In this article, we discuss 5 dividend aristocrats under $60 you can buy in September. If you want to read our detailed analysis of dividend aristocrats and their performance in the past, go directly to read 10 Dividend Aristocrats Under $60 You Can Buy in September.
5. Pentair plc (NYSE:PNR)
Share Price as of September 5: $43.9
Dividend Yield as of September 5: 1.91%
Pentair plc (NYSE:PNR) is an American water treatment company that provides related solutions to its consumers. In 2021, the company extended its dividend growth track record to 46 years. It currently pays a quarterly dividend of $0.21 per share, with a dividend yield of 1.91%, as of September 5.
In Q2 2022, Pentair plc (NYSE:PNR) reported revenue of $1.02 billion, up from 8.4% in the same period last year. The company’s operating cash flow came in at $308 million and its free cash flow stood at $288 million. It paid nearly $70 million in dividends to shareholders during the quarter, compared with $66.7 million in the prior-year quarter. The company’s payout ratio stands at 24.1%.
In July, Cowen maintained its Outperform rating on Pentair plc (NYSE:PNR) as the company presented guidance above analysts’ expectations.
At the end of June 2022, 31 hedge funds tracked by Insider Monkey owned stakes in Pentair plc (NYSE:PNR), compared with 38 in the previous quarter. The consolidated value of these stakes is roughly $947 million. Impax Asset Management was the company’s leading stakeholder in Q2, owning over 12.3 million shares.
4. Altria Group, Inc. (NYSE:MO)
Share Price as of September 5: $45.00
Dividend Yield as of September 5: 8.36%
Altria Group, Inc. (NYSE:MO) is one of the largest producers of tobacco and related products, headquartered in Virginia, US. The company remained committed to shareholder return in Q2 2022, paying $1.6 billion in dividends. In addition to this, it also repurchased shares worth over $507 million. The company generated $5.3 billion in revenue during the quarter.
On August 25, Altria Group, Inc. (NYSE:MO) declared a 4% hike in its quarterly dividend to $0.94 per share. This was the company’s 53rd consecutive year of dividend growth. The stock’s dividend yield was recorded at 8.36% on September 5.
As of the close of Q2 2022, Altria Group, Inc. (NYSE:MO) was a part of 48 hedge fund portfolios, compared with 47 in the previous quarter. The stakes owned by these hedge funds hold a collective value of over $1.83 billion, down from $1.9 billion in the preceding quarter.
3. Hormel Foods Corporation (NYSE:HRL)
Share Price as of September 5: $46.3
Dividend Yield as of September 5: 2.24%
Hormel Foods Corporation (NYSE:HRL) is a Minnesota-based food processing company that specializes in the packaging and selling of different food products. In August, Stephens presented a positive outlook on the company, highlighting the underlying growth of its business. Given this, the firm raised its price target on the stock to $55 while maintaining an Equal Weight rating on the shares.
In fiscal Q3 2022, Hormel Foods Corporation (NYSE:HRL) reported revenue of $3.03 billion, showing a 5.9% year-over-year growth. The company’s cash flow from operations came in at $186 million, up 143% from the same period last year. Its free cash flow for the quarter also jumped to $125 million, from $22.7 million in the prior-year quarter.
Hormel Foods Corporation (NYSE:HRL) pays a quarterly dividend of $0.56 per share and has a yield of 2.24%, as recorded on September 5. The company maintains a 56-year track record of consistent dividend growth.
At the end of Q2 2022, 27 hedge funds in Insider Monkey’s database owned stakes in Hormel Foods Corporation (NYSE:HRL), compared with 30 a quarter earlier. These stakes are valued at over $434.5 million. With nearly 3 million shares, Renaissance Technologies was the company’s leading stakeholder in Q2.
2. A. O. Smith Corporation (NYSE:AOS)
Share Price as of September 5: $56.2
Dividend Yield as of September 5: 1.99%
A. O. Smith Corporation (NYSE:AOS) is a Wisconsin-based manufacturer of both residential and commercial water heaters and boilers. The company has been paying dividends to shareholders consistently for the past 82 years with a 28-year streak of dividend growth. Its quarterly dividend stands at $0.28 per share, with a dividend yield of 1.99%, as recorded on September 5.
A. O. Smith Corporation (NYSE:AOS) posted revenue of $966 million in Q2 2022, up 12.3% from the same period last year. The company’s net earnings also grew by 7% to $126.2 million. Its cash from operations stood at $54.4 million and its free cash flow amounted to $23.7 million in the first half of the year. In addition to this, the company had $360 million available in cash and cash equivalents at the end of June 2022.
Following the company’s Q2 results, Citigroup lifted its price target on the stock to $65 with a Neutral rating on the shares.
The number of hedge funds tracked by Insider Monkey owning stakes in A. O. Smith Corporation (NYSE:AOS) stood at 27 in Q2 2022, compared with 38 in the previous quarter. Renaissance Technologies was the company’s leading stakeholder in the second quarter, owning stakes worth over $22.2 million.
LRT Capital Management mentioned A. O. Smith Corporation (NYSE:AOS) in its Q2 2022 investor letter. Here is what the firm has to say:
“A.O. Smith is the largest US manufacturer of residential and commercial water heaters, boilers and water treatment products. The company generates close to $3 billion in annual sales. The majority of the company’s business (73%) is done in North America, with the balance coming from China and India. Approximately 80% of demand is replacing existing heaters and 20% is tied to new construction. The company continues to benefit from a shift towards higher efficiency, but more expensive, tankless heaters.
A.O. Smith generates returns on invested capital in the high teens. The company uses its earnings to consistently grow its dividends and share repurchases. Over the past three years the company’s performance has been hurt by its exposure to China as its business there suffered due to the US-China trade war and poor execution. We believe the China business is back on track and the all-important US business is doing better than ever as housing demand heats up in the US. The company beat earnings estimates over the past several quarters and is currently enjoying very good performance as the hot U.S housing market continues to be strong.19 A.O. Smith also recently increased its share repurchase authorization.”
1. Aflac Incorporated (NYSE:AFL)
Share Price as of September 5: $59.6
Dividend Yield as of September 5: 2.69%
Aflac Incorporated (NYSE:AFL) is a Georgia-based insurance company that deals in supplemental insurance in the US. In July, JPMorgan mentioned the stock in its investors’ note, calling the company a major beneficiary of higher interest rates. The firm lifted its price target on the stock to $62 and maintained a Neutral rating on the shares.
In Q2 2022, Aflac Incorporated (NYSE:AFL) posted revenue of $5.4 billion and its net income came in at $1.4 billion. At the end of June 2022, the company’s total cash and investments stood at $121.4 billion and its total assets amounted to $135.6 billion, showing its strong cash position.
On August 1, Aflac Incorporated (NYSE:AFL) declared a quarterly dividend of $0.40 per share, in line with its previous dividend. The company maintains a 39-year track record of consistent dividend growth and expects to extend it due to its stable capital and cash flows.
At the end of Q2 2022, 32 hedge funds tracked by Insider Monkey owned investments in Aflac Incorporated (NYSE:AFL), the same as in the previous quarter. The collective value of these stakes is over $340.6 million, compared with $377.6 million worth of stakes owned by hedge funds in the preceding quarter.
You can also take a look at 10 Large-Cap Dividend Stocks with Over 5% Yield and 10 Small-Cap Stocks that Pay Dividends
