In this article, we discuss 10 energy dividend stocks to buy according to billionaire Jim Simons’ portfolio. If you want to skip our detailed analysis of these stocks, go directly to 5 Energy Dividend Stocks to Buy According to Billionaire Jim Simons’ Portfolio.
Jim Simons, an American billionaire hedge fund manager, founded Renaissance Technologies in 1992, which is a New-York based quantitative hedge fund that leverages mathematical patterns, algorithms, and automated programs to assess market securities and price fluctuations. The hedge fund’s investment strategy was largely influenced by Simons’ own interest and background in mathematics. Jim Simons remained the chief executive officer and portfolio manager of Renaissance Technologies till 2010, when he retired from the fund. He still serves as the non-executive chairman of Renaissance Technologies.
As of the third quarter of 2021, Renaissance Technologies’ portfolio is worth $77.4 billion, with a top ten holdings concentration of 12.38%. Jim Simons’ hedge fund has abundant dividend stocks, including NIKE, Inc. (NYSE:NKE), Pfizer Inc. (NYSE:PFE), PepsiCo, Inc. (NASDAQ:PEP), The Procter & Gamble Company (NYSE:PG), and Apple Inc. (NASDAQ:AAPL). Renaissance Technologies’ Q3 portfolio holds dividend stocks from the energy sector as well, which is one of the highest yielding components of the S&P 500 Index.
The most notable stocks in the Q3 portfolio of Jim Simons’ Renaissance Technologies include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG).
Jim Simons of Renaissance Technologies
Our Methodology
We chose the energy stocks from Jim Simons’ portfolio that had the highest dividend yields, ranking the companies according to their yield.
Energy Dividend Stocks to Buy According to Billionaire Jim Simons’ Portfolio
10. Marathon Petroleum Corporation (NYSE:MPC)
Renaissance Technologies’ Stake Value: $56,315,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 43
Dividend Yield as of January 5: 3.36%
Founded in 2009, Marathon Petroleum Corporation (NYSE:MPC) is an American company involved in refining, distributing, and transporting petroleum. Marathon Petroleum Corporation (NYSE:MPC) serves customers worldwide via an extensive network of direct dealer contracts and retail outlets, supplying petrol, gasoline, and petrochemicals. Jim Simons’ fund increased its stake in Marathon Petroleum Corporation (NYSE:MPC) by 25% in the third quarter, holding 911,099 shares worth $56.3 million.
In Q3 2021, 43 hedge funds in the database of Insider Monkey were bullish on Marathon Petroleum Corporation (NYSE:MPC), down from 48 funds in the preceding quarter. Paul Singer’s Elliott Management is the leading Marathon Petroleum Corporation (NYSE:MPC) stakeholder, with 10.5 million shares worth $653.3 million.
On November 2, Marathon Petroleum Corporation (NYSE:MPC) posted its third quarter earnings, reporting an EPS of $0.73, beating estimates by $0.03. Revenue over the period equaled $32.61 billion, up 85.85% year-over-year, exceeding estimates by $10.44 billion.
Wells Fargo analyst Roger Read on November 15 raised the price target on Marathon Petroleum Corporation (NYSE:MPC) to $87 from $73 and kept an Overweight rating on the shares as he is bullish U.S. refining. In 2022, the analyst believes the U.S. refining complex could experience a similar bullish environment as oil and gas have in 2021.
Marathon Petroleum Corporation (NYSE:MPC) is a notable stock from billionaire Jim Simons’ portfolio, in addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG).
9. Clearway Energy, Inc. (NYSE:CWEN.A)
Renaissance Technologies’ Stake Value: $34,566,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 17
Dividend Yield as of January 5: 4.24%
Clearway Energy, Inc. (NYSE:CWEN.A) is one of the biggest clean energy companies in the United States, offering a capacity of more than 5 gigawatts of wind and solar power generation and energy storage. Jim Simons’ Renaissance Technologies owns 1.22 million shares of Clearway Energy, Inc. (NYSE:CWEN.A) as of September 2021, worth $34.5 million, representing 0.04% of the firm’s total investments.
In the third quarter earnings report published on November 4 by Clearway Energy, Inc. (NYSE:CWEN.A), the company posted earnings per share of $1.60, beating estimates by $0.94.
On November 5, Oppenheimer analyst Noah Kaye upgraded Clearway Energy, Inc. (NYSE:CWEN.A) to Outperform from Perform with a $44 price target. The analyst said that Clearway Energy, Inc. (NYSE:CWEN.A)’s “material strategic progress” supports its long-term portfolio and dividend growth objectives.
One of the leading Clearway Energy, Inc. (NYSE:CWEN.A) stakeholders from Q3 is Electron Capital Partners, with 859,502 shares worth $26 million. Overall, 17 hedge funds tracked by Insider Monkey in the third quarter reported owning stakes in Clearway Energy, Inc. (NYSE:CWEN.A), down from 21 funds in the preceding quarter.
