5 Best Dividend Contenders to Buy in 2021

1. International Flavors & Fragrances Inc. (NYSE: IFF)

Number of Hedge Fund Holders: 55
Number of Years of Consecutive Dividend Increases: 19
Dividend Yield: 2.1%

International Flavors & Fragrances Inc. (NYSE: IFF) is a manufacturer and seller of cosmetic active and natural health ingredients to be used in consumer products in the US and internationally. The company ranks 1st on our list of the best dividend contenders to buy in 2021.

As of this July, Redburn has initiated coverage of International Flavors & Fragrances Inc. (NYSE: IFF) shares with a Buy rating, led by analyst Ranulf Orr.

In the first quarter of 2021, International Flavors & Fragrances Inc. (NYSE: IFF) had an EPS of $1.60, beating estimates by $0.05. The company’s revenue was $2.46 billion, up 82.96% year over year and also beating estimates by $9.68 million. International Flavors & Fragrances Inc. (NYSE: IFF) has gained about 25.19% in the past 6 months and 37.97% year to date as well.

By the end of the first quarter of 2021, 55 hedge funds out of the 866 tracked by Insider Monkey held stakes in International Flavors & Fragrances Inc. (NYSE: IFF) worth roughly $3.602 billion. This is compared to 33 hedge funds in the previous quarter with stakes worth approximately $488 million.

Rhizome Partners, an investment management firm, mentioned International Flavors & Fragrances Inc. (NYSE: IFF) in its first-quarter 2021 investor letter. Here’s what they said:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as  IFF. We do understand the market’s rationale. IFF’s products account for a small percentage of the customers’ cost while playing critical roles in the products’ performance. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”

You can also take a peek at 10 Best Dividend Champions to Buy Now and 10 Best Dividend Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management.

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