In this article, we discuss the 10 best dividend stocks in Richard Chilton’s portfolio. You can skip our detailed analysis of Chilton Investment Management’s past performance and its latest 13F portfolio, and go directly to read 5 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company.
Richard Chilton is an American businessman and investor, who founded Chilton Investment Company in 1992. Prior to founding his own hedge fund, Chilton polished his trading skills while working with some of the biggest investment companies, such as Merrill Lynch and Allen & Company. Chilton currently sits on the board of the Metropolitan Museum of Art.
Chilton Investment Company utilizes a fundamental bottom-up approach while evaluating companies and finding the best business models. The firm seeks to deliver solid returns for its clients by protecting capital during market volatility. The hedge fund also provides tailored investment solutions and strategies for a diverse group of investors. Over the years, Chilton Investment’s Flagship Strategy Fund has generated solid returns, gaining 18.57% in 2013 and 13.99% in 2015. The hedge fund lost 13.66% in 2016, but came back in 2017, delivering a 12.18% return to shareholders.
As of Q1 2022, Chilton Investment Company holds a 13F portfolio valued at over $4.1 billion, down from $4.7 billion in the previous quarter. The hedge fund’s largest investment was in the services sector, along with healthcare, technology, and consumer goods. The fund’s most notable holdings in Q1 2022 include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).
Richard Chilton of Chilton Investment Company
Our Methodology:
In this article, we discuss the best dividend stocks in Richard Chilton’s portfolio. For the data mentioned in this list, we used Chilton Investment Management’s 13F portfolio as of Q1 2022.
Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company
10. Costco Wholesale Corporation (NASDAQ:COST)
Dividend Yield as of May 20: 0.86%
Number of Hedge Fund Holders: 57
Chilton Investment Company’s Stake Value: $243,369,000
Costco Wholesale Corporation (NASDAQ:COST) is an American company that operates a chain of big-box retail stores. The company is one of the largest retailers in the world. On April 13, the company announced a 14% hike in its annual dividend and pays a quarterly dividend of $0.90 per share. This was the company’s 18th annual dividend increase, making it one of the most reliable dividend stocks in Richard Chilton’s portfolio. The stock’s dividend yield was recorded at 0.86%, as of May 20.
Costco Wholesale Corporation (NASDAQ:COST) is one of the oldest holdings of Chilton Investment Company, as the hedge fund started investing in the company over a decade ago, purchasing shares worth over $33.5 million. In Q1 2022, the company is the fifth-largest holding of the hedge fund, accounting for 5.84% of its 13F portfolio. In May, Stifel called Costco Wholesale Corporation (NASDAQ:COST) a ‘best-in-class retailer’ and highlighted the company’s solid growth in the recent quarter. The firm lifted its price target on the stock to $565, with a Buy rating on the shares.
As major technology stocks like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN) continue to lose ground in 2022, investors are flocking to defensive dividend stocks like COST.
As per Insider Monkey’s Q4 2021 data, 57 hedge funds held stakes in Costco Wholesale Corporation (NASDAQ:COST), up from 55 in the previous quarter. These stakes hold a consolidated value of over $5.4 billion, compared with $4.3 billion worth of stakes held by hedge funds in Q3 2021. Fisher Asset Management was the largest shareholder of Costco Wholesale Corporation (NASDAQ:COST) in Q1 2022, holding stakes worth over $2.4 billion.
ClearBridge Investments mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter. Here is what the firm has to say:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
9. CSX Corporation (NASDAQ:CSX)
Dividend Yield as of May 20: 1.29%
Number of Hedge Fund Holders: 56
Chilton Investment Company’s Stake Value: $106,514,000
CSX Corporation (NASDAQ:CSX) is an American holding company, which focuses on rail transportation and real estate and is based in Florida. In Q1 2022, Chilton Investment Company increased its position in the company by 8% and held shares worth over $106.5 million. The company represented 2.55% of Richard Chilton’s portfolio. The hedge fund started building its position in CSX Corporation (NASDAQ:CSX) during the fourth quarter of 2017.
According to Insider Monkey’s Q4 2021 database, 56 hedge funds held shares in CSX Corporation (NASDAQ:CSX), the same as in the previous quarter. These stakes hold a total value of over $5.3 billion, up from $4 billion worth of stakes held by hedge funds in the previous quarter.
In February, CSX Corporation (NASDAQ:CSX) announced a quarterly dividend of $0.10 per share, after raising its annual dividend by 7.5%. Over the past 10 years, the company has increased its dividend at a CAGR of 11%. As of May 20, the stock’s dividend yield stood at 1.29%.
In April, Argus highlighted the solid quarterly earnings of CSX Corporation (NASDAQ:CSX) and believed that the company will continue to improve in fiscal 2022-2023 due to its pricing power. The firm lifted its price target on the stock to $41, while maintaining a Buy rating on the shares.
