In this article, we discuss the 10 dividend stocks to buy according to Nicholas Bagnall’s Te Ahumairangi Investment Management. If you want to skip our detailed analysis of dividend investing, go directly to 5 Dividend Stocks to Buy According to Nicholas Bagnall’s Te Ahumairangi Investment Management.
Nicholas Bagnall founded Te Ahumairangi Investment Management in 2019. The investment advisory and asset management firm operates out of Wellington, New Zealand, with over $765 million in managed 13F securities. The top 10 holdings comprise 27.56% of the portfolio, with investments concentrated in utilities and telecommunications, information technology, healthcare, finance, consumer discretionary, and communications sectors. The largest holding in Te Ahumairangi Investment Management’s 13F portfolio at the end of Q2 is Apple Inc. (NASDAQ:AAPL). Bagnall’s investment firm owns 292,048 shares in Apple Inc. (NASDAQ:AAPL), valued at $39.99 million, representing 5.22% of the investment portfolio.
Nicholas Bagnall is especially interested in dividend investing, as evident by his portfolio, which is dominated by dividend stocks. Dividend investing is a profitable and exciting investment practice for novice and professional investors alike. Dividend stocks are often known to outperform markets, and they serve as a passive income source for investors.
Photo by Sharon McCutcheon on Unsplash
Our Methodology
With this context in mind, let’s discuss 10 dividend stocks to buy according to Nicholas Bagnall’s Te Ahumairangi Investment Management. We chose high yield stocks. The stocks are ranked according to their dividend yield. We have also mentioned the value of each holding in Bagnall’s 13F portfolio, as well as the number of hedge fund holders.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Dividend Stocks to Buy According to Nicholas Bagnall’s Te Ahumairangi Investment Management
10. LyondellBasell Industries N.V. (NYSE:LYB)
LyondellBasell Industries N.V. (NYSE:LYB) is a Dutch company with headquarters in the US and offices in London, and it is the biggest licensor of polyethylene and polypropylene technologies.
At the end of June, 41 hedge funds tracked by Insider Monkey were bullish on LyondellBasell Industries N.V. (NYSE:LYB), down from 47 in the previous quarter.
On October 12, Mizuho analyst Christopher Parkinson set a price target of $125 on LyondellBasell Industries N.V. (NYSE:LYB), keeping a Buy rating on the stock.
LyondellBasell Industries N.V. (NYSE:LYB) is a smart dividend stock to invest in according to Bagnall, much like Apple Inc. (NASDAQ:AAPL), Verizon Communications Inc. (NYSE:VZ), International Business Machines Corporation (NYSE:IBM) and Exxon Mobil Corporation (NYSE:XOM).
9. Verizon Communications Inc. (NYSE:VZ)
Verizon Communications Inc. (NYSE:VZ) is the third largest holding in Te Ahumairangi Investment Management’s Q2 portfolio, with the investment firm owning 453,003 shares in the company, worth $25.38 million.
At the end of Q2, 63 hedge funds were long Verizon Communications Inc. (NYSE:VZ), down from 69 in Q1.
Cowen analyst Colby Synesael kept an Outperform rating on Verizon Communications Inc. (NYSE:VZ) on October 21, raising the price target to $71 from $68.
Miller/Howard Investments mentioned Verizon Communications Inc. (NYSE:VZ) in their Q1 2021 investor letter. Here is what they said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
8. AbbVie Inc. (NYSE:ABBV)
The next dividend stock to purchase according to Nicholas Bagnall’s Te Ahumairangi Investment Management is AbbVie Inc. (NYSE:ABBV), an American biopharmaceutical company offering innovative medicines, clinical trials, and exploring the realm of medicine via in-depth research. The company has several approved medicines and products, 75% of which are originally formulated by AbbVie Inc. (NYSE:ABBV).
82 hedge funds were long AbbVie Inc. (NYSE:ABBV) at the end of Q2, up from 72 in the previous quarter.
7. International Business Machines Corporation (NYSE:IBM)
International Business Machines Corporation (NYSE:IBM) is an American multinational tech mega-corporation based in New York, specializing in computer hardware, software, hosting, and consulting services. International Business Machines Corporation (NYSE:IBM) is a major research organization as well, holding a record number of patents on its inventions.
Te Ahumairangi Investment Management owns 63,281 shares in International Business Machines Corporation (NYSE:IBM), amounting to $9.27 million, representing 1.21% of the firm’s 13F portfolio at the end of Q2.
6. TC Energy Corporation (NASDAQ:TRP)
TC Energy Corporation (NASDAQ:TRP) is a North American energy corporation, based in Canada. The company provides energy infrastructure across Canada, the US, and Mexico.
Te Ahumairangi Investment Management owns stakes worth $1.73 million in TC Energy Corporation (NASDAQ:TRP) as of the end of June.
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Disclosure. None. 10 Dividend Stocks to Buy According to Nicholas Bagnall’s Te Ahumairangi Investment Management is originally published on Insider Monkey.
