In this article, we discuss the 5 best dividend stocks in Richard Chilton’s portfolio. If you want to read our detailed analysis of Chilton Investment Management’s past performance and its latest 13F portfolio, go directly to read 10 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company.
5. Wells Fargo & Company (NYSE:WFC)
Dividend Yield as of May 20: 2.40%
Number of Hedge Fund Holders: 94
Chilton Investment Company’s Stake Value: $1,723,000
Wells Fargo & Company (NYSE:WFC) is an American multinational financial services company based in California. In its Q1 2022 earnings, the company did not meet the analysts’ expectations and generated revenue of $17.5 billion, missing estimates by $230 million.
In January 2022, Wells Fargo & Company (NYSE:WFC) announced a 25% hike in its annual dividend, with a quarterly dividend of $0.25 per share. The stock’s dividend yield was recorded at 2.40% on May 20. Chilton Investment Company first invested in Wells Fargo & Company (NYSE:WFC) in 2011, purchasing shares worth over $3 million. In Q1 2022, the hedge fund slashed its stake in the company by 2% and held shares worth over $1.7 million. The company represented 0.04% of Richard Chilton’s portfolio.
In its Q1 2022 investors’ note, Barclays appreciated the overall performance of Wells Fargo & Company (NYSE:WFC) and its step to increase its 2022 net interest income and loan growth outlook. The firm lifted its price target on the stock to $64, while maintaining an Overweight rating on the shares.
By the end of December 2021, 94 hedge funds tracked by Insider Monkey held stakes in Wells Fargo & Company (NYSE:WFC), up from 88 in the previous quarter. These stakes hold a consolidated value of over $6.1 billion.
Davis Funds mentioned Wells Fargo & Company (NYSE:WFC) in its Q4 2021 investor letter. Here is what the firm has to say:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
