In this article, we discuss the 10 dividend stocks to buy according to billionaire Jim Simons’ hedge fund. If you want to skip our detailed analysis of these stocks, go directly to the 5 Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund.
Renaissance Technologies was founded in 1982 by the American billionaire hedge fund manager and mathematician, Jim Simons. With a Bachelor’s degree in mathematics from Massachusetts Institute of Technology and a PhD from the University of California, Berkeley, Simons’ mathematical background influenced his hedge fund’s investment philosophy deeply. Renaissance Technologies is a quantitative hedge fund, where Jim Simons and his team of computer scientists, mathematicians, statisticians, signal processing experts, and data engineers assess statistical probabilities for the direction of stock prices in a market, and apply algorithms, mathematical models, and theories to predict the industry trends and portfolio allocation.
With two leading funds, namely the Medallion Fund and the Renaissance Institutional Equities Fund (RIEF), Renaissance Technologies manages a portfolio worth $77.4 billion as of Q3 2021, with discretionary assets under management of $130.85 billion. The fund has a top ten holdings concentration of 12.38%, with securities concentrated in the information technology, healthcare, finance, consumer discretionary, communications, and consumer staples sectors.
Jim Simons retired from the hedge fund in 2010, after serving as the CEO and CIO for 38 years, but still remains the non-executive chairman, while Peter Brown is the current CEO of Renaissance Technologies.
In the third quarter of 2021, Renaissance Technologies purchased 665 new stocks, sold out of 657 securities, made additional purchases in 934 equities, and reduced holdings in 1804 companies. The hedge fund’s top buys for Q3 included Adobe Inc. (NASDAQ:ADBE), AstraZeneca PLC (NASDAQ:AZN), NIKE, Inc. (NYSE:NKE), and Tesla, Inc. (NASDAQ:TSLA). Whereas, Renaissance Technologies reduced holdings in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Roku, Inc. (NASDAQ:ROKU).
Jim Simons of Renaissance Technologies
The most notable dividend stocks from Renaissance Technologies’ Q3 portfolio include Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and Exxon Mobil Corporation (NYSE:XOM).
Our Methodology
We used the third quarter portfolio of Jim Simons’ Renaissance Technologies to select the hedge fund’s highest yielding dividend stocks. We ensured that the selected stocks also had strong company fundamentals, long-term growth prospects, and mostly positive analyst ratings.
We have also mentioned the hedge fund sentiment around each stock, which was gauged from a total of 867 elite funds tracked by Insider Monkey in the third quarter.
Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund
10. Vodafone Group Public Limited Company (NASDAQ:VOD)
Renaissance Technologies’ Stake Value: $441,526,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 18
Dividend Yield on December 16: 10%
Vodafone Group Public Limited Company (NASDAQ:VOD), a British multinational telecommunications company, made it to the list of the 10 best dividend stocks to buy according to billionaire Jim Simons’ Renaissance Technologies, with a yield of 10%. Vodafone Group Public Limited Company (NASDAQ:VOD) stock represents 0.57% of Renaissance Technologies’ Q3 portfolio, with the hedge fund holding a $441.5 million position in the company.
Barclays analyst Maurice Patrick on December 16 lowered the price target on Vodafone Group Public Limited Company (NASDAQ:VOD) to £165 from £170 and kept an Overweight rating on the shares.
Payable on February 4 2022 to shareholders of record on November 25, Vodafone Group Public Limited Company (NASDAQ:VOD) announced a bi-annual dividend of €0.045 per share on November 23.
Arrowstreet Capital increased its stake in Vodafone Group Public Limited Company (NASDAQ:VOD) by 99% in the third quarter, holding 3.6 million shares worth $55.6 million. Overall, 18 hedge funds in the Q3 database of Insider Monkey were bullish on Vodafone Group Public Limited Company (NASDAQ:VOD), up from 17 funds in the preceding quarter.
In addition to Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and Exxon Mobil Corporation (NYSE:XOM), Vodafone Group Public Limited Company (NASDAQ:VOD) is a good investment to diversify a dividend portfolio, according to billionaire Jim Simons’ hedge fund.
9. PetroChina Company Limited (NYSE:PTR)
Renaissance Technologies’ Stake Value: $34,077,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 7
Dividend Yield on December 16: 7.64%
PetroChina Company Limited (NYSE:PTR) is the largest oil and gas producer in Asia, headquartered in Beijing. PetroChina Company Limited (NYSE:PTR) deals in fuels, lubricants, natural gas, and petrochemicals. Jim Simons’ fund holds 728,447 shares in PetroChina Company Limited (NYSE:PTR) as of the third quarter, worth over $34 million, representing 0.04% of the total Q3 investments.
JPMorgan analyst Parsley Ong upgraded PetroChina Company Limited (NYSE:PTR) on November 29 to Overweight from Underweight as the firm revised its chemical spread and oil price forecasts.
Publishing its third quarter results, PetroChina Company Limited (NYSE:PTR) posted earnings per share of $0.121, down 44.8% year-over-year. The $683.76 million quarterly revenue increased 37.5% from the preceding year quarter.
