In this article, we discuss the 5 best dividend stocks to buy according to Frank Fu’s CaaS Capital. If you want to read our detailed analysis of Fu’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Frank Fu’s CaaS Capital.
5. MGM Growth Properties LLC (NYSE: MGP)
Fu’s Stake Value: $12,306,000
Percentage of Frank Fu’s 13F Portfolio: 0.13%
Dividend Yield: 5.72%
Number of Hedge Fund Holders: 34
MGM Growth Properties LLC (NYSE: MGP) is a real estate investment company. The company has a majority ownership of 15 properties, all of which are managed by MGM Resorts International. The company was founded in 2015 and stands fifth on the list of 10 best dividend stocks to buy according to Frank Fu’s CaaS Capital.
On June 15, MGM Growth Properties LLC (NYSE: MGP) reported a quarterly dividend of $0.515 per share, which was a 4% increase from its prior dividend of $0.495. On June 14, Wolfe Research analyst Andrew Rosivach initiated a coverage of MGM Growth Properties LLC (NYSE: MGP) with a “Peer Perform” rating and set a price target at $43.
MGM Growth Properties LLC (NYSE: MGP) is a new addition to Frank Fu’s hedge fund portfolio, as CaaS Capital bought 377,241 shares of the company, worth $12.31 million. In the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $592.10 million in MGM Growth Properties LLC (NYSE: MGP), up from 29 the preceding quarter worth $524.53 million.
4. Archrock, Inc. (NYSE: AROC)
Fu’s Stake Value: $12,098,000
Percentage of Frank Fu’s 13F Portfolio: 0.13%
Dividend Yield: 6.95%
Number of Hedge Fund Holders: 16
Archrock, Inc. (NYSE: AROC) is a supplier of natural gas compression services and equipment to customers in the oil and natural gas industry in the U.S. It was founded in 1990 and is ranked fourth on the list of 10 best dividend stocks to buy according to Frank Fu’s CaaS Capital.
On June 7, AROC Infosys announced that it has collaborated with Archrock, Inc. (NYSE: AROC) to integrate digital techniques and mobile tools for its field service technicians, thereby increasing their efficiency. On April 28, Archrock, Inc. (NYSE: AROC) declared a quarterly dividend of $0.145 per share, in line with the previous. The forward yield is 0.58%. On March 3, B. Riley Securities initiated a coverage on Archrock, Inc. (NYSE: AROC) with a “Buy” rating and raised the price target to $12 from $8.50.
The stock is a new arrival on Frank Fu’s portfolio, as his hedge fund bought about 1.27 million shares of Archrock, Inc. (NYSE: AROC), worth over $12 million. The company is getting the attention of the smart money, as 16 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 11 funds a quarter earlier.
3. Hess Midstream LP (NYSE: HESM)
Fu’s Stake Value: $7,621,000
Percentage of Frank Fu’s 13F Portfolio: 0.08%
Dividend Yield: 7.37%
Number of Hedge Fund Holders: 9
Hess Midstream LP (NYSE: HESM) operates as an energy company, which serves its customers in the United States. The company was founded in 2014, and it stands third on the list of 10 best dividend stocks to buy according to Frank Fu’s CaaS Capital. Hess Midstream shares have gained 44.66% over the last 12 months.
On June 30, Wells Fargo analyst Roger Read raised the firm’s price target on Hess Midstream LP (NYSE: HESM) to $104 from $98 and rated it as “Overweight.” On April 28, Hess Midstream posted earnings results for the first three months of 2021. The earnings per share was $0.45, beating market predictions by $0.03. In addition, on April 23, Hess Midstream LP (NYSE: HESM) declared a quarterly dividend of $0.4526 per share, which was a 1.2% increase from the prior dividend of $0.4471.
Frank Fu’s CaaS Capital is the company’s most significant stakeholder, with 339.926 million shares worth $7.62 million. At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $23.62 million in Hess Midstream LP (NYSE: HESM), up from 7 the preceding quarter worth $9.43 million.
2. Ares Commercial Real Estate Corporation (NYSE: ACRE)
Fu’s Stake Value: $2,523,000
Percentage of Frank Fu’s 13F Portfolio: 0.02%
Dividend Yield: 9.04%
Number of Hedge Fund Holders: 14
Ares Commercial Real Estate Corporation (NYSE: ACRE) functions as a finance company and serves customers in the United States. The company was incorporated in 2011 and is ranked second on the list of 10 best dividend stocks to buy according to Frank Fu’s CaaS Capital. Ares Commercial currently has a $678.7 million market capitalization. It delivered a 77.78% return in the past 12 months.
On June 18, Ares Commercial proclaimed a public offering of 6.5 million common stock for total evaluated gross proceeds of ~$102.8 million. Net proceeds will be used for general corporate purposes and for repaying debts. On May 4, Ares Commercial Real Estate Corporation (NYSE: ACRE) declared a quarterly dividend of $0.33 per share, in line with the previous. On April 26, JPMorgan analyst Charles Arestia initiated a coverage on the stock, rating it as “Neutral,” and raised the price target to $13.50 from $12.50.
CaaS Capital owns 183,897 shares of the company, worth $2.52 million. Ares Commercial Real Estate Corporation (NYSE: ACRE) is also getting the attention of the smart money, as 14 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 8 funds a quarter earlier.
1. Orchid Island Capital, Inc. (NYSE: ORC)
Fu’s Stake Value: $1,002,000
Percentage of Frank Fu’s 13F Portfolio: 0.01%
Dividend Yield: 15.31%
Number of Hedge Fund Holders: 8
Orchid Island Capital, Inc. (NYSE: ORC) is an American finance company, which invests in residential mortgage-backed securities. It was founded in 2010 and ranks first on the list of 10 best dividend stocks to buy according to Frank Fu’s CaaS Capital. Orchid Island Capital, Inc. (NYSE: ORC) gained about 17.16% over the last 12 months.
On June 23, Orchid Island Capital, Inc. (NYSE: ORC) and Bimini Advisors declared that they have entered into an equity distribution deal with J.P. Morgan Securities LLC, JMP Securities LLC, JonesTrading Institutional Services LLC, and MUFG Securities Americas Inc. According to the agreement, Orchid Island Capital, Inc. (NYSE: ORC) may offer and sell a total amount of $250 million of shares of the common stock, at $0.01 per share. On June 15, Orchid Island Capital, Inc. (NYSE: ORC) reported a monthly dividend of $0.065 per share, in line with the previous. On April 29, Orchid Island posted net interest income of $24.9 million, up 30.0% YoY, beating the estimates by $3.31 million.
The stock is a new arrival on Frank Fu’s portfolio, as his hedge fund bought about 166,766 shares of the company, worth over $1 million. Two Sigma Advisors, with 1.42 million shares, is the biggest stakeholder in Orchid Island Capital, Inc. (NYSE: ORC).
You can also take a peek at 10 Best Dividend Stocks for Long Term and 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks.
