5 Dividend Stock Picks of Billionaire Mario Gabelli

4. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 25
Dividend Yield: 8.23%

Lumen Technologies, Inc. (NYSE:LUMN) is an investment holding company that provides home and commercial users with integrated communications. In the first quarter of 2021, GAMCO Investors began building its stake in Lumen Technologies, Inc. (NYSE:LUMN), and it now has 82,446 shares worth $1.02 million. The firm makes up 0.01% of the hedge fund’s 13F holdings.

In November, Lumen Technologies, Inc. (NYSE:LUMN) declared a quarterly dividend of $0.25 per share, in line with the previous. Citi analyst Michael Rollins upgraded Lumen Technologies, Inc. (NYSE:LUMN) from “Sell” to “Neutral” in November, with a $13 price objective.

At the end of Q3, 25 hedge funds tracked by Insider Monkey reported owning stakes in Lumen Technologies, Inc. (NYSE:LUMN), down from 33 in the previous quarter.

Longleaf Partners Fund mentioned Lumen Technologies, Inc. (NYSE:LUMN) in its first-quarter 2021 investor letter. Here is what the firm has to say:

“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”