5 Best Dividend Stocks According to Bill Miller’s Miller Value Partners

1. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 25
Miller Value Partners’ Stake Value: $10,164,000
Dividend Yield as of February 27: 15.16%

In Q4 2021, Miller Value Partners increased its stake in Vale S.A. (NYSE:VALE) by 16%, which represented 0.27% of the fund’s 13F portfolio. The hedge fund held a stake worth over $10 million in the Brazilian mining company.

The number of hedge funds tracked by Insider Monkey holding stakes in Vale S.A. (NYSE:VALE) fell to 25 in Q4, from 27 in the previous quarter. The total value of these stakes is over $1.7 billion.

On February 25, Vale S.A. (NYSE:VALE) announced an interim dividend of $0.73 per share. In addition to this, the company pays a semi-annual dividend of $1.542 per share, which yields 15.16%, as of February 27. The company’s 3-year dividend CAGR stands at 136.7%. In February, BNP Paribas upgraded Vale S.A. (NYSE:VALE) to Outperform, with a $20.50 price target.

Miller Value Partners mentioned Vale S.A. (NYSE:VALE) in its Q3 2021 investor letter. Here is what the firm has to say:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”

You can also take a look at 15 Best Stocks To Buy Now For Beginner Investors and 10 Best Mortgage Stocks To Buy Now

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