In this article we discuss the 5 best dividend stocks to buy now according to billionaire Kerr Neilson. If you want to read our detailed analysis of Neilson’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Kerr Neilson.
5. Ally Financial Inc. (NYSE: ALLY)
Neilson’s Stake Value: $258,416,000
Percentage of Kerr Neilson’s 13F Portfolio: 5.76%
Dividend Yield: 1.37%
No. of Hedge Fund Holders: 51
Ally Financial Inc. (NYSE: ALLY) is the largest digital bank in the US. It is a bank holding company with headquarters in Detroit, Michigan. Ally Financial Inc. (NYSE: ALLY) provides financial services ranging from car finance to mortgage loans, and they have an electronic trading platform where assets can be traded.
Recently, to the delight of its customers, Ally Financial Inc. (NYSE: ALLY) decided to eliminate overdraft fees.
The bank had an estimated 55% gain year to date. Ally Financial Inc. (NYSE: ALLY) stands 5th on the list of the best dividend stocks to buy now according to billionaire Kerr Neilson.
4. Barrick Gold Corporation (NYSE: GOLD)
Neilson’s Stake Value: $151,933,000
Percentage of Kerr Neilson’s 13F Portfolio: 3.38%
Dividend Yield: 1.54%
No. of Hedge Fund Holders: 49
Barrick Gold Corporation (NYSE: GOLD) is a mining company specializing in the production of gold and copper. The company operates 16 sites in 13 countries and is based in Toronto, Ontario, Canada. It is ranked 4th on our list of the best dividend stocks to buy now according to billionaire Kerr Neilson.
Recently, Barrick Gold Corporation (NYSE: GOLD) has announced its plans to restart operating the Porgera Gold Mine this year after entering into an agreement on the matter with the government of Papua New Guinea.
GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned Barrick Gold Corporation (NYSE: GOLD). Here is what the fund has to say about Barrick Gold Corporation in its Q4 2020 letter:
“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”
3. American Eagle Outfitters, Inc. (NYSE: AEO)
Neilson’s Stake Value: $89,651,000
Percentage of Kerr Neilson’s 13F Portfolio: 2%
Dividend Yield: 2.14%
No. of Hedge Fund Holders: 43
This American clothing company ranks 3rd on our list of the best dividend stocks to buy now according to billionaire Kerr Neilson. American Eagle Outfitters, Inc. (NYSE: AEO) is a lifestyle clothing and accessories retailer with headquarters at SouthSide Works in Pittsburgh, Pennsylvania.
American Eagle Outfitters, Inc. (NYSE: AEO) is one of the major companies that raised their dividends last week, cheering its shareholders with the 31% hike. The brand’s consistency and reliability in the past, coupled with its renewed dividend yield approach, makes it a tempting stock to invest in.
2. LyondellBasell Industries N.V. (NYSE: LYB)
Neilson’s Stake Value: $72,665,000
Percentage of Kerr Neilson’s 13F Portfolio: 1.62%
Dividend Yield: 4.01%
No. of Hedge Fund Holders: 47
A Dutch-domiciled multinational chemical company with roots in Britain and America, LyondellBasell Industries N.V. (NYSE: LYB) ranks 2nd on this list of best dividend stocks to buy according to billionaire Kerr Neilson. This company is the largest licensor of polyethylene and polypropylene technologies.
LyondellBasell Industries N.V. (NYSE: LYB) recently released its 2020 sustainability report, which revealed that the company is attempting to end plastic waste and its negative impact on the environment. This showcases LyondellBasell Industries N.V.’s (NYSE: LYB) dedication to the climate action front.
The company has shown a $9.08 billion revenue report in the first quarter of 2021, and its EPS came in at $3.18 a share, the highest value in the past two years. LyondellBasell Industries N.V. (NYSE: LYB) has proven to have robust financials and reduced debt this year, also bumping up its common share dividend by 7.6%.
1. Gilead Sciences, Inc. (NASDAQ: GILD)
Neilson’s Stake Value: $107,890,000
Percentage of Kerr Neilson’s 13F Portfolio: 2.4%
Dividend Yield: 4.21%
No. of Hedge Fund Holders: 65
Coming in 1st on our list is Gilead Sciences, Inc. (NASDAQ: GILD). This biopharmaceutical company is headquartered in Foster City, California. It focuses on research and the development of antiviral drugs. Gilead Sciences, Inc. (NASDAQ: GILD) has been working on these drugs to treat HIV, hepatitis B, hepatitis C, and influenza.
The company’s Trodelvy new subgroup data has shown benefits for relapsed or refractory metastatic triple-negative breast cancer (TNBC) treatment. Gilead Sciences, Inc.’s (NASDAQ: GILD) announcement of the new data from the company’s Phase 3 ASCENT study made the declaration.
Nelson Roberts Investment Advisors’ in their Q3 2020 investor letter talked about GILD. Here is what the fund said:
“In the healthcare sector, we sold our position in Gilead (NASDAQ: GILD) as there are no near or medium-term growth drivers for the company. Its popular HIV drug, Truvada, is going off patent this year. Additionally, UnitedHealth Group said it would not cover Gilead’s other HIV drug, Descovy. Lastly, the multiple acquisitions that Gilead has made recently are not ready for prime time, and it will likely be two years or more before any of Gilead’s new drugs have a meaningful impact on revenue.”
You can also take a peek at 10 Best American Dividend Stocks to Invest In and 15 Best American Stocks to Buy Now.
