In this article, we discuss the 5 best dividend stocks to buy according to billionaire Howard Marks. If you want to read our detailed analysis of Marks’ history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks.
5. Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR)
Marks’ Stake Value: $80,974,000
Percentage of Howard Marks’ 13F Portfolio: 1.12%
Dividend Yield: 3.24%
Number of Hedge Fund Holders: 27
Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR) produces and sells oil and gas globally. The company was founded in 1953 and stands fifth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. The Petróleo shares have gained 28.55% over the last 12 months.
On July 6, the company declared that it will increase the average price of fuel at refineries by 16 centavos to 2.69 reais per liter, a 6.3% increase, while diesel will rise by 10 centavos, or 3.7%, to 2.81 reais per liter. But truck drivers, a strong force in Brazil, opposed Petrobras’ strategy of selling fuel nationally in accordance with import prices. Petrobras also approved to sell its 100% interest in the Polo Alagoas land and shallow water terrain to Petromais Global Exploracao e Producao for $300 million. On June 28, JPMorgan upgraded the stock of Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR) to “Overweight” from “Neutral,” and also raised the price target to $13 from $11.
The stock accounts for about 1.12% of Oaktree Capital Management, as the hedge fund owns an $80.97 million stake in the company. In addition, Howard Marks’ hedge fund increased its stake in the company by 52% in the first quarter. At the end of the first quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $878.46 million in Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR), up from 24 the preceding quarter worth $1.34 billion.
4. Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI)
Marks’ Stake Value: $46,319,000
Percentage of Howard Marks’ 13F Portfolio: 0.64%
Dividend Yield: 3.97%
Number of Hedge Fund Holders: 12
Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) owns and develops infrastructure and associated equipment for the transit of merchandise and people in Africa, Asia, Europe, North America, and South America. It was founded in 2011 and is ranked fourth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Fortress Transportation currently has a $2.85 billion market capitalization and was able to deliver a 154.02% return in the past 12 months.
Fortress Transportation is a good option for dividend investors as the company has paid dividends every year since 2015. On April 29, the company declared a quarterly dividend of $0.33 per share in line with the previous. On June 16, Citi resumed coverage on Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) rating it as “Buy,” and set a price target at $40.
At the end of the first quarter of 2021, Oaktree Capital Management owned 1.64 million shares in Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI), worth $46.32 million. This represented 0.64% of the investment portfolio of Oaktree Capital Management. The company is getting the attention of the smart money, as 12 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, down from 15 funds a quarter earlier.
3. Uniti Group Inc. (NASDAQ: UNIT)
Marks’ Stake Value: $37,475,000
Percentage of Howard Marks’ 13F Portfolio: 0.52%
Dividend Yield: 5.71%
Number of Hedge Fund Holders: 17
Uniti Group Inc. (NASDAQ: UNIT) is a realty investment trust company involved in the attainment and building of mission infrastructure in the broadcasting industry. The company was founded in 2014, and it stands third on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Uniti shares have gained 13.74% over the last 12 months.
On May 6, Uniti Group Inc. (NASDAQ: UNIT) proclaimed Funds from operations (FFO) for the first quarter of 2021. It reported Funds from operations (FFO) of $0.41, beating market predictions by $0.13. The revenue for the first three months of 2021 was over $272.59 million, up 2.4% YoY, beating the estimates by $0.9 million. On May 4, the company declared a quarterly dividend of $0.15 per share, in line with the previous.
The hedge fund chaired by Howard Marks holds 3.40 million shares in Uniti Group Inc. (NASDAQ: UNIT) worth $37.48 million. Paul Singer’s Elliott Management is the company’s most significant stakeholder, with 20.48 million shares worth $225.85 million.
2. Star Bulk Carriers Corp. (NASDAQ: SBLK)
Marks’ Stake Value: $572,608,000
Percentage of Howard Marks’ 13F Portfolio: 7.97%
Dividend Yield: 5.83%
Number of Hedge Fund Holders: 13
Star Bulk Carriers Corp. (NASDAQ: SBLK) is a multinational shipping company engaged in the marine transportation of dry bulk goods. The company was incorporated in 2006 and is ranked second on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Star Bulk currently has a $2.1 billion market capitalization. It delivered a 192.33% return in the past 12 months.
On June 2, SEB Equities initiated a coverage on Star Bulk Carriers (NASDAQ: SBLK) stock rating it as “Buy,” and set a price target at $27.
Oaktree Capital Management is the biggest stakeholder in Star Bulk Carriers (NASDAQ: SBLK) out of the 866 hedge funds tracked by Insider Monkey, as in the first quarter of 2021. The fund owns 39.01 million shares of the company, worth $572.61 million. The company is also getting the attention of the smart money, as 13 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 10 funds a quarter earlier.
1. Oaktree Specialty Lending Corporation (NASDAQ: OCSL)
Marks’ Stake Value: $1,711,000
Percentage of Howard Marks’ 13F Portfolio: 0.02%
Dividend Yield: 7.64%
Number of Hedge Fund Holders: 13
Oaktree Specialty Lending Corporation (NASDAQ: OCSL) is a specialty finance company that provides personalized, integrated credit solutions to firms with restricted access to citizens or associated capital markets. It was founded in 1995 and ranks first on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Oaktree shares have gained about 54.07% over the last 12 months.
On June 23, Oppenheimer analyst Mitchel Penn initiated coverage on Oaktree Specialty Lending Corp (NASDAQ: OCSL) with an “Outperform” rating and a price target of $7.50. On May 06, Oaktree Specialty Lending declared a quarterly dividend of $0.13 per share, which was a 8.3% increase from prior dividend of $0.12.
The hedge fund run by Marks owns 276,000 shares in the Oaktree Specialty Lending Corporation (NASDAQ: OCSL), worth $1.71 million, representing 0.02% of their investment portfolio. Arrowstreet Capital is a leading shareholder in the company, with 2.54 million shares worth $15.76 million.
You can also take a peek at 10 Best Cheap Dividend Stocks to Buy According to Mario Gabelli and 10 Best Dividend Stocks to Buy Now According to Billionaire Jim Simons.
