In this article, we discuss the 5 best dividend stocks according to billionaire Larry Robbins’ Glenview Capital. If you want to read our detailed analysis of Robbins’ hedge fund and its past performance, go directly and read 10 Best Dividend Stocks According to Billionaire Larry Robbins’ Glenview Capital.
5. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 58
Dividend Yield as of February 9: 1.93%
Glenview Capital’s Stake Value: $264,777,000
Cigna Corporation (NYSE:CI) is an American healthcare and insurance company. On February 3, Cigna Corporation (NYSE:CI) increased its dividend by 12% at $1.12 per share, with a dividend yield of 1.93%.
Of the 867 hedge funds tracked by Insider Monkey, 58 hedge funds held stakes in Cigna Corporation (NYSE:CI) in Q3, down from 63 in the preceding quarter. These stakes hold a consolidated value of over $2.3 billion.
In Q3 2021, Glenview Capital increased its stake in Cigna Corporation (NYSE:CI) by 3% and held a stake worth over $264.7 million. The company made up 4.85% of Larry Robbins’ portfolio. In January, Bernstein presented a positive long-term outlook on Cigna Corporation (NYSE:CI) and lifted its price target on the stock to $258, with a Market Perform rating on the shares.
Dodge & Cox Stock Fund mentioned Cigna Corporation (NYSE:CI) in its Q3 2021 investor letter. Here is what the firm has to say:
“Cigna (2.5% position) is one of the largest and most diversified health care services organizations in the United States. The stock has underperformed recently due to weak financial results, which included higher than expected medical costs. Nevertheless, the company continues to work towards its 10-13% annual earnings growth target, generates significant cash flow, and has plans to deploy capital to shareholders through debt repayments, share buybacks, and a newly announced dividend program. Cigna trades at an attractive valuation of nine times forward earnings.”
4. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 63
Dividend Yield as of February 9: 1.93%
Glenview Capital’s Stake Value: $64,575,000
In January, RBC Capital appreciated the Q4 earnings beat of Union Pacific Corporation (NYSE:UNP), an American transport company. Along with this, the firm also highlighted the company’s strong pricing and operating ratio improvement and raised its price target on the stock to $271, while keeping an Outperform rating on the shares.
As per Insider Monkey’s Q3 data, 63 hedge funds held stakes in Union Pacific Corporation (NYSE:UNP), valued at $4.88 billion. In the previous quarter, 69 hedge funds held positions in the company, with stakes worth over $5 billion.
Union Pacific Corporation (NYSE:UNP) has been a dividend-paying stock for the past 32 years, with a 14-years streak of dividend growth. In December 2021, the company increased its quarterly dividend by 10% at $1.18 per share, with a dividend yield of 1.93%. Glenview Capital started investing in Union Pacific Corporation (NYSE:UNP) during the fourth quarter of 2020 with shares worth over $13.2 million. In Q3 2021, the hedge fund’s position in the company has increased to over $64.5 million worth of stakes, which accounted for 1.18% of Larry Robbins’ portfolio.
Vltava Fund mentioned Union Pacific Corporation (NYSE:UNP) in its recently-published Q4 2021 investor letter. Here is what the firm has to say:
“Regarding the list of titles held, the composition of the Vltava Fund portfolio did not change much throughout 2021. We sold two positions and we incorporated two new ones into our portfolio. Right at the beginning of the year, we sold the shares of Union Pacific railways. After their price had risen greatly, they no longer seemed sufficiently attractive to us.”
3. ViacomCBS Inc. (NASDAQ:VIAC)
Number of Hedge Fund Holders: 64
Dividend Yield as of February 9: 2.77%
Glenview Capital’s Stake Value: $105,406,000
ViacomCBS Inc. (NASDAQ:VIAC) is an American mass media and entertainment company. In Q3 2021, Glenview Capital held shares worth over $105.4 million in the company, which represented 1.93% of its 13F portfolio. The hedge fund started investing in the company during the fourth quarter of 2019.
ViacomCBS Inc. (NASDAQ:VIAC) currently offers a quarterly dividend of $0.24 per share, which yields 2.77%. The company has increased its dividend at a CAGR of 7.8% in the past five years and possesses a safe payout ratio of 25.6%. In January, KeyBanc upgraded ViacomCBS Inc. (NASDAQ:VIAC) to Sector Weight from Underweight, due to the growing direct-to-consumer subscribers.
In Q3 2021, 64 hedge funds in Insider Monkey’s database reported owning stakes in ViacomCBS Inc. (NASDAQ:VIAC), down significantly from 74 in the previous quarter. The total value of these stakes is $1.25 billion.
2. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 52
Dividend Yield as of February 9: 3.27%
Glenview Capital’s Stake Value: $22,513,000
Amgen Inc. (NASDAQ:AMGN) is an American biopharmaceutical company that specializes in human therapeutics. Appreciating the company’s recently proposed guidance, in February, both BMO Capital and Wells Fargo raised the stock’s price target to $240 and $250, respectively, with the latter maintaining an Equal Weight rating on the shares.
Two Sigma Advisors was the largest shareholder of Amgen Inc. (NASDAQ:AMGN) in Q3, owning nearly 2 million shares in the company. Overall, 52 hedge funds tracked by Insider Monkey held stakes in the company in Q3, down from 53 in the preceding quarter. These stakes hold a value of around $1.45 billion.
On December 3, 2021, Amgen Inc. (NASDAQ:AMGN) announced a quarterly dividend of $1.94 per share, presenting a 10.2% growth from the previous dividend. The stock’s dividend yield stands at 3.27%. Amgen Inc. (NASDAQ:AMGN) has been paying dividends to shareholders consistently for the past 11 years, with a five-year CAGR of 11.97%. In Q3 2021, Glenview Capital increased its position in Amgen Inc. (NASDAQ:AMGN) by 47% and held shares worth over $22.5 million. The company accounted for 0.41% of Larry Robbins’ portfolio.
ClearBridge Investments mentioned Amgen Inc. (NASDAQ:AMGN) in its recently-published Q3 2021 investor letter. Here is what the firm has to say:
“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.”
1. Organon & Co. (NYSE:OGN)
Number of Hedge Fund Holders: 35
Dividend Yield as of February 9: 3.28%
Glenview Capital’s Stake Value: $24,695,000
Organon & Co. (NYSE:OGN), an American pharmaceutical company, was one of the latest acquisitions of Glenview Capital in Q3. The hedge fund started building its position in the company with shares worth roughly $24.7 million, which represented 0.45% of Larry Robbins’ portfolio.
In August 2021, Organon & Co. (NYSE:OGN) initiated its dividend policy, paying a quarterly dividend of $0.28 per share, with a dividend yield of 3.28%. The company’s payout ratio stands at 8.79%, which is considered healthy by analysts. As of the market close of February 8, Organon & Co. (NYSE:OGN) delivered an 11.04% return to shareholders in 2022 so far.
The number of hedge funds tracked by Insider Monkey having stakes in Organon & Co. (NYSE:OGN) declined to 35 in Q3, from 44 in the previous quarter. These stakes hold a consolidated value of over $332.3 million. Among these hedge funds, AQR Capital Management held the largest stake in the company, worth over $71.2 million.
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