In this article, we discuss the 5 best dividend stocks to buy now according to billionaire Richard Chilton. If you want to read our detailed analysis of Chilton’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Richard Chilton.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at billionaire Chilton’s top dividend picks:
5. Exxon Mobil Corporation (NYSE: XOM)
Chilton’s Stake Value: $297,000
Percentage of Richard Chilton’s 13F Portfolio: 0.001%
Dividend Yield: 5.6%
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) surveys and produces crude oil and natural gas and supplies it globally. It was incorporated in 1870 and is fifth on our list of 10 best dividend stocks to buy according to billionaire Richard Chilton. The company stock has offered investors more than 32% in returns over the course of the past twelve months.
In April, Exxon Mobil Corporation declared a Q1 dividend of $0.87 per share, which was in line with the previous quarter’s dividend payout. The forward yield is 5.55%. In May, DZ Bank upgraded the stock to “Buy” from “Hold” and raised the price target to $67.00 from $58.00.
There were 65 hedge funds in our database that held stakes in Exxon Mobil Corporation at the end of Q1 2021, compared to 63 funds in Q4 2020. First Eagle Investment Management is the most significant stakeholder in Exxon Mobil, with 25.9 million shares worth $1.45 billion.
Harding Loevner, in their 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.”
4. Enterprise Products Partners L.P. (NYSE: EPD)
Chilton’s Stake Value: $2,119,000
Percentage of Richard Chilton’s 13F Portfolio: 0.05%
Dividend Yield: 7.28%
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE: EPD) provides services like processing, storage, and transportation of crude oil products to its customers. It was founded in 1968 and is ranked fourth on our list of 10 best dividend stocks to buy according to billionaire Richard Chilton. The company has returned more than 16% to investors over the past year.
On April 4, TD Securities analyst Linda Ezergailis upgraded the stock to “Buy,” and set a price target of $28.00. Later in April, Enterprise Products declared a quarterly dividend of $0.45 per share, in line with the previous. The forward yield is 7.08%. Last month, the company announced Q1 2021 revenue of $9.16 billion, up 22.5% YoY, beating the estimates by $2.09 billion.
At the end of the first quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $299 million in Enterprise Products Partners L.P. (NYSE: EPD), down from 30 the preceding quarter worth $316 million. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is the company’s most significant stakeholder, with 3.68 million shares worth $81.14 million.
In its Q 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks, and Enterprise Products Partners was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Blackstone Mortgage Trust, Inc. (NYSE: BXMT)
Chilton’s Stake Value: $1,690,000
Percentage of Richard Chilton’s 13F Portfolio: 0.04%
Dividend Yield: 7.38%
Number of Hedge Fund Holders: 16
Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate commercial bank, which provides senior notes guaranteed by commercial properties in North America, Europe, and Australia. It was founded in 1966 and ranks third in our list of 10 best dividend stocks to buy according to billionaire Richard Chilton. Blackstone Mortgage Trust, Inc. shares have gained about 34.70% over the last 12 months.
Just like Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Blackstone Mortgage Trust is one of the best stocks to buy according to billionaire Richard Chilton. On March 15, Blackstone Mortgage Trust declared its Q1 2021 dividend of $0.62 per share, in line with the previous. In April, the stock was upgraded to ‘Buy’ at BTIG.
Richard Chilton’s Chilton Investors currently owns 16,232 shares of Blackstone Mortgage Trust, Inc., worth $1.69 million. Chilton’s hedge fund increased its stake in the company by 11% in the first quarter. At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $209 million in Blackstone Mortgage Trust, Inc. (NYSE: BXMT), down from 17 the preceding quarter worth $141 million.
2. Magellan Midstream Partners, L.P. (NYSE: MMP)
Chilton’s Stake Value: $704,000
Percentage of Richard Chilton’s 13F Portfolio: 0.01%
Dividend Yield: 8.03%
Number of Hedge Fund Holders: 14
Magellan Midstream Partners, L.P. (NYSE: MMP) is an American company engaged in the storage and distribution of petroleum and rock oil. It was founded in 2000 and ranks second in our list of 10 best dividend stocks to buy according to billionaire Richard Chilton. Magellan Midstream Partners stock has offered investors returns exceeding 22% in the past year.
In April, Wolfe Research analyst Steve Fleishman initiated a coverage on the stock and rated it as “Peer Perform,” giving it a price target of $45.00. On April 29, the company announced its Q1 2021 financial results, where revenue declined 15.6% year-over-year, valued at over $661.07 million, missing the market prediction by $8.51 million. The company also declared its NON-GAAP earnings per share of $1.09, beating the estimates by $0.23.
Richard Chilton’s Chilton Investment owns a $704,000 stake in Magellan Midstream Partners, L.P. Another notable stakeholder of GATX is 683 Capital Partners, with 1.05 million shares of the company. There were 14 hedge funds in our database that held stakes in Magellan Midstream Partners, L.P. (NYSE: MMP) at the end of Q1 2021, compared to 22 funds in Q4 2020.
1. New Mountain Finance Corporation (NASDAQ: NMFC)
Chilton’s Stake Value: $4,251,000
Percentage of Richard Chilton’s 13F Portfolio: 0.11%
Dividend Yield: 8.84%
Number of Hedge Fund Holders: 9
New Mountain Finance Corporation (NASDAQ: NMFC) is a commercial development establishment that focuses on investment in mid-market companies and fixed-income securities. It invests in various sectors: technology, media, healthcare, industries, and education. The company was founded in 2010, and it stands first on the list of 10 best dividend stocks to buy according to billionaire Richard Chilton. New Mountain Finance Corporation stock has returned more than 39% to investors during the course of the past twelve months.
Chilton Investment holds 342,837 shares in the company worth over $4.25 million. Chilton has trimmed stakes in the firm by 24% in the past few months. At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $18.71 million in New Mountain Finance Corporation (NASDAQ: NMFC), down from 10 the preceding quarter worth $26.28 million.
You can also take a peek at Billionaire John Paulson’s Top 10 Stock Picks and Billionaire David Tepper’s Top 10 Stocks.
