In this article, we discuss the 5 best dividend stocks to buy according to billionaire Ken Griffin. If you want to read our detailed analysis of Griffin’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Ken Griffin.
5. Intel Corporation (NASDAQ: INTC)
Griffin’s Stake Value: $352,000,000
Percentage of Ken Griffin’s 13F Portfolio: 0.09%
Dividend Yield: 2.43%
Number of Hedge Fund Holders: 83
American chipmaker Intel Corporation (NASDAQ: INTC) ranks 5th on the 10 best dividend stocks to buy according to billionaire Ken Griffin. Intel is one of the biggest semiconductor manufacturers in the world. The California-based technology firm develops high-end computer chips used in gaming, cryptocurrency mining, and personal and enterprise computing. In addition, the company creates innovative solutions for other branches of technology such as AI, cloud computing, and 5G network connectivity. Intel Corporation (NASDAQ: INTC) currently pays an annual dividend of $1.39 per share, with a 2.43% dividend yield. Year to date, shares of INTC jumped 16% over the last twelve months.
In 2017, Intel Corporation (NASDAQ: INTC) acquired Israeli self-driving computer vision developer Mobileye for $15.3 billion to strengthen its position in the autonomous market. In recent news, Intel Corporation CEO Pat Gelsinger has stated intentions to invest $20 billion in a chip production plant in Arizona, anticipating a 10-year boom in the semiconductor business.
The company has a market cap of $231 billion. The company’s first-quarter revenue was $19.7 billion, down 1% from $19.8 billion in the first quarter of 2020. Revenues from the Internet of Things Group and autonomous driving unit Mobileye were up 4% and 48%, respectively. Intel Corporation announced a $77 billion GAAP revenue forecast for the entire year of 2021. As of June 16, Intel Corporation (NASDAQ: INTC) shares trade at $57.22 and have a P/E ratio of 12.84. The 52-week price range of DHR is $43.61 – $68.49. On May 20, Keybanc maintained an Overweight rating on Intel Corporation, with a price target of $70 per share.
Citadel Investment Group holds 5,504,008 shares in the company worth over $352 million. The hedge fund has increased stakes in Intel Corporation (NASDAQ: INTC) by 330% in the past few months. At the end of the first quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.61 billion in Intel Corporation (NASDAQ: INTC), up from 72 the preceding quarter worth $5.6 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Intel Corporation (NASDAQ: INTC) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
In the Q1 2021 investor letter, Alger Spectra Fund mentioned Intel Corporation (NASDAQ: INTC) and shared its insights. Here is what the fund said:
“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next-generation server chips which are disadvantaging Intel versus the competition.”
4. Comcast Corporation (NASDAQ: CMCSA)
Griffin’s Stake Value: $477,000,000
Percentage of Ken Griffin’s 13F Portfolio: 0.12%
Dividend Yield: 1.75%
Number of Hedge Fund Holders: 88
Comcast Corporation (NASDAQ: CMCSA) ranks 4th on the list of best dividend stocks to buy according to billionaire Ken Griffin. The Philadelphia-based cable giant primarily offers broadband and media entertainment through its brands, namely Xfinity, Sky, and NBCUniversal. Comcast Corporation develops and licenses different digital content through DreamWorks Animation, Universal Pictures, and Focus Features, in addition to broadcasting channels on televisions. Comcast Corporation soft-launched Peacock, a video streaming service, in April 2020, and a year later, the video streaming service has 42 million customers across the United States. Comcast Corporation (NASDAQ: CMCSA) currently pays an annual dividend of $1 per share with a 1.75% dividend yield. CMCSA stock has offered more than 44% returns to investors in the past twelve months.
The company has a market cap of $264 billion. The company’s first-quarter revenue grew 2.2% to $27.2 billion, up from $$26.6 billion in the same period in 2020. As of June 16, Comcast Corporation’s (NASDAQ: CMCSA) shares trade at $57.12 and have a P/E ratio of 22.58. The 52-week price range of CMCSA is $37.77 – $59.11. On April 30, Oppenheimer upgraded Comcast Corporation with an Outperform rating and a price target of $75 per share.
