In this article, we will discuss 10 dividend stocks to buy according to billionaire Paul Tudor Jones’ Tudor Investment Corp. You can skip our detailed analysis of the hedge fund’s strategy and recent developments, and go directly to read 5 Dividend Stocks to Buy According to Billionaire Paul Tudor Jones’ Tudor Investment Corp.
Paul Tudor Jones is an American billionaire investor who founded Tudor Investment Corp in 1980.
Tudor Investment Corp follows the technique of discretionary macro trading and also focuses on a systematic investment approach. The firm pays attention to fluctuating market conditions and engages in relevant research and developmental processes to expand its performance. The main aim of the fund is to generate stable returns for shareholders through a wide range of investment techniques.
In his interview with CNBC recorded in May, Jones expressed his concerns about the current economic landscape. He said that with inflation reaching its 40-year high, investors should focus on preserving their capital instead of owning bonds and stocks. He further said that investors should follow the ongoing safe trends to generate maximum returns in these challenging times.
Given the potential for an economic slowdown, stocks could decline or remain volatile. Nevertheless, there is also opportunity for investors who invest in the right quality stocks.
As of the close of Q2 2022, Tudor Investment Corp’s 13F portfolio had a value of over $3.8 billion, down from $4.27 billion in the previous quarter. The hedge fund invested in several industries, with finance and services sectors making up the major portion of its portfolio. Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:META) were some of the company’s major holdings in Q2, however, we will focus on dividend stocks to buy according to Paul Tudor Jones.
Our Methodology:
We took the stocks with the 10 highest dividend yields as of September 8 in Paul Tudor Jones’ Tudor Investment Corp Q2 2022 top 40 positions according to 13F filings and we ranked them based on the number of hedge funds in our database that held the same stocks in the quarter.
10 Dividend Stocks to Buy According to Billionaire Paul Tudor Jones’ Tudor Investment Corp
10. ONE Gas, Inc. (NYSE:OGS)
Number of Hedge Fund Holders: 18
Dividend Yield as of September 8: 3.10%
ONE Gas, Inc. (NYSE:OGS) is an Oklahoma-based public utility company that provides natural gas distribution services to its millions of customers in the state. Tudor Investments resumed its position in the company during the third quarter of 2021, after selling its $408,000 worth of OGS stake in Q4 2020. In Q2 2022, the hedge fund owned 136,006 shares in the company and boosted its position by 40%. The fund’s total stake in the company amounted to over $11 million, which represented 0.28% of its 13F portfolio.
ONE Gas, Inc. (NYSE:OGS) currently pays a quarterly dividend of $0.62 per share and has a yield of 3.10%, as recorded on September 8. The company is a prominent dividend stock in billionaire Paul Tudor Jones’ portfolio as it maintains a 7-year track record of consistent dividend growth.
At the end of Q2 2022, 18 hedge funds tracked by Insider Monkey owned stakes in ONE Gas, Inc. (NYSE:OGS), up from 17 in the previous quarter. The collective value of these stakes is over $100.3 million. With $37.8 million worth of stakes, Millennium Management was the company’s leading stakeholder in Q2.
Alongside CME Group Inc. (NASDAQ:CME), The Procter & Gamble Company (NYSE:PG), and Comcast Corporation (NASDAQ:CMCSA), ONE Gas, Inc. (NYSE:OGS) is one of the dividend holdings of billionaire Paul Tudor Jones’ Tudor Investment Corp 13F portfolio at the end of Q2 2022.
9. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 30
Dividend Yield as of September 8: 3.41%
Entergy Corporation (NYSE:ETR) is an American nuclear electric power generation company that specializes in production and retail distribution operations in the country. In June, Mizuho maintained its Buy rating on the stock with a $123 price target, as the company provides long-term investment opportunities due to the current energy crisis.
In Q2 2022, Tudor Investment Corp purchased additional ETR shares worth over $5 million, boosting its position in the company by 123%. The hedge fund’s total ETR stake amounted to over $10.3 million in Q2, which represented 0.27% of its 13F portfolio. Billionaire Paul Tudor Jones has been investing in the company since the fourth quarter of 2010.
Entergy Corporation (NYSE:ETR) has been paying uninterrupted dividends on its common stock since 1998 and has raised its payouts consistently for the past 7 years. It currently pays a $1.01 per share dividend every quarter, with a dividend yield of 3.41%, as recorded on September 8.
As of the close of Q2 2022, 30 hedge funds tracked by Insider Monkey owned stakes in Entergy Corporation (NYSE:ETR), compared with 29 in the previous quarter. These stakes hold a collective value of roughly $219 million.
