In this article, we discuss the 5 best dividend stocks according to David Harding’s Winton Capital Management. If you want to read our detailed analysis of the hedge fund and its performance, go directly to read 10 Best Dividend Paying Stocks According to David Harding’s Winton Capital Management.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Dividend Yield as of January 27: 4.73%
Winton Capital Management’s Stake Value: $2,300,000
In Q3 2021, Winton Capital Management increased its stake in Exxon Mobil Corporation (NYSE:XOM) by 73% and held a stake worth $2.3 million in the company. The American natural gas and oil company represented 0.12% of DavidHarding’s portfolio in Q3.
On October 27, 2021, Exxon Mobil Corporation (NYSE:XOM) announced a 1% increase in its quarterly dividend at $0.88 per share. The stock’s current dividend yield stands at 4.73%. Exxon Mobil Corporation (NYSE:XOM) has been paying dividends to shareholders for more than 100 years now. Moreover, the company also maintains a 39-year track record of solid dividend growth, coming through as one of the best dividend stocks in David Harding’s portfolio.
With stakes worth over $4.6 billion, 64 hedge funds tracked by Insider Monkey held positions in Exxon Mobil Corporation (NYSE:XOM) in Q3. In comparison, 68 hedge funds held stakes in the company in the previous quarter, worth $3.69 billion.
Goehring & Rozencwajg Associates mentioned Exxon Mobil Corporation (NYSE:XOM) in its recently published Q3 2021 investor letter. Here is what the firm has to say:
“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 publically 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.”
