10 Best Dividend Stocks to Buy According to Billionaire Michael Hintze

In this article, we will look at the 10 Best Dividend Stocks to Buy According to Billionaire Michael Hintze. You can skip our detailed analysis of Hintze’s history, investment philosophy, and hedge fund performance and go directly to 5 Best Dividend Stocks to Buy According to Billionaire Michael Hintze.

Sir Michael Hintze is an American-Australian businessman based in the UK. He graduated from the University of Sydney with a BSc degree in Physics in 1975 and a BE degree in engineering in 1977 from St John’s College. Hintze also obtained an MSc degree in Acoustics from the University of New South Wales, an MBA degree from Harvard Business School and an Honorary Doctorate of Business from the University of New South Wales.

Before launching CQS Cayman LP in 1999, Hintze trained in financial services first by working for Salomon Brothers as a fixed income trader and Credit Suisse First Boston. He later moved to London from New York and joined Goldman Sachs as co-head of the UK Shares Product, leaving the firm in 1995. Four years later, CQS Cayman LP was founded.

Hintze’s CQS has been highly successful since its launch, as in 2018, its main fund increased by 30%, and the hedge fund has roughly $9 billion in total AUM. This year, the fund launched a new investment strategy in light of 2020’s financial losses, where CQS Directional Opportunities lost roughly 36%, and the firm’s assets took a hit because of the coronavirus pandemic and the unease it caused in the markets.

Before this change, CQS had largely invested in corporate credit, structured credit, loans, and equities, but after the financial hits from 2020, this is reportedly being altered. CQS is now trying to generate higher returns through an unconstrained approach that will determine the best investment options for the fund in terms of risk management and returns. CQS reportedly seeks out companies with a reputation for producing high-quality products and services. Despite their 2020 losses, CQS is a firm that has proven to be successful in the past and may be resilient in the future by turning crises into opportunities.

CQS Cayman LP has a diverse portfolio, including stocks like Citigroup Inc (NYSE: C), Booking Holdings Inc (NASDAQ: BKNG), Nike Inc (NYSE: NKE), ViacomCBS Inc. (NASDAQ: VIAC), Darden Restaurants, Inc. (NYSE: DRI) and Simon Property Group, Inc. (NYSE: SPG).

In this article our focus would be on dividend-paying stocks in the Q1 portfolio of Michael Hintze.

Investing is becoming difficult by the day, even for the smart money. 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 26th 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 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology

The stocks listed in this article are taken from Sir Michael Hintze’s Q1 13F Holdings and are ranked based on their dividend yields, from lowest to highest. We also took into account hedge fund sentiment, analysts’ ratings, fundamentals and future growth potential while choosing these stocks.

So without further ado then, here are the 10 best dividend stocks to buy, according to billionaire Michael Hintze.

Best Dividend Stocks to Buy According to Billionaire Michael Hintze

10. Citigroup Inc. (NYSE: C)

Hintze’s Stake Value: $34,218,000
Percentage of Michael Hintze’s 13F Portfolio: 2.3%
Number of Hedge Fund Holders: 90

Dividend Yield: 2.87%

Citigroup Inc. (NYSE: C) is a diversified financial service holding company that provides a range of financial products and services to consumers, corporations, governments, and other institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company ranks 10th on our list of the best dividend stocks to buy according to billionaire Michael Hintze.

On June 28th, Citigroup Inc. (NYSE: C) mentioned that its SCB requirement will be increasing to 3% from the fourth quarter of this year to the third quarter of 2022. The company also launched its digital asset unit for cryptocurrency and blockchain solutions this month, a move that will allow the bank’s clients to access the crypto market. In the first quarter of 2021, Citigroup Inc. (NYSE: C) had an EPS of $3.62, beating estimates by $1.09, while its revenue of $19.33 billion beat estimates by $441.79 million. The stock has gained 15.58% in the past 6 months and 17.06% year to date, and has a forward PE ratio of 8.04.

As of the end of the first quarter of 2021, 90 hedge funds out of the 866 tracked by Insider Monkey held stakes in Citigroup Inc. (NYSE: C) worth about $6.93 billion. This is compared to Q4 2020 numbers of 95 hedge fund holders with stakes valued at roughly $7.12 billion.

9.ViacomCBS Inc. (NASDAQ: VIAC)

ViacomCBS Inc. (NASDAQ: VIAC) is a media and entertainment company working internationally and operating through TV entertainment, cable networks, and filmed entertainment segments. The company ranks 9th on our list of the best dividend stocks to buy, according to billionaire Michael Hintze.

ViacomCBS Inc. (NASDAQ: VIAC) was upgraded from Neutral to Buy at BofA Securities this May and reported the first quarter of 2021 results where the company beat EPS estimates by $0.30 with $1.52 in EPS. ViacomCBS Inc. (NASDAQ: VIAC) also revealed a $7.41 billion revenue and $991 million in earnings. The stock has gained 16.1% in the past 6 months and 13.85% year to date, and its forward PE ratio is currently 10.25.

In the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in the company. The total stake value came up to roughly $2.35 billion. This is compared to 44 hedge funds out of 887 tracked in the previous quarter, which held stakes worth about $919 million in ViacomCBS Inc. (NASDAQ: VIAC).

Like Citigroup Inc (NYSE: C), Booking Holdings Inc (NASDAQ: BKNG), Nike Inc (NYSE: NKE) and Darden Restaurants, Inc. (NYSE: DRI), ViacomCBS Inc. (NASDAQ: VIAC) is a dividend stock worth investing in based on Hintze’s Q1 portfolio.