In this article, we will discuss 10 dividend stocks to buy now according to Kerr Neilson’s hedge fund. If you want to skip reading about dividend investing, Kerr Neilson’s investment philosophy, and his hedge fund’s past performance, you can continue to 5 Dividend Stocks to Buy Now According to Kerr Neilson’s Hedge Fund.
Kerr Neilson, also known as “Australia’s Warren Buffett”, is a billionaire investment manager and founder of Platinum Asset Management. He attended the University of Cape Town, where he majored in commerce and graduated in 1973. In 1983, he moved to Australia where he worked as an investment manager at Banker’s Trust of Australia. Mr. Neilson was ranked 34 on the 2019 Forbes list “Australia’s 50 Richest”, and as of this April, his real-time net worth is valued at $1.1 billion.
As of December 31, 2021, Kerr Neilson manages more than $3.5 billion in 13F securities through Platinum Asset Management. The fund boasts a diverse portfolio having investments across technology, materials, healthcare, financials, consumer staples, and many other sectors. The fund’s most notable stock picks include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG). However, in this piece, we will be discussing 10 dividend stocks to buy now according to Kerr Neilson’s hedge fund.
Dividend Stocks For Value Investing
Dividend stocks are a key element of every value investor’s hedge fund portfolio. In addition to being a lucrative opportunity for developing a passive income stream, dividend stocks help mitigate risk by diversifying investments across a range of sectors. According to a study by Hartford Funds, companies that have been consistent with dividend hikes have flourished in the past. Stocks of companies that offered dividends returned 10.68% on average from 1978 to 2021. On the other hand, companies that slashed dividends returned an average of -0.46% over the same period.
Our Methodology
We picked the 10 dividend stocks to buy now according to Kerr Neilson after a careful assessment of Platinum Asset Management’s fourth-quarter 2021 investment portfolio. We narrowed down our selection to stocks that offered a forward dividend yield of at least 2.0%, and then chose stocks that had the highest dividend yields. For each stock, we mentioned relevant news, its forward yield, and its dividend history.
Dividend Stocks to Buy Now According to Kerr Neilson’s Hedge Fund
10. Magellan Midstream Partners, L.P. (NYSE:MMP)
Stake Value of Platinum Asset Management: $78,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0%
Divided Yield as of April 12: 8.53%
Number of Hedge Fund Holders: 13
Magellan Midstream Partners, L.P. (NYSE:MMP) operates as an oil and gas company in the United States. This February, the company released its earnings report for the fiscal fourth quarter of 2021 in which it beat EPS and revenue estimates. The company reported earnings per share of $1.24 and beat estimates by $0.16. Moreover, it generated revenues of $809.30 million, up 38.03% year over year, and outperformed market consensus by $153.64 million.
On March 30, 2022, Mizuho analyst Gabriel Moreen raised his price target on Magellan Midstream Partners, L.P. (NYSE:MMP) to $52 from $50 and reiterated a Neutral rating on the shares following the company’s latest analyst day. The analyst commented that he sees an upside to the stock, as the demand for refined products grows in 2022. As of April 12, 2022, the stock has gained 5% over the past six months and has a forward dividend yield of 8.53%.
By the end of the fourth quarter of 2021, 13 hedge funds held stakes in Magellan Midstream Partners, L.P. (NYSE:MMP). The total value of these stakes was more than $87.3 million. This is compared to 12 positions in the prior quarter with stakes worth $92.09 million.
9. Petrobras (NYSE:PBR)
Stake Value of Platinum Asset Management: $86,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0%
Divided Yield as of April 12: 20.96%
Number of Hedge Fund Holders: 26
Petrobras (NYSE:PBR) explores for, produces, and sells oil and gas in Brazil and internationally. This April Petrobras (NYSE:PBR) announced that investors of record on April 18, 2022, will be given a dividend of $1.21 per share of common stock, up from the previous dividend of $0.38 per share, on May 23, 2022.
On February 24, 2022, Petrobras (NYSE:PBR) announced that its quarterly revenues for Q4 2021 came to $26.22 billion, outperforming market consensus by $863.61 million. The company reported earnings per share of $0.71 and beat expert estimates by $0.06.
Petrobras (NYSE:PBR) was spotted on 23 hedge fund portfolios at the close of the fourth quarter of 2021. The value of these funds’ stakes amounted to $3.76 billion, up from $3.0 billion in the preceding quarter with 23 positions. The hedge fund sentiment for Petrobras (NYSE:PBR) is positive.
Like Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG), Platinum Asset Management is bullish on Petrobras (NYSE:PBR) and holds a significant stake in the company.
8. Campbell Soup Company (NYSE:CPB)
Stake Value of Platinum Asset Management: $89,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0%
Divided Yield as of April 12: 3.23%
Number of Hedge Fund Holders: 34
Campbell Soup Company (NYSE:CPB) manufactures and markets food and beverage products in the United States and internationally. The company operates through two segments: Meals & Beverages and Snacks. This March, Campbell Soup Company (NYSE:CPB) declared a quarterly cash dividend of $0.37 per share, payable on May 2, 2022, to shareholders of record on April 7, 2022.
