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 Howard Marks’ history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks.
Best Dividend Stocks to Buy According to Billionaire Howard Marks
5. Berry Corporation (NASDAQ: BRY)
Marks’ Stake Value: $47,520,000
Percentage Howard Marks’ 13F Portfolio: 0.81%
Dividend Yield: 2.65%
No. of Hedge Fund Holders: 12
Berry Corporation (NASDAQ: BRY) is an energy company that operates autonomously. It engages in the production and development of Western U.S. located oil reserves. In its recent financial report, the company reported $21 million or $0.27 per diluted share of net loss. Its board declared $0.04 per share of quarterly dividend for Q2 2021.
Analyst Leo Mariani of KeyBanc has upgraded its overall rating to “Overweight,” while analyst Brian Corales has upgraded its rating to “Buy.” Chuck Royce of Royce & Associates hedge fund holds 12,538 shares of Berry.
4. Equity Residential (NYSE: EQR)
Marks’ Stake Value: $28,276,000
Percentage Howard Marks’ 13F Portfolio: 0.48%
Dividend Yield: 3.25%
No. of Hedge Fund Holders: 28
Equity Residential (NYSE: EQR) is a company that creates thriving spaces for communities. The company started this year with a sale of an apartment in San Diego. Sales proceeds are being used this year to enhance its financial position and address debt maturities.
The company has also reported its quarterly results for the quarter ending March 31, 2021. compared to Q4 2020, there has been a 1.6% improvement for Physical Occupancy. Additionally, the company accumulated about 97% of Residential revenues in Q1 2021. Equity Residential (NYSE: EQR) has a $5.0 million commitment towards its fund for preserving housing that comes within people’s reach. Pricing trends continually improve across different markets, which is seen with around 14% sequential improvement seen across its portfolio during the previous quarter.
3. Vistra Corp. (NYSE: VST)
Marks’ Stake Value: $595,266,000
Percentage Howard Marks’ 13F Portfolio: 10.25%
Dividend Yield: 3.7%
No. of Hedge Fund Holders: 39
Vistra Corp. (NYSE: VST) and its subsidiaries are known for electricity business across the U.S. The company recently announced to have offered a $1.25 billion aggregate principal amount meant for notes due 2029. The company intends to use net proceeds in funding its outstanding $1.25 billion term loan. Additionally, the amount will also be used to clear off expenses and fees associated with the offering.
The company has also additionally been awarded a grant from the Department of Energy (DOE). This is a federal grant which aims at studying the energy storage system of Malta. Ongoing Operations Adjusted EBITDA of Vistra Corp. (NYSE: VST) in 2020 was $3,766 million, an approximate increase of 11% from 2019. The overall rating of Vistra is “Buy” and its average target price is $23.14.
2. Uniti Group Inc. (NASDAQ: UNIT)
Marks’ Stake Value: $39,853,000
Percentage Howard Marks’ 13F Portfolio: 0.68%
Dividend Yield: 5.68%
No. of Hedge Fund Holders: 17
Uniti Group Inc. (NASDAQ: UNIT) is a real estate investment trust, which specializes in constructing and acquiring communication infrastructure. The company recently announced that its subsidiaries had offered $570 million aggregate principal amount meant for new notes. These new notes are due in 2028. The issue price of these new notes is 100.00%.
The company intends to use net proceeds in funding its redemption of outstanding 6.00% 2023 secured notes. Apart from this, the proceeds shall be used for expenses and fees associated with foregoing issues, related premiums, and more.
Meanwhile, the Uniti Group Inc. (NASDAQ: UNIT) declared a $0.15 per share quarterly dividend.
1. Oaktree Specialty Lending Corporation (NASDAQ: OCSL)
Marks’ Stake Value: $1,537,000
Percentage Howard Marks’ 13F Portfolio: 0.02%
Dividend Yield: 7.95%
No. of Hedge Fund Holders: 13
Oaktree Specialty Lending Corporation (NASDAQ: OCSL) specializes in bridge financing, senior & junior secured debt, and management buyouts. On May 11, 2021, the company priced underwritten IPO worth $350.0 million of aggregate amount of 2.700% notes.
For its second quarter of 2021, the company reported $41.9 million of total investment income, an increase from $38.2 million in Q1 2021. The increase is attributed to a larger investment portfolio. Meanwhile, the GAAP net investment income of the company came in at $18.1 million or $0.12 per share for Q2 2021, as against $10.0 million or $0.07 per share for Q1 2021. The company recently declared $0.13 per share quarterly dividend, increasing it from its previous dividend of $0.12.
You can also take a peek at Top 15 Dividend Stocks With Upside Potential and 10 Extreme Dividend Stocks with Huge Upside.
