In this article we discuss the 5 best dividend stocks to buy and hold now according to Tiger Cub Lee Ainslie. If you want to read our detailed analysis of Ainslie’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy and Hold According to Tiger Cub Lee Ainslie.
5. Kinder Morgan, Inc. (NYSE: KMI)
Ainslie’s Stake Value: $25,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 5.7%
Number of Hedge Fund Holders: 38
Kinder Morgan, Inc. (NYSE: KMI) is a North America-based energy infrastructure company. It was founded in 1936, and it ranks fifth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Kinder stock has returned more than 19.53% to investors over the past year.
Kinder Morgan, Inc. (NYSE: KMI) stock is a good option for income investors as the firm pays a sizable dividend. On April 21, the company declared a quarterly dividend of $0.27 per share, in line with the previous. The forward yield is 5.68%. In April, the company announced its first quarter 2021 non-GAAP earnings per share of $0.60, beating the estimates by $0.35.
Maverick Capital trimmed its stake in the stock by 98% to 1,515 shares in the first quarter of 2021. Still, the stock has made it to the list of best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Another notable stakeholder of Kinder is FPR Partners, with 19.73 million shares of the company. As of first quarter of 2021, there were 38 hedge funds in Insider Monkey’s database that held stakes in Kinder Morgan, Inc. (NYSE: KMI), compared to 42 funds in the fourth quarter of 2020.
4. The Williams Companies, Inc. (NYSE: WMB)
Ainslie’s Stake Value: $216,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 5.95%
Number of Hedge Fund Holders: 34
The Williams Companies, Inc. (NYSE: WMB) possesses and controls midstream gathering and processing assets and interstate natural gas pipelines. It was founded in 1908 and ranks fourth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. The Williams shares have gained about 41.23% in value over the last 12 months.
The Williams Companies, Inc. (NYSE: WMB) is a good option for income investors as the firm pays a regular and healthy dividend. On April 27, the company declared a quarterly dividend of $0.41 per share, in line with the previous. On June 16, Williams announced that it entered an export agreement with Beacon Offshore Energy Development LLC. The company will provide overseas natural gas gathering and distribution services and coastal natural gas refining services to Shenandoah, which will help the company strengthen its portfolio of services. On May 3, Williams posted quarterly earnings results, reporting earnings per share of $0.35 for the first three months of 2021, beating market predictions by $0.06. The revenue over the period was $2.61 billion, beating market estimates by $640 million.
The stock is a new arrival on Lee Ainslie’s portfolio, as his hedge fund bought about 9,109 shares of the company, worth $216,000. As in Q1 2021, there were 34 hedge funds in Insider Monkey’s database that held stakes in The Williams Companies, Inc. (NYSE: WMB), compared to 38 funds in Q4 2020.
In the Q1 2021 Investor Letter, ClearBridge Investments highlighted a few stocks, and Williams Companies Inc. is one of them. Here is what the fund said:
“U.S. energy infrastructure company Williams Companies also performed well. Williams owns and operates natural gas pipelines and associated midstream assets in the U.S. Shares continued to rebound driven by the strong cyclical recovery, which has benefited energy stocks. Williams also delivered resilient fourth-quarter earnings despite energy demand pressure from COVID-19.”
3. Enbridge Inc. (NYSE: ENB)
Ainslie’s Stake Value: $817,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 6.74%
Number of Hedge Fund Holders: 22
Enbridge Inc. (NYSE: ENB) functions as an energy foundation company. It was incorporated in 1949 and is ranked third in the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Enbridge currently has $82.65 billion market capitalization and was able to deliver a 27.96% return in the past 12 months.
Enbridge Inc. (NYSE: ENB) stock is a good option for income investors as the firm pays a sizable dividend. On May 5, the company declared a quarterly dividend of $0.68 per share, in line with the previous. On June 7, Enbridge announced that it agreed to sell its 38.9% nonfunctioning minority ownership interest in Noverco Inc. to Trencap L.P. for $1.14 billion in cash.
Lee Ainslie’s Maverick Capital currently holds 22,439 shares of Enbridge that amounts to $817,000. Marshall Wace LLP is the company’s most significant stakeholder, with 1.27 million shares worth $46.27 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks, and Enbridge Inc (NYSE: ENB) was one of them. Here is what the fund said:
“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”
2. AT&T Inc. (NYSE: T)
Ainslie’s Stake Value: $1,690,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.01%
Dividend Yield: 7.14%
Number of Hedge Fund Holders: 63
AT&T Inc. (NYSE: T) is an American media and telecommunications company. It was founded in 1983 and is placed second in the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie.
On March 26, the company declared a monthly dividend of $0.52 per share, in line with the previous. The forward yield is 7.10%. On June 9, AT&T announced that it has won a contract worth $725 million to technologize the data network at the US Department of Veterans Affairs.
Maverick Capital increased its stake in AT&T Inc. (NYSE: T) by 2,808% in the first quarter of 2021, ending the period with $1.69 million worth of the company’s stock. Our database shows that 63 hedge funds held stakes in AT&T Inc. as of the first quarter of 2021, versus 58 funds in the fourth quarter of 2020.
Here is what Nelson Capital Management has to say about AT&T Inc. in its first quarter 2021 investor letter:
Nelson Capital Management, in its first quarter 2021 investor letter, mentioned AT&T Inc. Here is what Nelson Capital Management has to say about AT&T Inc. in its letter:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
1. Antero Midstream Corporation (NYSE: AM)
Ainslie’s Stake Value: $952,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 8.7%
Number of Hedge Fund Holders: 17
Antero Midstream Corporation (NYSE: AM) possesses, works, and expands midstream energy infrastructure. The company was incorporated in 2013 and tops the list of best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Antero Midstream stock has returned more than 80.55% to investors over the course of the past twelve months.
Antero Midstream Corporation (NYSE: AM) is among the best stocks in the Maverick Capital portfolio that pays a healthy dividend to shareholders. On April 14, the company declared its Q1 2021 dividend of $0.225 per share, in line with the previous. The forward yield is 8.78%.
Lee Ainslie’s Maverick Capital increased its hold in Antero Midstream Corporation (NYSE: AM) by 281% in the first quarter, ending the period with 105,472 shares of the company worth $952,000.
In its fourth quarter 2020 investor letter, Bonhoeffer Capital Management, a value-oriented investment management firm, highlighted a few stocks, and Antero Midstream Corporation was one of them. Here is what the fund said:
“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)
This includes our broadcast TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.
An example is Antero Midstream, whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream cash flows become more secured as Antero Resources has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero subordinated debt with a yield of 7.8%.”
You can also take a peek at 10 Extreme Dividend Stocks with Huge Upside and 14 Best European Dividend Stocks To Buy.
