In this article we discuss the 5 best dividend stocks to buy according to Michael Burry. If you want to read our detailed analysis of Burry‘s history, and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Michael Burry.
5. Urstadt Biddle Properties Inc. (NYSE: UBP)
Number of hedge fund holders: N/A
Dividend Yield: 3.36%
Urstadt Biddle Properties Inc. (NYSE: UBP) is a Connecticut-based real estate investment trust that deals in shopping centres. It was founded in 1969 and is ranked fifth on our list of 10 best dividend stocks to buy according to Michael Burry. The company stock has offered more than 33% in returns to investors over the past twelve months. Scion Asset owns 52,512 shares in the company worth over $874,000, representing 0.06% of their portfolio. The real estate trust controls over 81 properties in areas around New York.
On March 30, Urstadt Biddle Properties Inc. (NYSE: UBP) declared a quarterly dividend of $0.125 per share, in line with previous. In the fourth quarter of 2020, the company reported a revenue of more than $32 million, down 5% compared to the same period in 2019.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Urstadt Biddle Properties Inc. (NYSE: UBP) with 336,817 shares worth more than $5.6 million.
4. Helmerich & Payne, Inc. (NYSE: HP)
Number of Hedge Fund Holders: 21
Dividend Yield: 3.56%
Helmerich & Payne, Inc. (NYSE: HP) is an Oklahoma-based company that drills oil and gas wells. It was founded in 1920 and is placed fourth on our list of 10 best dividend stocks to buy according to Michael Burry. The company stock has offered investors returns exceeding 38% in the past twelve months. Scion Asset Management holds 200,000 shares in the company worth over $5.3 million, representing 0.39% of their portfolio. The company operates more than 260 lands in North America and tens of international ones.
Helmerich & Payne, Inc. (NYSE: HP) is a solid bet for a dependable income. On April 29, the company declared a quarterly dividend of $0.25 per share, in line with previous. The dividend would be payable to shareholders in early June.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Helmerich & Payne, Inc. (NYSE: HP) with 1.6 million shares worth more than $43 million.
In its Q1 2020 investor letter, Palm Valley Capital, an asset management firm, highlighted a few stocks and Helmerich & Payne, Inc. (NYSE: HP) was one of them. Here is what the fund said:
“Helmerich & Payne (HP) is the number one land drilling company in the United States. Founded in 1920, Helmerich & Payne has a long history of successfully navigating through the frequent booms and busts of the energy industry. As oil and natural gas prices plummeted during the quarter, Helmerich & Payne’s stock fell sharply and traded below our calculated value of its 331 land rigs. Although we expect results to suffer in the near-term, we believe the company’s balance sheet will allow it to survive the current bust in the energy industry. As of December 31, 2019, the company had $412 million in cash and has no debt maturities until 2025.”
3. The Kraft Heinz Company (NASDAQ: KHC)
Number of Hedge Fund Holders: 33
Dividend Yield: 3.62%
The Kraft Heinz Company (NASDAQ: KHC) is an Illinois-based food company founded in 1869. It is ranked third on our list of 10 best dividend stocks to buy according to Michael Burry. Kraft stock has returned more than 43% to investors over the course of the past twelve months. Scion Asset Management holds more than 1.1 million shares in the food company worth over $46 million, representing close to 3.5% of their portfolio. Some of the famous brands owned by the firm include Kool-Aid, Jell-O, ABC, Master, Golden Circle, and Quero, among others.
The Kraft Heinz Company (NASDAQ: KHC) has paid a regular and healthy dividend for years. On April 29, the firm declared a quarterly dividend of $0.40 per share, in line with previous and payable to shareholders by the end of June.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Kraft Heinz Company (NASDAQ: KHC) with 325 million shares worth more than $13 billion.
Just like Facebook, Inc. (NASDAQ: FB) and Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC) is one of the best stocks to buy according to Michael Burry.
