In this article, we discuss the 10 best dividend stocks to buy according to billionaire George Soros. If you want to skip our detailed analysis of Soros’ history and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy According to Billionaire George Soros.
Legendary hedge fund manager George Soros is one of the most successful investors, averaging 30% in returns between 1970 and 2000. He shot up to the limelight in 1992 as he made over $1 billion by shorting the British Pound, consequently acquiring the title “the man who broke Bank of England.” The 90-year-old is one of the richest people in the world, with a net worth of about $8.6 billion.
He heads Soros Fund Management Fund, a New York-based hedge fund. Soros’ hedge fund returned roughly 30% in the 12-month period through February 2021.
Soros’ hedge fund is now run by its Chief Investment Officer Dawn Fitzpatrick, who reportedly likes to invest in the markets when everyone is selling. Earlier this year, in an interview with Bloomberg, Fitzpatrick said that she invested $4 billion after the markets fell amid the coronavirus crisis, buying residential mortgages on the cheap.
At the height of the rout that rocked the equity markets following Bill Hwang’s Archegos Capital Management meltdown, Soros Fund Management used the opportunity to snap up some stocks at a discount.
Soros U.K investment arm is in for a huge payday as shares of Trainline implode. Shares of Trainline fell by as much as 23%, having initially dropped by 32% following the announcement that the U.K government will form a new state-owned body to manage the country’s rail network. According to the Financial Conduct Authority, Soros’ SFM Fund Management has a short position on the British digital travel booking company.
As of the end of the first quarter of 2021, Soros Fund Management has a significant holding in Alphabet Inc. (NASDAQ: GOOG). The hedge fund run by George Soros owns 69,005 shares in the company worth over $142 million, representing 2.66% of their investment portfolio. Soros Fund Management has increased activity on Alphabet stock by 253% in the past few months. On April 27, Alphabet Inc. (NASDAQ: GOOG) posted earnings for the first quarter of 2021, reporting earnings per share of $26.29, beating market predictions by $10.62. The revenue for the first three months of 2021 was over $55.31 billion, up 34.4% YoY, beating estimates by $3.6 billion.
Another tech stock in Soros’ portfolio is Amazon.com, Inc. (NASDAQ: AMZN). Soros Fund Management holds 68,994 shares in the firm worth over $213 million. This represents 4% of their portfolio. The latest data reveals that Soros’ activity on Amazon stock increased by 1,137% in the past few months. Last month Amazon.com, Inc. (NASDAQ: AMZN) acquired Hollywood studio MGM for $8.45 billion. It was the second largest deal in the tech giant’s history. In April, Evercore ISI analyst Mark Mahaney initiated a coverage on the stock and rated it as “Outperform,” setting the price target at $4,000.00.
Soros Fund Management also holds 250,095 shares in The Walt Disney Company (NYSE: DIS), worth over $46 million, representing 0.86% of their portfolio. On January 22, UBS analyst John Hodulik upgraded The Walt Disney Company (NYSE: DIS) from “Neutral” to “Buy,” with a price target of $200.00. At the end of the first quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $12.55 billion in Walt Disney (NYSE: DIS), down from 144 the preceding quarter worth $16.42 billion.
But in this article our focus is on the dividend stocks in George Soros’ Q1 portfolio.
The demand for dividend stocks has also been gaining traction as more people look for consistent revenue sources now that there is so much market uncertainty. Finding the best dividend stocks is not exactly a walk in the park, and it requires a lot of research. Even the hedge funds are struggling at finding valuable stocks amid the increasing financial volatility. George Soros is an exception in a struggling industry. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is a handy indicator that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this background in mind, let’s start our list of 10 best dividend stocks to buy according to billionaire George Soros.
