In this article, we discuss the 5 best dividend stocks to buy according to Kahn Brothers. If you want to read our detailed analysis of the hedge fund’s investment philosophy, go directly to read 10 Best Dividend Stocks to Buy According to Kahn Brothers.
5. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 26
Kahn Brothers’ Stake Value: $59,674,000
Dividend Yield as of February 22: 4.17%
BP p.l.c. (NYSE:BP), a British oil and gas company, was the fifth-largest holding of Kahn Brothers in Q4. The hedge fund held over 2.2 million shares in the company, valued at roughly $60 million. The company represented 8.19% of the fund’s 13F portfolio.
BP p.l.c. (NYSE:BP) currently pays a quarterly dividend of $0.3276 per share, growing it by 4% in 2021. The stock’s current dividend yield is 4.17%, as recorded on February 22. Appreciating the company’s strong Q4 results, in February, JPMorgan raised its price target on BP p.l.c. (NYSE:BP) to 600 GBP, while maintaining an Overweight rating on the shares.
At the end of Q4 2021, 26 hedge funds tracked by Insider Monkey reported owning stakes in BP p.l.c. (NYSE:BP), down from 29 in the previous quarter. The total value of these stakes is over $1.2 billion.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Kahn Brothers’ Stake Value: $392,000
Dividend Yield as of February 22: 4.23%
Chevron Corporation (NYSE:CVX) is an American multinational energy company having operations in over 180 countries. In Q4 2021, the number of hedge funds tracked by Insider Monkey having stakes in the company grew slightly to 53, from 51 in Q3. The total value of these stakes is over $6.5 billion. Warren Buffett’s Berkshire Hathaway held stakes worth over $4.4 billion in Chevron Corporation (NYSE:CVX), becoming its largest shareholder in Q4.
Chevron Corporation (NYSE:CVX) is one of the best stocks for income investors as the company maintains a 35-year track record of consistent dividend growth. On January 26, the company hiked its quarterly dividend by 6% at $1.42 per share. The stock’s dividend yield stands at 4.23%, as of February 22. In February, Barclays lifted its price target on Chevron Corporation (NYSE:CVX) to $148, while keeping an ‘Overweight’ rating on the shares.
Kahn Brothers started building its position in Chevron Corporation (NYSE:CVX) sometime during the fourth quarter of 2010. In Q4 2021, the hedge fund held a stake worth $392,000 in the company, which accounted for 0.05% of its 13F portfolio.
Goehring & Rozencwajg Associates mentioned Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter. Here is what the firm had to say:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Kahn Brothers’ Stake Value: $952,000
Dividend Yield as of February 22: 4.54%
An American natural gas company, Exxon Mobil Corporation (NYSE:XOM) recently announced its Q4 results and posted an 82.6% growth in its quarterly revenue at $85 billion. Given this, Argus remained positive on the company’s performance and upgraded the stock to Buy, with a $92 price target.
In Q4 2021, Exxon Mobil Corporation (NYSE:XOM) experienced a positive hedge fund sentiment, as 71 hedge funds tracked by Insider Monkey were bullish on the company, up from 64 in the previous quarter. The total value of the stakes held by 71 hedge funds stood at roughly $5.4 billion.
Exxon Mobil Corporation (NYSE:XOM) offers a quarterly dividend of $0.88 per share, which yields 4.54%, recorded on February 22. The company has been paying dividends to shareholders for the past 100 years and also maintains a 39-year streak of consistent dividend growth. In Q4 2021, Kahn Brothers held a roughly $1 million worth of stake in Exxon Mobil Corporation (NYSE:XOM), which accounted for 0.13% of the fund’s portfolio.
First Eagle Investment Management mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter. Here is what the investment management firm has to say:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
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.”
1. New York Community Bancorp, Inc. (NYSE:NYCB)
Number of Hedge Fund Holders: 30
Kahn Brothers’ Stake Value: $59,555,000
Dividend Yield as of February 22: 5.88%
New York Community Bancorp, Inc. (NYSE:NYCB), an American commercial bank, currently offers a quarterly dividend of $0.17 per share. The stock’s dividend yield stands at 5.88%, as of February 22.
By the end of Q4 2021, 30 hedge funds tracked by Insider Monkey held positions in New York Community Bancorp, Inc. (NYSE:NYCB), with stakes valued at roughly $456 million. In comparison, 27 hedge funds held shares in the company in the previous quarter, worth $482.5 million.
Kahn Brothers started investing in New York Community Bancorp, Inc. (NYSE:NYCB) during the fourth quarter of 2010. In Q4 2021, the hedge fund increased its position in the company by 2% and held shares worth roughly $60 million. The company made up 8.18% of the hedge fund’s 13F portfolio.
You can also take a look at 10 Best Healthcare Dividend Stocks and Top 15 Dividend Stocks With Upside Potential
