In this article we will take a look at the 10 best dividend stocks to buy according to billionaire Michael Price. You can skip our detailed analysis of Price’s history, investment philosophy, and hedge fund performance, and go directly to 5 Best Dividend Stocks to Buy According to Billionaire Michael Price.
Michael Price is the founder and manager of MFP Investors, a hedge-fund based in New York with a portfolio value of over $834 million. The University of Oklahoma graduate started off as a research assistant at a mutual shares fund called Heine Securities, owned by Michael Heine. Price was eventually made partner in 1982 and after the death of Michael Heine in 1988, he bought the company. The company was sold to Franklin Securities in 1996 not before Price raised the firm’s asset value to an impressive $17 billion.
Known as a value investor, Price, 69, has earned a reputation for being an activist investor who primarily focuses on value stocks. With an estimated net worth of over $1.4 billion, Price’s investment strategy is especially useful for piggyback investors who are looking for stocks that are trading at discounted prices. The billionaire has a diverse investment approach which is represented by his hedge fund’s portfolio that includes companies from several industries including technology, consumer goods, healthcare, and financial services. The billionaire is also famous for being an activist who tries to influence company management decisions to unlock value.
MFP Investors is known for its long-term value-based investment approach that seeks out undervalued stocks at lower prices. The hedge fund has added several underperforming stocks to its portfolio in the first quarter of 2021. Over 345,200 shares of Brookfield Property Partners L.P. (NASDAQ: BPY), 405,000 shares of William Penn Bancorporation (NASDAQ: WMPN), and 281,996 shares of Amerant Bancorp Inc. (NASDAQ: AMTB) amongst many others were bought by the company in the last quarter. On the other hand, some notable sales include Investors Bancorp, Inc. (NASDAQ: ISBC) and Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH).
The hedge fund also has some notable holdings in prominent tech companies such as BlackBerry Limited (NYSE: BB). MFP Investors owns 1,644,000 shares in the company with a total valuation of over $13.8 million taking a 1.66% share in the overall portfolio. Moreover, there has been a 9% increase in the BlackBerry Limited (NYSE: BB) activity as of Q1 of 2021.
Price’s hedge fund also owns 6,300 shares in Alphabet Inc. (NASDAQ: GOOG) worth over $12.9 million making up 1.55% of their investment portfolio. The company has shown an extraordinary EPS growth rate of 21.7% which is projected to rise by 52.6% by the end of the current fiscal year. Alphabet Inc. (NASDAQ: GOOG) Q1 results for 2021 show a 34% year-over-year increase in total revenue from $41.1 billion in Q1 of 2020 to $55.3 billion by the end of this quarter. Moreover, the ongoing momentum in Google Cloud services make the stock a great pick for investors.
MFP Investors also has holdings in Amazon.com, Inc. (NASDAQ: AMZN) with 3,500 shares valued at $10.8 million representing 1.29% of the firm’s portfolio. According to a report by JPMorgan, the company is on track to beat Walmart Inc. (NYSE: WMT) and become the largest retailer in the US. Amazon.com, Inc. (NASDAQ: AMZN) is one of the few companies that has greatly benefited from the COVID-19 pandemic as online shopping was widely adopted across the world. For the first quarter of 2021, the company reported a net income $8.1 billion or $15.79 per diluted share compared to $2.5 billion or $5.01 per diluted share in the same quarter of 2020.
Michael Price of MFP Investors
At the end of Q1 of 2021, the hedge fund’s portfolio held shares in 137 companies with a total valuation of $834 million. The top holdings include Intel Corporation (NASDAQ: INTC) which has 15.65% of the equity portfolio, while S&W Seed Company (NASDAQ: SANW) had 7%, and Bunge Limited (NYSE: BG) had 4.13%. Companies like Intel Corporation (NASDAQ: INTC) give the hedge fund a value and income play. On the other hand, Price has also added a number of dividend stocks in a range of industries to diversify his holdings. Dividend investing requires a lot of research and a smart strategy which is why MFP Investors portfolio is worth looking at.
