5 Best Dividend Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management

1. Lumen Technologies, Inc. (NYSE: LUMN)

Hawkins’ Stake Value: $829,222,000
Percentage of Mason Hawkins’ 13F Portfolio: 17.73%
Dividend Yield: 7.25%
Number of Hedge Fund Holders: 32

Lumen Technologies, Inc. (NYSE: LUMN) is an American technology and communications company. The company was founded in 1968 and is placed first on the list of 10 best dividend stocks to buy according to Mason Hawkins’ Southeastern Asset Management. Lumen stock has returned 47.74% to investors during the course of the past twelve months.

Lumen Technologies, Inc. (NYSE: LUMN) is a good option for dividend investors, as it has been paying a dividend since 2001. On May 20, the company declared a quarterly dividend of $0.25 per share, in line with the previous. The forward yield is 7.17%. On May 11, Lumen bagged U.S. Navy JAG connectivity $50 billion contract for a period of 12-years. Under this contract, the company will provide secured high-speed connectivity, WiFi and unified communications to the U.S. Navy Judge Advocate General Corps. On May 5, Lumen Technologies posted earnings for the first quarter of 2021. It reported earnings per share of $0.44, beating market predictions by $0.03.

The stock is a new arrival on Mason Hawkins’ portfolio, as his hedge fund bought about 62.11 million shares of the company, worth $829.22 million. In the first quarter of 2021, 32 hedge funds in Insider Monkey’s database of 887 funds held stakes in Lumen Technologies, Inc. (NYSE: LUMN), compared to 29 funds in the fourth quarter of 2020. 

In its first quarter 2021 Investor letter, Longleaf Partners Fund highlighted a few stocks, and Lumen Technologies Inc. was one of them. Here is what the fund said:

“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”

You can also take a peek at 14 Best European Dividend Stocks To Buy and 15 Very High Yield Dividend Stocks Worth Checking Out. 

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