5 Best Dividend Stocks According to John Overdeck And David Siegel’s Two Sigma Advisors

2. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 77
Dividend Yield as of January 18: 3.39%

Merck & Co., Inc. (NYSE:MRK), an American pharmaceutical company, was the fifth-largest holding of Two Sigma Advisors in Q3. The hedge fund increased its stake in the company by 15%, which accounted for 1.22% of John Overdeck and David Siegel’s 13F portfolio.

Arrowstreet Capital was one of the most prominent shareholders of Merck & Co., Inc. (NYSE:MRK) in Q3, owning a stake worth $493.2 million. Overall, 77 hedge funds tracked by Insider Monkey held positions in the company in Q3, compared with 79 in the previous quarter. These stakes hold a consolidated value of over $4.5 billion.

On November 30, 2021, Merck & Co., Inc. (NYSE:MRK) announced a quarterly dividend of $0.69 per share, presenting a 6% growth from the previous dividend. This December, Mizuho presented a positive outlook on Merck & Co., Inc. (NYSE:MRK) due to its Covid-19 pill and lifted its price target to $100, while keeping a Buy rating on the shares.

Miller Howard Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q3 2021 investor letter. Here is what the firm has to say:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”