Ken Griffin’s Citadel Investment Group holds 8,816,164 shares in the company worth over $477 million. The hedge fund has upped its stakes in Comcast Corporation (NASDAQ: CMCSA) by 936% in the past few months. There were 88 hedge funds that reported owning stakes in Comcast Corporation (NASDAQ: CMCSA) at the end of the first quarter, up from 84 funds a quarter earlier. The total value of these stakes at the end of Q1 is $9.8 billion.
In the Q1 2021 investor letter, Harding Loevner mentioned Comcast Corporation (NASDAQ: CMCSA) and shared their insights. Here is what the fund said:
“Comcast is the largest cable provider in the U.S. and is the dominant internet access provider in the markets it serves. Though Comcast will likely see further declines in cable subscriptions due to ongoing cord-cutting, it should be able to offset that lost revenue by growing internet access customers and instituting higher pricing. The pandemic has increased the importance of a fast internet connection, with more content streaming to homes at increasingly higher quality. Comcast made significant upgrades early on, allowing it to quickly deploy new technology and increase speeds to meet the evolving needs of its customers.”
3. Bank of America Corporation (NYSE: BAC)
Griffin’s Stake Value: $386,000,000
Percentage of Ken Griffin’s 13F Portfolio: 0.1%
Dividend Yield: 1.73%
Number of Hedge Fund Holders: 97
Bank of America Corporation (NYSE: BAC) ranks 3rd on the list of 10 best dividend stocks to buy according to billionaire Ken Griffin. The investment and financing bank, headquartered in North Carolina, was founded in 1784 and has since built a reputation for offering banking and financial solutions to individuals, small and large businesses, investment firms, and the government. Bank of America Corporation (NYSE: BAC) offers an annual dividend of $0.72 per share with a 1.73% dividend yield. BAC stock has provided more than 59% returns to investors in the past twelve months.
In recent news, Chobani LLC, a New York-based yoghurt company, collaborates with Bank of America Corporation (NYSE: BAC) and The Goldman Sachs Group, Inc. (NYSE: GS) to prepare for an IPO in the second half of 2021. The food company is seeking a $7 billion to $10 billion value, according to a news source.
Bank of America Corporation (NYSE: BAC) has a market cap of $341 billion. The company’s first-quarter revenue grew by 13.4% to $22.8 billion, up from $20.1 billion in the fourth quarter of 2020. Bank of America Corporation posted a net income of $8.1 billion, or $0.86 per diluted share. As of June 16, Bank of America Corporation (NYSE: BAC) shares trade at $41.62 and have a P/E ratio of 17.86. The 52-week price range of BAC is $22.39 – $43.49. On June 15, Credit Suisse maintained an Outperform rating on Bank of America Corporation, with a price target of $46 per share.
Citadel Investment Group holds 9,987,171 shares in the company, worth over $386 million. The hedge fund has trimmed Bank of America Corporation (NYSE: BAC) stakes by 36% in the past few months. Warren Buffett’s Berkshire Hathaway is a leading shareholder in Bank of America Corporation (NYSE: BAC) with 1,010,100,606 shares worth more than $39 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Bank of America Corporation (NYSE: BAC) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
Here is what GoodHaven Capital Management has to say about Bank of America Corporation in their Q4 2020 investor letter:
“Finally, the Federal Reserve has just relaxed share buyback restrictions for Bank of America (and some of their brethren) – a positive development. We added to Bank of America during the last six months. We continue to find plenty of potential new investments to consider, even after the market’s recent material rebound.”
2. Mastercard Incorporated (NYSE: MA)
Griffin’s Stake Value: $392,000,000
Percentage of Ken Griffin’s 13F Portfolio: 0.1%
Dividend Yield: 0.48%
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE: MA) ranks 2nd on the 10 best dividend stocks to buy according to billionaire Ken Griffin. The New York-based payment-processing network offers financial services to consumers, small and medium-sized businesses, government and public sectors, large-scale enterprises, banks, and other unions. The company currently provides an annual dividend of $1.76 per share with a 0.48% dividend yield. MA stock has offered more than 20% returns to investors in the past twelve months.
