Why S&P Global (SPGI) Earns a Strong Buy Rating from Analysts and Dividend Investors

S&P Global Inc. (NYSE:SPGI) is included among the Best Strong Buy Dividend Stocks to Invest in Now.

S&P Global doesn’t operate in the spotlight like many other stocks. Instead, it functions behind the scenes as a key part of the financial system. Its four interconnected divisions— S&P Ratings, S&P Indices, S&P Market Intelligence, and S&P Commodity Insights— play a central role in how capital is priced, allocated, and tracked around the world. Although its presence may seem subtle, its reach is extensive. More than $100 trillion in assets follow its indices, 95% of bond investors rely on its ratings, and numerous ETFs pay licensing fees to use its benchmarks.

The acquisition of IHS Markit has significantly strengthened S&P Global Inc. (NYSE:SPGI)’s data capabilities, enhancing its offerings with AI-driven analytics, more advanced terminals, and deeper market insights. This allows clients to anticipate market trends rather than just report on them. S&P’s business relies on intellectual property rather than heavy capital investment. Its true strengths lie in its content, technology, and reputation. This model supports gross margins above 70%, strong recurring revenue, low customer turnover, and solid pricing power.

In addition to this, S&P Global Inc. (NYSE:SPGI) is a strong dividend stock. On June 25, the company declared a quarterly dividend of $0.96 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 53 years in a row. As of July 29, the stock has a dividend yield of 0.72%.

While we acknowledge the potential of SPGI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.