12 Best Mid-Cap Dividend Stocks To Buy Now
In this article, we discuss 12 best mid-cap dividend stocks to buy now. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Best Mid-Cap Dividend Stocks To Buy Now.
According to a report by ProShares, the S&P MidCap 400 Dividend Aristocrats Index, which tracks the performance of companies that have raised their dividends for 15 consecutive years or more, has surpassed the broader S&P MidCap 400 by an annualized margin of 177 basis points since its inception in 2015, all while experiencing lower volatility. The report also mentioned that the index has a track record of staying strong during market turbulence. They tend to capture most of the market's gains when it's on the rise while experiencing much smaller losses during downturns. This is a valuable trait, especially during uncertain times.
Numerous analysts have released reports affirming the strong performance of mid-cap stocks when compared to large-cap companies. Research conducted by Eugene Fama and Kenneth French at the University of Chicago indicates that smaller stocks tend to generate higher returns over the long term, despite having greater short-term risks and volatility. This observation is supported by Roger Ibbotson's analysis of U.S. stock market returns dating back to 1926, which reveals that larger capitalization stocks delivered 10% annualized returns over the past 97 years, while smaller-sized stocks achieved a higher 12% return.
Also read: Top Investors’ Stock Portfolio: 10 Mid-Cap Stocks To Buy
The report also highlighted that between July 12, 2000, and July 12, 2023, the S&P Midcap 400 Index generated a remarkable return of 547%, significantly outperforming the 358% total return of the larger-cap S&P 500 Index.
Amid the decline in dividend stocks this year, the S&P MidCap 400 Dividend Aristocrats have experienced a 10.81% decrease year-to-date. Nevertheless, due to the consistent growth potential displayed by this category over time, investors hold positive expectations for a potential recovery. McDonald’s Corporation (NYSE:MCD), The Procter & Gamble Company (NYSE:PG), and Merck & Co., Inc. (NYSE:MRK) are some of the best dividend stocks that are grabbing investors’ attention. However, we will discuss mid-cap dividend stocks in this article.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology:
For this list, we scanned Insider Monkey's database of Q2 2023 and selected mid-cap dividend stocks with market capitalizations ranging from $2 billion to $10 billion. From the gathered data, we specifically chose dividend-paying companies with consistent dividend track records, indicating their potential for future growth. The stocks are ranked in ascending order of the number of hedge funds having stakes in them as of Q2 2023.
12. California Water Service Group (NYSE:CWT)
Number of Hedge Fund Holders: 14
Market Cap as of October 26: $2.7 billion
California Water Service Group (NYSE:CWT) is a California-based holding company that provides water utility services. The company and its subsidiaries are involved in various aspects of water supply, treatment, and distribution.
California Water Service Group (NYSE:CWT) has a strong history of paying dividends to shareholders. The company has been making regular dividend payments to shareholders for consecutive 314 quarters and has raised its payouts for 56 years in a row. It pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.14%, as of October 26.
At the end of Q2 2023, 14 hedge funds in Insider Monkey's database reported having stakes in California Water Service Group (NYSE:CWT), the same as in the previous quarter. The collective value of these stakes is over $133.7 million. With over 1.5 million shares, Impax Asset Management was the company's leading stakeholder in Q2.
11. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 15
Market Cap as of October 26: $7.04 billion
Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust (REIT) that specializes in the ownership, management, and development of high-quality retail and mixed-use properties. The company currently pays a quarterly dividend of $1.09 per share, growing it by 0.9% in July this year. This marked the company's 56th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 4.98%, as of October 26.
In the second quarter of 2023, Federal Realty Investment Trust (NYSE:FRT) reported revenue of $280.6 million, which showed a 6.3% growth from the same period last year. The company ended the quarter with over $98 million available in cash and cash equivalents, up from $85.5 million six months ago.
As of the end of Q2 2023, 15 hedge funds tracked by Insider Monkey owned stakes in Federal Realty Investment Trust (NYSE:FRT), compared with 21 in the previous quarter. The collective value of these stakes is roughly $125 million.
10. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 18
Market Cap as of October 26: $3.1 billion
Leggett & Platt, Incorporated (NYSE:LEG) is next on our list of the best dividend stocks. The diversified manufacturing company engages in the production and distribution of various engineered components and products.