8. Garmin Ltd. (NYSE:GRMN)
Number of Hedge Fund Holders: 30
Dividend Yield as of September 8: 3.25%
Garmin Ltd. (NYSE:GRMN) is a Kansas-based multinational tech company that delivers innovative GPS technology across diverse markets. The company was a part of 30 hedge fund portfolios in Q2 2022, the same as in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $385 million. Citadel Investment Group owned the largest stake in the company in Q2, worth over $54.6 million.
During Q2 2022, Paul Tudor Jones raised its position in Garmin Ltd. (NYSE:GRMN) by 130%, purchasing additional shares worth nearly $12 million. His total stake in the company stood at over $25 million in Q2, which accounted for 0.65% of his portfolio. The billionaire has been investing in the company since 2010.
On June 13, Garmin Ltd. (NYSE:GRMN) declared a 9% hike in its quarterly dividend to $0.73 per share. The company has been making dividend payments consistently for over 15 years. As of September 8, the stock’s dividend yield came in at 3.25%.
In August, Tigress Financial reiterated its Strong Buy rating on Garmin Ltd. (NYSE:GRMN) with a $165 price target. The firm called the stock a major buying opportunity and appreciated its dividend yield.
7. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 31
Dividend Yield as of September 8: 2.26%
The Travelers Companies, Inc. (NYSE:TRV) is another prominent dividend stock in billionaire Paul Tudor Jones’ portfolio. The New York-based company provides insurance services to its consumers. It holds a strong dividend history, as the company has been making uninterrupted dividend payments for the past 33 years. In addition to this, the company has raised its payouts for 16 years in a row. In the last 12 years, its annual dividend has more than doubled, reaching $3.72 per share in 2022, from $1.59 per share in 2011. The Travelers Companies, Inc. (NYSE:TRV) pays a quarterly dividend of $0.93 per share and has a dividend yield of 2.26%, as recorded on September 8.
In Q2 2022, the hedge fund increased its position in The Travelers Companies, Inc. (NYSE:TRV) by 196%, which takes its total stake to $11.4 million. The company made up 0.3% of billionaire Jones’ portfolio.
In July, Raymond James upgraded The Travelers Companies, Inc. (NYSE:TRV) to Strong Buy with a $185 price target, as the firm highlighted the company’s outperformance year-to-date. In addition to this, the firm also highlighted the improvements in the company’s Business Insurance segment.
At the end of June 2022, 31 hedge funds in Insider Monkey’s database owned investments in The Travelers Companies, Inc. (NYSE:TRV), down from 37 in the previous quarter. These stakes hold a collective value of over $433.8 million, compared with $631.7 million worth of stakes owned by hedge funds in the preceding quarter.
6. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 32
Dividend Yield as of September 8: 3.63%
Stanley Black & Decker, Inc. (NYSE:SWK) manufactures industrial tools and household hardware products. The company is also one of the leading providers of security products in the US. Tudor Investments sold off its SWK stake worth over $1.3 million during the first quarter of 2020 and reinitiated its position in the company during Q2 2021. Currently, the hedge fund owned stakes worth over $15 million in the company, after boosting its position by 89% during the quarter. The company represented 0.39% of billionaire Jones’ portfolio.
Stanley Black & Decker, Inc. (NYSE:SWK) holds one of the strongest dividend growth track records in the S&P 500, as the company has increased its payouts every year since 1968. In addition to this, the company has paid dividends to shareholders for 146 years in a row. It currently offers a quarterly dividend of $0.80 per share, with a dividend yield of 3.63%, as of September 8.
In August, Morgan Stanley maintained its Overweight rating on Stanley Black & Decker, Inc. (NYSE:SWK), with a $110 price target. The firm expects the company to generate stable earnings as the demand for its products is increasing post-pandemic.
At the end of Q2 2022, 32 hedge funds tracked by Insider Monkey had investments in Stanley Black & Decker, Inc. (NYSE:SWK), worth nearly $497 million. Greenhaven Associates was the company’s leading stakeholder in Q2, owning stakes worth over $138.5 million.
Stanley Black & Decker, Inc. (NYSE:SWK) is one of the most prominent holdings of Tudor Investments, just like CME Group Inc. (NASDAQ:CME), The Procter & Gamble Company (NYSE:PG), and Comcast Corporation (NASDAQ:CMCSA).
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Disclosure: None. 10 Dividend Stocks to Buy According to Billionaire Paul Tudor Jones’ Tudor Investment Corp is originally published on Insider Monkey.