One of the earliest fintech corporations to hop on the bitcoin bandwagon was Mastercard Incorporated. In April 2021, Gemini, a cryptocurrency exchange platform based in New York, named Mastercard Incorporated (NYSE: MA) as its sole network partner for its Gemini credit card. Cardholders can earn up to 3% back on qualified bitcoin transactions.
The company has a market cap of $361 billion. The company’s net revenue in the first quarter of 2021 came in at $4.2 billion, up from $4 billion in the same quarter in 2020. The company posted a net income of $1.8 billion, or $1.83 diluted earnings per share. As of June 16, Mastercard Incorporated (NYSE: MA) shares trade at $363.82 and have a P/E ratio of 55.82. The 52-week price range of MA is $281.20 – $401.50. On June 7, Barclays maintained an Overweight rating on Mastercard Incorporated, with a price target of $452 per share.
Ken Griffin’s Citadel Investment Group holds 1,101,599 shares in the company worth over $392 million. The hedge fund has upped its stakes in Mastercard Incorporated (NYSE: MA) by 74% in the past few months. There were 151 hedge funds that reported owning stakes in Mastercard Incorporated (NYSE: MA) at the end of the first quarter, down from 154 funds a quarter earlier. The total value of these stakes at the end of Q1 is $17.1 billion. Warren Buffett’s Berkshire Hathaway is a leading shareholder in Bank of America Corporation (NYSE: BAC) with 1,010,100,606 shares worth more than $39 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Mastercard Incorporated (NYSE: MA) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
1. Visa Inc. (NYSE: V)
Griffin’s Stake Value: $458,000,000
Percentage of Ken Griffin’s 13F Portfolio: 0.12%
Dividend Yield: 0.56%
Number of Hedge Fund Holders: 164
Topping the list of the 10 best dividend stocks to buy according to billionaire Ken Griffin is Visa Inc. (NYSE: V). The San Francisco-based payments technology company held approximately 60% of the credit and debit card market in 2020. Visa Inc. (NYSE: V) expands its business by acquiring emerging fintech companies such as YellowPepper, a Latin American mobile banking and payments solution provider. Visa Inc. (NYSE: V) and cryptocurrency platform Coinbase Global, Inc. (NASDAQ: COIN) teamed together in December 2020 to launch a credit card that gives 1.5% bitcoin rewards. The company currently offers an annual dividend of $1.28 per share with a 0.56% dividend yield. The stock has provided more than 20% returns to investors in the past twelve months. Shares of V are also up 5% over the past three months.
The company has a market cap of $511 billion. The company’s revenue in the second quarter of 2021 fell 2% to $5.7 billion, compared to $5.85 billion in the same period in 2020. The company posted $3.0 billion in GAAP net income or $1.38 per share. As of June 16, Visa Inc. (NYSE: V) shares trade at $229.60 and have a P/E ratio of 47.46. The 52-week price range of Visa Inc. is $179.23 – 237.50. On June 8, Credit Suisse maintained an Outperform rating on Visa Inc., with a price target of $285 per share.
Ken Griffin’s Citadel Investment Group holds 2,163,547 shares in the company worth over $458 million. The hedge fund has upped its stakes in Visa Inc. (NYSE: V) by 3% in the past few months. There were 164 hedge funds that reported owning stakes in Visa Inc. (NYSE: V) at the end of the first quarter, down from 166 funds a quarter earlier. The total value of these stakes at the end of Q1 is $26.5 billion. Ken Fisher’s Fisher Asset Management is a leading shareholder in Visa Inc. (NYSE: V) with 22,860,315 shares worth more than $4.84 billion.
You can also take a peek at Warren Buffett’s Worst Investments of All Time and 10 Best Undervalued Stocks to Buy Now.
