Dividend-paying stocks, particularly Dividend Aristocrats (companies that have raised dividends for over 25 consecutive years), are a great way to generate passive income and can be considered a safe bet in the current uncertain market situation. Procter & Gamble (NYSE:PG) and AbbVie (NYSE:ABBV) are two such stocks that boast an impressive history of consistent dividend growth.
Interestingly, the TipRanks’ Hedge Fund Trading Activity tool, which offers hedge fund signals based on the latest Form 13F filings, indicates that hedge fund managers have been increasing their holdings in both PG and ABBV stocks. Moreover, both of these stocks carry an Outperform Smart Score.
Let’s delve deeper into these two Dividend-Aristocrat stocks.
Procter & Gamble Co.
Procter & Gamble has raised its dividend payout for 67 consecutive years, making it a perfect choice for income investors. The company has been benefitting from resilient demand for its products, irrespective of economic conditions.
Furthermore, the stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. The tool shows that hedge funds bought 4.1 million shares of this consumer goods company in the last quarter.
Our data shows that Ken Fisher of Fisher Asset Management, Gotham Asset Management’s Joel Greenblatt, and Henry Kwiecinski of Bishop & Co. Investment Management were among the hedge fund managers who increased their exposure to PG stock.
Is PG a Good Stock to Buy Now?
While hedge fund managers show bullish sentiment, analysts maintain a cautiously optimistic outlook on the stock due to the impact of inflationary headwinds and intense competition.
Procter & Gamble has received 10 Buys and six Hold recommendations from analysts for a Moderate Buy consensus rating. Meanwhile, the PG stock’s 12-month average price target of $168.87 implies 10.71% upside potential from current levels.
AbbVie, Inc.
AbbVie has increased dividends for 51 consecutive years. The company’s vast product portfolio and strong financial position, which support investment in new drugs, point to AbbVie’s growth prospects.
In addition, ABBV stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. Per the tool, hedge funds bought 638,500 shares of this healthcare giant last quarter.
According to the tool, popular hedge fund managers, including Fisher, Bridgewater Associates’ Ray Dalio, and Echo Street Capital’s Greg Poole, increased their positions in AbbVie stock.
Is ABBV a Good Stock to Buy Now?
Nonetheless, falling revenues and the loss of patent exclusivity for its blockbuster medicine Humira in the U.S. are concerning factors that keep analysts cautiously optimistic about ABBV stock.
AbbVie stock has a Moderate Buy consensus rating based on six Buy and four Hold recommendations. In addition, ABBV stock’s 12-month average price target of $171.38 implies 16.88% upside potential.
Ending Thoughts
Investing in Dividend Aristocrats is a well-known defensive strategy for passive investors. Particularly in the current uncertain macroeconomic environment, these stocks ensure higher stability in comparison to growth stocks. This is because these companies are usually large, well-capitalized organizations.
