5 Best Safe Dividend Stocks To Buy According to Billionaire Dan Loeb

2. The Estée Lauder Companies Inc. (NYSE: EL)

Loeb’s Stake Value: $53,238,000
Percent of Dan Loeb’s 13F Portfolio: 0.41%
Number of Hedge Fund Holders: 51
Dividend Yield: 0.71%

The Estée Lauder Companies Inc. (NYSE: EL) manufactures and markets prestige skincare, fragrance, makeup and hair care products. In April, Wells Fargo upgraded the stock to “Overweight” with a price target of $340. Last week the company declared a quarterly dividend of $0.53 per share. For Q3 2020 Estée reported net sales of $3.86 billion, a $3.35 billion increase compared to Q3 2019. Net earnings for the period was $456 million. The Estée Lauder Companies Inc. (NYSE: EL) diluted net EPS is expected to be $5.31 to $5.48 in FY 2021.

Nicolai Tangen’s hedge fund Ako Capital is also bullish on this stock and owns 1.42 million shares of the company.

Cooper Investors, in its Q4 2020 investor letter, said that they took profits and sold their position in The Estée Lauder Companies Inc. (NYSE: EL) because they think that the price appreciation of the company is only for the short term. Here is what Cooper Investors has to say about The Estée Lauder Companies Inc. in its investor letter:

“Estee Lauder was sold because the business is experiencing a very significant share price appreciation in a short period. We bought this great company earlier in 2020, however Value Latencies appear exhausted – to highlight this point Estee Lauder now trades on 45x Free Cash Flow.”