In this article, we discuss 10 dividend stocks to buy according to Bryan Hinmon’s Motley Fool Asset Management. You can skip our detailed analysis of the hedge fund’s past performance and its recent developments, and go directly to read 5 Dividend Stocks to Buy According to Bryan Hinmon’s Motley Fool Asset Management.
Motley Fool Asset Management (MFAM) is a research-driven asset management firm, founded in 2009 by a financial services company, The Motley Fool. The hedge fund focuses on business economics and the long-term growth of the companies it invests in. Moreover, the fund carries exhaustive examinations of potential investment candidates. Since 2017, Bryan Hinmon is serving as the Chief Investment Officer of the firm and is in charge of leading the investment team and managing client assets.
At the end of 2021, MFAM announced the rebranding of its business, converting its mutual funds into exchange-traded funds (ETFs). The management asserted that ETFs are more profitable and shareholder-friendly in the current environment, as compared to mutual funds. On December 31, the hedge fund launched two new ETFs that track the performance of stocks belonging to small- and mid-cap US companies in The Motley Fool recommendation universe. The firm’s ETFs are traded on the secondary market and can be bought through professional brokerage accounts. Hinmon’s investment strategies helped his hedge fund to achieve profitable returns for the shareholders. The Motley Fool 100 ETF, which tracks the 100 largest domestic companies, gained 14.28% in 2021 and returned 24.59% on average in the past three years. Moreover, its Global Opportunities ETF returned 14.02% in the past three years.
As of the end of Q1 2022, MFAM holds a 13F portfolio value of $1.36 billion, down from $1.56 billion in the previous quarter. The hedge fund’s major investments were in the tech and services sectors, with Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG) taking up the first three spots in the portfolio.
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Our Methodology:
In this article, we discuss 10 dividend stocks to buy in Bryan Hinmon’s portfolio. We compiled this list by using data from Motley Fool Asset Management’s 13F portfolio as of Q1 2022.
10 Dividend Stocks to Buy According to Bryan Hinmon’s Motley Fool Asset Management
10. The Home Depot, Inc. (NYSE:HD)
Motley Fool Asset Management’s Stake Value: $8,444,000
Dividend Yield as of June 17: 2.77%
Number of Hedge Fund Holders: 75
The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in the US that provides renovation-related products and services to its consumers. On June 13, it was added to BofA’s list of 10 stocks that should benefit from the transforming world, as the renovation activity is increasing in the US after the pandemic.
In Q1 2022, The Home Depot, Inc. (NYSE:HD) posted an EPS of $4.09, beating estimates by $0.39. The company’s comparable sales for the quarter also increased by 2.2% from the same period last year. Following the company’s solid quarterly earnings, Citigroup raised its price target on The Home Depot, Inc. (NYSE:HD) in May to $348, with a Buy rating on the shares. In addition to HD, analysts are also hopeful about major tech stocks, such as Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), despite their negative returns in 2022.
Motley Fool has been investing in The Home Depot, Inc. (NYSE:HD) since 2018, starting its position with shares worth over $1.8 million. At the end of Q1 2022, the hedge fund owned 28,209 HD shares, valued at over $8.4 million. The firm increased its stake in the company by 5% during the quarter, which represented 0.61% of Bryan Hinmon’s portfolio.
On May 19, The Home Depot, Inc. (NYSE:HD) declared a quarterly dividend of $1.90 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 14 years. As of June 17, the stock’s dividend yield was 2.77%.
At the end of Q1 2022, 75 hedge funds presented a bullish stance on The Home Depot, Inc. (NYSE:HD), up from 68 in the previous quarter. These stakes hold a consolidated value of nearly $5.6 billion. Among these hedge funds, Fisher Asset Management held the largest stake in the company in Q1, valued at over $2.4 billion.
Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
9. Comcast Corporation (NASDAQ:CMCSA)
Motley Fool Asset Management’s Stake Value: $10,312,000
Dividend Yield as of June 17: 2.79%
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company that provides high-speed internet and phone services to its consumers. In the first quarter of 2022, the company saw an 8% year-over-year growth in its broadband revenue to $6.05 billion, as the number of residential broadband customers grew during the quarter.
On May 10, Comcast Corporation (NASDAQ:CMCSA) announced a quarterly dividend of $0.27 per share. The company holds a 14-year streak of dividend growth. Moreover, the company paid $1.2 billion in dividend payments during the quarter. On June 17, the stock’s dividend yield was recorded at 2.79%. In June, Benchmark lowered its price target on Comcast Corporation (NASDAQ:CMCSA) to $60 due to the unstable market conditions but kept a Buy rating on the shares.
Motley Fool resumed its position in Comcast Corporation (NASDAQ:CMCSA) during the third quarter of 2021, after selling off its entire CMCSA shares a quarter earlier. At the end of Q1 2022, the hedge fund owned 220,250 shares in the company, valued at over $10.3 million. The company made up 0.75% of Bryan Hinmon’s portfolio.
According to Insider Monkey’s Q1 2022 data, 78 hedge funds reported owning stakes in Comcast Corporation (NASDAQ:CMCSA), declining from 80 in the previous quarter. The collective value of these stakes is over $7.12 billion.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm has 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.”
