In this article, we will discuss the 5 best dividend stocks to buy according to Sculptor Capital. If you want to read our detailed analysis of the hedge fund and its developments, go directly to read 10 Best Dividend Stocks to Buy According to Sculptor Capital.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 101
Dividend Yield as of February 4: 2.69%
Sculptor Capital’s Stake Value: $209,320,000
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services company. This January, UBS appreciated the bank’s Q4 earnings beat and set a $197 price target on the stock, with a Buy rating on the shares.
JPMorgan Chase & Co. (NYSE:JPM) holds an 11-year track record of consistent dividend growth. In 2021, the company increased its dividend by 11.1% at $1.00 per share, with a dividend yield of 2.69%. In Q3 2021, Sculptor Capital held roughly 1.3 million shares in JPMorgan Chase & Co. (NYSE:JPM), worth over $209.3 million. The hedge fund increased its position in the company by 34% during the quarter.
In Q3 2021, 101 hedge funds in Insider Monkey’s database held stakes in JPMorgan Chase & Co. (NYSE:JPM), down from 108 in the previous quarter. The total value of these stakes is over $5.63 billion. Ken Fisher’s Fisher Asset Management was the company’s largest shareholder in Q3, owning a stake worth over $1.16 billion.
Giverny Capital mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“I sold some of our JP Morgan Chase in the fourth quarter, redeploying the proceeds and a bit of available cash into M&T Bank. JP Morgan is the nation’s best giant bank and I am optimistic about its
future. GCAM still owns some. But M&T has a multi-decade record of excellent results, a strong balance sheet and conservative loan loss reserves. Importantly, it is extremely sensitive to rising interest rates.JP Morgan generates income from traditional bank lending, but also from trading, investment banking and wealth management. It is the nation’s largest credit card issuer and also does business with about 80% of the Fortune 500. M&T is more oriented to commercial real estate lending and could be a major beneficiary of higher interest rates, as it has a lot of excess cash on its balance sheet and a stable core deposit base. As rates rise, it will have plenty of ability to make loans. Alternatively, M&T could buy back a lot of stock with that surplus cash.”
4. The AES Corporation (NYSE:AES)
Number of Hedge Fund Holders: 47
Dividend Yield as of February 4: 2.90%
Sculptor Capital’s Stake Value: $22,088,000
In Q3 2021, The AES Corporation (NYSE:AES) experienced a positive hedge fund sentiment, as 47 hedge funds tracked by Insider Monkey held stakes in the company, up from 39 in the preceding quarter. These stakes hold a consolidated value of over $1.48 billion.
On December 3, 2021, The AES Corporation (NYSE:AES) announced a 5% increase in its quarterly dividend at $0.158 per share. The stock’s dividend yield stands at 2.90%. In January, Morgan Stanley boosted its price target on The AES Corporation (NYSE:AES) to $32, while maintaining an Overweight rating on the shares.
Sculptor Capital started investing in The AES Corporation (NYSE:AES) during the second quarter of 2021, with a $9 million worth of stake. In Q3 2021, the hedge fund increased its position in the company significantly by 182% and held shares worth over $22 million. The AES Corporation (NYSE:AES) accounted for 0.18% of the hedge fund’s 13F portfolio.
3. DTE Energy Company (NYSE:DTE)
Number of Hedge Fund Holders: 22
Dividend Yield as of February 4: 2.95%
Sculptor Capital’s Stake Value: $13,586,000
DTE Energy Company (NYSE:DTE), an American diversified energy company, has increased its dividends in the past but announced a dividend cut earlier in 2021 as it saw a decline in cash flows. However, on October 27, 2021, the company reported a 7% increase in its quarterly dividend at $0.885 per share, with a dividend yield of 2.95%.
In Q3 2021, Sculptor Capital held a roughly $13.6 billion worth of stake in DTE Energy Company (NYSE:DTE), which represented 0.11% of its 13F portfolio. The hedge fund started building its position in the company with shares worth only $4 million, during the first quarter of 2021. In January, Edward Jones showed confidence in DTE Energy Company’s (NYSE:DTE) earnings growth and upgraded the shares to Buy from Hold.
The number of hedge funds tracked by Insider Monkey having stakes in DTE Energy Company (NYSE:DTE) declined to 22, from 32 in the previous quarter. These stakes hold a consolidated value of over $426 million. Among these hedge funds, Ken Griffin’s Citadel Investment Group held the largest stake in the company in Q3, worth $66.2 million.
2. Dominion Energy, Inc. (NYSE:D)
Number of Hedge Fund Holders: 27
Dividend Yield as of February 4: 3.30%
Sculptor Capital’s Stake Value: $4,358,000
Dominion Energy, Inc. (NYSE:D), an American power and energy company, was one of the latest holdings of Sculptor Capital in Q3. The hedge fund started investing in the company with a stake worth $4.3 million, which accounted for 0.03% of its 13F portfolio.
At the end of Q3 2021, 27 hedge funds tracked by Insider Monkey held stakes in Dominion Energy, Inc. (NYSE:D), up from 34 in the previous quarter. These stakes hold a consolidated value of over $545 million.
Dominion Energy, Inc. (NYSE:D) cut its dividend by 33% in 2020 due to the pandemic. However, by the end of 2021, the company announced a 6% increase in its quarterly dividend at $0.6675 per share. Though the stock’s current dividend yield of 3.30% is below the industry’s average yield, analysts believe that the payout ratio of 65% signals dividend growth in the coming years. In its January investor note, UBS appreciated the ESG-focused schemes of Dominion Energy, Inc. (NYSE:D) and lifted the stock’s price target to $98. The firm also upgraded the shares to Buy from Neutral.
1. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 36
Dividend Yield as of February 4: 3.46%
Sculptor Capital’s Stake Value: $20,095,000
American Electric Power Company, Inc. (NASDAQ:AEP) is an American electric utility company that has over five million customers in 11 states across the country. This January, Morgan Stanley set a $110 price target on the stock while maintaining an Overweight rating on the shares.
In 2021, American Electric Power Company, Inc. (NASDAQ:AEP) increased its dividend by 5%, which marked the company’s consecutive 12th year of dividend growth. Currently, the company pays a quarterly dividend of $0.78 per share, with a dividend yield of 3.46%. In Q3 2021, Sculptor Capital increased its stake in American Electric Power Company, Inc. (NASDAQ:AEP) by 137%, reaching over $20 million. The company represented 0.16% of the hedge fund’s 13F portfolio.
Renaissance Technologies held a stake worth roughly $190 million in American Electric Power Company, Inc. (NASDAQ:AEP), becoming the company’s largest shareholder in Q3. Overall, 36 hedge funds tracked by Insider Monkey held stakes in the company in Q3, up from 29 in the previous quarter. The consolidated value of these stakes is over $751.5 million.
You can also take a look at 15 Fastest Growing Dividend Stocks and 10 Best Material Dividend Stocks To Buy Now
