10 Best Dividend Stocks to Buy According to Tiger Cub Rob Citrone

In this article, we will be discussing the 10 best dividend stocks to buy according to Tiger Cub Rob Citrone. You can skip our detailed analysis of Citrone’s hedge fund returns, investment philosophy, and history, and go directly to the 5 Best Dividend Stocks to Buy According to Tiger Cub Rob Citrone.

Rob Citrone is an American hedge fund manager and the co-founder of Discovery Capital Management, which is one of the Tiger Cub hedge funds.  Citrone graduated from Hampden-Sydney College with a bachelor’s degree, and from the Darden School of Business with an MBA. In 1990, he began working as a corporate bond analyst at Fidelity Investments, resigning from there shortly thereafter in 1995 to join Tiger Management and work under the hedge fund legend, Julian Robertson. In 1999, Citrone founded Discovery Capital Management.

Discovery Capital Management is a hedge fund focusing on liquidity, valuation multiples, and past and potential growth in its investment strategy. The fund’s portfolio mostly focuses on the technology, services, basic materials, and financial services sectors. Discovery Capital Management is known for making macro bets and investing in emerging markets. In 2013, Citrone’s Discovery Global Opportunity Partners fund returned 27.5%, and Discovery Capital’s annualized returns since 1999 value at 17%.

In January 2021, when retail investors dealt a huge blow to hedge funds amid the GameStop saga, Rob Citrone’s fund managed to gain 6.5%. Data from Institutional Investor suggest that Citrone’s fund gained a whopping 55% in 2020.

Discovery Capital’s portfolio value stands at $746 million and still is almost entirely made of up the services, technology, basic materials, and financial sectors, alongside healthcare. In 2020, cash and other net assets only made up 19% of the fund’s portfolio. Discovery Capital Management has holdings in stocks like Microchip Technology Incorporated (NASDAQ: MCHP), ViacomCBS Inc. (NASDAQ: VIAC), and Intel Corporation (NASDAQ: INTC), which are also some of the best dividend stocks to invest in currently.

Some other notable Q1 holdings of Citrone include Facebook, Inc. Common Stock (NASDAQ: FB), Uber Technologies Inc (NYSE: UBER) and Micron Technology, Inc. (NASDAQ: MU).

Facebook, Inc. Common Stock (NASDAQ: FB) was the new addition in Discovery’s Q1 portfolio, as the hedge fund bought 44,438 shares of the company, worth $13.1 million. Facebook, Inc. Common Stock (NASDAQ: FB) stock has gained 22% year to date.

Rob Citrone’s fund also initiated a position in ride-sharing platform company Uber Technologies Inc (NYSE: UBER) in the first quarter of 2021, ending the period with 218,886 shares of the company, worth $12 million. Uber Technologies Inc (NYSE: UBER) shares have gained 52% over the last 12 months.

In Micron Technology, Inc. (NASDAQ: MU), Discovery Capital increased its hold by a whopping 98% in the first quarter, concluding the period with 111,668 shares of the company, worth $9.9 million. Micron Technology, Inc. (NASDAQ: MU) is up 50% in the last 12 months.

While dividend investing can lead to undiversified portfolios opening up more risks for investors involved, it is a foolproof and tried and tested method of establishing a passive income stream for yourself. Citrone’s own portfolio has managed to remain diversified despite having numerous dividend stocks listed in it, showing how dividend investors should aim to design their own portfolios to ensure they’re a healthy mix of dividend-yielding and non-dividend-yielding stocks. At the same time, it’s necessary to be able to differentiate between dividend stocks likely to consistently pay out dividends without risk of financial collapse, and others that are on the brink of falling over.

For instance, Intel Corporation (NASDAQ: INTC), which is a dividend stock on Citrone’s portfolio, is an excellent example of a strong dividend stock. The company has a track record for raising its dividend annually and has done for a whole decade without a break.

Citrone is an exception in an industry reeling from losses. 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.

With that context in mind, we have written this article on the 10 best dividend stocks to buy according to Tiger Cub Rob Citrone. The stocks mentioned in this article are selected from Citrone’s 13F holdings of the first quarter based on their past growth, potential growth, and dividend yields. They are ranked only based on the last factor, from lowest dividend yield to highest dividend yield.

Let’s now discuss the 10 best dividend stocks to buy according to Tiger Cub Rob Citrone.

Best Dividend Stocks to Buy According to Tiger Cub Rob Citrone