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Dividend Aristocrats List: Top 25 Among Billionaires

In this article, we will discuss top 25 dividend aristocrats among billionaires. You can skip our detailed analysis of dividend aristocrats and the performance of dividend growers in the past, and go directly to read Dividend Aristocrats List: Top 10 Among Billionaires

Investing in dividend stocks offers a distinct opportunity for investors seeking consistent income. With market sentiments fluctuating, there's a growing recognition of the significance of having cash readily available. Dividend investments address this need by providing a source of regular income. However, dividend investing is not solely about immediate earnings, it also presents the potential for growth over time. Companies that consistently grow dividends often demonstrate financial strength and stability, reflecting their ability to generate profits consistently. For this reason, analysts advise investors to focus on dividend aristocrats, which are companies that have raised their payouts for 25 consecutive years or more. According to a report by Fortune, despite trailing its benchmark, the S&P 500 Dividend Aristocrat Index has outperformed almost every US active manager in the last decade. Rupert Watts, head of factors and dividend indices at S&P Dow Jones Indices, spoke with the global media organization about dividend growers. Here is what the analyst said:

“Raising your dividend for 25 plus years is no easy feat. These are high-quality companies.”

Throughout history, dividends have been a crucial component of investors' overall returns, particularly in times when market returns remained below ten percent for extended durations. In the long run, dividends have substantially contributed to the returns received by investors. Looking back over the last five decades, approximately 72% of the total return of the S&P 500 Index has been credited to reinvested dividends and the remarkable effect of compounding, according to a report by RBC Wealth Management. The report further mentioned that firms that consistently increase their dividends or begin paying dividends altogether have typically offered higher overall returns with lower volatility compared to companies that either kept their dividends steady or reduced them.

While dividend stocks might be trailing the overall market performance in 2023, it's essential to note that they have outperformed the broader market during specific periods throughout history, as reported by ProShares. With an upside-downside capture of 91% and 80%, the S&P 500 Dividend Aristocrat Index has proven its strength in both upward and downward market movements. Its resilience shines through notably during market downturns, evident from its standout performance in 2022 when it surpassed the broader S&P 500 by a substantial 12%. Remarkably, this index has outperformed the S&P 500 in eight out of the ten worst quarterly market downturns since 2005. The report further mentioned by steadily increasing their dividends, dividend aristocrats have shown higher yield-on-cost than companies with initially higher dividend yields, even though their starting yields might be lower.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend aristocrat stocks as these companies have earned this distinction due to their consistent track record of increasing dividends over extended periods. What sets them apart is not just their dividend prowess but also their robust financial foundations. In this article, we will further discuss the top dividend aristocrat stocks according to billionaires.

Dividend Aristocrats List: Top 25 Among Billionaires
Dividend Aristocrats List: Top 25 Among Billionaires

Photo by Annie Spratt on Unsplash

Our Methodology:

For this article, we first scanned the database of billionaire-owned stocks maintained by Insider Monkey as of Q3 2023. From this database, we picked dividend aristocrats, which are the companies with at least 25 consecutive years of dividend growth. We also measured hedge fund sentiment around each stock from our database of 910 hedge funds at the end of Q3. The stocks are ranked in ascending order of the number of billionaire investors having stakes in them.

25. Church & Dwight Co., Inc. (NYSE:CHD)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 33

Church & Dwight Co., Inc. (NYSE:CHD) is a consumer goods company known for producing a wide array of household and personal care products. On November 1, the company announced a quarterly dividend of $0.2725 per share, which was in line with its previous dividend. The company has been raising its dividends consistently for the past 27 years, which makes it one of the best dividend aristocrat stocks on our list. The stock's dividend yield on December 6 came in at 1.17%. The stock has attracted the attention of 13 billionaires in Q3, including Cliff Asness.

At the end of Q3 2023, 33 hedge funds in Insider Monkey's database reported having stakes in Church & Dwight Co., Inc. (NYSE:CHD), compared with 39 in the previous quarter. The overall value of these stakes is nearly $1.2 billion.

24. Linde plc (NASDAQ:LIN)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 71

Linde plc (NASDAQ:LIN) is a multinational industrial gases and engineering company. It operates in various sectors, providing gases and engineering solutions essential across numerous industries and applications. The company has been raising its dividends consistently for the past 28 years and it pays a quarterly dividend of $1.275 per share. As of December 6, the stock has a dividend yield of 1.27%.

As of the close of Q3 2023, 71 hedge funds tracked by Insider Monkey reported having stakes in Linde plc (NASDAQ:LIN), up from 70 in the previous quarter. The collective value of these stakes is roughly $4 billion.

23. A. O. Smith Corporation (NYSE:AOS)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 37

A. O. Smith Corporation (NYSE:AOS) is an American company that specializes in manufacturing water heating equipment and water treatment products. The company offers a quarterly dividend of $0.32 per share, having raised it by 7% in October this year. This marked the company's 30th consecutive year of dividend growth, which makes AOS one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 1.66%, as of December 6.

