Up to date on January twenty ninth, 2025 by Bob Ciura
Every year, we individually assessment every of the Dividend Aristocrats, a gaggle of 69 shares within the S&P 500 Index that has raised their dividends for at the very least 25 consecutive years.
To make it on the checklist of Dividend Aristocrats, an organization should possess a worthwhile enterprise mannequin with a priceless model, world aggressive benefits, and the flexibility to face up to recessions.
That is why Dividend Aristocrats can proceed elevating dividends in tough years.
With this in thoughts, we’ve got created a listing of all 69 Dividend Aristocrats.
You may obtain your free copy of the Dividend Aristocrats checklist, together with essential monetary metrics akin to price-to-earnings ratios and dividend yields, by clicking on the hyperlink beneath:
Disclaimer: Positive Dividend just isn’t affiliated with S&P International in any method. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Positive Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.
FactSet Analysis Programs (FDS) is among the many new additions to the Dividend Aristocrats checklist for 2025.
This text will look at FactSet’s enterprise mannequin, development prospects, and whether or not we’re at the moment ranking the inventory as a purchase, promote, or maintain.
Enterprise Overview
FactSet Analysis Programs, a monetary knowledge and analytics agency based in 1978, gives built-in monetary info and analytical instruments to the funding group within the Americas, Europe, the Center East, Africa, and Asia-Pacific.
The corporate gives perception and knowledge by analysis, analytics, buying and selling workflow options, content material and know-how options, and wealth administration.
Supply: Investor Presentation
On December nineteenth, 2024, FactSet Analysis Programs introduced Q1 2025 outcomes, reporting non-GAAP EPS of $4.37 for the interval, beating market consensus by $0.09 whereas income rose 4.9% to $568.7 million.
FactSet Analysis Programs kicked off fiscal 2025 with strong development in Q1, reporting GAAP revenues of $568.7 million, a 4.9% year-over-year enhance.
The income enhance was pushed by robust efficiency throughout its wealth administration, asset proprietor, and institutional consumer segments.
Natural Annual Subscription Worth (ASV), a key efficiency metric, rose 4.5% to $2,258.8 million, reflecting sustained demand for FactSet’s monetary knowledge and analytics options.
Nevertheless, the corporate confronted margin pressures, with its GAAP working margin slipping 120 foundation factors to 33.6%, attributable to elevated amortization bills {and professional} charges.
Earnings per share supplied a combined image. GAAP diluted EPS edged up 1.3% to $3.89, whereas adjusted diluted EPS rose 6.1%, supported by income development and decrease worker compensation prices.
FactSet reaffirmed its fiscal 2025 steering, together with projected GAAP revenues of $2.29–$2.31 billion and adjusted diluted EPS within the vary of $16.80–$17.40.
Progress Prospects
FactSet has grown its earnings-per-share by a mean compound development fee of 10.3% during the last 10 years. The corporate’s investments and improved product choices may result in vital margin enlargement within the following years.
Supply: Investor Presentation
We now have elevated our EPS estimate for 2025 to $17.10, matching the midpoint of the administration’s steering, however we’ve got maintained our 8.5% annual earnings development forecast for the following 5 years, resulting in an estimated earnings-per-share of $25.71 by 2030.
Elevated earnings arising from increasing margins could possibly be a main dividend development driver within the following years. We additionally imagine that the corporate’s continued investments in its digital platforms will proceed to drive person development within the coming years.
FactSet has elevated its dividend for 25 consecutive years.
Lastly, share buybacks ought to enhance future EPS development. Throughout Q1, FactSet repurchased 104,475 shares of its frequent inventory for $48.8 million at a mean value of $467.00 per share, leaving $251.2 million obtainable beneath its present buyback program.
Aggressive Benefits & Recession Efficiency
FactSet faces competitors from Axioma, MSCI, Aladdin, S&P Capital IQ, Refinitiv, and Bloomberg.
The corporate’s proprietary knowledge choices differentiate the corporate within the market, however various options by the opposite suppliers will dilute this aggressive benefit over time.
The excessive switching prices tied to altering suppliers present the corporate with some safety and visibility over its money move due to its subscription-based choices.
FactSet’s earnings-per-share throughout the Nice Recession are beneath:
2008 earnings-per-share of $2.50
2009 earnings-per-share of $2.97 (19% development)
2010 earnings-per-share of $3.13 (5% development)
Through the previous 5 years, the corporate’s dividend payout ratio has averaged round 64%. The corporate has a projected 2024 payout ratio of 63%, which signifies a sustainable dividend.
Given the anticipated earnings development, there’s nonetheless room for the dividend to proceed to develop on the identical tempo and prolong the observe document of consecutive dividend will increase which is a crucial issue for dividend development buyers.
Valuation & Anticipated Returns
Based mostly on anticipated 2024 earnings-per-share of $17.10, FDS shares are at the moment buying and selling for a P/E ratio of 27.4.
FactSet has traded with a comparatively excessive valuation a number of within the final decade. The inventory’s 10-year common P/E ratio is round 30.7, and the five-year common is 35.0. We’re utilizing a P/E goal of 28.0 as our honest worth goal by 2030.
Subsequently, the inventory seems barely undervalued proper now. An increasing P/E a number of from 27.4 to twenty-eight would enhance shareholder returns by 0.4% per yr over the following 5 years.
Subsequent, shares are at the moment yielding 0.9%. We additionally estimate 8.5% annual EPS development.
Placing all of it collectively, whole returns are anticipated at 9.8% per yr. With annual returns estimated to succeed in ~10% per yr, we fee the inventory a purchase.
Last Ideas
FactSet affords a secure, constant, and regular long-term dividend development document.
We forecast practically 10% annualized whole returns for the medium-term, derived from the forecasted earnings-per-share development of 8.5%, the 0.9% dividend yield, and a small valuation tailwind. Subsequently, we preserve our purchase ranking for the inventory.
Moreover, the next Positive Dividend databases include essentially the most dependable dividend growers in our funding universe:
In the event you’re on the lookout for shares with distinctive dividend traits, take into account the next Positive Dividend databases:
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