In this piece, we will take a look at the 10 dividend stocks to buy according to Phil Stone’s Fourthstone LLC. If you want to skip over to the top five stocks in this list, then head on to 5 Dividend Stocks to Buy According to Phil Stone’s Fourthstone LLC.
Fourthstone LLC is an investment firm based out of St. Louis, Missouri, United States. It was founded by Mr. Phil Stone in 2013. The investment firm specializes in investing in banks and thrifts among other select investments. The executive keeps a private profile, and little is known about him except that he received his Chartered Financial Analyst (CFA) qualification from the CFA Institute in 2003.
His investment firm’s holdings are limited almost exclusively to the banking sector, and by the end of the third quarter of this year, Fourthstone’s portfolio was valued at a quarter of a million dollars, or at $251 million. The firm markets itself as managing the investments of high net worth individuals, families, and other funds and institutions.
Today’s piece will be focused on identifying the stocks in Fourthstone’s portfolio that have the highest dividend yields.
Fourthstone LLC’s largest holdings are in Colony Bankcorp, Inc. (NASDAQ:CBAN), Shore Bancshares, Inc. (NASDAQ:SHBI), and The Community Financial Corporation (NASDAQ:TCFC). Cumulatively, the top three holdings represent a little over a quarter or roughly 26% of the fund’s $251 million portfolio.
Our Methodology
In order to gain insight into the workings of Mr. Stone’s mind, we sifted through Fourthstone LLC’s 13-F filings for the third quarter of this year. This enabled us to pick out the fund’s top dividend investments. These firms were then studied in detail, by taking a look at their earnings reports, analyst coverage, investor letters, large shareholders and other hedge fund investments gleaned through Insider Monkey’s survey of 867 funds for Q3 2021.
Dividend Stocks to Buy According to Phil Stone’s Fourthstone LLC
10. Shore Bancshares, Inc. (NASDAQ:SHBI)
Dividend Yield: 2.45%
Number of Hedge Fund Holders: 10
Shore Bancshares, Inc. (NASDAQ:SHBI) is a holding company for the American Shore Bank, which is headquartered in Maryland, United States. It provides services such as checking, savings, and other kinds of accounts alongside deposit certificates and loans. Additionally, the bank also allows its customers to take out lines of credit, both secured and unsecured loans, construction loans, letters of credit, and working capital loans.
Shore Bancshares, Inc. (NASDAQ:SHBI)’s dividend yield as of its latest financial quarter is 2.45%. 10 of the 867 hedge funds polled by Insider Monkey for Q3 2021 had holdings in the company.
Mr. Stone’s Fourthstone LLC held 1.1 million Shore Bancshares, Inc. (NASDAQ:SHBI) shares as Q3 2021 ended. These were worth $20.8 million and made up 8.27% of its portfolio.
For its third fiscal quarter. Shore Bancshares, Inc. (NASDAQ:SHBI) earned $18.5 million in revenue and $0.39 in GAAP EPS, beating analyst estimates for revenue only. Piper Sandler increased its price target to $22 from $15 in November 2021, outlining that a recent acquisition should improve profitability.
Shore Bancshares, Inc. (NASDAQ:SHBI) largest investor after Fourthstone LLC is Jim Simons’s Renaissance Technologies who owns 315,637 shares worth $5.5 million.
Shore Bancshares, Inc. (NASDAQ:SHBI) joins Colony Bankcorp, Inc. (NASDAQ:CBAN) and The Community Financial Corporation (NASDAQ:TCFC) as one of Mr. Stone’s top stock holdings.
9. First Business Financial Services, Inc. (NASDAQ:FBIZ)
Dividend Yield: 2.52%
Number of Hedge Fund Holders: 9
First Business Financial Services, Inc. (NASDAQ:FBIZ) is a holding company for the First Business Bank. This bank provides commercial products for businesses and other organizations, alongside catering to the needs of high net worth individuals. Some of the accounts that the bank provides include interest bearing accounts, non-interest-bearing transaction accounts, deposit certificates, and money accounts. The First Business Bank also offers its services to other financial and companies. These services include accounts receivable financing, equipment financing, investment management, portfolio administration and more.
First Business Financial Services, Inc. (NASDAQ:FBIZ) had a dividend yield of 2.52% as of its third quarter. For its Q3, the company reported $28 million in revenue and $1.07 in GAAP EPS, beating analyst estimates for both.
Fourthstone LLC owned 187,342 First Business Financial Services, Inc. (NASDAQ:FBIZ) shares as of Q3 2021. Their monetary value was $5 million, which represented 2.13% of the firm’s portfolio.
Keefe Bruyette raised First Business Financial Services, Inc. (NASDAQ:FBIZ)’s price target to $26 from $23 in January this year, outlining that the company has a positive growth outlook.
Jim Simons’s Renaissance Technologies is First Business Financial Services, Inc. (NASDAQ:FBIZ)’s the largest shareholder. It owns 247,106 shares worth $7 million. Out of the 867 hedge funds polled by Insider Monkey for the third quarter of this year, 9 had holdings in the company.
8. Blue Ridge Bankshares, Inc. (NYSE:BRBS)
Dividend Yield: 2.68%
Number of Hedge Fund Holders: 5
Blue Ridge Bankshares, Inc. (NYSE:BRBS) is a holding company for the Blue Ridge Bank, National Association. This bank caters to the needs of both commercial and private customers. It provides services such as loans, accounts, and deposit certificates. It is headquartered in Charlottesville, Virginia, and offers mortgages, wire services, deposit services, mobile banking, telephone banking, personal loans which are both secured and unsecured, along with payroll processing and electronic statement services.
Blue Ridge Bankshares, Inc. (NYSE:BRBS) latest dividend yield is 2.68%. Out of the 867 hedge funds polled by Insider Monkey for Q3 2021, 5 had holdings in the company.
During Q3 2021, Mr. Stone’s Fourthstone LLC held 895,849 Blue Ridge Bankshares, Inc. (NYSE:BRBS) shares worth $15 million and constituting 6.26% of its portfolio.
For its third quarter, Blue Ridge Bankshares, Inc. (NYSE:BRBS) reported $34 million in revenue and $0.36 in GAAP EPS.
Blue Ridge Bankshares, Inc. (NYSE:BRBS) largest investor following Fourthstone LLC is Jeffrey Gendell’s Tontine Asset Management who owns 356,694 shares worth $6 million.
7. Codorus Valley Bancorp, Inc. (NASDAQ:CVLY)
Dividend Yield: 2.76%
Number of Hedge Fund Holders: 8
Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) is the holding company for the PeoplesBank that is headquartered in York, Pennsylvania, United States. The bank provides commercial loans to several industries, and it also accepts deposits alongside providing mortgages and wealth management services. Some of the industries it operates in include residential investing, building and development industries, the hospitality sectors, agriculture, and manufacturing alongside wholesale and retailing.
Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) earned $20 million in revenue and $0.49 in GAAP EPS for its third quarter. Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) dividend yield stood at 2.76% as of its latest quarter. As Q3 2021 came to an end, 8 of the 867 hedge funds polled by Insider Monkey had held the company’s stock.
Mr. Stone’s investment firm held 715,283 Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) shares during Q3 2021. These were worth $16 million and represented 6.4% of its holdings.
Codorus Valley Bancorp, Inc. (NASDAQ:CVLY)’s largest investor after Mr. Stone’s investment firm is Robert I. Usdan and Wayne K. Goldstein’s Endicott Management who holds 268,605 shares which are worth $6 million.
6. Summit Financial Group, Inc. (NADAQ:SMMF)
Dividend Yield: 2.82%
Number of Hedge Fund Holders: 4
Summit Financial Group, Inc. (NADAQ:SMMF) is the holding company for the Summit Community Bank, which operates in Virginia and Kentucky, United States. Some of the products that it provides include demand, savings, and time deposits for customers. Summit Community Bank also engages the commercial real estate and land development industries, alongside having its toes in mortgage, wealth management, and cash management services.
Fourthstone LLC owned 261,298 Summit Financial Group, Inc. (NADAQ:SMMF) shares as of Q3 2021, which were worth $6.4 million. They represented 2.54% of the firm’s portfolio.
Summit Financial Group, Inc. (NADAQ:SMMF) has a dividend yield of 2.82%. It brought in $32.6 million through revenue and $0.92 in GAAP EPS for its third fiscal quarter. Summit Financial Group, Inc. (NADAQ:SMMF)’s price target was increased to $26 from an earlier value of $25 by Piper Sandler in a July 2021 analyst note. This note outlined that after the company’s second-quarter results, Piper Sandler had increased its valuation and that the share price offered a compelling value proposition.
Summit Financial Group, Inc. (NADAQ:SMMF)’s the largest investor after Fourthstone is Jim Simons’s Renaissance Technologies. It owns 241,882 shares worth $5.9 million. 4 of the 867 hedge funds polled by Insider Monkey had holdings in the company during Q3 2021.
Summit Financial Group, Inc. (NADAQ:SMMF) joins Mr. Stone’s list of hot stocks, alongside Shore Bancshares, Inc. (NASDAQ:SHBI), Colony Bankcorp, Inc. (NASDAQ:CBAN) and The Community Financial Corporation (NASDAQ:TCFC).
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Disclosure. None. 10 Dividend Stocks to Buy According to Phil Stone’s Fourthstone LLC is originally published on Insider Monkey.
