since the start of 2024.

In fiscal Q4 2024, QUALCOMM Incorporated (NASDAQ:QCOM) reported revenue of $10.24 billion, which saw an 18% growth from the same period last year. Its net income for the quarter also showed a 33% YoY growth at $3.5 billion. The company achieved over 30% year-over-year growth in EPS in FY24. Madison Investments highlighted QCOM in its Q3 2024 investor letter. Here is what the firm has to say:

“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”

QUALCOMM Incorporated (NASDAQ:QCOM) is also popular among investors because of its balance sheet. The company ended the quarter with nearly $8 billion available in cash and cash equivalents. It generated over $12.2 billion in operating cash flow, up from $11.3 billion in the prior-year period. During the quarter, it returned over $2.2 billion to shareholders through dividends and share repurchases. On October 16, the company declared a quarterly dividend of $0.85 per share, which was consistent with its previous dividend. Its dividend growth streak currently stands at 20 years. The stock supports a dividend yield of 2.17%, as of December 2.

As per Insider Monkey’s database of Q3 2024, 74 hedge funds owned stakes in QUALCOMM Incorporated (NASDAQ:QCOM), down from 100 in the preceding quarter. The consolidated value of these stakes is over $3.23 billion. With over 2 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.

5. United Parcel Service, Inc. (NYSE:UPS)

Consecutive Years of Dividend Growth: 22 Years

United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping and supply chain management company offering its consumers various related services. The company has encountered difficulties adjusting to a shifting business landscape, marked by declining shipping demand and rising inflationary pressures. The CEO pointed to a slowdown in manufacturing and industrial production. However, the company plans to focus on expanding more profitable deliveries in targeted sectors like healthcare and small and medium-sized businesses (SMBs). Despite this focus, challenging market conditions have led customers to opt for more affordable delivery options, resulting in UPS experiencing significant growth in lower-margin deliveries. The stock has fallen by over 14% since the start of 2024.

These challenges, however, did not stop United Parcel Service, Inc. (NYSE:UPS) from delivering strong earnings in the most recent quarter. The company reported revenue of $22.2 billion in Q3 2024, up 5.6% from the same period last year. The revenue also surpassed analysts’ estimates by $115.3 million. Its operating profit was $974 million, which saw a high increase from $665 million in the prior-year period. Artisan Partners highlighted the company’s strengths in its Q3 2024 investor letter. Here is what the firm has to say:

“We made no new purchases in Q3. Instead, our purchase activity was focused on adding to a few of our existing names that remain cheap, such as Dollar General and United Parcel Service, Inc. (NYSE:UPS). When we initiated our position in UPS in late 2023, shares were under pressure due to concerns about its new labor contract diverting volumes and driving up costs, as well as the continued normalization of volumes following COVID-related gains. We welcomed the market’s short-term focus as it provided us an opportunity to purchase UPS at an undemanding valuation of less than 11X our view of normalized earnings. UPS is a good transport operation that easily earns its cost of capital, generates significant free cash, has a wide economic moat, has a strong financial profile and pays an attractive dividend—now yielding 4.8%. More recently, the stock has been weak because profits came in weaker than expected. UPS’ customers traded down to the lower yielding ground segment, which negatively impacted overall pricing and margins. These shifts are common and occur in both directions, but what is important, in our view, is the long-term trend of volume growth remains intact. Nevertheless, investors have lost patience with UPS after a string of earnings disappointments.”

United Parcel Service, Inc. (NYSE:UPS)’s cash position makes it a reliable dividend company. Its trailing twelve-month operating cash flow is $9.22 billion and its free cash flow for the period amounts to $4.1 billion. The company has been growing its dividends for the past 22 consecutive years. It currently offers a quarterly dividend of $1.63 per share and has a dividend yield of 4.87%, as of December 2.

According to Insider Monkey’s database of Q3 2024, 43 hedge funds owned stakes in United Parcel Service, Inc. (NYSE:UPS), compared with 44 in the previous quarter. These stakes have a consolidated value of over $1.6 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.

4. Lockheed Martin Corporation (NYSE:LMT)

Consecutive Years of Dividend Growth: 22 Years

Lockheed Martin Corporation (NYSE:LMT) is a Maryland-based aerospace and defense company that specializes in advanced technology systems, services, and products. The company has been grabbing investors’ attention as defense contractors are generally regarded as secure investment options. This is largely because the US government, known for its dependable spending, serves as a primary customer, and defense budgets typically remain steady regardless of economic fluctuations. Additionally, the current global landscape, marked by numerous geopolitical tensions, is driving an increase in defense expenditures. These funds are being directed toward replacing equipment utilized in conflicts or meeting heightened security demands. Notably, Lockheed Martin’s missiles and fire control division, projected to be the company’s fastest-growing area in the coming years, also boasts the highest profit margins. Since the start of 2024, the stock has surged by over 14%.

In the third quarter of 2024, Lockheed Martin Corporation (NYSE:LMT) reported revenue of $17.1 billion, which grew slightly from $16.9 billion in the same period last year. During the quarter, the company made significant progress in its strategic, operational, and financial objectives. This was evident from a record backlog exceeding $165 billion, the delivery of 48 F-35 aircraft, and increased missile program production. Encouraged by robust year-to-date performance and a positive near-term outlook, it has revised its 2024 full-year guidance upwards, raising expectations for sales, segment operating profit, earnings per share, and free cash flow.

Ariel Investments made the following comment about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:

“Additionally, leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) increased following a top- and bottom-line earnings beat and subsequent raise in full year guidance. The company also announced three significant F-35 contracts underscoring the growing tailwinds for sustainment efforts and continued engineering advancements as the fleet continues to expand. LMT continues to be well positioned in the defense sector.”

