In this article, we will discuss the 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. If you want to skip our detailed analysis of Crispin Odey’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy According to Crispin Odey’s Hedge Fund
Crispin Odey, the founder of Odey Asset Management Group, was born in East Yorkshire. He joined Harrow School for his early education and later went to Christ Church, Oxford, for his graduate degree.
After completing his university education, Odey qualified as a barrister but left to work for Barings International, where he managed the Baring European Growth Trust. Odey founded Odey Asset Management in 1991. One of the primary investors in the firm was billionaire George Soros. Crispin Odey is one of the best-known hedge fund administrators in Europe. Odey has been in the limelight for his support of Brexit and ardent criticism of central bank policies. He uses accounting analysis to bet on stocks, bonds, and currencies.
Odey Asset Management focuses on active fund management with equal importance on producing higher returns. The funds’ 13F portfolio is valued at approximately $356.684 million as of the end of the first quarter of 2021. Odey’s fund had its decent amount of good and bad times over the years, with an indisputable high point coming in 2008 when the hedge fund generated a 54.8% return. In 2020 the hedge fund gained 57.12%, while it gained about 5.76% in the first quarter of 2021.
Among the notable holdings of Odey as of the first quarter of 2021 are Microsoft (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN) and Facebook, Inc. (NASDAQ: FB).
On June 24, Microsoft (NASDAQ: MSFT) formally launched the Windows 11 operating system, which will be released to the public by the holiday season this year. Microsoft (NASDAQ: MSFT) is also collaborating with Amazon to bring Android apps to Windows 11. On June 16, Microsoft (NASDAQ: MSFT) declared a quarterly dividend of $0.56 per share, in line with the previous.
Another notable stock in Odey’s portfolio is Amazon.com, Inc. (NASDAQ: AMZN). The investor owns a $4.56 million stake in the company representing 1.27% of his hedge fund’s portfolio. On June 25, Amazon.com, Inc. (NASDAQ: AMZN) acquired transmission security service Wickr — a messaging app that has equipped itself to provide services to government and military. It claims to be the only “collaboration service” that meets security criteria set out by the National Security Agency. Amazon.com (NASDAQ: AMZN) also announced the addition of ART19, a platform that inserts ads into podcasts.
Odey owns 8,600 shares of Facebook, Inc. (NASDAQ: FB) as of the end of the first quarter. On June 22, Facebook, Inc. (NASDAQ: FB) declared that it has broadened its “Shops” feature to its messaging app WhatsApp in several countries. Facebook, Inc. (NASDAQ: FB) has greater than 300 million monthly Shops visitors and about 1.2 million monthly active Shops. On June 21, Facebook started its own Clubhouse-style live audio rooms, which will let users join and listen to live conversations. Facebook, Inc. (NASDAQ: FB) ranks 1st in our list of the 30 Most Popular Stocks Among Hedge Funds.
Crispin Odey of Odey Asset Management Group
But in this article our focus would be on dividend-paying stocks in Crispin Odey’s Q1 portfolio.
Before investing, you should practice caution and do a lot of research, as financial volatility is making things difficult even for the smart investors. 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 context and industry outlook in mind, let’s start our list of the 10 best dividend stocks to buy according to Crispin Odey’s hedge fund
10 Best Dividend Stocks to Buy According to Crispin Odey’s Hedge Fund
10. Morgan Stanley (NYSE: MS)
Odey’s Stake Value: $5,988,000
Percentage of Crispin Odey’s 13F Portfolio: 1.67%
Dividend Yield: 1.59%
Number of Hedge Fund Holders: 79
Morgan Stanley (NYSE: MS) is a financial holding company, which provides various financial products and services to organizations, governments, banks, and individuals. The company was founded in 1924 and ranks tenth on the list of 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. Morgan shares have gained about 87.89% over the last twelve months.