In its Q4 2020 investor letter, Berkshire Hathaway, the asset management firm, highlighted a few stocks and The Kraft Heinz Company (NASDAQ: KHC) was one of them. Here is what the fund said:
“We exclude our Kraft Heinz holding — 325,442,152 shares — (In the list of 15 common stock investments that at yearend were our largest in market value) because Berkshire is part of a control group and therefore must account for that investment using the “equity” method. On its balance sheet, Berkshire carries the Kraft Heinz holding at a GAAP figure of $13.3 billion, an amount that represents Berkshire’s share of the audited net worth of Kraft Heinz on December 31, 2020.
Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these is our investment in the common stock of The Kraft Heinz Company (“Kraft Heinz”). Kraft Heinz is one of the world’s largest manufacturers and marketers of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Berkshire currently owns 325,442,152 shares of Kraft Heinz common stock representing 26.6% of the outstanding shares.
We recorded equity method earnings from our investment in The Kraft Heinz Company (NASDAQ: KHC) of $95 million in 2020, $493 million in 2019 and losses of approximately $2.7 billion in 2018. Equity method earnings (losses) included the effects of goodwill and identifiable intangible asset impairment charges recorded by Kraft Heinz. Our share of such charges was approximately $850 million in 2020, $450 million in 2019 and $3.7 billion in 2018. We received dividends from Kraft Heinz of $521 million in each of 2020 and 2019 and $814 million in 2018, which we recorded as reductions in our carrying value.
Shares of Kraft Heinz common stock are publicly-traded and the fair value of our investment was approximately $11.3 billion at December 31, 2020 and $10.5 billion at December 31, 2019. The carrying value of our investment was approximately $13.3 billion at December 31, 2020 and $13.8 billion at December 31, 2019. As of December 31, 2020, the carrying value of our investment exceeded the fair value based on the quoted market price by $2.0 billion (15% of carrying value). In light of this fact, we evaluated our investment in Kraft Heinz for impairment. We utilize no bright-line tests in such evaluations. Based on the available facts and information regarding the operating results of Kraft Heinz, our ability and intent to hold the investment until recovery, the relative amount of the decline and the length of time that fair value was less than carrying value, we concluded that recognition of an impairment loss in earnings was not required. However, we will continue to monitor this investment and it is possible that an impairment loss will be recorded in earnings in a future period based on changes in facts and circumstances or intentions.”
2. Lumen Technologies, Inc. (NYSE: LUMN)
Number of hedge fund holders: 32
Dividend Yield: 7.07%
Lumen Technologies, Inc. (NYSE: LUMN) is a Louisiana-based telecommunication firm founded in 1968. It is placed second on our list of 10 best dividend stocks to buy according to Michael Burry. Lumen stock has returned more than 46% to investors year-to-date. Scion Asset Management owns 650,000 shares in the telecom firm worth over $8.6 million, representing 0.64% of their portfolio. Lumen serves more than 4.5 million broadband customers across the United States.
In earnings results for the first quarter of 2021, Lumen Technologies, Inc. (NYSE: LUMN) reported earnings per share of $0.44 per share, beating market estimates by $0.03. The revenue over the period was over $5 billion.
At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Lumen Technologies, Inc. (NYSE: LUMN), up from 29 in the preceding quarter worth $772 million.
In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE: LUMN) 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.”
1. Golden Ocean Group Limited (NASDAQ: GOGL)
Number of Hedge Fund Holders: 11
Dividend Yield: 10.41%
Golden Ocean Group Limited (NASDAQ: GOGL) is a Bermuda-based dry bulk shipping company founded in 2004. It is ranked first on our list of 10 best dividend stocks to buy according to Michael Burry. The company stock has offered investors returns exceeding 210% in the past year. Scion Asset Management holds 530,000 shares in the company worth over $3.5 million, representing close to 0.26% of their portfolio.
In earnings results for the first quarter of 2021, posted earlier this month, Golden Ocean Group Limited (NASDAQ: GOGL) reported earnings per share of $0.14, beating market estimates by $0.04. The revenue for the first quarter of the year was over $158 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Golden Ocean Group Limited (NASDAQ: GOGL) with 3.4 million shares worth more than $23 million.
You can also take a peek at Eagle Capital’s Top 10 Stock Picks and Billionaire David Siegel’s Top 10 Stock Picks.