In the third quarter, 7 hedge funds tracked by Insider Monkey were long PetroChina Company Limited (NYSE:PTR), with total stakes worth $94.9 million. Marshall Wace LLP increased its stake in the company by 61% in Q3, and is one of the leading PetroChina Company Limited (NYSE:PTR) stakeholders, with 261,294 shares worth $12.2 million.
With a yield of 7.64%, PetroChina Company Limited (NYSE:PTR) is one of the best dividend stocks from billionaire Jim Simons’ fund at the end of September.
8. New Residential Investment Corp. (NYSE:NRZ)
Renaissance Technologies’ Stake Value: $11,507,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 16
Dividend Yield on December 16: 9.09%
In the third quarter earnings results, published on November 2, New Residential Investment Corp. (NYSE:NRZ) reported earnings per share of $0.44, topping estimates by $0.09. Revenue over the period jumped 40.20% to $960.42 million, outperforming estimates by $247.09 million.
New Residential Investment Corp. (NYSE:NRZ) is a real estate investment trust that has an investment portfolio focused on mortgage servicing-related assets, non-agency securities, and residential loans, among other relevant assets. Renaissance Technologies increased its stake in New Residential Investment Corp. (NYSE:NRZ) by 144% in Q3, holding over 1 million shares worth $11.5 million.
Of the 16 hedge funds that were bullish on New Residential Investment Corp. (NYSE:NRZ) as of Q3 2021, billionaire Ken Griffin’s Citadel Investment Group is the largest company stakeholder, with a $32 million position.
At the end of September, Barclays analyst Mark DeVries reinstated coverage of New Residential Investment Corp. (NYSE:NRZ) with an Overweight rating and a $13 price target. The analyst stated that New Residential Investment Corp. (NYSE:NRZ) has increased exposure to a “still-strong” mortgage organization market, and its underlying investment portfolio will decrease earnings volatility and provide book value stability if interest rates continue to rise.
In addition to Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and Exxon Mobil Corporation (NYSE:XOM), NRZ is a notable stock pick of Jim Simons’ fund.
New Residential Investment Corp. (NYSE:NRZ) announced a quarterly dividend of $0.25 per share on December 15, payable on January 28 to shareholders of record on December 31. The company offers a forward dividend yield of 9.09%, which makes New Residential Investment Corp. (NYSE:NRZ) one of the best dividend stocks to buy according to billionaire Jim Simons’ hedge fund.
7. Gerdau S.A. (NYSE:GGB)
Renaissance Technologies’ Stake Value: $30,396,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 13
Dividend Yield on December 16: 11.67%
Headquartered in Sao Paulo, Gerdau S.A. (NYSE:GGB) is the largest producer of long steel in Latin America. Jim Simons’ Renaissance Technologies, as of Q3 2021, owns 6.17 million shares of Gerdau S.A. (NYSE:GGB), worth $30.3 million, representing 0.03% of the fund’s total investments.
Posting its Q3 results on October 27, Gerdau S.A. (NYSE:GGB) announced a revenue of R$21.32 billion, up 74.5% year-over-year.
On December 10, Goldman Sachs analyst Marcio Farid initiated coverage of Gerdau S.A. (NYSE:GGB) with a Buy rating and a R$360 price target. According to the analyst, Gerdau S.A. (NYSE:GGB) has one of the “most diversified, resilient, and quality business profiles” among companies in Latin America steel, with relatively less exposure to iron ore price volatility.
Jon Bauer’s Contrarian Capital is the largest Gerdau S.A. (NYSE:GGB) stakeholder from the third quarter, increasing its stake in the company by 12%, holding 23.1 million shares worth $113.6 million. Overall, the Q3 database of Insider Monkey reported that 13 hedge funds were bullish on Gerdau S.A. (NYSE:GGB), down from 17 funds in the preceding quarter.
6. Gilat Satellite Networks Ltd. (NASDAQ:GILT)
Renaissance Technologies’ Stake Value: $11,174,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 10
Dividend Yield on December 16: 13.38%
In Q3 2021, Jim Simons’ Renaissance Technologies held 1.24 million Gilat Satellite Networks Ltd. (NASDAQ:GILT) shares, valued at $11.1 million. Gilat Satellite Networks Ltd. (NASDAQ:GILT) is an Israel-based company offering satellite communication services and relevant equipment.
As of September this year, a total of 10 hedge funds monitored by Insider Monkey were long Gilat Satellite Networks Ltd. (NASDAQ:GILT), with total stakes worth $27 million. This is compared an increase as compared to 7 funds in the prior quarter, holding stakes amounting to $25.9 million.
Gilat Satellite Networks Ltd. (NASDAQ:GILT) announced on November 30 that it signed a $5 million contract with a Tier-1 US global military terminal provider, to supply solid state amplifiers that will allow communication via satellites for militaries around the world.
In the quarterly financial results published on November 9, Gilat Satellite Networks Ltd. (NASDAQ:GILT) posted an EPS of $0.01, beating estimates by $0.02. The $49.91 million revenue increased $38.8 million year-over-year, but missed estimates by $11.91 million.
With a forward yield of 13.38%, Gilat Satellite Networks Ltd. (NASDAQ:GILT) is one of the best dividend stocks to buy according to billionaire Jim Simons’ hedge fund, in addition to Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and Exxon Mobil Corporation (NYSE:XOM).
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Disclosure: None. 10 Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund is originally published on Insider Monkey.
