Latest news with #MidCapDividendAristocratsIndex
Yahoo
07-05-2025
- Business
- Yahoo
Is Evercore Inc. (EVR) the Best Mid-Cap Dividend Aristocrat to Invest in Now?
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Evercore Inc. (NYSE:EVR) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Is Evercore Inc. (EVR) the Best Mid-Cap Dividend Aristocrat to Invest in Now? A close-up of a professional in a suit discussing financial transactions. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Evercore Inc. (NYSE:EVR) Number of Hedge Fund Holders: 44 Evercore Inc. (NYSE:EVR) is a New York-based investment banking advisory firm, with operations divided into two main segments: Investment Banking and Investment Management. The company also supports clients in securing both public and private capital, offers equity research, handles equity sales, and provides agency trading services. In addition, the firm delivers wealth and investment management solutions tailored to high-net-worth individuals and institutional clients. Evercore Inc. (NYSE:EVR) delivered strong earnings in the first quarter of 2025, with revenues of $699.9 million, up 19% from the same period last year. The revenue surpassed analysts' estimates by $99 million. The company's operating income came in at $116.3 million, compared with $90.6 million in the prior-year period. As of March 31, it had $553 million available in cash and cash equivalents, demonstrating the company's strong cash position. Evercore Inc. (NYSE:EVR) has always remained committed to its shareholder value. In the most recent quarter, the company returned $454.3 million to investors through dividends and share repurchases. In addition, it has been growing its dividends for 18 consecutive years. It pays a quarterly dividend of $0.84 per share and has a dividend yield of 1.59%, as of May 5. Overall, EVR ranks 1st on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of EVR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than EVR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
Black Hills Corporation (BKH): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Black Hills Corporation (NYSE:BKH) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Black Hills Corporation (BKH): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now A line of wind turbines against a clear sky, reflecting the companies clean energy efforts. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Black Hills Corporation (NYSE:BKH) Number of Hedge Fund Holders: 24 Black Hills Corporation (NYSE:BKH) is an American diversified energy company, headquartered in South Dakota. The company mainly offers electric and gas utility services to its consumers. It presents a strong opportunity for income-focused investors, with its customer base growing at nearly triple the pace of the US population. Backed by a $4.7 billion capital investment plan aimed at ensuring dependable power access for its expanding customer base, the utility is well-positioned for steady growth. Management anticipates annual earnings to rise by approximately 4% to 6% in the coming years. The stock has surged by over 5% since the start of 2025. In the fourth quarter of 2024, Black Hills Corporation (NYSE:BKH) posted revenue of $597 million, reflecting a slight year-over-year increase of 1%. Operating income for the quarter rose sharply to $163.3 million, up from $136.5 million in the same period a year earlier. The company also revised its five-year capital investment forecast upward by 10%, now planning to invest $4.7 billion between 2025 and 2029, including $1.0 billion earmarked for 2025 alone. Currently, Black Hills Corporation (NYSE:BKH) pays a quarterly dividend of $0.676 per share, following a 4% increase in January. This marked the 55th consecutive year of dividend growth, which makes BKH one of the best dividend stocks on our list. As of May 5, the stock supports an attractive dividend yield of 4.43%. Overall, BKH ranks 9th on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of BKH as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BKH but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
Lancaster Colony Corporation (LANC): Among the Best Mid-Cap Dividend Aristocrats to Invest in Now
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Lancaster Colony Corporation (NASDAQ:LANC) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Lancaster Colony Corporation (LANC): Among the Best Mid-Cap Dividend Aristocrats to Invest in Now A retired farmer in a wheat field, pleased with the quality of a Food products product he purchased from the company. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Lancaster Colony Corporation (NASDAQ:LANC) Number of Hedge Fund Holders: 22 Lancaster Colony Corporation (NASDAQ:LANC) ranks tenth on our list of the best mid-cap dividend aristocrat stocks. The Ohio-based company specializes in the manufacture and sale of specialty food products. The company reported mixed earnings in fiscal Q3 2025. Its revenue came in at $$457.8 million, which not only fell by 3% on a YoY basis but also missed analysts' estimates by $26 million. The EPS of $1.49 also fell short of the consensus by $0.09. However, the company's consolidated gross profit rose by $1.5 million, reaching a third-quarter record of $106.0 million, driven by gains from cost-saving initiatives and a slight decrease in costs. In addition, consolidated operating income climbed by $14.7 million, also setting a third-quarter record at $49.9 million. Despite facing challenges on some fronts, Lancaster Colony Corporation (NASDAQ:LANC) noted that its Retail segment continued to show growth during the quarter, supported by the expansion of its licensing program. This included the introduction of Chick-fil-A sauce into the club channel, strong ongoing performance of Texas Roadhouse dinner rolls, and