But 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.
Here is a list of the 10 best dividend stocks to buy according to billionaire Michael Price. We used Price’s Q1 holdings data for this analysis.
Best Dividend Stocks to Buy According to Billionaire Michael Price
10. Kearny Financial Corp. (NASDAQ: KRNY)
Price’s Stake Value: $2,267,000
Percent of Michael Price’s 13F Portfolio: 0.27%
Dividend Yield: 3.19%
Number of Hedge Fund Holders: 17
Kearny Financial Corp. (NASDAQ: KRNY) is Kearny Bank’s holding company involved in the provision of banking services in the US. The company recently released its Q1 earnings report for fiscal year 2021. Net income for the quarter was $16.4 million or $0.24 per diluted share which is a slight decrease from the previous quarter ended December 2020 when net income was $16.9 million or $0.20 per diluted share. The bank also reported a 6.8% increase in non-maturity deposits to $5.37 billion compared to $5.31 billion at the end of last year. The net interest margin increased to 2.83% reflecting a 19 basis point increase from the preceding quarter. Moreover, ROA was reported to be 0.89%.
On May 19th, the New Jersey-based company announced a quarterly dividend of $0.10 per share, to be paid on June 26, 2021. With a dividend yield of 3.19%, Kearny Financial Corp. (NASDAQ: KRNY) ranks number 10 in the list of the 10 best dividend stocks to buy according to billionaire Michael Price.
9. The First of Long Island Corporation (NASDAQ: FLIC)
Price’s Stake Value: $1,806,000
Percent of Michael Price’s 13F Portfolio: 0.21%
Dividend Yield: 3.42%
Number of Hedge Fund Holders: 8
The First of Long Island Corporation (NASDAQ: FLIC) is involved in the provision of financial services to consumers across the US. The company reported a net income of $11.3 million for Q1 of 2021 which is a 23.2% increase year-over-year. Moreover, net interest margin increased to 2.69% compared to 2.64% in the preceding quarter.
Michael Price’s hedge fund owns shares worth $1.8 million in The First of Long Island Corporation (NASDAQ: FLIC) representing 0.21% of their portfolio. The First of Long Island Corporation (NASDAQ: FLIC) announced a quarterly cash dividend of $0.19 per share compared to $0.18 per share year-over-year. This represents an increase of 5.6%. With a dividend yield of 3.42%, The First of Long Island Corporation (NASDAQ: FLIC) is one of the best performing dividend stocks to buy according to billionaire Michael Price.
Like Amazon.com, Inc. (NASDAQ: AMZN), Brookfield Property Partners L.P. (NASDAQ: BPY), BlackBerry Limited (NYSE: BB), Alphabet Inc. (NASDAQ: GOOG) and Intel Corporation (NASDAQ: INTC), The First of Long Island Corporation (NASDAQ: FLIC) is one of the best stocks in Michael Price’s Q1 portfolio.
8. Investors Bancorp, Inc. (NASDAQ: ISBC)
Price’s Stake Value: $10,210,000
Percent of Michael Price’s 13F Portfolio: 1.22%
Dividend Yield: 3.81%
Number of Hedge Fund Holders: 12
Investors Bancorp, Inc. (NASDAQ: ISBC) operates as Investors Bank’s holding company that is based in New Jersey. The company provides banking services across 156 branches in the US. For the first quarter of fiscal year 2021, the company reported a net income of $72.3 million or $0.31 per diluted share compared to $75.1 million or $0.32 per diluted share in the preceding quarter. Investors Bancorp, Inc. (NASDAQ: ISBC) also announced a quarterly cash dividend of $0.14 per share payable on May 25th ,2021. Investors Bancorp, Inc. (NASDAQ: ISBC) has a dividend yield of 3.81% compared to the industry’s average yield of 2.27%, making it one of the best dividend stocks to look out for.
Price’s hedge fund has acquired a total of 695,000 shares in Investors Bancorp, Inc. (NASDAQ: ISBC) valued at over $10.2 million. With its strong financial performance and high dividend yield, Investors Bancorp, Inc. (NASDAQ: ISBC) ranks 8th in the 10 best dividend stocks to buy according to billionaire Michael Price list.
