In this article, we will discuss 10 dividend stocks to buy according to Christian Leone’s Luxor Capital. If you want to skip our detailed analysis of Leone’s history, investment philosophy performance, you can go directly to 5 Dividend Stocks to Buy According to Christian Leone’s Luxor Capital.
Christian Leone is the CEO and founder of Luxor Capital Group. Leone also worked as an Analyst at Goldman Sachs, which he considers to be a significant learning experience of his career. Leone is also a Board member of VOI Technology. Christian Leone founded Luxor Capital as an equity and fixed income hedge fund. It is based in New York, has 53 employees, and operates in several countries across the globe.
According to the third-quarter 13F filings, Luxor Capital has $11.18 billion in managed 13F securities and $11.88 billion in assets under management. Moreover, the fund has bought 50 new stocks in the third quarter and made additional purchases in 16 stocks. Luxor Capital also sold out of 35 stocks and reduced holdings in 43 stocks.
Amazon.com, Inc.’s (NASDAQ:AMZN), Builders FirstSource, Inc. (NYSE:BLDR), and Carvana Co. (NYSE:CVNA) are some of the most notable names in Luxor Capital’s portfolio.
Christian Leone of Luxor Capital Group
Our Methodology
Let us now discuss our list of the 10 dividend stocks to buy according to Christian Leone’s Luxor Capital. These stocks were taken from Luxor Capital’s third-quarter 2021 13F portfolio.
10 Dividend Stocks to Buy According to Christian Leone’s Luxor Capital
10. Global Payments Inc. (NYSE:GPN)
Luxor Capital’s Stake Value: $2.78 million
Percentage of Luxor Capital’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 68
Div. Yield: 0.73%
Global Payments Inc. (NYSE:GPN) is an American payment processing company. The company made it to Fortune 500 list in 2021, ranked at no. 394. Global Payments Inc. (NYSE:GPN) operates in 100 countries and processes more than 50 billion transactions each year.
Here is what Atisan Partners had to say about Global Payments Inc. (NYSE:GPN) in its third-quarter 2021 investor letter:
“Global Payments Inc. (NYSE:GPN) has delivered solid results so far this year and recently revised its 2021 outlook upward. However, shares have been pressured as investors weigh the competitive threat from faster growing emerging payments companies. We have spent significant time contemplating this risk, and given our belief the company will not completely thwart the competition, we trimmed our position size. That said, we still believe Global Payments Inc. (NYSE:GPN) belongs in the CropSM of our portfolio. The company has long been shifting its business away from legacy payments technology toward durable growth areas such as software and omnichannel commerce. Furthermore, it is making substantial cloud investments in partnership with Google and Amazon Web Services to future-proof its underlying technology stack. These decisions lead us to believe management’s targets (~10% revenue growth, ~20% EPS growth) remain achievable and should lead to solid stock returns over the longer term.”
9. Sonic Automotive, Inc. (NYSE:SAH)
Luxor Capital’s Stake Value: $3.15 million
Percentage of Luxor Capital’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 26
Div. Yield: 1.92%
Sonic Automotive, Inc. (NYSE:SAH) is the fifth-largest automotive retailer of the U.S. The company has more than 100 dealerships across 14 states. It also offers vehicle maintenance and post-collision repair services.
According to our database, in the third-quarter of 2021, 26 hedge funds were bullish on Sonic Automotive, Inc. (NYSE:SAH). Among those funds, Luxor Capital owned 60,000 shares of the company worth $3.15 million, representing 0.02% of the fund’s portfolio.
8. iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF)
Luxor Capital’s Stake Value: $8.009 million
Percentage of Luxor Capital’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 7
Div. Yield: 0.85%
iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) was launched by BlackRock, Inc. (NYSE:BLK) and is one of the largest exchange-traded funds in the world. The fund invests in fixed income markets. The fund’s last dividend payout was made on December 22, 2021, in the amount of $0.1059 per share with a dividend yield of 0.85%.