Best Dividend Stocks to Buy According to Billionaire George Soros
10. Consolidated Edison, Inc. (NYSE: ED)
Soros’s Stake Value: $3,740,000
Percentage of George Soros’s 13F Portfolio: 0.07%
Dividend Yield: 4.01%
Number of Hedge Fund Holders: 22
Consolidated Edison, Inc. (NYSE: ED) is a US-based company that provides energy-related products through its subsidiaries. The company was founded in 1823 and is ranked tenth on our list of 10 best dividend stocks to buy according to billionaire George Soros. Consolidated Edison stock has offered 9% in returns to investors over the course of the past three months.
Just like Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS), Consolidated Edison, Inc. is one of the best stocks to buy according to billionaire George Soros.
Consolidated Edison, Inc. (NYSE: ED) is a good option for dividend investors. It declared a quarterly dividend of $0.775 per share on April 15, in line with the previous. The forward yield was 4.03%. The company posted quarterly earnings results on May 6, reporting earnings per share of $1.44 for Q1 2021, beating market predictions by $0.08.
The hedge fund managed by Soros owns 50,000 shares in the company worth over $3.74 million. Out of the 887 hedge funds being tracked by Insider Monkey, AQR Capital Management is a leading shareholder in Consolidated Edison, Inc. (NYSE: ED), with 950,275 shares worth more than $70.61 million.
9. FirstEnergy Corp. (NYSE: FE)
Soros’s Stake Value: $1,735,000
Percentage of George Soros’s 13F Portfolio: 0.03%
Dividend Yield: 4.07%
Number of Hedge Fund Holders: 51
FirstEnergy Corp. (NYSE: FE) is engaged in the transmission and distribution of electricity in the USA. It was incorporated in 1996 and is placed ninth on our list of 10 best dividend stocks to buy according to billionaire George Soros. The stock has offered investors returns exceeding 11% in the past three months.
FirstEnergy Corp. (NYSE: FE) is a good option for income investors as the firm pays a regular and healthy dividend. On March 16, the company declared a quarterly dividend of $0.39 per share, in line with the previous. On April 22, the company posted quarterly earnings results, reporting earnings per share of $0.69 for the first three months of 2021, beating market predictions by $0.02.
The hedge fund run by George Soros owns more than 50,000 shares in the company worth over $1.74 million. At the end of the first quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.84 billion in FirstEnergy Corp. (NYSE: FE), up from 50 the preceding quarter worth $1.31 billion.
Heartland Mid Cap Value Fund mentioned FirstEnergy Corp. (NYSE: FE) in its Q3 2020 investor letter. Here is what the fund stated:
“The portfolio’s Utility names lagged on a relative basis with the shortfall stemming from a stock-specific issue in the group. FirstEnergy (FE) is a business we’ve owned in the past and sold out of after shares had appreciated following its successful transition to a pure regulated utility through the divestiture of its merchant power unit.
We initiated a new stake in FirstEnergy in March after shares sold off due to concerns that the recession would have an outsized impact on the company’s industrial-oriented client base. Similar to our successful experience in the past, we felt that the company was attractive given its meaningful discount to its peers.
Subsequent to our investment, FirstEnergy was named in an investigation related to $60 million of payments made by the merchant power entity to Ohio politicians. Our initial reaction when news broke was to reduce our exposure to the company, however, we continued our due diligence on the matter and believe that market reaction overestimated the likely fallout from the investigation.
As shares fell in price, we added to our position in the belief that as the matter proceeds, some of the clouds casting a shadow on the business will subside.”
8. South Jersey Industries, Inc. (NYSE: SJI)
Soros’s Stake Value: $9,995,000
Percentage of George Soros’s 13F Portfolio: 0.18%
Dividend Yield: 4.41%
Number of Hedge Fund Holders: 32
South Jersey Industries, Inc. (NYSE: SJI) is a publicly traded company, which supplies energy-related products and services. The company was founded in 1910 and is ranked eighth on our list of 10 best dividend stocks to buy according to billionaire George Soros. The stock has offered investors more than 10% in returns over the last year.
