5 Best Dividend Aristocrat Stocks To Buy Now

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

Number of Hedge Fund Holders: 74

The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company. In March, JPMorgan upgraded the stock to Overweight and also raised its price target on the stock to $155, noting the company’s performance in the current environment. It is among the best dividend aristocrat stocks on our list.

The Procter & Gamble Company (NYSE:PG) currently offers a quarterly dividend of $0.9133 per share and has a dividend yield of 2.52%, as of March 20. The company has a 132- year long history of paying dividends to shareholders, with a 66-year streak of consistent dividend growth.

As of the close of Q4 2022, 74 elite funds tracked by Insider Monkey reported owning stakes in the company in Q4 2022, up from 69 in the previous quarter. These stakes are collectively valued at over $4.7 billion. With roughly 5 million shares, Bridgewater Associates was the company’s leading stakeholder in Q4.

Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”