5 Best Dividend Stocks to Buy According to Cathie Wood

2. Bristol-Myers Squibb Company (NYSE: BMY)

Number of hedge fund holders: 81

Dividend Yield: 2.94%

Bristol-Myers Squibb Company (NYSE: BMY) is a New York-based pharmaceutical company founded in 1887. It is ranked second on our list of 10 best dividend stocks to buy according to Cathie Wood. Bristol stock has offered investors more than 10% in returns over the past year. ARK Investment Management holds more than 2.1 million shares in the company worth over $137 million, representing 0.27% of their portfolio. Bristol is one of the largest pharmaceutical companies in the world and posted over $40 billion in revenue in 2020. 

On April 30, investment bank Morgan Stanley downgraded Bristol-Myers Squibb Company (NYSE: BMY) stock to Equal Weight from Overweight with a price target of $62, slashed more than 11% from the previous target. 

At the end of the first quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Bristol-Myers Squibb Company (NYSE: BMY), down from 131 in the preceding quarter worth $6 billion. 

In its Q4 2020 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE: BMY) was one of them. Here is what the fund said:

“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”