S&P 500 Dividend Aristocrats sorted by analyst ratings
In this piece, we will take a look at the S&P 500 Dividend Aristocrats, the so-called dividend aristocrats, sorted by analyst ratings. Dividends are one of the most stable ways to make money in the stock market. While most of the attention is often focused on share price increases and the opportunity to make money at the right time, dividends mostly stay in the background. But they give investors the opportunity to earn bond-like payments for their share ownership. Dividends are generally paid by larger and established companies with budgets that can support investment in growth or by others that are structured to pay out most of their income from investments or other entities as dividends.
Since there are thousands of stocks on the market, it is quite difficult to pick out only those that have consistently paid dividends for decades despite the current economic environment. This is increasingly important given the current economic environment. Inflation and the stock market have skewed decision-making and created a tough environment for those seeking stability.
Meteoric gains made by the big tech and mega-cap companies almost seemed to reverse and start a downward trend in August, and economists and analysts as a whole are now starting to advocate a cautious approach to the stock market. The simple reason for this is that the rapid increases in interest rates by the Federal Reserve to reduce historic inflation are historic in themselves. Bank interest rates in the US are now at a two-decade high, and the fact that the economy has managed to weather the storm so far has surprised many professionals.
Dividends can prove crucial if they can provide stable income in a tough environment. Meanwhile, reinvesting dividends in the stock that pays it (after consulting with certified professionals) can also allow one to grow wealth over the decades and have a nice nest egg waiting for retirement. There are several lists that track dividend companies, and one of the more popular ones is the S&P500 Dividend Aristocrats. The list sets a rather high bar for entry, as it not only includes the stocks included in the S&P 500 index, but further limits the selection criteria to include only those companies that have increased their dividends consecutively over the last 25 years. Total returns for these stocks are naturally higher than the S&P500, and with a few rare exceptions, lead and lag the index during periods of ups and downs respectively.
Almost half of the S&P500 Dividend Aristocrats are companies operating in the retail and industrial sectors. This is unsurprising as these firms are either less likely to be adversely affected by economic shocks or are large and established firms that generate stable revenues simply because of their scale and expensive long-term capital investment.
This time we’re going to look at the dividend aristocrats with the best analyst ratings and some notable stocks are Linde plc (NYSE:LIN), Walmart Inc (NYSE:WMT) and S&P Global Inc (NYSE:SPGI).
Our methodology
To compile our list of S&P500 Dividend Aristocrats sorted by analyst ratings, we used a list of dividend aristocrats. The stocks were then ranked based on their average analyst ratings data-based scores courtesy of Yahoo Finance. A lower rating indicates a better rating. Of these, stocks with scores of 2 or less were selected.
S&P 500 Dividend Aristocrats sorted by analyst ratings
11. NextEra Energy, Inc (NYSE:NEE)
Average rating: 2
NextEra Energy, Inc (NYSE:NEE) is an American energy company with more than fifteen thousand employees. The company’s shares have an average Strong Buy rating and institutional investors own nearly 80% of the shares.
At the end of the second quarter, 59 of the 910 hedge funds in Insider Monkey’s database held shares of NextEra Energy, Inc. (NYSE:NEE). Of these, the company’s largest investor is Ken Fisher’s Fisher Asset Management as it owns 9.6 million shares worth $717 million.
NextEra Energy, Inc (NYSE: NEE) joins Walmart Inc (NYSE: WMT), Linde plc (NYSE: LIN) and S&P Global Inc (NYSE: SPGI) in our list of S&P 500 dividend aristocrats ranked by analyst ratings.
10th McDonald’s Corporation (NYSE: MCD)
Average rating: 2
McDonald’s Corporation (NYSE: MCD) is a fast food chain. Its shares have good news in September as Wells Fargo has upgraded the stock to Overweight from Equal Weight and set a $310 share price target based on the assumption that the company can weather a tough economic environment because of its value.
After digging through 910 hedge fund portfolios for their stock holdings in the second quarter of 2023, Insider Monkey discovered that 68 had invested in the company. Ken Griffin’s Citadel Investment Group is McDonald’s Corporation (NYSE: MCD) largest shareholder, owning a stake worth $777 million.
