5 Best Dividend Stocks According to Edgar Wachenheim’s Greenhaven Associates

2. Citigroup Inc. (NYSE:C)

Number of Hegde Fund Holders: 88
Dividend Yield as of May 24: 3.87%
Greenhaven Associates’ Stake Value: $286,867,000

Citigroup Inc. (NYSE:C) currently pays a quarterly dividend of $0.51 per share, with a dividend yield of 3.87%, as of the market close of May 24. In its Q1 2022 earnings, the company posted revenue of over $19.2 billion, which was noticed by Barclays. In April, the firm set a $67 price target on Citigroup Inc. (NYSE:C), following its strong revenue, with an Equal Weight rating on the shares.

Greenhaven Associates initiated its position in Citigroup Inc. (NYSE:C) in 2014 but pulled off its entire stake in the company in the first quarter of 2021 and renewed its stakes in Q4 2021. During the first quarter of 2022, the hedge fund increased its position in the company by 19%.

Artisan Value Fund mentioned Citigroup Inc. (NYSE:C) in its Q4 2021 investor letter. Here is what the firm has to say:

“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”