In this article, we discuss the 5 best dividend stocks to buy according to Israel Englander’s Millennium Management. If you want to read our detailed analysis of the hedge fund’s returns and its investment strategy, go directly to the 10 Best Dividend Stocks to Buy According to Israel Englander’s Millennium Management.
5. Microsoft Corporation (NASDAQ:MSFT)
Millennium Management’s Stake Value: $280,863,000
Microsoft Corporation (NASDAQ:MSFT) has been in Millennium Management’s portfolio since 2010. In Q2 2022, the hedge fund owned over 1 million shares in the company with a total value of $281 million. The fund increased its MSFT stake by 13% during the quarter. The company represented 0.17% of Israel Englander’s portfolio.
Microsoft Corporation (NASDAQ:MSFT) currently pays a quarterly dividend of $0.62 per share, with the stock having a yield of 0.92%, as of August 26. The company maintains a 15-year streak of dividend growth.
Of the 895 elite funds tracked by Insider Monkey that filed 13Fs for Q2, 258 owned stakes in Microsoft Corporation (NASDAQ:MSFT) on June 30, down from 259 in the previous quarter. The collective value of these stakes was over $56 billion. Fisher Asset Management owned a position worth over $7.3 billion in the company, becoming its largest stakeholder in Q2.
Carillon Tower Advisers mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter. Here is what the firm had to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Millennium Management’s Stake Value: $298,641,000
In Q2 2022, Millennium Management’s stake in JPM grew by $128 million in value, as the fund boosted its position in the company by 113%. The fund’s total stake in the company amounted to nearly $300 million, which represented 0.18% of Israel Englander’s portfolio.
JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1.00 per share, with the stock currently yielding 3.48%, as recorded on August 26. The company has been raising its dividends consistently for the past 11 years.
As of the end of June 2022, 104 hedge funds tracked by Insider Monkey reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 110 in the previous quarter. The collective value of these stakes was over $5.8 billion.
Carillon Tower Advisers mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2022 investor letter. Here is what the firm had to say:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”
3. Eli Lilly and Company (NYSE:LLY)
Millennium Management’s Stake Value: $300,592,000
Eli Lilly and Company (NYSE:LLY) is an Indiana-based pharmaceutical company that has operations in 18 countries. The company has consistently paid dividends to shareholders since 1885 and has been raising its payouts for the past 8 consecutive years. It currently pays a quarterly dividend of $0.98 per share, with shares boasting a dividend yield of 1.24%, as of August 26.
In Q2 2022, Millennium Management raised its position in Eli Lilly and Company (NYSE:LLY) by 132%, growing the value of its holding by over $186 million. The hedge fund owned 927,095 LLY shares at the end of the quarter, valued at over $300 million. The company represented 0.18% of Israel Englander’s portfolio.
In August, Citigroup lifted its price target on Eli Lilly and Company (NYSE:LLY) to $370 with a ‘Buy’ rating on the shares, calling the stock an attractive opportunity in the current economic landscape.
The number of hedge funds tracked by Insider Monkey owning stakes in Eli Lilly and Company (NYSE:LLY) jumped to 70 in Q2 2022, from 53 in the previous quarter. Those stakes held a collective value of over $6.7 billion. Fisher Asset Management was the company’s leading stakeholder in Q2, owning LLY shares worth nearly $2 billion.
Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q2 2022 investor letter. Here is what the firm had to say:
“Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of diabetes, oncology, immunology, and neuroscience. Stock performance was strong due to positive study results for Eli Lilly’s drug Tirzepatide (subsequently branded Mounjaro), which delivered up to 22.5% weight loss in adults with obesity. We think Tirzepatide is in the early innings of adoption in a large obesity market where penetration of anti-obesity medications is currently low. We continue to think Eli Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to solid revenue and earnings growth over many years.”
2. Apple Inc. (NASDAQ:AAPL)
Millennium Management’s Stake Value: $364,843,000
Millennium Management started investing in Apple Inc. (NASDAQ:AAPL) in 2010, purchasing shares worth over $41.3 million. In Q2 2022, the hedge fund owned over 2.6 million stakes in the tech company, worth $365 million. The company accounted for 0.22% of Israel Englander’s portfolio.
On July 28, Apple Inc. (NASDAQ:AAPL) declared a quarterly dividend of $0.23 per share, in line with its previous dividend. The company has maintained a 9-year track record of consistent dividend growth. As of August 26, the stock’s dividend yield came in at 0.56%.
As of the close of Q2 2022, 128 hedge funds tracked by Insider Monkey owned stakes in Apple Inc. (NASDAQ:AAPL), compared with 131 in the previous quarter. The combined value of those stakes was over $143 billion.
1. Oracle Corporation (NYSE:ORCL)
Millennium Management’s Stake Value: $365,201,000
Oracle Corporation (NYSE:ORCL) is a California-based computer software company that specializes in cloud applications and cloud platform services. In Q2 2022, Millennium Management owned over 5.2 million shares in the company, increasing its stake by 269%. The total ORCL stake of the fund amounted to over $365 million and represented 0.22% of Israel Englander’s portfolio.
On June 13, Oracle Corporation (NYSE:ORCL) declared a 19% hike in its quarterly dividend to $0.32 per share. The company has been raising its dividend payments for the past 12 years and increased its payout by 13.32% in the last five years. As of August 26, the stock’s dividend yield stood at 1.71%.
In August, Guggenheim initiated its coverage of Oracle Corporation (NYSE:ORCL) with a ‘Buy’ rating and a $107 price target, appreciating the company’s organic cloud revenue and database performance in the past.
At the end of Q2 2022, 69 hedge funds tracked by Insider Monkey owned stakes in Oracle Corporation (NYSE:ORCL), up from 61 in the previous quarter. Those stakes were collectively valued at over $4.1 billion.
Oakmark Funds mentioned Oracle Corporation (NYSE:ORCL) in its Q2 2022 investor letter. Here is what the firm had to say:
“The sell-off in the enterprise software sector, combined with the complexity related to the acquisition of Cerner, provided an opportunity for us to re-establish a position in Oracle (NASDAQ:ORCL). Oracle is one of the world’s largest and most profitable software companies-generating more than $42 billion in revenue and 40% operating margins. We have always admired the stability of Oracle’s business and the strength of its customer relationships. Now, the company’s organic growth is beginning to accelerate. Specifically, total revenue grew 7% in fiscal year 2022 and 10% in the fourth fiscal quarter. In addition, management believes that Cerner’s growth and margins can be higher under Oracle’s ownership than it could on a standalone basis. Finally, we commend Oracle’s repurchase of roughly half its share base over the past decade, which has nearly doubled each remaining share’s interest in the business. Trading for only 12x calendar 2023 earnings ex-cash, we believe Oracle’s risk/reward is attractive.”
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