9. General Dynamics Corporation (NYSE:GD)
Average rating: 2
General Dynamics Corporation (NYSE: GD) is one of the oldest companies on our list and also one of the most advanced in the industrial field. Its shares are rated Buy on average, and big names like Wells Fargo, Morgan Stanley and JPMorgan have rated the shares better than Overweight.
In June 2023, 46 hedge funds out of 910 were owners of General Dynamics Corporation (NYSE: GD). James A. Stars Longview Asset Management is the largest stakeholder among these, owning 28.8 million shares worth $6 billion.
8 Emerson Electric Co (NYSE:EMR)
Average rating: 2
Emerson Electric Co (NYSE: EMR) is another industrial equipment manufacturer. Despite weakness in the industrial sector, the stock is up 107% so far this year and Emerson Electric Co. (NYSE: EMR) has a dividend yield of 2.10%.
Out of 910 hedge funds, 49 had a stake in the company. Emerson Electric Co. (NYSE: EMR)’s largest shareholder is John Overdeck and David Siegel’s Two Sigma Advisors through their $330 million investment.
7. the Coca-Cola Company (NYSE: KO)
Average rating: 2
The Coca-Cola Company (NYSE: KO) is an iconic, multinational beverage company. Its shares have been on the losing end of the stock market this year, with a sell-off in the first week of September pushing the stock down 7.34%.
61 of the 910 hedge funds had bought The Coca-Cola Company (NYSE:KO) shares. Warren Buffett’s Berkshire Hathaway is the largest investor with its massive $24 billion investment.
6 Becton, Dickinson and Company (NYSE: BDX)
Average rating: 2
Becton, Dickinson and Company (NYSE: BDX) is a manufacturer of medical, scientific and research equipment. The company has beaten analysts’ EPS estimates in all four of its recent quarters, and analysts have penciled in a $44 upside to the stock based on the average price target.
At the end of the second quarter of 2023, 55 hedge funds out of 910 held shares in the company. Becton, Dickinson and Company (NYSE: BDX) largest shareholder in the hedge fund is David Blood and Al Gore’s Generation Investment Management through a $501 million stake.
5th Albemarle Corporation (NYSE: ALB)
Average rating: 2
Albemarle Corporation (NYSE: ALB) is a chemical company headquartered in Charlotte, North Carolina. One of the world’s largest battery raw material companies is currently trying to expand its business in Australia by acquiring another company.
At the end of the second quarter of 2023, 41 of the 910 hedge funds had a stake in Albemarle Corporation (NYSE: ALB). Of these, the company’s largest shareholder is Philippe Laffont’s Coatue Management as it owns 691,853 shares worth $154 million.
4th Abbott Laboratories (NYSE: ABT)
Average rating: 2
Abbott Laboratories (NYSE: ABT) is one of the oldest and largest pharmaceutical companies in the world. Like some other big pharma companies, it has also beaten analysts’ EPS estimates in all four of the last quarters and it is the last stock on our list to be rated Buy on average by analysts.
3rd Walmart Inc (NYSE: WMT)
Average rating: 1.9
Walmart Inc (NYSE: WMT) is the largest retailer in the world. It was out with good news for dividend investors in September when the company announced it would raise its dividend per share to 57 cents.
2nd Linde plc (NYSE: LIN)
Average rating: 1.9
Linde plc (NYSE: LIN) is a chemical company that supplies gases to various industrial users. The company’s second quarter results saw sales fall year-on-year but the company increased its annual earnings per share. The stock has a strong buy on average and has an average analyst target of 424.65 dollars.
1st S&P Global Inc (NYSE: SPGI)
Average rating: 1.7
SPGI tops the list of S&P 500 dividend aristocrats with the best analyst ratings. The great thing is that the company is the creator of the list. S&P Global Inc. (NYSE: SPGI) is one of the leading financial advisory services in the world, S&P has offices worldwide and covers almost every financial market imaginable.
About the Viking
With Viking’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Viking’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
