5 Cheapest Dividend Aristocrats Right Now

In this article, we discuss 5 cheapest dividend aristocrats right now. If you want to read our detailed analysis of value and dividend investing, go directly to read 15 Cheapest Dividend Aristocrats Right Now. 

5. 3M Company (NYSE:MMM)

Forward P/E Ratio as of February 2: 10.91

An American multinational conglomerate, 3M Company (NYSE:MMM) is another cheapest dividend aristocrat on our list with a forward P/E ratio of 10.91. In its Q4 2022 results, the company reported revenue of $8.1 billion and its organic sales showed a 0.4% growth from the same period last year. Its operating cash flow for the quarter came in at $1.9 billion and its free cash flow amounted to $1.7 billion.

In January, Mizuho maintained a Neutral rating on 3M Company (NYSE:MMM), highlighting the company’s mixed results for the fourth quarter of 2022.

3M Company (NYSE:MMM) currently offers a per-share dividend of $1.49 every quarter. As of February 2, the company’s shares boast a yield of 4.95%. It has been raising its dividends for the past 64 years consecutively.

At the end of Q3 2022, 49 hedge funds tracked by Insider Monkey reported owning stakes in 3M Company (NYSE:MMM), down from 54 in the previous quarter. The consolidated value of these stakes is over $1.45 billion.

Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.

4. Chevron Corporation (NYSE:CVX)

Forward P/E Ratio as of February 2: 10.48

Chevron Corporation (NYSE:CVX) specializes in the exploration of oil and natural gas and producing different chemicals. On January 25, the company declared a 6.3% hike in its quarterly dividend at $1.51 per share. This was the company’s 36th consecutive year of dividend growth. The stock has a dividend yield of 3.57%, as of February 2.

In FY22, Chevron Corporation (NYSE:CVX) reported an operating cash flow of $49.6 billion and its free cash flow stood at $37.6 billion. The company’s cash generation was sufficient to return dividends worth $11 billion during the year.

In January, Truist raised its price target on Chevron Corporation (NYSE:CVX) to $179 while maintaining a Hold rating on the shares, appreciating the company’s recently announced repurchase authorization worth $75 billion. It is among the cheapest dividend aristocrats on our list with a forward price-to-earnings ratio of 10.48.

The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion.

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

3. Exxon Mobil Corporation (NYSE:XOM)

Forward P/E Ratio as of February 2: 10.18

Exxon Mobil Corporation (NYSE:XOM) is an American multinational energy company that distributes oil and natural gas. On January 31, the company declared a quarterly dividend of $0.91 per share, which fell in line with its previous dividend. The company maintains a 40-year streak of consistent dividend growth. The stock’s dividend yield on February 2 came in at 3.27%.

In January, BofA raised its price target on Exxon Mobil Corporation (NYSE:XOM) to $140 with a Buy rating on the shares, appreciating the company’s solid quarterly earnings. The firm also sees an expansion in the company’s free cash flow.

As of the close of Q3 2022, 75 hedge funds tracked by Insider Monkey owned stakes in Exxon Mobil Corporation (NYSE:XOM), up from 72 in the previous quarter. The collective value of these stakes is $5.5 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.

2. National Fuel Gas Company (NYSE:NFG)

Forward P/E Ratio as of February 2: 8.60

National Fuel Gas Company (NYSE:NFG) is a New York-based diversified energy company. With a forward P/E ratio of 8.60, the company is among the cheapest dividend aristocrats on our list. In fiscal Q1 2023, it reported an operating cash flow of $327.3 million, which showed a 91% growth from the same period last year. The company’s revenue for the quarter came in at $658.8 million, up 20.5% from the prior-year period.

National Fuel Gas Company (NYSE:NFG) currently pays a quarterly dividend of $0.475 per share and has a dividend yield of 3.28%, as of February 2. The company has been raising its dividends consistently for the past 52 years.

At the end of September 2022, 29 hedge funds in Insider Monkey’s database reported owning stakes in National Fuel Gas Company (NYSE:NFG), up from 23 in the preceding quarter. The collective value of these stakes is roughly $219 million. Among these hedge funds, GAMCO Investors was the company’s leading stakeholder in Q3.

1. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Forward P/E Ratio as of February 2: 8.10

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American retail company that owns retail pharmacy chains. The company ranks first on our list of the cheapest dividend aristocrats with a forward P/E ratio of 8.10. It currently pays a quarterly dividend of $0.48 per share and has a dividend yield of 5.09%, as of February 2. The company maintains a 47-year streak of consistent dividend growth.

As of Q3 2022, 39 hedge funds tracked by Insider Monkey owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), compared with 40 in the previous quarter. These stakes are collectively worth over $712.6 million. With nearly 6 million shares, Arrowstreet Capital was the company’s leading stakeholder.

You can also take a look at 12 Best Up-and-Coming Stocks To Buy and 11 Best All-Time Low Stocks To Buy

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