Like Amazon.com, Inc. (NASDAQ: AMZN), Brookfield Property Partners L.P. (NASDAQ: BPY), BlackBerry Limited (NYSE: BB), Alphabet Inc. (NASDAQ: GOOG) and Intel Corporation (NASDAQ: INTC), Investors Bancorp, Inc. (NASDAQ: ISBC) is one of the best stocks in Michael Price’s Q1 portfolio.
7. BCB Bancorp, Inc. (NASDAQ: BCBP)
Price’s Stake Value: $14,087,000
Percent of Michael Price’s 13F Portfolio: 1.68%
Dividend Yield: 4.05%
Number of Hedge Fund Holders: 3
BCB Bancorp, Inc. (NASDAQ: BCBP) is a New Jersey based holding company for the BCB Community Bank. The company is engaged in providing banking services and has 29 branches across the US. In Q1 of fiscal year 2021, the bank generated a net income of $7.1 million compared to $7.3 million in the preceding quarter. The EPS during the quarter was $0.40 compared to $0.12 in the same quarter of the previous year. BCB Bancorp, Inc. (NASDAQ: BCBP) declared a dividend of $0.14 per share for the quarter which was paid on May 24, 2021. At a prevailing stock price of $13.84 per share, the current dividend yield equals 4.05% making it one of the best dividend stocks to buy according to billionaire Michael Price.
Michael Price’s holding company owns 1,020,808 shares in BCBP with a total valuation of approximately $14.08 million, making up 1.68% of the portfolio.
Like Amazon.com, Inc. (NASDAQ: AMZN), Brookfield Property Partners L.P. (NASDAQ: BPY), BlackBerry Limited (NYSE: BB), Alphabet Inc. (NASDAQ: GOOG) and Intel Corporation (NASDAQ: INTC), BCB Bancorp, Inc. (NASDAQ: BCBP) is one of the best stocks in Michael Price’s Q1 portfolio.
6. Waterstone Financial, Inc. (NASDAQ: WSBF)
Price’s Stake Value: $11,727,000
Percent of Michael Price’s 13F Portfolio: 1.4%
Dividend Yield: 3.99%
Number of Hedge Fund Holders: 10
WaterStone Bank SSB’s holding company, Waterstone Financial, Inc. (NASDAQ: WSBF), is based in southern Wisconsin and is involved in providing financial services within the country. Waterstone Financial, Inc. (NASDAQ: WSBF) in its first quarter earnings report for 2021 declared a net income of $21.3 million, compared to $6.1 million in the same quarter of the previous year. The diluted EPS amounted to $0.89 per share, representing a 16.7% year-over-year increase from $0.24 per share in 2020. Moreover, the consolidated ROA was reported to be 3.99% for the quarter compared to 1.21% in the first quarter of 2020. While the consolidates ROE equaled 20.49%.
Waterstone Financial, Inc. (NASDAQ: WSBF) paid a quarterly dividend of $0.20 per share to all common stockholders of record. The company’s board also declared a special dividend on May 28, 2021 of $0.50 per share due to the strong financial performance of the company during the first quarter of 2021. Waterstone Financial, Inc. (NASDAQ: WSBF)’s strong payout ratio and dividend yield has earned it the number 6 spot in the 10 best dividend stocks to buy according to billionaire Michael Price list.
Like Amazon.com, Inc. (NASDAQ: AMZN), Brookfield Property Partners L.P. (NASDAQ: BPY), BlackBerry Limited (NYSE: BB), Alphabet Inc. (NASDAQ: GOOG) and Intel Corporation (NASDAQ: INTC), Waterstone Financial, Inc. (NASDAQ: WSBF) is one of the best stocks in Michael Price’s Q1 portfolio.
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Disclosure: None. 10 Best Dividend Stocks to Buy According to Billionaire Michael Price is originally published on Insider Monkey.