Lockheed Martin Corporation (NYSE:LMT) is expected to maintain its dividend in the coming years, supported by its robust cash flow generation. In the most recent quarter, the company generated $2.4 billion in operating cash flow and its free cash flow came in at $2.1 billion. Moreover, it returned $1.6 billion to shareholders through dividends and share repurchases during the quarter.

On October 3, Lockheed Martin Corporation (NYSE:LMT) declared a 4.8% hike in its quarterly dividend to $3.30 per share. This was the company’s 22nd consecutive year of dividend growth. The stock’s dividend yield on December 2 came in at 2.53%.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 58 funds owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 56 in the previous quarter. The collective value of these stakes is nearly $2.4 billion.

3. The Southern Company (NYSE:SO)

Consecutive Years of Dividend Growth: 23 Years

The Southern Company (NYSE:SO) is an American electric power distribution company that is primarily engaged in the generation, transmission, and distribution of electricity. The company is a highly reliable utility stock, making it an appealing choice for passive income investors. It maintains a well-diversified energy portfolio, combining fossil fuels, wind, solar, and nuclear power. While its primary market is in the southeastern United States, its power generation extends nationwide. For instance, the majority of its wind energy facilities are located in Texas and Oklahoma, while its solar operations are largely focused in the Southwestern US. The stock has surged by more than 24% in 2024 so far.

In the third quarter of 2024, The Southern Company (NYSE:SO) reported revenue of $7.27 billion, which saw a 4.2% growth from the same period last year. The company’s cash flow generation is also very strong with its trailing twelve-month operating cash flow of $9.43 billion and levered free cash flow of $498.7 million. It currently offers a quarterly dividend of $0.72 per share and has a dividend yield of 3.27%, as of December 2. The company has raised its payouts for 23 consecutive years.

The number of hedge funds tracked by Insider Monkey owning stakes in The Southern Company (NYSE:SO) grew to 37 in Q3 2024, from 32 in the previous quarter. These stakes have a consolidated value of over $1.8 billion. Rajiv Jain’s GQG Partners owned the largest stake in the company, worth $1.5 billion.

2. NIKE, Inc. (NYSE:NKE)

Consecutive Years of Dividend Growth: 23 Years

NIKE, Inc. (NYSE:NKE) is a multinational footwear and apparel company that offers products for men, women, and children. The company faced some difficulties in recent years but is working to overcome them with fresh strategies. It has appointed a new CEO, bringing back Elliott Hill, a longtime company veteran who retired in 2020 as president of global commercial and marketing operations. This change provides the company with an opportunity to reset its approach, under the guidance of a seasoned insider with a proven record of success.

Coho Partners also highlighted this transformation in its Q2 2024 investor letter. Here is what the firm has to say:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”

NIKE, Inc. (NYSE:NKE) reported mixed earnings in fiscal Q1 2025. The company’s revenue of $11.6 billion fell by 10% from the same period last year. Its wholesale revenues also declined by 8% on a YoY basis at $6.4 billion. However, the company’s cash position remained stable, with nearly $8.5 billion available in cash and cash equivalents, up from $6.2 billion in the prior-year period. Its trailing twelve-month operating cash flow stands at $7.9 billion.

NIKE, Inc. (NYSE:NKE) declared an 8.1% hike in its quarterly dividend to $0.40 per share on November 15. Through this increase, the company stretched its dividend growth streak to 23 years. The stock supports a dividend yield of 2.03%, as of December 2.

NIKE, Inc. (NYSE:NKE) remained popular among elite money managers at the end of Q3 2024 with 75 hedge funds owning positions in the company, as per Insider Monkey’s database. The stakes owned by these funds have a collective value of more than $5 billion. Bill Ackman’s Pershing Square was the company’s leading stakeholder in Q3.

1. Eversource Energy (NYSE:ES)

Consecutive Years of Dividend Growth: 24 Years

Eversource Energy (NYSE:ES) is an American electric services company, based in Boston. The company mainly provides essential energy services to its consumers. It operates in a variety of utility sectors, including regulated electric, water, and natural gas utilities, as well as transmission assets. However, it isn’t a leader in any of these areas. While it serves the Northeast, an important region in the US, it doesn’t attract as large a population as the Sunbelt. In the past 12 months, the stock has surged by nearly 5%.

In the third quarter of 2024, Eversource Energy (NYSE:ES) reported $3.06 billion in revenues, up 9.7% from the same period last year. The company’s Water Distribution segment earned $23.7 million during the quarter, growing from $16.6 million in the prior-year period. Its cash flow generation is solid, with a trailing twelve-month operating cash flow of $1.99 billion.

Eversource Energy (NYSE:ES) currently offers a quarterly dividend of $0.715 per share, having raised it by 6% in February this year. The company is just one year away from becoming a dividend aristocrat, with 24 consecutive years of dividend growth under its belt. The stock offers a dividend yield of 4.49%, as of December 2.

Eversource Energy (NYSE:ES) was a part of 33 hedge fund portfolios at the end of Q3 2024, up from 26 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of roughly $452 million.

Overall, Eversource Energy (NYSE:ES) ranks first on our list of the best dividend aristocrat stocks. While we acknowledge the potential for ES to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s what to do next:

1. Subscribe to our Premium Readership Newsletter for just $9.99 a month. (33% Off – was $14.99).

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

<b>Cancel anytime.</b> Turn off auto-renewal via our website with just a click.

 

Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

This offer vanishes in 7 days, so don’t miss your chance to lock in market beating returnsSign up NOW! The monthly newsletter comes with a 30-day, no-risk money-back guarantee. This offer is available to the first 1000 new investors who respond.

Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.