4. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 84
Dividend Yield as of September 13: 0.92%
S&P Global Inc. (NYSE:SPGI) is a Manhattan-based multinational company that specializes in financial information and analytics. The company generated revenue of roughly $3 billion in Q2 2022, which showed a 41.7% year-over-year growth. In the first six months of the year, its cash flow from operating activities stood at $676 million and its free cash flow came in at $510 million. During the quarter, the company returned $1.8 billion to shareholders, with $286 million distributed in dividends.
S&P Global Inc. (NYSE:SPGI) holds a strong dividend history, as it has been paying dividends consistently since 1937. It has also been raising dividends for the past 49 years consecutively. It currently pays a quarterly dividend of $0.85 per share, with a dividend yield of 0.92%, as recorded on September 13.
In August, Oppenheimer lifted its price target on S&P Global Inc. (NYSE:SPGI) to $419 with an Outperform rating on the shares, appreciating the company’s strong start to the third quarter. The firm also believes that the corporation is an attractive buying opportunity for long-term investors.
At the end of June 2022, 84 hedge funds in Insider Monkey’s database owned stakes in S&P Global Inc. (NYSE:SPGI), compared with 97 in the previous quarter. These stakes hold a collective value of over $7.2 billion.
Baron Funds mentioned S&P Global Inc. (NYSE:SPGI) in its Q2 2022 investor letter. Here is what the firm has to say:
“Another example is S&P Global (NYSE:SPGI), the leading rating agency and data provider, whose stock declined 29.0% year-to-date and 17.5% during the second quarter as a result of growing investor concerns over the slowdown in debt issuance. While debt issuance volumes have seen a dramatic decline – the worst quarterly decline in a decade (down 41% year-over-year in the second quarter based on Goldman Sachs estimates), – and this led management to withdraw its 2022 guidance in early June, we do not believe it would result in a permanent loss of capital.
First, ratings represent only about 30% of S&P Global’s total revenues. Second, despite inherent volatility in quarterly or annual issuance, over the long-term issuance volumes follow the trends in levels of debt outstanding, which has compounded in the mid-single digits for many years. Lastly, we believe that S&P Global’s strong competitive positioning will enable it to continue benefiting from pricing power, while taking advantage of secular tailwinds such as the growth in passive and ESG investing, international expansion, and the growing demand for data analytics.”