On August 8, Leggett & Platt, Incorporated (NYSE:LEG) declared a quarterly dividend of $0.46 per share, which was consistent with its previous dividend. The company has raised its dividends for 52 years in a row. The stock's dividend yield on October 26 came in at 7.78%.
Leggett & Platt, Incorporated (NYSE:LEG) was a part of 18 hedge fund portfolios at the end of Q2 2023, up from 11 in the previous quarter, according to our database. The stakes owned by these hedge funds have a collective value of over $68.4 million. The largest stakeholder of the company in Q2 was Millennium Management.
9. Spire Inc. (NYSE:SR)
Number of Hedge Fund Holders: 21
Market Cap as of October 26: $2.9 billion
Spire Inc. (NYSE:SR) is an American company that provides natural gas services to its consumers. The company's gas utility segment is involved in the distribution of natural gas to residential, commercial, and industrial customers. The company pays a quarterly dividend of $0.20 per share and has a dividend yield of 5.18%, as of October 26. It has raised its dividends for 20 consecutive years, which makes SR one of the best dividend stocks on our list.
For the first nine months of FY23, Spire Inc. (NYSE:SR) generated $404.1 million in operating cash flow, up from $204.6 million in the prior year period. At the end of the quarter, the company had nearly $5.3 million available in cash and cash equivalents.
The number of hedge funds tracked by Insider Monkey owning stakes in Spire Inc. (NYSE:SR) jumped to 21 in Q2 2023, from 12 in the previous quarter. The consolidated value of these stakes is over $97.6 million. Among these hedge funds, Ken Griffin's Citadel Investment Group was the company's leading stakeholder in Q2.
8. Polaris Inc. (NYSE:PII)
Number of Hedge Fund Holders: 21
Market Cap as of October 26: $4.9 billion
Polaris Inc. (NYSE:PII) is a Minnesota-based manufacturer of off-road vehicles, including all-terrain vehicles (ATVs), snowmobiles, motorcycles, and electric vehicles. In the third quarter of 2023, the company reported a strong cash position with its operating cash flow of $376 million, up from $113.6 million during the same period last year. At the end of the quarter, it had over $295.3 million available in cash and cash equivalents.
Polaris Inc. (NYSE:PII) currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 3.06%, as of October 26. The company's dividend growth streak currently stands at 28 years, which makes it one of the best dividend stocks on our list.
As of the end of Q2 2023, 21 hedge funds tracked by Insider Monkey reported having stakes in Polaris Inc. (NYSE:PII), up from 20 in the previous quarter. The consolidated value of these stakes is roughly $200 million.
7. Southwest Gas Holdings, Inc. (NYSE:SWX)
Number of Hedge Fund Holders: 22
Market Cap as of October 26: $4.09 billion
Southwest Gas Holdings, Inc. (NYSE:SWX) is an American natural gas utility company that is primarily engaged in the distribution of natural gas to residential, commercial, and industrial customers. On September 21, the company declared a quarterly dividend of $0.62 per share, which fell in line with its previous dividend. The company has been rewarding shareholders with growing dividends for the past 15 years. The stock's dividend yield on October 26 came in at 4.35%.
At the end of June 2023, 22 hedge funds, up from 17 in the previous quarter, owned investments in Southwest Gas Holdings, Inc. (NYSE:SWX), according to Insider Monkey's database. The total value of these stakes is over $987.8 million.
6. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 22
Market Cap as of October 26: $4.44 billion
UGI Corporation (NYSE:UGI) ranks sixth on our list of the best dividend stocks. The natural gas distribution company has been growing its dividends consistently for the past 39 years and also has a 139-year run of paying regular dividends to shareholders. It currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 7.21%, as of October 26.
As of the end of Q2 2023, 22 hedge funds owned stakes in UGI Corporation (NYSE:UGI), up from 20 a quarter earlier, as indicated by Insider Monkey's database. The consolidated value of these stakes is over $180.5 million.
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Disclosure. None. 12 Best Mid-Cap Dividend Stocks To Buy Now is originally published on Insider Monkey.