In the third quarter of 2021, Luxor Capital decreased its investment in iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) by 93% and owned just 36,614 shares of the fund worth $8.009 million, making up 0.07% of the fund’s portfolio.
7. Jefferies Financial Group Inc. (NYSE:JEF)
Luxor Capital’s Stake Value: $25.83 million
Percentage of Luxor Capital’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 37
Div. Yield: 3.28%
Jefferies Financial Group Inc. (NYSE:JEF) is a New York-based financial services company formerly known as Leucadia National Corporation. Apart from financial services, the company holds shares in a few oil and gas exploration and development companies. Moreover, Jefferies Financial Group Inc. (NYSE:JEF) also has holdings in the automobile industry and a gold and silver mining project.
On January 12 2022, Jefferies Financial Group Inc.’s (NYSE:JEF) Board of Directors announced a 30c increase in the company’s quarterly dividend. The payout is expected to be on February 25, 2022.
Jefferies Financial Group Inc.’s (NYSE:JEF) coverage was initiated by Morgan Stanley analyst Manan Gosalia on December 16. The analyst gave an Equal Weight rating on the company’s shares with a $40 price target.
Jefferies Financial Group Inc. (NYSE:JEF) was mentioned by GoodHaven Funds in its second-quarter 2021 investor letter. Here is what the firm said:
“Jefferies Financial Group Inc. (NYSE:JEF) was our next biggest dollar gainer in the period, yet also remains undervalued in our opinion. We are running out of accolades to describe the string of great results at Jefferies. In their just reported six-month period, the core business earned over 35% return on tangible equity (ROTE) and more than doubled pre-tax income versus the prior year’s six months. Book value and tangible book value/share are now $40.77 and $30.29 respectively. Students of capital allocation should study Rich Handler. Over the last three years, Jefferies has repurchased 123 million shares for $2.6 billion at an average price of $21.04/share. Astute repurchases materially benefit remaining owners. While it’s reasonable to expect some normalization of Jefferies recent great results, Jefferies Financial Group Inc. (NYSE:JEF) has gained market share in its core business and has a culture adept at finding new niches to earn good returns, while helping clients, and when existing niches become less profitable. Even if a more normalized ROTE is in store, we think that level will be materially higher than it has been in the recent past.”
6. Cheniere Energy, Inc. (NYSE:LNG)
Luxor Capital’s Stake Value: $26.109 million
Percentage of Luxor Capital’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 49
Div. Yield: 1.14%
Cheniere Energy, Inc. (NYSE:LNG) is a Texas-based liquified natural gas company. It became the first company in the United States to import LNG in 2016. In 2018, the company signed a $25 billion deal with Taiwan-based CPC Corporation to supply liquified natural gas to Taiwan for 25 years.
On January 3, an independent director of Cheniere Energy, Inc. (NYSE:LNG), Vicky A Bailey, sold 2501 shares of the company for approximately $102.35 per share. Bailey’s remaining holdings in the company are now 35,503 shares worth roughly $4 million.
In the third quarter of 2021, 49 out of 867 hedge funds tracked by Insider Monkey were bullish towards Cheniere Energy, Inc. (NYSE:LNG). The most significant stake was held by Icahn Capital LP with 16.17 million shares worth $1.58 billion.
With Amazon.com, Inc. (NASDAQ:AMZN), Builders FirstSource, Inc. (NYSE:BLDR), and Carvana Co. (NYSE:CVNA), Cheniere Energy, Inc. (NYSE:LNG) is also one of the noteworthy companies in Luxor Capital’s portfolio.
Cheniere Energy, Inc. (NYSE:LNG) was mentioned by ClearBridge Investments in its third-quarter 2021 investor letter. Here are the contents of the letter:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
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Disclosure. None. 10 Dividend Stocks to Buy According to Christian Leone’s Luxor Capital is originally published on Insider Monkey.
