In this article we discuss the 5 best dividend stocks to buy according to billionaire Philippe Laffont. If you want to read our detailed analysis of Laffont’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Philippe Laffont.
5. Broadcom Inc. (NASDAQ: AVGO)
Value: $164,863,000
Percent of Philippe Laffont’s 13F Portfolio: 0.61%
No. of Hedge Fund Holders: 59
Dividend Yield: 3.16%
Broadcom Inc. (NASDAQ: AVGO) has a strong presence in the semiconductor industry. Its products are used in multiple industrial segments, including industrial markets, storage, wireless technology, broadband, software, networking, and data centers.
Ecommerce giant Amazon is reportedly developing its chip for its networking solutions, and the decision is based on its need to rely less on expensive networking components from companies like Broadcom and Cisco. Despite this shift, Broadcom is still one of the best dividend stocks to buy, considering its strategic position in an industry with a lot of demand for semiconductors.
Broadcom announced that there was healthy early participation in its $5 billion private note offer. $2 billion of the new notes are due in 2033, while the remaining $3 billion worth of notes are due in 2034. The company has 3.125% senior notes due in 2025, which are currently in pool 1’s top acceptance priority. It also has 4.7% senior notes that will be due in 2025. Broadcom Inc. latest financials revealed that its long-term debt is slightly more than $41 billion while its cash and cash equivalents amount to $9.55 billion.
4. Wynn Resorts, Limited (NASDAQ: WYNN)
Value: $120,805,000
Percent of Philippe Laffont’s 13F Portfolio: 0.45%
No. of Hedge Fund Holders: 52
Dividend Yield: 3.12%
Wynn Resorts, Limited (NASDAQ: WYNN) has casinos in Boston, Macau and Las Vegas. The stock has been recovering from COVID-19. The company is growing its WynnBET service, an online sports and casino betting
In Macau, gaming revenue was down 63.7% YoY, while in February it up 135.6% YoY. In March it grew by 58%. For the year 2020, revenue was down 79.3%. However, the economic recovery is going to help boost the profit of Wynn. In November 2020, Wynn purchased 71% of BetBull a UK based betting firm thus bringing its presence into online gaming. This market is expected to grow at 7.91% CAGR and hit $77.42 billion by 2026.
Laffont owns 1.07 million shares of Wynn Resorts, Limited (NASDAQ: WYNN). The stock was in 52 hedge fund portfolios at the end of Q4 2020, up from 43 Q3 2020.
3. The Gap, Inc. (NYSE: GPS)
Value: $149,277,000
Percent of Philippe Laffont’s 13F Portfolio: 0.55%
No. of Hedge Fund Holders: 38
Dividend Yield: 2.93%
US apparel company Gap is one of the best dividend stocks to buy based on billionaire Philippe Laffont’s portfolio. The Gap, Inc. (NYSE: GPS) will open 20-30 new Athleta stores, after scoring 29% growth in sales in Q4. Athleta will also enter Canadian market this year and will also launch e-commerce. This expansion will help company hit $2 billion in net sales by 2023.
The American clothes and clothing accessories sales for March grew 18.3% MoM and 101% YoY, while department sales surged 13% MoM and 25.6% YoY. This will further boost Gap pick up on its sales.
The stock of The Gap, Inc. (NYSE: GPS) has more than doubled over the past year. The company’s Q4 revenue was $4.42 billion down 5.4% YoY, while GAAP EPS was $0.61. For FY 2021 operating margin is expected to be 5%, and EPS is expected to be in the range of $1.20 – $1.35
2. L Brands, Inc. (NYSE: LB)
Value: $235,417,000
Percent of Philippe Laffont’s 13F Portfolio: 0.88%
No. of Hedge Fund Holders: 52
Dividend Yield: 1.82%
Bank of America has rated the stock of L Brands, Inc. (NYSE: LB) as “Buy” with a price target of $75. This is after the company restarted talks with Victoria’s Secret. On the other hand, UBS has a “Buy” rating on the stock. L Brands is a top retail pick of BMO Capital Markets.
For Q4 2020 the company reported earnings of $3.03 per share comparted to $1.88 per share in Q4 2019. L Brands Q1 profit is expected to be in the range of 35 cents per share to 45 cents per share, up from consensus forecast of 12 cents per share.
The increase in sales of American clothes and clothing accessories in the recent months will further help boost the company’ sales.
L Brands, Inc. (NYSE: LB) stock was in 52 hedge fund portfolio at the end of Q4 2020, up from 45 in Q3 2020.
1. The Boeing Company (NYSE: BA)
Value: $44,815,000
Percent of Philippe Laffont’s 13F Portfolio: 0.16%
No. of Hedge Fund Holders: 55
Dividend Yield: 3.51%
The Boeing Company (NYSE: BA) was founded in 1916 by William E. Boeing. Initially it sold military aircrafts to the U.S. Army, but later shifted to building commercial aircrafts and further diversified agriculture and energy production marine craft. Its core business is still aerospace.
Boeing was also hit by COVID-19 crisis, as orders dropped after restrictions on air travel. The company has improved its quality of airplanes after the safety concern controversy. The company has resumed Dreamliner deliveries in Q1 2021, and the prospects look better. Boeing 787, after being grounded post two crashes, has resumed operation and is expected to generate a good amount of cash flow. The Boeing Company (NYSE: BA) is still a cash cow.
BA is in 55 hedge fund portfolios at the end of Q4 2020, up from 43 Q3 2020. Fisher Asset Management also owns 2.23 million shares of the company.
You can also take a peek at 10 Best Dividend Stocks to Buy According to Billionaire Andreas Halvorsen and Bill Gates’ Top 10 High Dividend Stocks.
