Jim Cramer’s 5 Favorite Dividend Aristocrats

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In this article, we will look at the 5 favorite dividend aristocrats of journalist investor, Jim Cramer. If you want to explore more dividend aristocrats that Cramer is recommending to own for the second half of 2022, you can also read Jim Cramer’s 10 Favorite Dividend Aristocrats.

5. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 42

Dividend Yield as of September 12: 2.24%

Cramer likes General Dynamics Corporation (NYSE:GD) and sees the stock benefitting from the political turmoil in Europe. He is confident about the company’s leadership that “knows what’s needed in a less secure world”. General Dynamics Corporation (NYSE:GD) boasts a track record of 27 consecutive years of growing its dividends and has a 5-year dividend CAGR of 8.90%, with a payout ratio of 41.5%.

On August 3, General Dynamics Corporation (NYSE:GD) declared a quarterly cash dividend of $1.26 per share. The dividend is payable on November 10 to investors of record at the close of business on October 7. As of September 12, the stock is offering a forward dividend yield of 2.24% and the company has free cash flows of $4.83 billion.

This August, RBC Capital analyst Ken Herbert initiated coverage of General Dynamics Corporation (NYSE:GD) with a $275 price target and an Outperform rating. The analyst noted that investing in General Dynamics Corporation (NYSE:GD) is investing in “a leading global brand at an attractive valuation”.

At the end of the second quarter of 2022, 42 hedge funds were long General Dynamics Corporation (NYSE:GD) with stakes worth $7.7 billion. As of June 30, Longview Asset Management owns over 30 million shares of General Dynamics Corporation (NYSE:GD) and is the largest shareholder in the company.

Here is what Oakmark Fund had to say about General Dynamics Corporation (NYSE:GD) in its second-quarter 2022 investor letter:

“Finally, General Dynamics Corporation (NYSE:GD)’s defense business enabled the stock to resist the bear market’s downward pressure. We eliminated the position to fund more attractive holdings.”

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