In this article we discuss the 5 best dividend stocks to buy according to billionaire Kerr Neilson. If you want to read our detailed analysis of Neilson’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Kerr Neilson.
5. TechnipFMC plc (NYSE: FTI)
Neilson’s Stake Value: $20,761,000
Percentage of Kerr Neilson’s 13F Portfolio: 0.47%
Dividend Yield: 6.06%
No. of Hedge Fund Holders:35
TechnipFMC plc (NYSE: FTI) provides services to businesses and engages in systems, technologies, gas, and oil projects. Recently, it reported its Q1 2021 financial results. The total revenue of the company in Q1 2021 came in at $1,632 million.
In one of its investor letters, Antipodes Partners highlighted a few stocks and TechnipFMC Plc (NYSE:FTI) is one of them. Here is what Antipodes Partners said:
“We also added to TechnipFMC as its valuation became increasingly attractive. While the near-term outlook for service companies is challenged, Technip will be somewhat protected by its superior backlog and strong balance sheet.”
4. Lumen Technologies, Inc. (NYSE: LUMN)
Neilson’s Stake Value: $594,000
Percentage of Kerr Neilson’s 13F Portfolio: 0.01%
Dividend Yield: 7.15%
No. of Hedge Fund Holders: 29
Facilities-based communications and technology company Lumen Technologies, Inc. (NYSE: LUMN) offers a range of integrated solutions and services. Lumen Technologies, Inc. (NYSE: LUMN) and T-Mobile (NASDAQ: TMUS) also recently announced active collaboration for relationship enhancement by leveraging the latter’s mobile network for its Edge Computing platform. Through this collaboration, Lumen will have T-Mobile as its preferred wireless partner for connectivity. During the first quarter, the company provided $475 million of net income for Q1 2021, as against $314 million in Q1 2020. The company’s total revenue came in at $5.029 billion for Q1 2021, compared with $5.228 billion for Q1 2020.
3. Cedar Fair, L.P. (NYSE: FUN)
Neilson’s Stake Value: $7,366,000
Percentage of Kerr Neilson’s 13F Portfolio: 0.16%
Dividend Yield: 7.73%
No. of Hedge Fund Holders:14
Cedar Fair, L.P. (NYSE: FUN) ranks 3rd on the list of best dividend stocks to buy according to billionaire Kerr Neilson. In its recently announced Q1 2021 financial results, Cedar reported $10 million of net revenues compared with $54 million in Q1 2020. A decrease in net revenues is attributed to COVID-related closure of parks. Meanwhile, the company also reported $110 million of net loss in Q1 2021, as against $216 million in Q1 2020.
For this year, Cedar Fair is anticipating spending around $60 million monthly during Q2 2021, compared with $35 million monthly during Q1 2021.
For 2021, the company hopes to reopen all its properties. Tim Fisher, Cedar Fair, L.P. (NYSE: FUN) COO, said that he is optimistic of the attendance level of people at resort and parks.
In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and Lumen Technologies Inc. (NYSE:LUMN) is one of them. Here is what the fund said:
“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this short-term bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”
2. Magellan Midstream Partners, L.P. (NYSE: MMP)
Neilson’s Stake Value: $82,000
Percentage of Kerr Neilson’s 13F Portfolio: 0.001%
Dividend Yield: 8.57%
No. of Hedge Fund Holders:22
Magellan Midstream Partners, L.P. (NYSE: MMP) is engaged in the storage, transportation, and distribution of crude oil and refined petroleum products in the U.S. The company recently reported its Q1 2021 net income at $221.3 million, down from $287.6 million in the previous year. MMP’s net income per common unit came in at 99 cents during Q1 2021, while it was reported at $1.26 in Q1 2020. The company also increased annual DCF guidance to $1.07 billion for the present year, reporting a $50 million rise.
Meanwhile, Magellan has also sold around half of the membership interest in JV concerning Pasadena marine terminal. The transaction was worth $270 million. The company now has about 25% of MVP Terminalling.
1. Momo Inc. (NASDAQ: MOMO)
Neilson’s Stake Value: $86,000
Percentage of Kerr Neilson’s 13F Portfolio: 0.001%
Dividend Yield: 9.98%
No. of Hedge Fund Holders: 24
Momo Inc. (NASDAQ: MOMO) is a mobile-based entertainment and social services company in China. On March 25, 2021, the company reported its Q4 2020 financial results and FY 2020 results. During the fourth quarter of 2020, MOMO’s net revenue came in at US$581.6 million, indicating a 19% drop on YoY basis. Net income attributable to the company was reported at RMB651.5 million, or US$99.8 million, reflecting a decrease from RMB1,055.9 from the previous year.
Citi analysts gave a “Buy” rating to MOMO, upgraded from “Neutral,” and has set a price target of $19.30.
You can also take a peek at 10 Best High-Yield Dividend Stocks to Buy According to Billionaire George Soros and 10 Best Monthly Dividend Stocks in 2021.
