In this article we discuss the 5 best dividend stocks to buy now according to billionaire Jim Simons. If you want to read our detailed analysis of Simons’ history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Jim Simons.
5. Teekay LNG Partners L.P. (NYSE: TGP)
Simons’ Stake Value: $908,000
Percentage of Jim Simons’ 13F Portfolio: 0.001%
Dividend Yield: 7.52%
No. of Hedge Fund Holders: 9
Teekay LNG Partners L.P. (NYSE: TGP) is an energy industry company that deals with liquefied petroleum gas (LPG) and liquefied natural gas (LNG) transportation across the globe. In mid-April, it declared a Q1 2020 dividend of $0.2875 per share, a notable boost from the $0.25 per share dividend payout in the previous quarter. Teekay ranks fifth on the list of 10 best dividend stocks to buy now according to billionaire Jim Simons.
The company generated $152.8 million revenue in Q1, outperforming the consensus estimate by $3.97 million, and it registered a 9.2% gain YoY. Its non-GAAP EPS for the same quarterly period was $0.61, which was $0.02 higher than the consensus estimate.
B.Riley’s analyst Liam Burke assigned a “Buy“ rating to Teekay LNG Partners L.P. (NYSE: TGP) stock setting $13 as price target in February 2021.
Here is what Horos Asset Management has to say about Teekay LNG Partners L.P. (NYSE: TGP) in its Q2 2020 investor letter:
“We trimmed our exposure to the two Teekay companies after the strong rally they experienced in April from the March lows (Teekay Corp. rallied 120% while Teekay LNG 70%). In the case of Teekay LNG, the share price has been relatively flat since then, while the holding company Teekay Corp. has had a sharp decline and returned to its lows. What justifies this poor performance of the company on the stock market?
On the one hand, Teekay Corp. and Teekay LNG finally announced the expected transaction of the Incentive Distribution Rights (IDRs) that Teekay Corp. held over Teekay LNG. Specifically, Teekay LNG acquired the IDRs by issuing 10.75 million shares (around $120 million at the time of the transaction). As a reminder of the functioning of the IDRs, Teekay Corp. was entitled to receive an extraordinary dividend from Teekay LNG, provided that the latter exceeded certain minimum thresholds for earnings distributions to its shareholders. In addition, as we have mentioned in the past, Teekay Corp. controlled c.34% of Teekay LNG (31.7% via common shares and 2.0% via a General Partner agreement). In our opinion, this complex capital structure made it difficult to value both companies, so the transaction announced on May 11 looks positive to us. However, the terms of this transaction were somewhat disappointing from the perspective of Teekay Corp.’s shareholders—who now control 42.5% of Teekay LNG—so we adjusted our valuation of Teekay Corp. downwards.”
4. Arbor Realty Trust, Inc. (NYSE: ABR)
Simons’ Stake Value: $3,778,000
Percentage of Jim Simons’ 13F Portfolio: 0.001%
Dividend Yield: 7.65%
No. of Hedge Fund Holders: 21
Arbor Realty Trust, Inc. (NYSE: ABR) is a real estate company whose portfolio mainly targets commercial real estate, single-family rentals, and multifamily segments. The stock ranks fourth in the list of 10 best dividend stocks to buy now according to billionaire Jim Simons. This month, the company announced that it issued 5.00% senior unsecured notes due April 2026, whose principal amount is $175 million. The notes were issued through a private placement. The proceeds will be used for general corporate purposes and also for business-related investments.
Arbor Realty Trust, Inc. (NYSE: ABR) declared a Q1 quarterly dividend of $0.34 per share, a slight gain from the $0.33 per share dividend announced in the previous quarter.
3. Ares Commercial Real Estate Corporation (NYSE: ACRE)
Simons’ Stake Value: $2,540,000
Percentage of Jim Simons’ 13F Portfolio: 0.001%
Dividend Yield: 8.82%
No. of Hedge Fund Holders: 14
Ares Commercial Real Estate Corporation (NYSE: ACRE) is a company that operates in the specialty finance segment where it creates and invests in commercial real estate loans in the U.S. It recently announced a Q1 2021 dividend of $0.33 per share, consistent with the previous dividend payout. Ares Commercial Real Estate ranks third on the list of 10 best dividend stocks to buy now according to billionaire Jim Simons.
Earlier this month, Ares Commercial Real Estate Corporation announced that it launched an underwritten offering in which it publicly offered 7 million common stock shares. The underwriters will be granted the option of buying an additional 1.05 million shares. The net proceeds from the public offering will go towards general corporate purposes and drawing down the company’s debt.
BTG’s analyst Benjamin Zucker assigned a “Buy” rating to Ares Commercial Real Estate Corporation (NYSE: ACRE) and a $14.50 price target in February 2021. Keefe Bruyette and Woods’ analyst upgraded the stock to “Outperform” and set a price target of $10.50 in June 2020.
2. American Finance Trust, Inc. (NASDAQ: AFIN)
Simons’ Stake Value: $287,000
Percentage of Jim Simons’ 13F Portfolio: 0.001%
Dividend Yield: 9.05%
No. of Hedge Fund Holders: 7
American Finance Trust, Inc. (NASDAQ: AFIN) is another public REIT that is part of the best dividend stocks to buy now, according to billionaire Jim Simons. The REIT acquires and manages a robust and diverse portfolio of real estate properties in the U.S’s distribution and traditional retail industries. Like Facebook, Inc. (NASDAQ: FB), Alphabet Inc. (NASDAQ: GOOG) and Tesla, Inc. (NASDAQ: TSLA), American Finance Trust is one of the best stocks in Renaissance’s portfolio.
American Finance Trust announced a Q1 dividend of $0.212 per share, which was in line with the previous quarter’s dividend payout. The REIT announced on April 7 that it managed to collect 99% of Q1 2021s’s original cash rent and 100% of the cash rent from its single-tenant portfolio.
BMO Capital’s analyst Frank Lee rated American Finance Trust, Inc. (NASDAQ: AFIN) stock as a “Sector Perform” and has a $13 price target. B.Riley’s analyst Bryan Maher upgraded the stock to a “Buy,” and has a price target of $11.
1. Apartment Investment and Management Company (NYSE: AIV)
Simons’ Stake Value: $9,988,000
Percentage of Jim Simons’ 13F Portfolio: 0.01%
Dividend Yield: 60.8%
No. of Hedge Fund Holders: 18
Apartment Investment and Management Company (NYSE: AIV) operates as a real estate investment trust that develops and manages a portfolio that mainly deals with the multifamily segment in the real estate industry. The company stands first on the list of 10 best dividend stocks to buy now according to billionaire Jim Simons.
The publicly traded REIT revealed that it earned $21.5 million revenue in Q1, which is down 5.8% YoY and 5.8% from the previous quarter’s revenue. The revenue figure was shy of analyst estimates by $182.28 million.
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy
