In this article, we discuss 10 dividend stocks to buy according to Stuart Zimmer’s Zimmer Partners. If you want to skip our detailed analysis of Zimmer’s history, investment philosophy, and hedge fund performance, as well as the first five stocks on our list, go directly to 5 Dividend Stocks to Buy According to Stuart Zimmer’s Zimmer Partners.
Stuart Zimmer, a former co-founder of Zimmer Lucas alongside Craig Lucas, formed Zimmer Partners, a New York-based hedge fund, in Q3 of 2012. Currently, Stuart Zimmer is the hedge fund’s portfolio manager and chief executive officer. In addition, he has worked as a research analyst at Steinhardt Partners, where he specialized in energy assets, such as electric and gas utilities.
The hedge fund had exposure to the communications, energy, utilities, consumer discretionary, information technology, transport, real estate, and finance sectors. It makes significant investments in dividend-paying firms. The dividend income method of Zimmer Partners attempts to invest in companies that pay dividends and which have a promising future. The hedge fund invests in equities from both emerging and established economies, taking financial health, management quality, and profits growth into account.
As of Q4 2021, Zimmer Partners holds a 13F portfolio valued at $6.70 billion, up from $6.35 billion in the previous quarter. Some of the hedge fund’s significant holdings in the fourth quarter were The Southern Company (NYSE:SO), Comcast Corporation (NASDAQ:CMCSA), and Cheniere Energy, Inc. (NYSE:LNG).
Zimmer Partners owns 2 million shares in The Southern Company (NYSE:SO) valued at $137.16 million as of December 31, according to its 13F holdings for the fourth quarter of 2021. On January 14, The Southern Company (NYSE:SO) declared a quarterly dividend of $0.66 per share, in line with the previous payout.
Stuart Zimmer of Zimmer Partners
Stuart Zimmer is bullish on Comcast Corporation (NASDAQ:CMCSA) according to his hedge fund’s disclosed holdings data as of the end of the fourth quarter of 2021. The fund increased its holding in Comcast Corporation (NASDAQ:CMCSA) by 67% in the fourth quarter, ending the period with 1.25 million shares of the company. On January 27, Comcast Corporation (NASDAQ:CMCSA) announced a $0.27 per share quarterly dividend, an increase of 8% over the previous distribution of $0.25.
Another notable dividend-paying stock in Stuart Zimmer’s portfolio is Cheniere Energy, Inc. (NYSE:LNG). On March 14, Barclays analyst Marc Solecitto boosted Cheniere Energy, Inc. (NYSE:LNG)’s price target to $160 from $131 and maintained an ‘Overweight’ rating.
Our Methodology:
This article will focus on 10 dividend stocks to buy according to Stuart Zimmer’s Zimmer Partners, which have been ranked in order of their dividend yield. For this analysis, we used the hedge fund’s 13F portfolio holdings as of Q4 2021. Insider Monkey’s database of 900+ hedge funds that filed 13Fs for the fourth quarter of 2021 was used to provide the overall hedge fund data.
Dividend Stocks to Buy According to Stuart Zimmer’s Zimmer Partners
10. Algonquin Power & Utilities Corp. (NYSE:AQN)
Zimmer Partners’ Stake Value: $5,699,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 16
Dividend Yield: 4.40%
Algonquin Power & Utilities Corp. (NYSE:AQN) is a utility business that provides various services. On March 4, Algonquin Power & Utilities Corp. (NYSE:AQN) declared a quarterly dividend of $0.1706 per share, in line with the previous. As a result, the dividend yield of the company’s shares was 4.40% as of April 1.
On March 4, Algonquin Power & Utilities Corp. (NYSE:AQN) reported earnings per share of $0.21 for Q4, in line with estimates. The firm’s quarterly revenue was up 20.8% from the prior-year quarter, amounting to $594.8 million, beating estimates by $73.25 million.
Ken Griffin’s Citadel Investment Group is the leading shareholder of Algonquin Power & Utilities Corp. (NYSE:AQN) with a $56.53 million stake in the company. In addition, 16 hedge funds held stakes in Algonquin Power & Utilities Corp. (NYSE:AQN) in the fourth quarter of 2021, worth $141.90 million, up from 15 funds in the preceding quarter, holding stakes in Algonquin Power & Utilities Corp. (NYSE:AQN) equaling $152.65 million.
Southern Company (NYSE:SO), Comcast Corporation (NASDAQ:CMCSA), and Cheniere Energy, Inc. (NYSE:LNG) are met by Algonquin Power & Utilities Corp. (NYSE:AQN) on the list of Stuart Zimmer’s top dividend stock picks.
9. Healthcare Realty Trust Incorporated (NYSE:HR)
Zimmer Partners’ Stake Value: $8,701,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 21
Dividend Yield: 4.51%
Healthcare Realty Trust Incorporated (NYSE:HR) is an REIT that invests in healthcare facilities. Healthcare Realty Trust Incorporated (NYSE:HR) issued a quarterly dividend of $0.325 per share on February 28, an increase of 4.8% from the previous payout of $0.310. The company has been paying dividends consistently since 1993.
At the end of the fourth quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $150.10 million in Healthcare Realty Trust Incorporated (NYSE:HR), up from 18 during the preceding quarter, though those stakes were worth $210.91 million.
Stifel analyst Stephen Manaker downgraded Healthcare Realty Trust Incorporated (NYSE:HR) from ‘Buy’ to ‘Hold’ with a $30 price objective, down from $38, after the business completed its strategic alternatives process by agreeing to a sale to Healthcare Realty Trust.
Israel Englander’s Millennium Management is the leading Healthcare Realty Trust Incorporated (NYSE:HR) stakeholder as of the fourth quarter of 2021, owning 1.11 million shares amounting to $35.22 million.
8. DT Midstream, Inc. (NYSE:DTM)
Zimmer Partners’ Stake Value: $191,998,000
Percentage of Zimmer Partners’ 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 17
Dividend Yield: 4.72%
DT Midstream, Inc. (NYSE:DTM) is a natural gas pipeline and collecting system owner, operator, and developer. On February 25, DT Midstream, Inc. (NYSE:DTM) announced a 6.7% increase in its quarterly dividend to $0.64 per share.
Zimmer Partners owned 4 million DT Midstream, Inc. (NYSE:DTM) shares by the end of the fourth quarter of 2021, translating into a $192 million stake. The hedge fund increased its stake in DT Midstream, Inc. (NYSE:DTM) by 29% in the fourth quarter. DT Midstream, Inc. (NYSE:DTM) recently saw a drop in hedge fund sentiment. The number of long hedge fund holdings fell to 17 at the end of the fourth quarter, compared to 22 the previous quarter.
Spiro Dounis of Credit Suisse recently lowered the firm’s rating on DT Midstream, Inc. (NYSE:DTM) from ‘Outperform’ to ‘Neutral’ with a price target of $58, up from $55. Given the stock’s recent outperformance, the analyst highlighted valuation as the reason for the downgrade.
7. National Retail Properties, Inc. (NYSE:NNN)
Zimmer Partners’ Stake Value: $74,509,000
Percentage of Zimmer Partners’ 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 16
Dividend Yield: 4.72%
National Retail Properties, Inc. (NYSE:NNN) is a real estate investment trust that invests in leased properties for lengthy periods. National Retail Properties, Inc. (NYSE:NNN)’s largest investor is Zimmer Partners. It owns 1.55 million shares of the company, valued at $74.51 million. The hedge fund initiated a new stake in National Retail Properties, Inc. (NYSE:NNN) in the fourth quarter of 2021.
National Retail Properties, Inc. (NYSE:NNN) has also paid a dividend every year for the past 31 years. National Retail Properties, Inc. (NYSE:NNN) issued a quarterly dividend of $0.53 per share on January 14, in line with the previous. B. Riley analyst Craig Kucera cut his price objective on National Retail Properties, Inc. (NYSE:NNN) from $55 to $50 on February 10 and kept a ‘Buy’ rating on the stock. In a research report, Kucera warned investors that rising inflation fears have resulted in a 10%+ peer multiple drop.
16 out of the 924 hedge funds in our database that filed 13Fs for the Q4 period held stakes in National Retail Properties, Inc. (NYSE:NNN) on December 31, worth $157.79 million. 21 funds held NNN stakes in the preceding quarter, totaling $120.08 million in value.
6. Western Midstream Partners, LP (NYSE:WES)
Zimmer Partners’ Stake Value: $17,729,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 10
Dividend Yield: 5.17%
Western Midstream Partners, LP (NYSE:WES) is a midstream energy asset owner, operator, acquirer, and developer. Stuart Zimmer’s Zimmer Partners first bought a stake in Western Midstream Partners, LP (NYSE:WES) in the first quarter of 2019. The hedge fund entered the fourth quarter of 2021 with 796,080 shares of Western Midstream Partners, LP (NYSE:WES) in its portfolio, worth around $17.73 million.
In the fourth quarter of 2021, Insider Monkey identified 10 hedge funds that had stakes in Western Midstream Partners, LP (NYSE:WES). These holdings were worth a total of $106.77 million. In the fourth quarter of 2021, Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital were the lead stakeholder in Western Midstream Partners, LP (NYSE:WES). The fund owns more than 2.07 million shares of stock worth $46.08 million.
Following the company’s Q4 results, Mizuho analyst Gabriel Moreen boosted his price objective on Western Midstream Partners, LP (NYSE:WES) to $31 from $28 and maintained a ‘Buy’ rating. On January 21, Western Midstream Partners, LP (NYSE:WES) increased its quarterly dividend by 1.3% to $0.327 per share. The stock’s dividend yield, as of March 31, stood at 5.17%. Western Midstream Partners, LP (NYSE:WES) has a 9-year track record of paying out dividends.
Like Southern Company (NYSE:SO), Comcast Corporation (NASDAQ:CMCSA), and Cheniere Energy, Inc. (NYSE:LNG), Western Midstream Partners, LP (NYSE:WES) is a good dividend stock to invest in.
Miller/Howard Investments, in its Q1 2021 investor letter, mentioned Western Midstream Partners, LP (NYSE:WES). Here is what the fund said:
“We increased our weight in Western Midstream Partners (WES) again this quarter, as it should benefit from higher oil prices that might lead to more drilling activity in the Permian and DJ basins.”
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Disclosure: None. 10 Dividend Stocks to Buy According to Stuart Zimmer’s Zimmer Partners is originally published on Insider Monkey.
