In this article, we discuss 10 dividend stocks to buy according to billionaire Louis Bacon. You can skip our detailed analysis of Moore Global Investments’ performance, and go directly to read 5 Dividend Stocks to Buy According to Billionaire Louis Bacon.
Louis Bacon founded Moore Global Investments in 1989 and is currently serving as the chairman and principal investment manager of the firm. The investment management firm mainly invests in private equity markets and global financial markets. As of August 2022, Bacon has a net worth of over $1.6 billion.
Bacon is one of the most prominent traders on Wall Street and specializes in macro trading. His investment strategy involves betting on currencies, bonds, and commodities while analyzing global political and economic conditions. He made large profits during the crash in Japanese stocks in 1990 and Black Wednesday in 1992 when the UK Government was forced to withdraw the pound sterling from the European Exchange Rate Mechanism.
In 2019, Bacon privatized three of his multi-manager flagship funds, returning assets to outside investors. The step was taken due to intense competition for trading talent and the negative results of these funds over the years. However, these funds returned a total of over $19 billion in profits to its shareholders. Returning external money lifted the returns of the fund, which ended 2020 with a 70% return, according to a report by the Financial Times.
As of the end of Q1 2022, Moore Global Investments’ 13F portfolio was valued at nearly $4 billion, down from $5 billion in the previous quarter. The hedge fund invested in a wide range of sectors during the quarter, with technology making up the major portion of the portfolio. Some of the fund’s major holdings are Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN). In this article, we will discuss dividend stocks in Louis Bacon’s portfolio.
Louis Bacon Moore of Moore Capital
Our Methodology:
These stocks are picked from the Q1 portfolio of billionaire Louis Bacon’s hedge fund.
Dividend Stocks to Buy According to Billionaire Louis Bacon
10. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of August 8: 2.82%
Moore Global Investments’ Stake Value: $9,216,000
Comcast Corporation (NASDAQ:CMCSA) is an American telecommunications company that provides internet and home phone services. In Q2 2022, the company reported $6.3 billion in operating cash flow, up from $6.1 billion during the same period last year. The company generated $3.1 billion in free cash flow and paid $1.2 billion in dividends during the quarter, which shows that its FCF is enough for dividend payments. It ended the quarter with $6.8 billion available in cash and cash equivalents.
Comcast Corporation (NASDAQ:CMCSA) holds a 14-year track record of consistent dividend growth. The company pays a quarterly dividend of $0.27 per share, with a yield of 2.82%, as of August 8.
At the end of Q1 2022, Moore Global Investments owned 196,836 shares in Comcast Corporation (NASDAQ:CMCSA), reducing its position in the company by 15%. The hedge fund’s total stake in the company amounted to over $9.2 million, which represented 0.23% of Louis Bacon’s portfolio.
At the end of Q1 2022, 78 hedge funds in Insider Monkey’s database owned stakes in Comcast Corporation (NASDAQ:CMCSA), down from 80 a quarter earlier. These stakes are collectively valued at over $7 billion. Among these hedge funds, First Eagle Investment Management owned the largest stake in the company in Q1.
Comcast Corporation (NASDAQ:CMCSA) is down 24.5% year-to-date, just like major tech stocks, such as Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), which have also lost their value in 2022 so far.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm had to say:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
9. Lockheed Martin Corporation (NYSE:LMT)
Dividend Yield as of August 8: 2.63%
Moore Global Investments’ Stake Value: $10,911,000
Lockheed Martin Corporation (NYSE:LMT) is an American aerospace company that specializes in defense and information security. Moore Global Investments started building its position in the company during the third quarter of 2012, with shares worth over $1 million. In Q1 2022, the hedge fund bought an additional stake worth over $6.6 million, boosting its position in the company by 108%. The company accounted for 0.27% of Louis Bacon’s portfolio.
Lockheed Martin Corporation (NYSE:LMT) has been paying dividends to shareholders consistently since 1996 while maintaining a 19-year track record of dividend growth. The company pays a quarterly dividend of $2.80 per share, with a yield of 2.63%, as of August 8.
In July, Susquehanna lifted its price target on Lockheed Martin Corporation (NYSE:LMT) to $539 with a Positive rating on the shares, expecting the company to maintain growth in domestic and international defense spending.
The number of hedge funds tracked by Insider Monkey owning stakes in Lockheed Martin Corporation (NYSE:LMT) grew to 56 in Q1 2022, from 42 in the previous quarter. The collective value of these stakes is over $2.44 billion.
Ariel Investments mentioned Lockheed Martin Corporation (NYSE:LMT) in its Q3 2021 investor letter. Here is what the firm has to say:
“Conversely, leading global defense contractor Lockheed Martin Corporation (LMT) was the greatest detractor over the trailing one-year period due to pared back F-35 delivery plans and weaker than expected 2022 sales guidance. Nonetheless, we remain confident in LMT’s positioning as they continue to secure a steady stream of lucrative contracts and benefit from a sizeable backlog. Looking ahead, management is focused on driving innovation, underscored by the pending acquisition of Aerojet Rocketdyne enabling vertical integration in propulsion systems for space and missile defense. At today’s valuation, LMT is currently trading at a 32% discount to our estimate of private market value.”
