In this article, we discuss the 5 best dividend stocks according to John Overdeck and David Siegel’s Two Sigma Advisors. If you want to read our detailed analysis of the hedge fund and its performance, go directly to read 10 Best Dividend Stocks According to John Overdeck And David Siegel’s Two Sigma Advisors.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 74
Dividend Yield as of January 18: 3.33%
Bristol-Myers Squibb Company (NYSE:BMY) is an American multinational pharmaceutical company and is also known for its biological research. In Q3 2021, the number of hedge funds having stakes in the company increased to 74, from 73 in the previous quarter. These stakes hold a consolidated value of $4.75 billion. Berkshire Hathaway held a stake worth $1.3 billion in Bristol-Myers Squibb Company (NYSE:BMY), becoming its largest shareholder in Q3.
On December 13, 2021, Bristol-Myers Squibb Company (NYSE:BMY) announced a quarterly dividend of $0.54 per share, an increase of 10% from the previous quarter. The stock’s current dividend yield stands at 3.33%. Bristol-Myers Squibb Company (NYSE:BMY) has been increasing its dividend for the past 15 years consecutively. This December, JPMorgan lifted its price target on Bristol-Myers Squibb Company (NYSE:BMY) to $80, while maintaining an Overweight rating on the shares.
Two Sigma Advisors started investing in Bristol-Myers Squibb Company (NYSE:BMY) during the fourth quarter of 2010, with shares worth over $5.2 million. In Q3 2021, the hedge fund increased its stake in the company by 710%, which accounted for 1.01% of its 13F portfolio.
4. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 52
Dividend Yield as of January 18: 3.32%
Amgen Inc. (NASDAQ:AMGN) announced a 10.2% increase in its quarterly dividend on December 3, 2021, at $1.94 per share. The stock’s current dividend yield stands at 3.32%. Amgen Inc. (NASDAQ:AMGN) has been paying dividends for the past 11 years and has increased its dividend at a CAGR of 11.97% in the past five years.
In January, RBC Capital set a $255 price target on Amgen Inc. (NASDAQ:AMGN), with a Neutral rating on the shares. In Q3 2021, Two Sigma Advisors increased its position in the company by 45% and now holds a stake worth roughly $394 million. Amgen Inc. (NASDAQ:AMGN) accounted for 1.04% of John Overdeck and David Siegel’s 13F portfolio.
As per Insider Monkey’s data for Q3, 52 hedge funds held stakes in Amgen Inc. (NASDAQ:AMGN), down from 53 in the previous quarter. The total value of these stakes is over $1.44 billion. Among these hedge funds, D E Shaw was one of the company’s largest shareholders in Q3, with shares worth over $267 million.
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.”
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Dividend Yield as of January 18: 2.57%
Intel Corporation (NASDAQ:INTC) was recently added to Citigroup’s ‘Positive Catalyst Watch’ list and expects the stock to trade well in the coming months. The firm lifted its price target on the stock to $58, with a Neutral rating on the shares.
In 2021, Intel Corporation (NASDAQ:INTC) announced a 5% increase in its quarterly dividend to $0.3475 per share, marking a 7th consecutive year of dividend growth. The stock’s current dividend yield stands at 2.57%. Two Sigma Advisors made its first investment worth $7.2 million in Intel Corporation (NASDAQ:INTC) during the fourth quarter of 2010. In Q3 2021, the hedge fund increased its position in the company by 12%, and now holds a stake worth $444.07 million. The company represented 1.15% of John Overdeck and David Siegel’s 13F portfolio in Q3.
With a stake worth $6.47 billion, 66 hedge funds tracked by Insider Monkey held positions in Intel Corporation (NASDAQ:INTC) in Q3, down from 78 in the preceding quarter. Among these hedge funds, Fisher Asset Management was the company’s largest shareholder in Q3, holding a 1.7 billion worth of stake.
Andaz Private Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2021 investor letter. Here is what the firm has to say:
“Intel (INTC) is trading on a high single digit earnings multiple and is essentially: 1) an oligopolistic foundry set to benefit from large government incentives; and 2) a semiconductor business that is returning to competitiveness after years of being a laggard.”
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.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Dividend Yield as of January 18: 2.52%
An American healthcare company, Johnson & Johnson (NYSE:JNJ) has been increasing its dividend for the past 59 years consistently. The company’s dividend growth rate for the past five years stands at 6%.
In Q3 2021, Two Sigma Advisors increased its stake in Johnson & Johnson (NYSE:JNJ) by 16%. The hedge fund held shares worth roughly $528 million in the company, which represented 1.36% of John Overdeck and David Siegel’s portfolio. This December, Credit Suisse lifted its price target on Johnson & Johnson (NYSE:JNJ) to $200, while keeping an Outperform rating on the shares as the company’s November sales grew by 15.4% versus the firm’s estimates of 5.7%.
Of the 867 elite funds tracked by Insider Monkey, 88 hedge funds held stakes in Johnson & Johnson (NYSE:JNJ) in Q3, the same as in the previous quarter. The total value of these stakes is over $6.87 billion.
Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm has to say:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
You can also take a look at 10 High Dividend Stocks for 2022 and 10 Dividend Aristocrats to Buy for 2022
