In this article we discuss the 5 best dividend stocks to buy according to billionaire Mario Gabelli. If you want to read our detailed analysis of Mario Gabelli’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Mario Gabelli.
5. H&R Block, Inc. (NYSE: HRB)
Gabelli’s Stake Value: $1,026,000
Percentage of Mario Gabelli’s 13F Portfolio: 0.009%
Dividend Yield: 4.22%
Number of Hedge Fund Holders: 27
H&R Block, Inc. (NYSE: HRB) provides tax preparation products and services in the U.S, Australia, and Canada. H&R Block, Inc. (NYSE: HRB) recently declared a fiscal 2021 Q3 dividend of $0.26 per share, the same as the dividend announced for the previous quarter. It ranks 5th on the list of 10 best dividend stocks to buy according to billionaire Mario Gabelli.
H&R Block, Inc. (NYSE: HRB) Q3 revenue figure was $308 million, a 41% decline compared to the previous quarter, although it was affected by the delayed commencement of the U.S tax season. It reported a $1.27 GAAP loss per share, which was higher than the $0.66 loss per share in the previous quarter. Its non-GAAP loss per share was $1.17, which was higher than the previous quarter’s $0.59 non-GAAP loss per share.
4. Exxon Mobil Corporation (NYSE: XOM)
Gabelli’s Stake Value: $3,236,000
Percentage of Mario Gabelli’s 13F Portfolio: 0.02%
Dividend Yield: 5.67%
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) is an established brand in oil and natural gas production. It is one of the beneficiaries of a $2.4 billion grant offered to an oil consortium thanks to its involvement in one of the world’s largest carbon capture projects. The grant will provide the necessary funds needed to complete the project by 2024.
Exxon recently raised its production outlook for its Stabroek block deepwater project from 750K bbl/day to 800K bbl/day by 2025. It also expects the Yellowtail project in Guyana to produce roughly 250K bbl per day with at least 20 years of field life. Recently, Iraq’s government asked Exxon Mobil Corporation (NYSE: XOM) to buy 32.7% stake in the former’s biggest oilfields, West Qurna 1.
In May, the company was upgraded to “Buy” from “Hold” at DZ Bank. The firm increased the price target to $67 from $58. In April, Raymond James upgraded the stock to “Market Perform” from “Underperform.”
Harding Loevner, in its Q1 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM). Here is what the fund said:
“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.”
3. International Business Machines Corporation (NYSE: IBM)
Gabelli’s Stake Value: $4,033,000
Percentage of Mario Gabelli’s 13F Portfolio: 0.0354%
Dividend Yield: 4.53%
Number of Hedge Fund Holders: 41
International Business Machines Corporation (NYSE: IBM) that provides integrated solutions and services recently made history after becoming the first tech company to make a 2-nanometer chip through its nanosheet technology. This is a significant breakthrough considering that the market is only now shifting to 7 NM and 5 NM chips. IBM’s recent breakthrough is a huge leap forward for the tech industry, especially with the growing demand for powerful and energy-efficient processors.
International Business Machines Corporation (NYSE: IBM) reported that the new 2 NM chips use 75% less energy and are 45% more powerful than the most powerful 7 NM chips in the market. The company is expanding its AI and hybrid cloud portfolio through its recent acquisition of Waeg. The latter is a consulting partner for Salesforce in the UK. The acquisition is a strategic move given that the integration of Salesforce services into IBM’s services will help facilitate rapid adjustments to changing customer needs.
2. ONEOK, Inc. (NYSE: OKE)
Gabelli’s Stake Value: $9,871,000
Percentage of Mario Gabelli’s 13F Portfolio: 0.0866%
Dividend Yield: 6.82%
Number of Hedge Fund Holders: 20
ONEOK, Inc. (NYSE: OKE) deals with natural gas collection, processing, storage, and transportation in the U.S. It recently announced a $0.935 per share quarterly dividend in line with its previous quarterly dividend payout. The stock ranks 2nd in the list of best dividend stocks to buy according to billionaire Mario Gabelli.
Earlier this month, Credit Suisse, initiated a coverage on the ONEOK, Inc. (NYSE: OKE) stock, rating it as “Neutral” and has set a price target of $53.
1. Enterprise Products Partners L.P. (NYSE: EPD)
Gabelli’s Stake Value: $1,422,000
Percentage of Mario Gabelli’s 13F Portfolio: 0.0125%
Dividend Yield: 7.53%
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE: EPD) offers midstream energy services to consumers and producers of petrochemicals, crude oil, and natural gas. The company expects the demand for hydrocarbons to recover to 100 million bbl per day towards the end of the year, potentially reaching an all-time high. Enterprise Products Partners L.P is one of the top dividend stocks on Gabelli’s portfolio.
Enterprise Products Partners L.P. (NYSE: EPD) recently filed a lawsuit against CPS Energy, the municipal utility that provides power in San Antonio, for failing to pay almost $100 million for natural gas. The huge debt accrued after natural gas prices skyrocketed from $4.50/MMBtu to $400/MMBtu during the Texas winter storm in February.
In April, TD Securities analyst Liza Ezergailis initiated a coverage on the stock, rating it as buy, and has set a price target of $28.
You can also take a peek at 10 Extreme Dividend Stocks with Huge Upside and 10 Blue Chip Dividend Stocks Hedge Funds Are Buying.