8. Johnson & Johnson (NYSE:JNJ)
Motley Fool Asset Management’s Stake Value: $12,324,000
Dividend Yield as of June 17: 2.67%
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is one of the top Big Pharma companies, specializing in pharmaceuticals, consumer products, and medical devices. In Q1 2022, the company reported a 6.3% year-over-year growth in its pharmaceutical sales to $12.8 billion, while its consumer health revenue stood at $3.58 billion.
In May, SVB Leerink initiated its coverage of Johnson & Johnson (NYSE:JNJ) with an Outperform rating and a $200 price target. The firm appreciated the company’s consistent earnings growth and expects its medical device sales to grow in the upcoming years. On April 19, Johnson & Johnson (NYSE:JNJ) declared a quarterly dividend of $1.13 per share, up from $1.06 per share previously. This was the company’s 60th consecutive year of dividend growth. The stock’s dividend yield was recorded at 2.67% on June 17.
In Q1 2022, Arrowstreet Capital owned over 6.6 million shares in Johnson & Johnson (NYSE:JNJ), valued at $1.17 billion, becoming the company’s largest stakeholder. In addition to this, 83 elite funds tracked by Insider Monkey were bullish on the company in Q1, the same as in the previous quarter. These stakes hold a consolidated value of over $7.4 billion.
During Q1 2022, Motley Fool piled up another $664,000 in Johnson & Johnson (NYSE:JNJ), taking its total stake to $12.3 million. The company accounted for 0.9% of Bryan Hinmon’s portfolio.
Distillate Capital, an investment firm, discussed Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund said:
“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.”
7. American Tower Corporation (NYSE:AMT)
Motley Fool Asset Management’s Stake Value: $13,445,000
Dividend Yield as of June 17: 2.42%
Number of Hedge Fund Holders: 50
American Tower Corporation (NYSE:AMT) is a Boston-based real estate investment trust that specializes in broadcast communications infrastructure around the globe. At the end of Q1 2022, Motley Fool owned $13.4 million worth of stakes in the company, which accounted for 0.98% of Bryan Hinmon’s portfolio. The hedge fund trimmed its position in the company by 6% during the quarter.
In Q1 2022, American Tower Corporation (NYSE:AMT) delivered solid quarterly earnings, posting an FFO of $2.55, which exceeded analysts’ expectations by $0.07. The company’s gross revenue amounted to $2.66 billion, up 23.1% from the same period last year and beating consensus by $50 million. Moreover, its property revenue also grew by 7.7% to $703 million.
In June, BofA mentioned American Tower Corporation (NYSE:AMT) in its investors’ note, appreciating the company’s investment in its data center business. The firm expects AMT shares to gain in the coming months and resumed its coverage on the stock with a Buy rating and a $315 price target. On May 19, American Tower Corporation (NYSE:AMT) announced a 2% hike in its quarterly dividend to $1.43 per share. The stock’s dividend yield was recorded at 2.42% on June 17.
As per Insider Monkey’s database, 50 hedge funds owned stakes in American Tower Corporation (NYSE:AMT) in Q1, down from 53 in the previous quarter. These stakes hold a combined value of over $4.1 billion. Akre Capital Management held the largest position in the company in Q1, with stakes valued at over $1.75 billion.
6. Brown & Brown, Inc. (NYSE:BRO)
Motley Fool Asset Management’s Stake Value: $13,759,000
Dividend Yield as of June 17: 0.77%
Number of Hedge Fund Holders: 24
Brown & Brown, Inc. (NYSE:BRO) is an independent insurance brokerage that provides risk management solutions to its consumers. The company also offers customized insurance plans to general businesses and individual customers. In Q1 2022, the company reported strong results, posting an EPS of $0.78 and revenue of $904.7 million, which beat estimates by $0.03 and $11.99 million, respectively.
In April, Truist appreciated Brown & Brown, Inc. (NYSE:BRO) for sustaining its Property & Casualty insurance and commissions. The firm lifted its price target on the stock to $82, with a Buy rating on the shares. In 2022, Brown & Brown, Inc. (NYSE:BRO) was added to S&P 500 Dividend Aristocrats for raising its dividends for the past 28 years consecutively. The company offers a quarterly payout of $0.1025 per share, with a dividend yield of 0.77%, as of June 17.
Motley Fool started buying shares of Brown & Brown, Inc. (NYSE:BRO) during the third quarter of 2020. At the end of Q1 2022, the hedge fund held 190,380 BRO shares, valued at over $13.7 million. The company constituted 1% of Bryan Hinmon’s portfolio. Like BRO, Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG) are also prominent holdings of the hedge fund in Q1.
According to Insider Monkey’s database, 24 hedge funds reported owning stakes in Brown & Brown, Inc. (NYSE:BRO), compared with 25 a quarter earlier. These stakes hold a consolidated value of over $1.46 billion. Among these funds, Select Equity Group owned the largest position in the Florida-based company, with stakes valued at $1.33 billion.
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Disclosure. None. 10 Dividend Stocks to Buy According to Bryan Hinmon’s Motley Fool Asset Management is originally published on Insider Monkey.