On March 9, 2022, Campbell Soup Company (NYSE:CPB) announced earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.69, beating estimates by $0.01, and generated quarterly revenues of $2.21 billion. Shortly after, Citi analyst Wendy Nicholson raised her price target on Campbell Soup Company (NYSE:CPB) to $46 from $45 and maintained a Neutral rating on the shares in light of the company’s second-quarter 2022 earnings.
As of April 12, 2022, Campbell Soup Company (NYSE:CPB) has gained 10.12% over the past six months, has a forward yield of 3.23%, and boasts an annual dividend payout ratio of 54.81%
The analyst and investor sentiment around Campbell Soup Company (NYSE:CPB) is positive. Insider Monkey was able to identify 34 hedge funds that were bullish on Campbell Soup Company (NYSE:CPB) at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $461.39 million, up from $443.26 million in the prior quarter with 29 positions.
7. Amgen, Inc. (NASDAQ:AMGN)
Stake Value of Platinum Asset Management: $91,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0%
Divided Yield as of April 12: 4.59%
Number of Hedge Fund Holders: 52
Amgen Inc. (NASDAQ:AMGN) develops, manufactures, and markets human therapeutics worldwide. The company focuses on the following areas: inflammation, oncology, bone health, cardiovascular disease, nephrology, and neuroscience. By the end of the fourth quarter of 2021, 52 hedge funds were long Amgen Inc. (NASDAQ:AMGN) having stakes of more than $1.82 billion. This is compared to 52 positions in the previous quarter with stakes worth $1.44 billion.
This February, Amgen Inc. (NASDAQ:AMGN) announced that its revenues for the fiscal fourth quarter of 2021 came to $6.85 billion, up 3.20% year over year from $6.63 billion. The company posted earnings per share of $4.36 for the quarter and beat EPS estimates by $0.35. On April 12, Barclays analyst Carter Gould raised his price target on Amgen Inc. (NASDAQ:AMGN) to $236 from $233 and kept an Equal Weight rating on the shares.
As of April 12, 2022, Amgen Inc.’s (NASDAQ:AMGN) trailing six-month returns are up by 22.80% and the company is worth over $133 billion on the open market. Moreover, the company has been consistent with growing its dividend for over 10 years, and the stock has a forward yield of 4.59% along with a 5-year dividend growth rate of 11.71%.
ClearBridge Investments mentioned Amgen Inc. (NASDAQ:AMGN) in its third-quarter 2021 investor letter. Here is what experts at ClearBridge have to say about the stock:
” In health care, Amgen, a biotechnology company, has endured several pipeline setbacks recently, including a slow transition of its Lumakras treatment into first-line lung cancer, a slower than expected development of its treatment for myeloma as well as the company’s asthma treatment Tezepelumab missing its primary endpoint in a Phase III study. We remain positive on the stock, with Amgen’s investments in biosimilars and its pipeline part of our long-term thesis.”
6. AT&T Inc. (NYSE:T)
Stake Value of Platinum Asset Management: $143,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0%
Divided Yield as of April 12: 5.65%
Number of Hedge Fund Holders: 70
AT&T Inc. (NYSE:T) operates as an American telecommunications company and the largest provider of mobile telephone services in America. On April 11, 2022, JPMorgan analyst Philip Cusick upgraded AT&T Inc. (NYSE:T) to Overweight from Neutral with a price target of $22, down from $34.
This January, AT&T Inc. (NYSE:T) released its earnings report for the fiscal fourth quarter of 2021 in which it beat both EPS and revenue estimates. According to the company’s report, AT&T Inc. (NYSE:T) generated revenues of over $40.96 billion for the quarter and beat estimates by $503.60 million. Moreover, the company reported earnings per share of $0.78, and beat EPS estimates by $0.02.
AT&T Inc. (NYSE:T) is attracting bullish views from investors. According to Insider Monkey’s database, 70 hedge funds held long positions in AT&T Inc. (NYSE:T) at the close of the fourth quarter of 2021. The total stakes of these funds amounted to $4.92 billion, up from $3.21 billion in Q3 2021 with 66 positions. Platinum Asset Management’s stakes in the telecommunications giant were valued at $143,000 at the close of Q4 2021.
AT&T Inc. (NYSE:T) is one of the most notable holdings of Platinum Asset Management as of December 31, 2022. Other top stock picks of the fund include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG).
Weitz Investment Management recently published its fourth-quarter 2021 investor letter in which it mentioned AT&T Inc. (NYSE:T). Here is what the firm had to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
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Disclosure: None. 10 Dividend Stocks to Buy Now According to Kerr Neilson’s Hedge Fund is originally published on Insider Monkey.
