5 Best Dividend Stocks to Buy According to Kahn Brothers

2. GlaxoSmithKline plc (NYSE:GSK)

Number of Hedge Fund Holders: 36
Kahn Brothers’ Stake Value: $63,440,000
Dividend Yield as of February 22: 5.09%

On February 9, GlaxoSmithKline plc (NYSE:GSK), a British pharmaceutical company, announced a quarterly dividend of GBP 0.23 per share, presenting a 21.1% growth from its previous dividend. The stock’s dividend yield stands at 5.05%, which is one of the highest in the pharma industry.

GlaxoSmithKline plc (NYSE:GSK) was the third-largest holding of Kahn Brothers in the fourth quarter of 2021. The hedge fund held a stake worth over $63 million in the company, which accounted for 8.71% of its 13F portfolio. On February 10, Deutsche Bank lifted its price target on GlaxoSmithKline plc (NYSE:GSK) to GBP 1,500, with a ‘Hold’ rating on the shares.

According to Insider Monkey’s Q4 data, 36 hedge funds held stakes in GlaxoSmithKline plc (NYSE:GSK), up from 31 in the previous quarter. These stakes hold a value of over $2.1 billion. Besides Kahn Brothers, Arrowstreet Capital was also one of the company’s major shareholders in Q4, owning shares worth over $320 million.

Nelson Capital Management mentioned GlaxoSmithKline plc (NYSE:GSK) in its Q2 2021 investor letter. Here is what the firm has to say:

“We sold our position in GlaxoSmithKline (tkr: GSK) due to disappointing failures with its Covid-19 vaccine and highly anticipated lung cancer drug, along with concerns regarding management, specifically the scientific leadership. GlaxoSmithKline is also spinning off its steady consumer segment, leaving the remaining company with its more volatile segments.”