5 Best Dividend Aristocrat Stocks To Buy Now

In this article, we discuss 5 best dividend aristocrats to buy now. If you want to read our detailed analysis of dividend investments and the performance of dividend stocks in the past, go directly to read 14 Best Dividend Aristocrat Stocks To Buy Now. 

5. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 73

AbbVie Inc. (NYSE:ABBV) is an American healthcare company that provides innovative medicines and solutions to address complex health issues. On February 16, the company declared a quarterly dividend of $1.48 per share, which fell in line with its previous dividend. The company has raised its payouts for 50 consecutive years, which makes it one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 3.79%, as of March 20.

In February, Guggenheim initiated its coverage on AbbVie Inc. (NYSE:ABBV) with a Buy rating and a $172 price target, appreciating the company’s various businesses.

At the end of December 2022, 73 hedge funds in Insider Monkey’s database reported owning stakes in AbbVie Inc. (NYSE:ABBV), compared with 80 in the previous quarter. The collective value of these stakes is over $1.5 billion.

Baron Funds mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter. Here is what the firm has to say:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

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).”

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 79

A Texas-based energy company, Exxon Mobil Corporation (NYSE:XOM) is next on our list of the best dividend aristocrat stocks on our list. The company recently announced the startup of its $2 billion Beaumont refinery project, which will enhance capacity for transportation fuels by 250,000 barrels per day at the facility. The construction of the project began in 2019.

In March, Mizuho raised its price target on Exxon Mobil Corporation (NYSE:XOM) to $147 with a Buy rating on the shares, presenting a positive stance on the energy companies.

Exxon Mobil Corporation (NYSE:XOM) has been raising its dividends consistently for the past 40 years. The company offers a quarterly dividend of $0.91 per share for a dividend yield of 3.55%, as recorded on March 20.

At the end of Q4 2022, the number of hedge funds owning stakes in Exxon Mobil Corporation (NYSE:XOM) grew to 79, from 75 a quarter earlier, according to Insider Monkey’s Q4 data. These stakes have a consolidated value of over $7.1 billion.

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 84

Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical company that has been raising its dividends consistently for the past 61 years. The company currently offers a quarterly dividend of $1.13 per share for a dividend yield of 2.94%, as of March 20.

Guggenheim initiated its coverage on Johnson & Johnson (NYSE:JNJ) in March with a Neutral rating and a $161 price target, appreciating the company’s MedTech segment. The firm also gave a positive outlook of the company’s other businesses.

Johnson & Johnson (NYSE:JNJ) was a part of 84 hedge fund portfolios in Q4 2022, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $5.5 billion.

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

Number of Hedge Fund Holders: 97

S&P Global Inc. (NYSE:SPGI) is an American private banking company. It pays a per-share dividend of $0.90 every quarter, raising it by 6% in January 2023. This marked the company’s 50th consecutive year of dividend growth, which places it as one of the best dividend aristocrat stocks on our list. The stock’s dividend yield on March 20 came in at 1.08%.

S&P Global Inc. (NYSE:SPGI) was a part of 97 hedge fund portfolios in Q4 2022, up from 90 in the previous quarter, as tracked by Insider Monkey. The stakes owned by these hedge funds have a total value of over $7.8 billion.

Andvari Associated mentioned S&P Global Inc. (NYSE:SPGI) in its Q4 2022 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) is another company we own that is part of a duopoly in the business of credit rating. S&P and Moody’s have roughly equal market shares and rate more than 90% of all bonds worldwide. The service provides high value for the cost. A company that chooses to issue debt without a rating will pay an interest rate that could be higher by half of a percent. The cost of a higher interest rate far exceeds any savings gained by not using the services of S&P.

We think of S&P as a toll road that earns fees from its customers in exchange for cost-effective access to capital. As such, the company has extraordinary margins and pricing power and requires little of its own capital to grow. Even after fully reinvesting in its business, S&P still has an excess of cash. In 2021, S&P produced $3.5 billion of free cash from $8.3 billion of revenues. The company returns the majority of its free cash to investors in the form of dividends and share repurchases.”

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