In this article, we discuss 10 dividend stocks in Edgar Wachenheim’s portfolio. If you want to read our detailed analysis of Greenhaven Associates’ past performance and Wachenheim’s investment strategy, go directly to read 10 Best Dividend Stocks According to Edgar Wachenheim’s Greenhaven Associates.
5. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hegde Fund Holders: 38
Dividend Yield as of May 24: 2.68%
Greenhaven Associates’ Stake Value: $25,836,000
Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturing company that specializes in industrial tools and household hardware. The company also provides security products to consumers.
Stanley Black & Decker, Inc. (NYSE:SWK) has been paying dividends to shareholders since 1876 while maintaining a 53-year track record of consistent dividend growth. The company currently pays a quarterly dividend of $0.79 per share, after increasing it by 13% in 2021.
Saturna Capital mentioned Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2021 investor letter. Here is what the firm has to say:
“Stanley Black &Decker performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hegde Fund Holders: 110
Dividend Yield as of May 24: 3.21%
Greenhaven Associates’ Stake Value: $88,201,000
JPMorgan Chase & Co. (NYSE:JPM) is an American financial services company and an investment bank. Recently, the company reported that its UK consumer bank has reached over half a million customers, with over $10 billion in deposits.
This May, Oppenheimer upgraded JPMorgan Chase & Co. (NYSE:JPM) to Outperform, with a $167 price target, as it shows a 30% upside potential in the coming year.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
3. Morgan Stanley (NYSE:MS)
Number of Hegde Fund Holders: 61
Dividend Yield as of May 24: 3.40%
Greenhaven Associates’ Stake Value: $874,000
Morgan Stanley (NYSE:MS) reported solid Q1 2022 results. The company posted $5.12 billion in asset management, up 16% from the prior-year quarter. Moreover, the company’s revenue for the quarter was recorded at roughly $15 billion, which beat market consensus by $640 million.
On account of the strong Q1 results by Morgan Stanley (NYSE:MS), in April, BMO Capital raised its price target on the stock to $113, with an Outperform rating on the shares.
Artisan Partners mentioned Morgan Stanley (NYSE:MS) in its Q3 2021 investor letter. Here is what the firm has to say:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
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.”
1. Whirlpool Corporation (NYSE:WHR)
Number of Hegde Fund Holders: 33
Dividend Yield as of May 24: 4.03%
Greenhaven Associates’ Stake Value: $489,591,000
Whirlpool Corporation (NYSE:WHR) is an American multinational home appliance company. The company was the fourth-largest holding of Greenhaven Associates in Q1 2022, as the hedge fund held shares worth roughly $490 million in the company. It accounted for 12.98% of Edgar Wachenheim’s portfolio.
Lyrical Asset Management was one of the leading shareholders of Whirlpool Corporation (NYSE:WHR) in Q1 2022, holding stakes worth over $236.2 million. Overall, 33 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q1 2022, up from 28 in the previous quarter. These stakes hold a collective value of $962.6 million.
In February, Whirlpool Corporation (NYSE:WHR) announced a quarterly dividend of $1.75 per share, a 25% increase from its prior dividend of $1.40 per share. This was the company’s 9th consecutive year of dividend growth.
You can also take a look at 10 Best Stocks for Dividends and Jim Cramer’s Top 10 Stock Picks for 2022
