In this article, we discuss 5 dividend stocks to buy according to Bernard Horn’s Polaris Capital Management. If you want to read our analysis of Horn’s hedge fund and its performance, go directly to read 10 Best Dividend Stocks to Buy According to Bernard Horn’s Polaris Capital Management.
5. The Williams Companies, Inc. (NYSE:WMB)
Dividend Yield as of June 29: 5.39%
Polaris Capital Management’s Stake Value: $62,487,000
The Williams Companies, Inc. (NYSE:WMB) is a Tulsa-based petroleum business company with its core business in natural gas processing and transportation. The company’s investment in Louisiana Energy Gateway Project is completed, which will facilitate the delivery of natural gas to Gulf Coast customers.
The company raised its dividend at a CAGR of 7% in the past five years. It currently offers a quarterly dividend of $0.425 per share, with a yield of 5.39%, as of June 29. In May, Mizuho raised its price target on The Williams Companies, Inc. (NYSE:WMB) to $39, with a Buy rating on the shares, appreciating the company’s earnings.
At the end of Q1 2022, Polaris Capital owned over 1.8 million WMB shares, valued at nearly $62.5 million. The company represented 2.24% of Bernard Horn’s portfolio.
As per Insider Monkey’s Q1 2022 data, 38 hedge funds owned stakes in The Williams Companies, Inc. (NYSE:WMB), the same as in the previous quarter. The collective value of these stakes is over $410.6 million. With over 2.2 million shares, Arrowstreet Capital was the company’s leading shareholder in Q1.
ClearBridge Investments mentioned The Williams Companies, Inc. (NYSE:WMB) in its Q4 2021 investor letter. Here is what the firm has to say:
“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (58%) consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (27%). During the quarter we initiated new positions in U.S. energy infrastructure company Williams Companies. With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S. Treasury yields to rise, which will mean a continuation of negative real bond yields. Additional forecast volatility and therefore market uncertainty will arise as new COVID-19 variants appear and circulate. However, with high levels of vaccination across the developed world and less propensity for mobility restrictions and lockdowns, we expect the economic implications to be limited.
4. Webster Financial Corporation (NYSE:WBS)
Dividend Yield as of June 29: 3.68%
Polaris Capital Management’s Stake Value: $67,740,000
Webster Financial Corporation (NYSE:WBS) is an American commercial bank that delivers financial solutions to businesses, individuals, and partners. The company is one of the oldest holdings of Polaris Capital, being a part of its portfolio since 2010. At the end of Q1 2022, the hedge fund owned over 1.2 million WBS shares, worth $67.7 million. The company accounted for 2.43% of Bernard Horn’s portfolio.
Webster Financial Corporation (NYSE:WBS) hasn’t raised its dividend since 2019 but continued paying regular dividends to shareholders over this period. The company’s current dividend stands at $0.40 per share, with a yield of 3.68%, as of June 29.
The number of hedge funds tracked by Insider Monkey owning stakes in Webster Financial Corporation (NYSE:WBS) grew to 34 in Q1, from 25 in the previous quarter. The consolidated value of these stakes is over $706 million, up from $506.7 million worth of stakes held by hedge funds in Q4 2021.
3. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of June 29: 3.66%
Polaris Capital Management’s Stake Value: $74,800,000
On June 23, AbbVie Inc. (NYSE:ABBV) declared a quarterly dividend of $1.41 per share, consistent with its previous dividend. The dividend king has raised its payouts for consecutive 50 years, including its years as Abbott’s subsidiary before 2013. Moreover, since 2013, AbbVie Inc. (NYSE:ABBV) has increased its dividend by 250%. The stock’s dividend yield stood at 3.66%, as of the close of June 29.
Polaris Capital initiated its position in AbbVie Inc. (NYSE:ABBV) during the second quarter of 2020, purchasing shares worth nearly $9 million. At the end of Q1 2022, the hedge fund owned stakes worth $74.8 million in the company, which constituted 2.68% of its 13F portfolio.
At the end of March 2022, AbbVie Inc. (NYSE:ABBV) has been a part of 76 hedge fund portfolios, as tracked by Insider Monkey. These stakes hold a consolidated value of over $3.6 billion. Ken Griffin, Ric Dillon, and Israel Englander were some of the company’s prominent shareholders in Q1.
Miller Howard Investments mentioned AbbVie Inc. (NYSE:ABBV) 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) AbbVie (ABBV). 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.”
2. Infosys Limited (NYSE:INFY)
Dividend Yield as of June 29: 2.21%
Polaris Capital Management’s Stake Value: $186,267,000
Infosys Limited (NYSE:INFY) is an Indian multinational information technology company that provides business consulting and outsourcing services to its consumers. Earlier this year, the company announced a collaboration with Telenor Norway to transform its finance and supply chain operations. The company’s provided solution has been implemented across 10 Telenor entities.
On May 27, Infosys Limited (NYSE:INFY) announced a quarterly dividend of $0.177 per share, with a dividend yield of 2.21%, as of the close of June 29. In May, HSBC upgraded the stock to Buy from Neutral, with a price target of 1,940 INR.
Polaris Capital first invested in Infosys Limited (NYSE:INFY) during Q4 2010, buying shares worth $19.4 million. At the end of Q1 2022, the hedge fund owned nearly 7.5 million INFY shares, valued at over $186.2 million. The company accounted for 6.69% of Bernard Horn’s portfolio.
According to Insider Monkey’s hedge fund data, 25 funds owned stakes in Infosys Limited (NYSE:INFY) in Q1, down from 27 in the previous quarter. These stakes hold a combined value of over $2.2 billion. Rajiv Jain’s GQG Partners was the company’s leading shareholder in Q1.
1. Linde plc (NYSE:LIN)
Dividend Yield as of June 29: 1.61%
Polaris Capital Management’s Stake Value: $213,987000
Linde plc (NYSE:LIN) is a Dublin-based chemical company that specializes in industrial gases and process gases. In June, the company joined Russell 3000, a market-cap-weighted equity index that tracks 3000 of the largest US-traded stocks.
During Q1 2022, Polaris Capital bought an additional 61,100 LIN shares, taking its total stake to nearly $214 million at the end of Q1. The company was the fund’s third-largest holding in Q1 and accounted for 7.69% of Bernard Horn’s portfolio. In June, Jefferies provided an unfavorable outlook for chemical stocks due to higher interest rates and increasing prices. In view of this, the firm lowered its price target on Linde plc (NYSE:LIN) to $355 but kept a Buy rating on the shares.
On April 17, Linde plc (NYSE:LIN) announced a quarterly dividend of $1.17 per share, in line with its previous dividend. The stock’s dividend yield came in at 1.61%, as of June 29.
Linde plc (NYSE:LIN) was a popular stock among hedge funds in Q1, according to the data tracked by Insider Monkey. The company was a part of 54 hedge fund portfolios, up from 45 in the previous quarter. The collective value of these stakes is over $4.8 billion.
You can also take a look at 10 Best Stocks To Buy In 2022 According To Billionaire Mario Gabelli and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman.