Just like Microsoft (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB), Morgan Stanley (NYSE: MS) is one of the best stocks to buy according to Crispin Odey. Morgan Stanley recently said it will double its dividend per share to $0.70 per share from $0.35 per share. The company also announced a share repurchase authorization of $12 billion. On June 9, Jefferies analyst Daniel Fannon initiated coverage on Morgan Stanley (NYSE: MS) with a “Buy” rating and a price target of $108.
The hedge fund run by Crispin Odey owns 77,100 shares in the company worth $5.99 million, representing 1.67% of their investment portfolio. Odey Asset Management Group has increased stakes in Morgan Stanley stock by 19% in the past few months. In the first quarter of 2021, 79 hedge funds in the database of Insider Monkey held stakes worth $5.29 billion in Morgan, up from 66 the preceding quarter worth $5.67 billion.
Artisan Partners Limited Partnership, in their fourth quarter 2020 investor letter, mentioned Morgan Stanley (NYSE: MS). Here is what the fund said:
“Top three contributor Morgan Stanley, a leading global financial services company, came into the portfolio in Q4 as a result of its purchase of E*TRADE. E*TRADE is a great fit on Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked Morgan Stanley’s business by adding less volatile fee streams and deemphasizing the risk-obtuse culture of prior management. We believe the market will come to appreciate this mix shift over time.”
9. FMC Corporation (NYSE: FMC)
Odey’s Stake Value: $2,160,000
Percentage of Crispin Odey’s 13F Portfolio: 0.60%
Dividend Yield: 1.70%
Number of Hedge Fund Holders: 79
FMC Corporation (NYSE: FMC) is an American agricultural sciences company. The company was founded in 1883, and stands ninth on the list of 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. FMC stock has offered 16% in returns to investors over the course of the past twelve months.
On June 8, FMC Corporation (NYSE: FMC) received U.S. Environmental Protection Agency registration for Fluindapyr. Fluindapyr provides all-round activity against a broad range of harmful diseases in specialty crops. On May 5, the company declared its earnings per share for the first quarter of 2021. It declared earnings per share of $1.53, beating the market predictions by $0.02.
Crispin Odey’s hedge fund owns 19,525 shares of the company, worth $2.16 million. Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm D E Shaw is a leading shareholder in FMC Corporation (NYSE: FMC) with 1.056 million shares worth $116.76 million.
8. Comcast Corporation (NASDAQ: CMCSA)
Odey’s Stake Value: $2,814,000
Percentage of Crispin Odey’s 13F Portfolio: 0.78%
Dividend Yield: 1.78%
Number of Hedge Fund Holders: 88
Comcast Corporation (NASDAQ: CMCSA) is an American company, which functions as a media and technology company. The company was incorporated in 1963 and is placed eighth on the list of 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. Comcast Corporation (NASDAQ: CMCSA) shares have gained about 45.98% over the last twelve months.
Just like Microsoft (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB), Comcast is one of the best stocks to buy according to Crispin Odey. On June 25, Steve Malcolm, an analyst at Redburn, initiated coverage on Comcast (NASDAQ: CMCSA), rating the stock as “Buy,” with a price target of $70.00. Comcast is also a decent dividend-paying stock. On May 25, Comcast declared a quarterly dividend of $0.25 per share, in line with the previous.
Odey Asset Management Group holds 52,000 shares in the company worth $2.81 million, representing 0.78% of their portfolio. The company is also getting the attention of the smart money, as 88 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 84 funds a quarter earlier.
Nelson Capital Management, in their first quarter 2021 investor letter, mentioned Comcast Corporation (NASDAQ: CMCSA). Here is what the fund said:
“Comcast is the Largest cable provider in the U.S. and is the dominant internet access provider in the markets it serves. Though Comcast will likely see further declines in cable subscriptions due to ongoing cord-cutting, it should be able to off set that lost revenue by growing internet access customers and instituting higher pricing. The pandemic has increased the importance of a fast internet connection, with more content streaming to homes at increasingly higher quality. Comcast made significant upgrades early on, allowing it to quickly deploy new technology and increase speeds to meet t he evolving needs of its customers.”
