In this article, we discuss the dividend stocks to buy according to Andreas Halvorsen’s Viking Global. You can skip our detailed analysis of Viking Global’s past performance and recent developments, and go directly to read 5 Dividend Stocks to Buy According to Andreas Halvorsen’s Viking Global.
Ole Andreas Halvorsen is a Norwegian-born hedge fund manager. In 1999, he co-founded Viking Global, a Connecticut-based hedge fund, with David Ott and Brian Olson. Halvorsen is one of the most famous and successful investors, with a real-time net worth of $6.6 billion, as reported by Forbes. Having a military background, he gained a degree in Economics after he came to New York and started honing his skills as an investor. He landed jobs with some of the biggest names such as Morgan Stanley and Tiger Management Company.
Viking Global invests in companies after a disciplined valuation and analysis to develop a diversified portfolio. The hedge fund covers publicly-traded companies as well as private businesses with exceptional teams. The firm seeks to deliver higher risk-adjusted returns while evaluating investment opportunities across the globe. Currently, the hedge fund manages over $47 billion of capital. In its first business year, the fund delivered a return of 89% and its performance remained stable in the years to come. Between 2005 and 2010, the firm returned 119%, the time when Ott was serving as the CIO of Viking Global. In 2017, the firm’s main hedge fund gained 12%.
However, in 2021, the hedge fund lost about 4.5%, as reported by Business Insider. The hedge fund did not fail on all accounts as its Global Opportunities Hybrid Fund, which invests in both public and private companies, gained 20% in 2021, Bloomberg reported.
As of Q1 2022, Viking Global holds a 13F portfolio value of $24.7 billion, down from $34.7 billion in the previous quarter. The hedge fund’s major investments are in the technology, healthcare, and finance sector. Some of the major notable stocks in Andreas Halvorsen’s portfolio in Q1 2022 are Mastercard Incorporated (NYSE:MA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology:
In this article, we discuss the top dividend stocks in Andreas Halvorsen’s portfolio. For this list, we collected data from Viking Global’s 13F portfolio for Q1 2022.
Ole Andreas Halvorsen of Viking Global
Dividend Stocks to Buy According to Andreas Halvorsen’s Viking Global
10. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 44
Dividend Yield as of May 23: 1.14%
Viking Global’s Stake Value: $86,451,000
Dollar General Corporation (NYSE:DG) is an American chain of variety stores that operates over 18,000 stores in the US. On March 17, the company announced a 31% increase in its quarterly dividend to $0.55 per share. The company has been increasing its dividend consistently for the past 7 years, becoming a Dividend Challenger. The stock’s dividend yield, as of May 23, stood at 1.14%.
In its fiscal Q4 2022 results, Dollar General Corporation (NYSE:DG) generated revenue of $8.65 billion, presenting a 3% year-over-year growth. In April, BMO Capital presented a positive outlook on the company and lifted its price target on the stock to $265, with an Outperform rating on the shares. The analyst also sees an opportunity for the company to return to its 10% EPS CAGR from current levels.
However, like Mastercard Incorporated (NYSE:MA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Dollar General is also under pressure in 2022, having lost about 17% of its value in 2022 so far.
Dollar General Corporation (NYSE:DG) was the new addition to Viking Global’s portfolio. The hedge fund held shares worth over $86.4 million in the company, which represented 0.34% of Andreas Halvorsen’s 13F portfolio.
By the end of December 2021, 44 hedge funds tracked by Insider Monkey held stakes in Dollar General Corporation (NYSE:DG), down from 46 in the previous quarter. The total value of these stakes is over $2.2 billion, compared with $1.9 billion worth of stakes held by hedge funds in Q3 2021.
LRT Capital Management mentioned Dollar General Corporation (NYSE:DG) in its Q3 2021 investor letter. Here is what the firm has to say:
“Executive Summary
At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General (DG), so today, we wanted to tell you a bit about this great company.