Offering a dividend yield of 4.24%, Clearway Energy, Inc. (NYSE:CWEN.A) is one of the best dividend stocks to buy according to billionaire Jim Simons’ Portfolio.
8. OGE Energy Corp. (NYSE:OGE)
Renaissance Technologies’ Stake Value: $24,227,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 21
Dividend Yield as of January 5: 4.33%
Renaissance Technologies owns 735,043 OGE Energy Corp. (NYSE:OGE) shares, worth $24.2 million, accounting for 0.03% of the firm’s total Q3 investments. OGE Energy Corp. (NYSE:OGE) is the parent company of Oklahoma Gas and Electric Company and Enogex Inc., which provide electricity and natural gas to residents of Oklahoma and Arkansas.
OGE Energy Corp. (NYSE:OGE), on November 4, announced earnings for Q3 2021. The company posted earnings per share of $1.26, outperforming estimates by $0.08. On December 1, OGE Energy Corp. (NYSE:OGE) declared a $0.41 per share quarterly dividend, in line with previous, payable on January 28, 2022.
Argus analyst Gary Hovis on December 15 upgraded OGE Energy Corp. (NYSE:OGE) to Buy from Hold with a $40 price target. The analyst cites his favorable view on the company’s visible forward earnings stream, “strong” cost controls, and “well-run” generation facilities along with its “attractive” dividend yield.
A total of 21 hedge funds monitored by Insider Monkey reported owning stakes in OGE Energy Corp. (NYSE:OGE) in the third quarter, worth $224.6 million, an increase as compared to 17 funds holding stakes valued at $276.7 million in the prior quarter.
Billionaire Israel Englander’s Millennium Management is the largest OGE Energy Corp. (NYSE:OGE) stakeholder as of Q3 2021, with 1.70 million shares worth $56.3 million.
7. Chevron Corporation (NYSE:CVX)
Renaissance Technologies’ Stake Value: $256,032,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 51
Dividend Yield as of January 5: 4.19%
Chevron Corporation (NYSE:CVX), a California-based multinational energy company distributing gasoline, natural gas, and petrochemicals in more than 180 countries, is one of the top energy dividend stock picks of billionaire Jim Simons’ Renaissance Technologies. The hedge fund increased its stake in Chevron Corporation (NYSE:CVX) by 318% in the third quarter, holding 2.52 million shares worth $256 million.
In the third quarter, 51 hedge funds were bullish on Chevron Corporation (NYSE:CVX), with total stakes amounting to $4.44 billion. The leading Chevron Corporation (NYSE:CVX) stakeholder is Berkshire Hathaway, increasing its stake in the company by 25% in the third quarter, with 28.70 million shares worth $2.91 billion.
RBC Capital analyst Biraj Borkhataria upgraded Chevron Corporation (NYSE:CVX) on November 24 to Outperform from Sector Perform with a price target of $145, up from $130. The analyst believes Chevron Corporation (NYSE:CVX) is in a position to benefit from a “strong” commodity cycle over the coming years, given its business plans “suggest much more stability in its portfolio than peers.” This “certainty warrants a premium valuation”, in addition to the macro backdrop that remains highly supportive for oil.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
6. Valero Energy Corporation (NYSE:VLO)
Renaissance Technologies’ Stake Value: $26,364,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 32
Dividend Yield as of January 5: 4.65%
Valero Energy Corporation (NYSE:VLO) is a Texas-based distributor of transportation fuels including diesel, gasoline, and jet fuel, as well as power and petrochemical products.
Renaissance Technologies recently added Valero Energy Corporation (NYSE:VLO) to its Q3 portfolio, buying 373,558 Valero Energy Corporation (NYSE:VLO) shares, worth $26.3 million.
On October 21, Valero Energy Corporation (NYSE:VLO) posted its Q3 results, announcing an EPS of $1.22, beating estimates by $0.30. The quarterly revenue jumped 86.73% from the preceding year quarter to $29.52 billion, outperforming estimates by $5.47 billion.
Of the 867 hedge funds that were tracked by Insider Monkey, 32 funds were long Valero Energy Corporation (NYSE:VLO) in the third quarter, down from 38 funds in the prior quarter. Citadel Investment Group, the largest Valero Energy Corporation (NYSE:VLO) stakeholder, increased its position in the company by 193%, holding 1.72 million shares worth over $122 million.
Argus analyst Bill Selesky raised the price target on Valero Energy Corporation (NYSE:VLO) on October 26 to $93 from $83 and kept a Buy rating on the shares. The analyst stated that Valero Energy Corporation (NYSE:VLO)’s Q3 earnings beat was driven by higher sales in all three of its business segments and believes that Valero Energy Corporation (NYSE:VLO) will experience higher demand for gasoline into 2022, along with increased demand for diesel and jet fuel.
In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Valero Energy Corporation (NYSE:VLO) is one of the best stock picks of Jim Simons’ fund.
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Disclosure: None. 10 Energy Dividend Stocks to Buy According to Billionaire Jim Simons’ Portfolio is originally published on Insider Monkey.