7. Colgate-Palmolive Company (NYSE: CL)
Odey’s Stake Value: $2,231,000
Percentage of Crispin Odey’s 13F Portfolio: 0.62%
Dividend Yield: 2.22%
Number of Hedge Fund Holders: 48
Colgate-Palmolive Company (NYSE: CL), with its subsidiaries, produces and trades consumer products globally. The company was founded in 1806 and is placed seventh on the list of 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. Shares of the company rallied 13.90% in the last twelve months, resulting in a $68.91 billion market capitalization.
On June 10, Colgate-Palmolive (NYSE:CL) declared a quarterly dividend of $0.45 per share, in line with the previous. On June 23, Peter Grom, an analyst at UBS, initiated coverage on Colgate-Palmolive (NYSE:CL). He rated the stock as “Buy” and set the price target at $95. On April 30, Colgate-Palmolive declared earnings per share for the first quarter of 2021. It posted earnings per share of $0.80, beating market predictions by $0.01.
Just like Microsoft (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB), Colgate-Palmolive (NYSE:CL) is one of the best stocks to buy, based on Crispin Odey’s Q1 portfolio.
Odey Asset Management Group holds 28,300 shares in the firm worth $2.23 million, representing 0.62% of their investment portfolio. Hedge fund sentiment increased for Colgate-Palmolive Company (NYSE: CL) in the first quarter of 2021. Insider Monkey’s data shows that 48 elite hedge funds held stakes in the company in the first quarter of 2021, up from 46 funds a quarter earlier.
First Eagle Investment Management, in their first quarter 2021 investor letter, mentioned Colgate-Palmolive. Here is what the fund said:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
6. JPMorgan Chase & Co. (NYSE: JPM)
Odey’s Stake Value: $8,346,000
Percentage of Crispin Odey’s 13F Portfolio: 2.3%
Dividend Yield: 2.34%
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE: JPM) functions as a monetary service company. The company was founded in 1799 and stands sixth on the list of 10 best dividend stocks to buy according to Crispin Odey’s hedge fund. JPMorgan Chase & Co. (NYSE: JPM) has offered investors returns of 66.38% over the course of the past twelve months.
On June 22, JPMorgan Chase & Co. (NYSE: JPM) invested in Maxex, which connects sellers and buyers of home loans. The purpose of investment is to increase broad market adoption of the Maxex exchange platform for buying and selling loans in the U.S. non-agency mortgage market. On May 17, JPMorgan Chase declared a quarterly dividend of $0.90 per share, in line with the previous. On April 14, the company announced its revenue for the first quarter of 2021. It declared revenue of $32.3 billion, up 14.3% YoY, beating the estimates by $1.99 billion.
Just like Microsoft (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Facebook, Inc. (NASDAQ: FB), JPMorgan Chase & Co. (NYSE: JPM) is one of the best stocks to buy according to Crispin Odey.
Odey Asset Management Group holds 54,825 shares in the firm worth over $8.35 million, representing 2.33% of their investment portfolio. At the end of the first quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $5.25 billion in JPMorgan Chase & Co. (NYSE: JPM), down from 112 the preceding quarter worth $6.97 billion.
VLTAVA Fund, in their second quarter 2020 investor letter, mentioned JPMorgan Chase & Co. Here is what the fund said:
“In the quarter just ended, we bought shares of the JP Morgan. In our opinion, among all the world’s large banks, this one is the best managed and financially strongest. It did very well already in the recession of 2008, when it remained profitable and did not require government help. This made it exceptional among large banks, and we may say that this was the year when it stood out most despite the fact that, from the profitability viewpoint, it was the worst year for JP Morgan of the whole previous economic cycle. The worst year of this economic cycle clearly will be 2020. Profits will drop substantially, mainly due to large increase in bad loans. Despite this, JP Morgan should earn a lot of money this year and its strength and quality will again come to the fore. The shares of good banks can be very remunerative long-term “compounders”, and the best time to buy them is usually in times of recession.”
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Disclosure: None. 10 Best Dividend Stocks to Buy According to Crispin Odey’s Hedge Fund is originally published on Insider Monkey.