additional sales generated by the Subway sauces launched in March. Sales of the leading New York Bakery frozen garlic bread products also saw improvement. On the other hand, net sales in the Foodservice segment declined by 3.2%, which the company attributed to a broader industry trend of reduced store traffic and menu changes, as some customers shifted toward more value-oriented options. Even so, increased demand from several key national restaurant chains provided some support to Foodservice segment sales. Lancaster Colony Corporation (NASDAQ:LANC)'s cash situation also remained stable during the quarter. At the end of March 31, the company had $124.5 million available in cash and cash equivalents. Its quarterly dividend comes in at $0.95 per share for a dividend yield of 2.35%, as of May 5. The company holds one of the longest dividend growth streaks in the market, spanning 62 years. Overall, LANC ranks 10th on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of LANC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LANC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
Polaris Inc. (PII): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Polaris Inc. (NYSE:PII) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Polaris Inc. (PII): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now A motorcyclist enjoying the open road on a sunny day. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Polaris Inc. (NYSE:PII) Number of Hedge Fund Holders: 26 Polaris Inc. (NYSE:PII) is a Minnesota-based automotive manufacturer that specializes in designing and producing powersports vehicles, which it groups into three main segments: off-road vehicles (including ATVs, side-by-sides, and snowmobiles), on-road vehicles (such as motorcycles and light-duty utility vehicles), and marine products (like pontoons and deck boats). Polaris Inc. (NYSE:PII) currently holds either the top or second-largest market share in every category it serves. With a history spanning 70 years, the company has established a broad dealer network to distribute its vehicles and related accessories. This extensive reach allows the company to invest significantly in research and development, enabling it to create vehicles that are more powerful, safer, higher performing, and visually appealing, helping it retain its leadership in the market. Polaris Inc. (NYSE:PII) reported mixed earnings in the first quarter of 2025. Its revenue came in at $1.5 billion, which fell by 12% from the same period last year. However, it beat analysts' estimates by $10 million. North America sales for the quarter came in at nearly $1.3 billion, which represented 84% of the company's total sales, though 11% down on a YoY basis. Total company sales declined due to reduced volume and lower net pricing, which was influenced by increased promotional activity. However, these impacts were partially offset by a more favorable product mix. That said, Polaris Inc. (NYSE:PII)'s cash position remained stable despite facing declines on various fronts. The company ended the quarter with $291.7 million available in cash and cash equivalents. In addition, its operating cash flow came in at $83.2 million, compared with an outflow of $105 million in 2024. In January, the company achieved its 30th consecutive annual dividend hike, which makes PII one of the best dividend stocks on our list. It offers a quarterly dividend of $0.67 per share and has a dividend yield of 7.90%, as of May 5. Overall, PII ranks 6th on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of PII as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PII but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
Is Perrigo Company plc (PRGO) the Best Mid-Cap Dividend Aristocrat to Invest in Now?
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Perrigo Company plc (NYSE:PRGO) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Is Perrigo Company plc (PRGO) the Best Mid-Cap Dividend Aristocrat to Invest in Now? A doctor and a patient discussing the benefits of OTC health and wellness solutions. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Perrigo Company plc (NYSE:PRGO) Number of Hedge Fund Holders: 31 Perrigo Company plc (NYSE:PRGO) is an Ireland-based company that focuses on providing self-care products and over-the-counter (OTC) health and wellness solutions. The company aims to improve personal well-being by enabling consumers to take an active role in preventing or managing treatable health conditions on their own. In the fourth quarter of 2024, Perrigo Company plc (NYSE:PRGO) reported revenue of $1.3 billion, which showed a significant growth of 15.4% from the same period last year. However, it still missed analysts' estimates by $1.83 million. The company reported average daily crude oil production of 171.3 thousand barrels and total average production of 368.4 thousand barrels of oil equivalent. For 2025, the company plans to increase annual production by 8% while maintaining its capital budget at around $2 billion, the same level as in 2024. This improved capital efficiency compared to the previous year is attributed to its disciplined development strategy and a significantly reduced cost structure. During the quarter, Perrigo Company plc (NYSE:PRGO) generated $872 million in operating cash flow, and its free cash flow amounted to $400 million, which highlights the company's strong cash position. The company's 22-year dividend growth streak is attributed to its cash generation, which makes PRGO one of the best dividend stocks on our list. Currently, it pays a quarterly dividend of $0.29 per share and has a dividend yield of 4.6%, as of May 5. Overall, PRGO ranks 2nd on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of PRGO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PRGO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