ClearBridge Investments mentioned CSX Corporation (NASDAQ:CSX) in its Q4 2021 investor letter. Here is what the firm has to say:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operators CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”
8. Republic Services, Inc. (NYSE:RSG)
Dividend Yield as of May 20: 1.42%
Number of Hedge Fund Holders: 38
Chilton Investment Company’s Stake Value: $183,146,000
Republic Services, Inc. (NYSE:RSG) is an American solid waste collection company, providing services in waste disposal, waste transfer, recycling, and related services. This May, BofA upgraded the company to Buy, while lifting its price target on the stock to $150. The firm appreciated the company’s essential services with good margins and free cash flow.
Chilton Investment Management resumed investing in Republic Services, Inc. (NYSE:RSG) in 2017, after disposing of its entire stake in 2011. In Q1 2022, the hedge fund increased its position in the company by 3%, equaling shares worth over $183 million. The company accounted for 4.39% of Richard Chilton’s portfolio.
In 2021, Republic Services, Inc. (NYSE:RSG) announced an 8.2% increase in its annual dividend, taking its quarterly dividend to $0.46 per share. The company has maintained a 17-year track record of consistent dividend growth, with a 5-year dividend CAGR of 7.45%. The stock’s dividend yield stood at 1.42%, as of May 20.
As of Q4 2021, 38 hedge funds tracked by Insider Monkey held $1.35 billion worth of stakes in Republic Services, Inc. (NYSE:RSG). In comparison, 31 hedge funds held stakes in the company in the previous quarter, valued at $1.2 billion. With stakes worth over $187 million, AQR Capital Management was the company’s leading shareholder in Q1 2022.
7. Tractor Supply Company (NASDAQ:TSCO)
Dividend Yield as of May 20: 2.04%
Number of Hedge Fund Holders: 31
Chilton Investment Company’s Stake Value: $88,218,000
Tractor Supply Company (NASDAQ:TSCO) is an American retail chain company that sells products for home improvement and other related services.
This April, Oppenheimer appreciated the ‘better than expected’ results of Tractor Supply Company (NASDAQ:TSCO) in Q1 2022 and highlighted its fundamental strength and profitability. The firm lifted its price target on the stock to $270, while maintaining an Outperform rating on the shares.
In January, Tractor Supply Company (NASDAQ:TSCO) announced a significant increase of 77% in its annual dividend, with a quarterly dividend of $0.92 per share. This marked the company’s 12th consecutive year of dividend growth. In the past five years, the company’s annual average rate of dividend growth stood at 20.9%, coming through as one of the most reliable dividend stocks for income investors. As of May 20, the stock’s dividend yield came to be recorded at 2.04%.
Chilton Investment Company initiated its position in Tractor Supply Company (NASDAQ:TSCO) during the first quarter of 2018, at an average share price of $69.6. In Q1 2022, the hedge fund held stakes in the company worth over $88 million, after increasing its position by 8%. Tractor Supply Company (NASDAQ:TSCO) accounted for 2.11% of Richard Chilton’s portfolio.
6. CVS Health Corporation (NYSE:CVS)
Dividend Yield as of May 20: 2.32%
Number of Hedge Fund Holders: 71
Chilton Investment Company’s Stake Value: $25,457,000
CVS Health Corporation (NYSE:CVS) is an American healthcare company with a core business in pharmacy and health insurance. The company is headquartered in Rhode Island. In May, Morgan Stanley named the company as one of its top Conviction stock picks.
Chilton Investment Company renewed its position in CVS Health Corporation (NYSE:CVS) in the first quarter of 2021, after pulling off its investments in the company in 2019. In Q1 2022, the hedge fund held shares worth over $25.4 million in the company, which accounted for 0.61% of Richard Chilton’s portfolio. Some of the hedge fund’s other major holdings in Q1 2022 include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).
In Q4 2021, CVS Health Corporation (NYSE:CVS) remained popular among hedge funds, as 71 hedge funds tracked by Insider Monkey held positions in the company, up from 61 in the previous quarter. These stakes hold a consolidated value of roughly $2 billion, compared with $1 billion worth of stakes held by hedge funds in Q3 2021. Harris Associates held the largest position in CVS Health Corporation (NYSE:CVS) in Q1 2022, with shares worth over $421.7 million.
In 2021, CVS Health Corporation (NYSE:CVS) increased its annual dividend by 10% and pays a quarterly dividend of $0.55 per share. The stock’s dividend yield was recorded at 2.32% on May 20.
ClearBridge Investments mentioned CVS Health Corporation (NYSE:CVS) in its Q4 2021 investor letter. Here is what the firm has to say:
“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of CVS Health, which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”
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Disclosure. None. 10 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company is originally published on Insider Monkey.
