In this article, we discuss the 10 dividend stocks to buy according to billionaire Jeffrey Talpins. You can skip our detailed analysis of Element Capital Management’s past performance and investment strategies, and go directly to read 5 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins.
Jeffry Talpins’ Element Capital Management deploys the Modern Macro investment style, which combines value analysis, systematic, and macro fundamental approaches. These strategies were pioneered by Talpins, making the hedge fund one of the top performers in the asset management industry. The fund’s flexible thinking and careful analysis have contributed a lot to evolving its approach over time. Currently, Talpins is serving as the CIO and CEO of Element Capital Management.
In 2016, the hedge fund returned 19.4%, compared with the other hedge funds’ average returns of a mere 2.3%. Element Capital also posted positive returns in 2020. The hedge fund gained 18.8% during the year, returning over $2 billion of the profits to shareholders, Financial Times reported. However, in 2021, the hedge fund reported its worst performance, falling 9% during the year, marking its first year of losses since its inception. In January 2022, the fund again reported a loss of nearly 3%.
As of Q4 2021, Element Capital Management holds a 13F portfolio value of over $1.5 billion, up tremendously from $228.8 million in the previous quarter. Healthcare, services, and consumer goods sectors dominated the hedge fund’s investments during the quarter. Some of the hedge fund’s major investments in the fourth quarter were Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Johnson & Johnson (NYSE:JNJ).
Jeffrey Talpins of Element Capital
Our Methodology:
In this article, we will focus on the dividend stocks in Jeffrey Talpins’ portfolio. For this list, we considered data from Element Capital Management’s 13F portfolio as of Q4 2021.
10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins
10. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 40
Element Capital Management’s Stake Value: $47,352,000
Dividend Yield as of March 9: 2.28%
Mondelez International, Inc. (NASDAQ:MDLZ) is an American confectionery and food holding company. It currently pays a quarterly dividend of $0.35 per share, having raised it by 11% in 2021. The stock’s dividend yield was recorded to be at 2.28%, as of March 9. Mondelez International, Inc. (NASDAQ:MDLZ) maintains an 8-year track record of consistent dividend growth, falling into the category of Dividend Challenger. Moreover, the company’s 5-year dividend CAGR stands at 13.4%.
This January, BMO Capital mentioned Mondelez International, Inc. (NASDAQ:MDLZ) in its investor note, expecting growth in the company’s sales. The firm lifted its price target on the stock to $75, with an Outperform rating on the shares. Element Capital started building its position in Mondelez International, Inc. (NASDAQ:MDLZ) during the fourth quarter of 2021, with shares worth over $47.3 million. The company was the fund’s tenth-largest holding and represented 3.04% of Jeffrey Talpins’ portfolio. Along with this, some other major blue-chip holdings of Element Capital were Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Johnson & Johnson (NYSE:JNJ).
By the end of Q4 2021, 40 hedge funds tracked by Insider Monkey reported owning stakes in Mondelez International, Inc. (NASDAQ:MDLZ), down from 46 in the previous quarter. These stakes hold a consolidated value of roughly $1.5 billion. Among these hedge funds, Diamond Hill Capital was the company’s largest stakeholder in Q4, holding shares worth over $611 million.
9. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
Element Capital Management’s Stake Value: $102,876,000
Dividend Yield as of March 9: 2.35%
An American multinational consumer goods company, The Procter & Gamble Company (NYSE:PG) was the fifth-largest holding of Element Capital in Q4 2021. The hedge fund held a stake worth roughly $103 million in the company, which accounted for 6.61% of Jeffrey Talpins’ portfolio.
The number of hedge funds tracked by Insider Monkey holding stakes in The Procter & Gamble Company (NYSE:PG) declined to 67 in Q4 2021, from 69 in the preceding quarter. These stakes hold a value of over $6.6 billion.
The Procter & Gamble Company (NYSE:PG) pays a quarterly dividend of $0.8698 per share, with a dividend yield of 2.35%, as of March 9. The company has been increasing its dividend consistently for the past 65 years, with a 5-year dividend CAGR of 5%. This January, Morgan Stanley named The Procter & Gamble Company (NYSE:PG) as its favorite name in the Household Products category and lifted its price target on the stock to $177 while maintaining an Overweight rating on the share.
8. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 48
Element Capital Management’s Stake Value: $23,763,000
Dividend Yield as of March 9: 2.36%
Colgate-Palmolive Company (NYSE:CL), an American multinational consumer products company, suffered a decline in the number of hedge funds having positions in it in Q4 2021. 48 hedge funds tracked by Insider Monkey held positions in the company in the fourth quarter of 2021, down from 54 in the previous quarter. The total value of these stakes is over $2 billion. First Eagle Investment Management held the largest stake in the company in Q4, worth over $988 million.
Colgate-Palmolive Company (NYSE:CL) maintains a 59-year streak of consecutive dividend growth and has increased its dividend at a 3% compounded annually from 2016 to 2020. Currently, the company pays a quarterly dividend of $0.45 per share, with a dividend yield of 2.36%, as of March 9. This January, Credit Suisse set a $90 price target on Colgate-Palmolive Company (NYSE:CL), with an Outperform rating on the shares.
Colgate-Palmolive Company (NYSE:CL) was one of the latest acquisitions of Element Capital in Q4 2021. The hedge fund started building its position in the company with a stake worth over $23.7 million. The company accounted for 1.52% of Jeffrey Talpins’ portfolio.
First Eagle Investment Management mentioned Colgate-Palmolive Company (NYSE:CL) in its Q1 2021 investor letter. Here is what the firm has to say:
“The leading detractors in the quarter (included) Colgate-Palmolive Company (NYSE:CL). 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.”
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Element Capital Management’s Stake Value: $108,761,000
Dividend Yield as of March 9: 2.50%
This January, Raymond James appreciated the performance of Johnson & Johnson (NYSE:JNJ) and raised its price target on the stock to $185, with an Outperform rating on the shares.
In 2021, Johnson & Johnson (NYSE:JNJ) increased its quarterly dividend by 5% at $1.06 per share. The stock’s dividend yield, as of March 9, stood at 2.50%. The company maintains a 59-year track record of dividend growth, which is considered the longest in the healthcare sector. In Q4 2021, Johnson & Johnson (NYSE:JNJ) was the fourth-largest holding of Element Capital and represented 6.99% of its 13F portfolio.
As per Insider Monkey’s Q4 data, 83 hedge funds held a $7.4 billion worth of stake in Johnson & Johnson (NYSE:JNJ). In comparison, 88 hedge funds held positions in the company in the previous quarter, with stakes valued at $6.87 billion.
Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm had to say:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
6. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 36
Element Capital Management’s Stake Value: $18,698,000
Dividend Yield as of March 9: 3.14%
General Mills, Inc. (NYSE:GIS), an American food company, pays a quarterly dividend of $0.51 per share, with a dividend yield of 3.14%, as recorded on March 9. The company has been paying dividends to shareholders consecutively for the past 120 years and increased its dividend at a CAGR of 6.7% in the past 20 years.
Jim Simons’ Renaissance Technologies was the largest stakeholder of General Mills, Inc. (NYSE:GIS) in Q4 2021, holding stakes valued at roughly $290 million. Overall, 36 hedge funds tracked by Insider Monkey reported owning stakes in the company, up from 32 in the previous quarter. These stakes hold a consolidated value of $781.3 million.
Element Capital started investing in General Mills, Inc. (NYSE:GIS) during the fourth quarter of 2021, with stakes worth roughly $18.7 million. The company made up 1.2% of Jeffrey Talpins’ portfolio. The hedge fund also had significant stakes in Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Johnson & Johnson (NYSE:JNJ) in Q4. This December, appreciating the company’s better than expected sales growth, Citigroup raised its price target on General Mills, Inc. (NYSE:GIS) to $73, and maintained a Buy rating on the shares.
Miller Howard Investments mentioned General Mills, Inc. (NYSE:GIS) in its Q3 2021 investor letter. Here is what the firm has to say:
“Other stocks providing balance against our cyclicals include General Mills, Inc. (NYSE:GIS). They pay good dividends supported by stable business models and have a conservative amount of debt. The dividend yield on our Income-Equity Strategy is now 3.6%. The No-MLP version yield is 3.5%. Both yields are roughly 2.5 times the yield on the S&P 500 Index, and we are seeing dividend increases across our portfolios. Our income advantage over the broad market is significant, yet we also believe that we have enough cyclical tilt to perform well in a recovery. We continue to monitor a variety of risks, with inflation and COVID-19 trends being most important.”
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Disclosure. None. 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins is originally published on Insider Monkey.
