Is Evercore Inc. (EVR) the Best Mid-Cap Dividend Aristocrat to Invest in Now?
'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.
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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?
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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.
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