In this article, we discuss the 5 best dividend stocks to buy now according to billionaire Louis Bacon. If you want to skip our detailed analysis of Bacon’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Louis Bacon.
5. The Interpublic Group of Companies, Inc. (NYSE: IPG)
Bacon’s Stake Value: $6,169,000
Percentage of Louis Bacon’s 13F Portfolio: 0.07%
Dividend Yield: 3.22%
Number of Hedge Fund Holders: 29
The Interpublic Group of Companies, Inc. (NYSE: IPG) provides publicity and broadcasting services globally. It was founded in 1902 and is ranked fifth on our list of 10 best dividend stocks to buy according to billionaire Louis Bacon. The Interpublic Group of Companies currently has a $13.44 billion market capitalization and was able to deliver a 97.69% return in the past 12 months.
Like Facebook, Inc. (NASDAQ: FB), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com, Inc. (NASDAQ: AMZN), The Interpublic Group of Companies is a notable stock in Bacon’s Q1 portfolio. The Interpublic Group of Companies posted earnings for the first quarter of 2021 on April 28, reporting earnings per share of $0.45, missing market predictions by $0.31.
The company announced a Q1 dividend of $0.27 per share, which was in line with the previous quarter’s dividend payout. Moore Capital Investments holds 211,259 shares in the firm worth over $6.17 million. At the end of the first quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $709.19 million in the firm, down from 38 the preceding quarter worth $581.60 million.
4. Janus Henderson Group plc (NYSE: JHG)
Bacon’s Stake Value: $20,568,000
Percentage of Louis Bacon’s 13F Portfolio: 0.26%
Dividend Yield: 3.91%
Number of Hedge Fund Holders: 28
Janus Henderson Group plc (NYSE: JHG) is a fund management corporation, which provides services to small business clients and institutions through its subsidiaries. It was founded in 1934 and ranks fourth on our list of 10 best dividend stocks to buy according to billionaire Louis Bacon. Janus Henderson Group plc (NYSE: JHG) stock has returned more than 73.44% to investors over the past year.
On April 29, the company declared a quarterly dividend of $0.38 per share, which was 5.6% more than its prior dividend of $0.36. Janus Henderson Group posted first quarter 2021 results, reporting earnings per share of $0.91, beating market predictions by $0.08. The revenue over the period was $644 million, up 16.1% YoY, beating the estimates by $14.15 million
With a $20.57 million stake in Janus Henderson Group, Moore Global Investments owns 660,297 shares of Janus Henderson Group plc (NYSE: JHG) in the first quarter of 2021. The company is also getting the attention of the smart money, as 28 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q1 2021, up from 22 funds a quarter earlier.
3. Gilead Sciences, Inc. (NASDAQ: GILD)
Bacon’s Stake Value: $26,604,000
Percentage of Louis Bacon’s 13F Portfolio: 0.33%
Dividend Yield: 4.1%
Number of Hedge Fund Holders: 65
Gilead Sciences, Inc. (NASDAQ: GILD) is an America-based biopharmaceutical company. The company was founded in 1987 and ranked third in the list of 10 best dividend stocks to buy according to billionaire Louis Bacon. Gilead Sciences stock has returned more than 11.71% to investors during the course of the past three months.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Intel Corporation (NASDAQ: INTC) and Walmart Inc. (NYSE: WMT), Gilead Sciences is a notable stock in Bacon’s Q1 portfolio. On April 29, Gilead Sciences declared a quarterly dividend of $0.71 per share, in line with the previous. The forward yield is 4.13%. On June 11, the FDA approved the use of Gilead Sciences’ Epclusa for curing chronic hepatitis C virus in children as young as three years of age. In April, Bernstein‘s Aaron Gal initiated a coverage on the stock and rated it as “Outperform,” setting the price target at $80.00.