8. The Mosaic Company (NYSE:MOS)
Dividend Yield as of August 8: 1.15%
Moore Global Investments’ Stake Value: $14,963,000
An American agricultural corporation, The Mosaic Company (NYSE:MOS) announced a quarterly dividend of $0.15 per share in May, raising it by 33%. This was the company’s third consecutive year of dividend growth. As of August 8, the stock’s dividend yield came in at 1.15%.
The Mosaic Company (NYSE:MOS) is one of the latest acquisitions of Moore Global Investments. The hedge fund initiated its position in the company with 225,000 shares, worth nearly $15 million. The company represented 0.38% of Louis Bacon’s portfolio.
In August, Citigroup upgraded The Mosaic Company (NYSE:MOS) to Buy while lifting its price target to $61. The firm expects the agricultural stocks to perform well in a slowing economic environment.
The Mosaic Company (NYSE:MOS) was a popular buy among elite funds in Q1 2022, as 66 hedge funds tracked by Insider Monkey owned stakes in the company, up from 46 in the previous quarter. These stakes hold a value of over $1.5 billion. Soroban Capital Partners was the company’s leading stakeholder in Q1.
Carillon Tower Advisers mentioned The Mosaic Company (NYSE:MOS) in its Q1 2022 investor letter. Here is what the firm has to say:
“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”
7. Northrop Grumman Corporation (NYSE:NOC)
Dividend Yield as of August 8: 1.45%
Moore Global Investments’ Stake Value: $15,299,000
Northrop Grumman Corporation (NYSE:NOC) is a Virginia-based aerospace company that specializes in defense technology. In Q1 2022, Moore Global Investments increased its stake in the company by 389%, purchasing additional 27,208 shares. The hedge fund’s total stake in the company amounted to nearly $15.3 million, which represented 0.38% of Louis Bacon’s portfolio.
On May 18, Northrop Grumman Corporation (NYSE:NOC) declared a quarterly dividend of $1.73 per share, up 10% from its previous dividend. The company has been growing its dividend consistently for the past 18 years, bringing its annual dividend to $6.92 per share in 2022, from $1.60 per share in 2003. As of August 8, the stock’s dividend yield was recorded at 1.45%.
In July, Susquehanna lifted its price target on Northrop Grumman Corporation (NYSE:NOC) to $530 while maintaining a Positive rating on the shares.
At the end of Q1 2022, 39 hedge funds in Insider Monkey’s database owned stakes in Northrop Grumman Corporation (NYSE:NOC), up from 33 in the previous quarter. The total value of these stakes came in at $940.3 million.
LRT Capital Management mentioned Northrop Grumman Corporation (NYSE:NOC) in its Q2 2022 investor letter. Here is what the firm has to say:
“Based in Virginia, Northrop Grumman is one of the world’s largest defense contractors with annual revenue of more than $30 billion. The company operates in a cozy oligopoly, that after decades of consolidation the US defense market is now controlled by five large companies: The Boeing Company, General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation. (Click here to see the full text)
6. FedEx Corporation (NYSE:FDX)
Dividend Yield as of August 8: 1.96%
Moore Global Investments’ Stake Value: $15,340,000
FedEx Corporation (NYSE:FDX), an American transport company, raised its quarterly dividend by 53% in June to $1.15 per share. This was the company’s 21st consecutive year of dividend growth. In the last five years, the company has raised its dividend at a CAGR of 13.4%. Its dividends are safe for the future as well, as its free cash flow generation has remained stable over the years. As of August 8, the stock’s dividend yield came in at 1.96%.
In Q1 2022, Moore Global Investment owned 66,296 FDX shares, with a total value of over $15.3 million. The hedge fund trimmed its position in the company by 7% during the quarter and has been investing in the company since 2011. FedEx Corporation (NYSE:FDX) represented 0.38% of Louis Bacon’s portfolio in Q1.
In June, BofA raised its price target on FedEx Corporation (NYSE:FDX) to $287 with a Buy rating on the shares, presenting a positive outlook on the stock.
As per Insider Monkey’s Q1 2022, 52 hedge funds owned stakes in FedEx Corporation (NYSE:FDX) worth over $1.78 billion. In the previous quarter, 64 hedge funds held positions in the Tennessee-based company, with stakes valued at over $2.4 billion. Ken Griffin, Steve Cohen, and Israel Englander were some of the prominent stakeholders of the company in Q1.
In addition to major tech stocks like Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), FedEx Corporation (NYSE:FDX) is also one of Louis Bacon’s prominent holdings in Q1.
Click to continue reading and see 5 Dividend Stocks to Buy According to Billionaire Louis Bacon.
Suggested articles:
- Billionaire Louis Bacon’s Top 10 Stock Picks
- 10 Best Aristocrat Dividend Stocks to Buy
- 10 Best Plastics Stocks to Buy Now
Disclosure. None. 10 Dividend Stocks to Buy According to Billionaire Louis Bacon is originally published on Insider Monkey.