At the end of September 2023, 37 hedge funds in Insider Monkey's database owned stakes in A. O. Smith Corporation (NYSE:AOS), compared with 39 in the previous quarter. The consolidated value of these stakes is over $835.8 million. Israel Englander, Ken Fisher, and D. E. Shaw were some of the most prominent billionaires having stakes in the company in Q3.

22. Altria Group, Inc. (NYSE:MO)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 40

Altria Group, Inc. (NYSE:MO) is a Virginia-based diversified conglomerate primarily operating within the tobacco industry. The company offers a quarterly dividend of $0.98 per share and has raised its payouts for 54 years straight. The stock has a dividend yield of 9.44%, as of December 6. In the third quarter of 2023, 13 billionaires owned stakes in the company, with Israel Englander and Cliff Asness being the most prominent among them.

Insider Monkey's database of Q3 2023 showed that 40 hedge funds owned stakes in Altria Group, Inc. (NYSE:MO), compared with 43 in the preceding quarter. These stakes are collectively valued at over $565 million.

21. Becton, Dickinson and Company (NYSE:BDX)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 57

Becton, Dickinson and Company (NYSE:BDX) is a global medical technology company that specializes in the development, manufacturing, and distribution of medical devices and related products. The company has attracted the attention of 13 billionaires in the third quarter of 2023, including Ray Dalio and Ken Griffin.

On November 9, Becton, Dickinson and Company (NYSE:BDX) declared a 4% hike in its quarterly dividend to $0.95 per share. Through this increase, the company stretched its dividend growth streak to 52 years, which makes BDX one of the best dividend stocks on our list. As of December 6, the stock has a dividend yield of 1.63%.

The number of hedge funds owning stakes in Becton, Dickinson and Company (NYSE:BDX) grew to 57 in Q3 2023, from 55 in the preceding quarter. The total value of these stakes is more than $2.5 billion.

20. International Business Machines Corporation (NYSE:IBM)

Number of Billionaire Investors: 14

Number of Hedge Fund Holders: 53

International Business Machines Corporation (NYSE:IBM) is one of the world's major technology companies. It offers a broad range of hardware, software, and services. The company's dividend growth streak currently stands at 28 years and it offers a quarterly dividend of $1.66 per share. With a dividend yield of 4.14% as of December 6, IBM is one of the best dividend aristocrat stocks on our list.

International Business Machines Corporation (NYSE:IBM) was a part of 53 hedge fund portfolios at the end of Q3 2023, up from 51 in the previous quarter, according to Insider Monkey's database. D. E. Shaw, Ken Griffin, and Israel Englander were some of the most prominent billionaires who invested in the company in Q3.

19. Target Corporation (NYSE:TGT)

Number of Billionaire Investors: 14

Number of Hedge Fund Holders: 58

Target Corporation (NYSE:TGT) is an American retail corporation that operates a chain of general merchandise stores. Target offers a wide array of products across various categories. The company pays a quarterly dividend of $1.10 per share and has a dividend yield of 3.31%, as of December 6. It is one of the best dividend aristocrat stocks on our list as the company maintains a 52-year streak of consistent dividend growth.

As of the end of the third quarter of 2023, 58 hedge funds, up from 45 in the preceding quarter, owned stakes in Target Corporation (NYSE:TGT), as per Insider Monkey's database. These stakes are collectively worth over $1.3 billion. The company grabbed the attention of 14 billionaires during the quarter, including Ken Griffin and Israel Englander.

18. Ecolab Inc. (NYSE:ECL)

Number of Billionaire Investors: 14

Number of Hedge Fund Holders: 53

Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and energy technologies and services. The company currently offers a quarterly dividend of $0.53 per share and has a dividend yield of 1.11%, as reported on December 6. The company has been rewarding shareholders with growing dividends for the past 31 years. It is one of the best dividend aristocrat stocks among billionaires, such as Steve Cohen.

As of the end of September 2023, 53 hedge funds tracked by Insider Monkey owned investments in Ecolab Inc. (NYSE:ECL), down from 56 in the preceding quarter. The consolidated value of these stakes is over $2 billion. With over 5.2 million shares, Bill & Melinda Gates Foundation Trust was the company's leading stakeholder in Q3.

17. Caterpillar Inc. (NYSE:CAT)

Number of Billionaire Investors: 14

Number of Hedge Fund Holders: 50

Caterpillar Inc. (NYSE:CAT) is a Texas-based company that specializes in manufacturing heavy equipment, machinery, engines, and related products used in various industries. It is one of the best dividend aristocrat stocks on our list as the company has been raising its dividends for the past 29 years. The company currently pays a quarterly dividend of $1.30 per share with a dividend yield of 2.03%, as of December 6.