The stock is a new arrival on Louis Bacon’s portfolio, as his hedge fund, Moore Global Investments, bought about 411,628 shares of the company, worth $26.60 million. A total of 65 hedge funds tracked by Insider Monkey were bullish Gilead Sciences, Inc. (NASDAQ: GILD) at the end of the first quarter of 2021, down from 72 funds a quarter earlier.
In its Q3 2020 investor letter, Nelson Roberts Investment Advisors highlighted a few stocks, and Gilead Sciences was one of them. Here is what the fund said:
“In the healthcare sector, we sold our position in Gilead (NASDAQ: GILD) as there are no near or medium-term growth drivers for the company. Its popular HIV drug, Truvada, is going off patent this year. Additionally, UnitedHealth Group said it would not cover Gilead’s other HIV drug, Descovy. Lastly, the multiple acquisitions that Gilead has made recently are not ready for prime time, and it will likely be two years or more before any of Gilead’s new drugs have a meaningful impact on revenue.”
2. Valero Energy Corporation (NYSE: VLO)
Bacon’s Stake Value: $3,305,000
Percentage of Louis Bacon’s 13F Portfolio: 0.04%
Dividend Yield: 4.78%
Number of Hedge Fund Holders: 41
Valero Energy Corporation (NYSE: VLO) produces, advertises, and trades transportation fuels and petroleum distillate products internationally. The company was founded in 1980 and stands second on the list of 10 best dividend stocks to buy according to billionaire Louis Bacon. Valero Energy Corporation stock has offered investors returns exceeding 27.43% in the past year.
Valero Energy Corporation posted earnings for the first quarter of 2021 on April 22, reporting earnings per share of -$1.73, beating market predictions by $0.12. In April, the company also declared a quarterly dividend of $0.98 per share in line with the previous. On April 16, Raymond James upgraded the stock to “Strong Buy” from “Outperform,” with a price target of $96.00.
Moore Capital Investments added this stock to its portfolio in the latest quarter by buying 46,155 shares. Louis Bacon’s Investment owns a $3.31 million stake in Valero Energy Corporation. Overall, hedge funds are loading up on Valero Energy Corporation (NYSE: VLO), as 41 funds tracked by Insider Monkey held stakes in the company, compared to 38 funds a quarter earlier.
1. Exxon Mobil Corporation (NYSE: XOM)
Bacon’s Stake Value: $4,746,000
Percentage of Louis Bacon’s 13F Portfolio: 0.06%
Dividend Yield: 5.55%
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) explores and manufactures petroleum and fossil gas in the United States and globally. The company was incorporated in 1870 and ranks first on the list of 10 best dividend stocks to buy according to billionaire Louis Bacon. Exxon Mobil Corporation stock has offered investors more than 31.80% in returns over the past year.
Exxon Mobil Corporation posted quarterly earnings results on April 30, reporting earnings per share of $0.65 for the first three months of 2021, beating market predictions by $0.05. It is a good option for dividend investors. It declared a quarterly dividend of $0.87 per share on April 28, in line with the previous. The forward yield is 5.55%. On May 5, DZ Bank’s analyst Werner Eisenmann initiated a coverage on the stock and rated it as “Buy,” giving it a price target of $67.00.
Louis Bacon’s hedge fund owns 85,000 shares of the company, worth over $4.75 million. Bacon’s hedge fund decreased its stake in the company by 68% in the first quarter. Hedge fund sentiment increased for Exxon Mobil Corporation (NYSE: XOM) in the first quarter of 2021. Insider Monkey’s data shows that 65 elite hedge funds held stakes in the company, up from 63 funds a quarter earlier.
Harding Loevner in its Q1 2021 investor letter, mentioned Exxon Mobil Corporation. Here is what Harding Loevner has to say about Exxon Mobil Corporation in its letter:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
You can also take a peek at Billionaire Daniel Sundheim’s Top 10 Picks and Billionaire Andreas Halvorsen’s Top Stock Picks.