South Jersey Industries, Inc. (NYSE: SJI) posted quarterly earnings results on May 5, reporting earnings per share of $1.26 for the first three months of 2021, beating market predictions by $0.06. The revenue over the period was $674.3 million, up 26.2% YoY, beating the estimates by $141.01 million. The stock was recently upgraded to ‘Equalweight’ from ‘Underweight’ by Morgan Stanley. While JP Morgan’s Richard Sunderland upgraded the stock to ‘Neutral’ from ‘Underweight.’
Just like Consolidated Edison, Inc. (NYSE: ED), Energy Transfer LP (NYSE: ET), FirstEnergy Corp. (NYSE: FE), Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS), South Jersey Industries is one of the best stocks to buy according to billionaire George Soros.
The hedge fund run by George Soros owns 200,000 shares in South Jersey Industries, Inc. (NYSE: SJI) worth over $10 million, representing 0.18% of their portfolio. Out of the hedge funds being tracked by Insider Monkey, Diamond Hill Capital is a leading shareholder in South Jersey Industries, Inc. (NYSE: SJI), with 3.20 million shares worth more than $72.18 million.
7. OneMain Holdings, Inc. (NYSE: OMF)
Soros’s Stake Value: $26,709,000
Percentage of George Soros’s 13F Portfolio: 0.5%
Dividend Yield: 4.73%
Number of Hedge Fund Holders: 43
OneMain Holdings, Inc. (NYSE: OMF) is an investment company engaged in customer finance and business insurance. The company was founded in 1920 and is placed seventh on our list of 10 best dividend stocks to buy according to billionaire George Soros. The company stock has offered investors more than 144% in returns over the last year.
OneMain Holdings, Inc. (NYSE: OMF) is another great option for an income stream for early retirement. On April 26, the company declared a monthly dividend of $0.70 per share, in line with the previous. The forward yield was 12.41%. The company also posted quarterly earnings, reporting earnings per share of $3.37 for the first three months of 2021, beating market predictions by $1.22.
Soros Fund Management holds 497,181 shares in the firm worth over $26.71 million. The latest data reveals Soros’ activity on OneMain Holdings, Inc. (NYSE: OMF) stock increased by 30% in the past few months.
Just like Consolidated Edison, Inc. (NYSE: ED), Energy Transfer LP (NYSE: ET), FirstEnergy Corp. (NYSE: FE), Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS), OneMain Holdings, Inc. (NYSE: OMF) is one of the best stocks to buy according to billionaire George Soros.
Miller Value Partners stated in its Q4 investor letter that OneMain Holdings contributed strongly to their quarterly performance. Here’s what Miller Value Partners stated:
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”
6. Energy Transfer LP (NYSE: ET)
Soros’s Stake Value: $3,669,000
Percentage of George Soros’s 13F Portfolio: 0.06%
Dividend Yield: 5.66%
Number of Hedge Fund Holders: 25
Energy Transfer LP (NYSE: ET) is a Texas-based company that supplies energy-related services. It was founded in 1996 and is ranked sixth on our list of 10 best dividend stocks to buy according to billionaire George Soros. Energy Transfer LP stock has offered investors returns exceeding 38% over the course of the past twelve months.
Just like FirstEnergy Corp. (NYSE: FE), Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS), Energy Transfer LP (NYSE: ET) is one of the best stocks to buy according to billionaire George Soros. Energy Transfer is a good option for dividend investors. It declared a quarterly dividend of $0.1525 per share on April 22, in line with the previous. The forward yield was 5.61%. Last month, Citi analyst Timm Schneider initiated a coverage on the stock, rating it as “Buy,” with a price target of $14.00.
The hedge fund chaired by Soros holds close to 477,750 shares in the company worth over $2.4 million. Out of the hedge funds being tracked by Insider Monkey, Appaloosa Management LP is a leading shareholder in Energy Transfer LP (NYSE: ET) with 22.82 million shares worth more than $175 million.
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Disclosure: None. 10 Best Dividend Stocks to Buy According to Billionaire George Soros is originally published on Insider Monkey.