Company Overview
Dollar General is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”. As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation.
The first Dollar General store opened on June 1st, 1955 in Springfield Kentucky. The simple concept was that no item in the store would cost more than one dollar. The company changed its name to Dollar General Corporation in 1968 when Dollar General became publicly traded. At the time of its initial public offering, the business generated more than $40 million in annual sales. The company’s common stock was publicly traded from 1968 until July 2007, when it was taken private by KKR. The company went public again in November 2009, under the ticker DG.
Today, Dollar General is an evolved, and phenomenal business with more room for growth. Annual sales reached a record $33.7 billion in fiscal year 2021 after consecutively growing the top line for many years. The company’s main products are every-day necessities and consumables purchased by lower income consumers on tight budgets…”
9. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 96
Dividend Yield as of May 23: 1.18%
Viking Global’s Stake Value: $39,222,000
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational healthcare and insurance company that also offers healthcare products to shareholders. Viking Global started building its position in the company during the first quarter of 2022, with stakes worth roughly $40 million. UnitedHealth Group Incorporated (NYSE:UNH) accounted for 0.15% of Andreas Halvorsen’s portfolio.
Among the hedge funds tracked by Insider Monkey, Eagle Capital Management held the largest stake in UnitedHealth Group Incorporated (NYSE:UNH) in Q1 2022, worth $1.48 billion. Overall, 96 hedge funds in Insider Monkey’s database held stakes in the company in Q4 2021, up from 95 in the previous quarter. These stakes hold a consolidated value of over $13.6 billion.
In June 2021, UnitedHealth Group Incorporated (NYSE:UNH) announced a 16% hike in its quarterly dividend to $1.45 per share. The company has been paying annual dividends to shareholders since 1990 and maintains an 11-year track record of consistent dividend growth. The stock’s dividend yield, as of May 23, stood at 1.18%. This April, BMO Capital lifted its price target on UnitedHealth Group Incorporated (NYSE:UNH) to $600, with a Market Perform rating on the shares, as the company initiated its value-based care initiative.
Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter. Here is what the firm has to say:
“UnitedHealth Group Incorporated (NYSE:UNH) is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and healthcare services arm, Optum, which offers care delivery and other services. Shares increased 1.8% on good fourth quarter results with revenues up 12.5% year-over-year, operating margins of 7.5% and EPS up 78% while also reaffirming its 2022 guidance. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
8. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 61
Dividend Yield as of May 23: 1.27%
Viking Global’s Stake Value: $167,498,000
Deere & Company (NYSE:DE) is an American manufacturing company that specializes in agricultural machinery, heavy equipment, forestry machinery and related products. In April, DA Davidson stated that the current crop prices indicate strong growth for the major crops through 2023. On account of this, the firm lifted its price target on the stock to $480, with a Buy rating on the shares.
In 2021, Deere & Company (NYSE:DE) pays a quarterly dividend of $1.05 per share, after growing it by 17% in 2021. The stock’s dividend yield, as of May 23, was recorded at 1.27%. In the past five years, Deere & Company (NYSE:DE) has increased its dividend at a CAGR of 11.03%, coming through as one of the best dividend stocks in Andreas Halvorsen’s portfolio.
In its fiscal Q2 2022 report, Deere & Company (NYSE:DE) posted a GAAP EPS of $6.81, beating analysts’ expectations by $0.12. The company’s revenue for the quarter stood at $13.3 billion, showcasing an 11% year-over-year growth. At the end of Q1 2022, Viking Global held shares worth over $167.4 million in Deere & Company (NYSE:DE), which represented 0.67% of its 13F portfolio.
As per Insider Monkey’s data for Q4 2021, 66 hedge funds held shares in Deere & Company (NYSE:DE), up from 61 in the previous quarter. These stakes hold a collective value of over $2.12 billion.