Caterpillar Inc. (NYSE:CAT) was a part of 50 hedge fund portfolios at the end of Q3 2023, the same as in the previous quarter, according to Insider Monkey's database. The stakes owned by these hedge funds have a total value of roughly $5 billion. Ken Griffin and Ken Fisher were some of the most notable billionaires owning stakes in the company.

16. NextEra Energy, Inc. (NYSE:NEE)

Number of Billionaire Investors: 15

Number of Hedge Fund Holders: 58

NextEra Energy, Inc. (NYSE:NEE) is a leading clean energy company operating primarily in the electricity generation, transmission, and distribution sectors. The company's quarterly dividend currently stands at $0.4675 per share for a dividend yield of 3.11%, as of December 6. The company holds a 27-year track record of consistent dividend growth, which makes NEE one of the best dividend aristocrat stocks on our list.

According to Insider Monkey's database of Q3 2023, 58 hedge funds held stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 59 a quarter earlier. The total value of these stakes is more than $1.4 billion. 15 billionaires, including Ken Griffin and D. E. Shaw, invested in the company in Q3.

15. 3M Company (NYSE:MMM)

Number of Billionaire Investors: 16

Number of Hedge Fund Holders: 54

3M Company (NYSE:MMM) is a multinational conglomerate known for its diverse range of products across various industries. The company has been raising its dividends for 65 years running and it pays a quarterly dividend of $1.50 per share. The stock has a dividend yield of 5.83%, as of December 6.

At the end of Q3 2023, 54 hedge funds in Insider Monkey's database reported having stakes in 3M Company (NYSE:MMM), jumping from 49 in the preceding quarter. These stakes are worth over $818.6 million in total. Billionaires Ken Griffin and Cliff Asness owned the most prominent positions in the company.

14. Medtronic plc (NYSE:MDT)

Number of Billionaire Investors: 16

Number of Hedge Fund Holders: 59

Medtronic plc (NYSE:MDT) is a global medical technology company that specializes in developing, manufacturing, and marketing medical devices and therapies to improve patient outcomes in various healthcare areas. The company pays a quarterly dividend of $0.69 per share and has a dividend yield of 3.49%, as recorded on December 6. It has been rewarding shareholders with growing dividends for the past 46 years.

At the end of September 2023, 59 hedge funds tracked by Insider Monkey reported owning stakes in Medtronic plc (NYSE:MDT), compared with 63 in the previous quarter. These stakes are worth collectively over $2.07 billion. Billionaires Paul Tudor Jones and Cliff Asness were the most prominent stakeholders of the company in Q3.

13. Colgate-Palmolive Company (NYSE:CL)

Number of Billionaire Investors: 16

Number of Hedge Fund Holders: 52

Colgate-Palmolive Company (NYSE:CL) is a multinational consumer goods company primarily known for producing and distributing personal care and household products. On September 14, the company declared a quarterly dividend of $0.48 per share, which was in line with its previous dividend. Overall, it has been raising its dividends for 61 consecutive years. The stock has a dividend yield of 2.48%, as of December 6.

As per Insider Monkey's database of Q3 2023, 52 hedge funds invested in Colgate-Palmolive Company (NYSE:CL), down from 58 in the previous quarter. The collective value of stakes owned by these hedge funds is over $2.6 billion. Ray Dalio and Ken Griffin were some of the most prominent billionaires owning stakes in the company in Q3.

12. McDonald's Corporation (NYSE:MCD)

Number of Billionaire Investors: 17

Number of Hedge Fund Holders: 70

An American multinational fast-food chain, McDonald's Corporation (NYSE:MCD) is next on our list of the best dividend aristocrat stocks. The company pays a quarterly dividend of $1.67 per share, having raised it by 10% in October this year. This marked the company's 47th consecutive year of dividend growth. As of December 6, the stock has a dividend yield of 2.33%.

The number of hedge funds tracked by Insider Monkey owning stakes in McDonald's Corporation (NYSE:MCD) grew to 70 in Q3 2023, from 68 in the previous quarter. The consolidated value of these stakes is over $2.5 billion. The company was also popular among billionaires such as Ken Griffin, Israel Englander, and Ray Dalio.

11. Exxon Mobil Corporation (NYSE:XOM)

Number of Billionaire Investors: 17

Number of Hedge Fund Holders: 79

Exxon Mobil Corporation (NYSE:XOM) is an American multinational energy company. In the third quarter of 2023, 17 billionaires invested in the company, including Ken Fisher and Mario Gabelli. The company has been raising its dividends consistently for the past 41 years and it pays a quarterly dividend of $0.95 per share. The stock has a dividend yield of 3.83%, as of December 6.

As of the end of Q3 2023, 79 hedge funds in Insider Monkey's database held stakes in Exxon Mobil Corporation (NYSE:XOM), up from 71 in the preceding quarter. These stakes have a total value of over $4.4 billion.

 

Click to continue reading and see Dividend Aristocrats List: Top 10 Among Billionaires

 

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Disclosure. None. Dividend Aristocrats List: Top 25 Among Billionaires is originally published on Insider Monkey.