ClearBridge Investments mentioned Deere & Company (NYSE:DE) in its Q1 2022 investor letter. Here is what the firm has to say:
“Industrials holding Deere (NYSE:DE) was also a strong contributor to performance during the quarter. Through its unmatched 5,000 dealer network across 160 countries, Deere is a major global player in agricultural, construction and forestry equipment, with a particularly dominant position in U.S. agriculture. Deere’s moat around its core equipment capabilities, coupled with years of substantial investments in technology and innovation, further extends its competitive advantage into precision agriculture, which allows for higher farm yields with lower use of fertilizers, pesticides and water, thereby improving farmers’ bottom lines while reducing their environmental footprint. In addition to drought conditions in Latin America, the war between Russia and Ukraine, two major exporters of corn and wheat, is further disrupting the global agricultural commodities market and pushing prices even higher. This should mean higher farmer revenues and greater demand for Deere’s equipment, which is further supported by some of the lowest levels of inventory of new and used equipment on record.”
7. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 41
Dividend Yield as of May 23: 1.42%
Viking Global’s Stake Value: $383,555,000
Marsh & McLennan Companies, Inc. (NYSE:MMC) is an American insurance company that provides services in risk management, talent management, and investment advisory. The company suffered a decline in the hedge fund interest in Q4 2021, as 41 hedge funds in Insider Monkey’s database held stakes in the company, down from 48 in the previous quarter. The total value of these stakes is over $1.74 billion. With shares worth roughly $400 million, Diamond Hill Capital was the largest shareholder of Marsh & McLennan Companies, Inc. (NYSE:MMC) in Q1 2022.
Marsh & McLennan Companies, Inc. (NYSE:MMC) currently pays a quarterly dividend of $0.535 per share, after raising it by 15% in 2021. The company maintains a 13-year streak of consistent dividend growth, with a 5-year dividend CAGR of 9.49%. As of May 23, the stock’s dividend yield stood at 1.42%.
In May, Wells Fargo presented a positive stance on Marsh & McLennan Companies, Inc. (NYSE:MMC) and appreciated the company’s quarterly organic growth of 10%. The firm expects the company to see strong organic revenue growth through 2022 and 2023 and lifted its price target on the stock to $183 while upgrading the stock to Overweight from Equal Weight.
Viking Global renewed its investments in Marsh & McLennan Companies, Inc. (NYSE:MMC) during the fourth quarter of 2020, after dumping its entire stakes from the company in 2017. In Q1 2022, the hedge fund increased its position in the company by 79% and held shares worth roughly $384 million. Marsh & McLennan Companies, Inc. (NYSE:MMC) accounted for 1.55% of Andreas Halvorsen’s portfolio.
6. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 32
Dividend Yield as of May 23: 1.88%
Viking Global’s Stake Value: $419,384,000
Royalty Pharma plc (NASDAQ:RPRX) is an American pharma company that is the largest buyer of pharmaceutical royalties and provides funding across the biopharmaceutical industry.
Royalty Pharma plc (NASDAQ:RPRX) started paying dividends in 2020 and has raised its dividend by 25% since then. Currently, the company pays a quarterly dividend of $0.19 per share, with a dividend yield of 1.88%, as of May 23. In May, Scotiabank initiated its coverage of Royalty Pharma plc (NASDAQ:RPRX) with an Outperform rating and a $53 price target.
As of the end of Q1, Viking Global held shares worth roughly $420 million in Royalty Pharma plc (NASDAQ:RPRX), after increasing its position in the company by 5%. The company accounted for 1.69% of Andreas Halvorsen’s portfolio. The hedge fund also holds positions in Mastercard Incorporated (NYSE:MA), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
The number of hedge funds tracked by Insider Monkey holding stakes in Royalty Pharma plc (NASDAQ:RPRX) grew to 32 in Q4 2021, from 21 in the previous quarter. The consolidated value of these stakes is over $1.78 billion.
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Disclosure. None. 10 Dividend Stocks to Buy According to Andreas Halvorsen’s Viking Global is originally published on Insider Monkey.
