In this article, we will discuss the 5 dividend stocks picks of billionaire Mario Gabelli. If you want to read our detailed analysis of Gabelli’s history, investment philosophy, and hedge fund performance, go directly to the 10 Dividend Stock Picks of Billionaire Mario Gabelli.
5. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Dividend Yield: 6.82%
Enbridge Inc. (NYSE:ENB) is a provider of energy infrastructure. Liquid Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services are the company’s five segments. On December 7, Enbridge Inc. (NYSE:ENB) declared a quarterly dividend of CAD 0.860 per share, up 3% from the previous payout of CAD 0.835.
In November, RBC Capital analyst Robert Kwan raised his price target on Enbridge Inc. (NYSE:ENB) to C$61 from C$57 and kept an “Outperform” rating on the shares. GAMCO Investors holds 23,506 shares in Enbridge Inc. (NYSE:ENB) worth over $936,000.
According to our data, 24 hedge funds out of 867 held stakes in Enbridge Inc. (NYSE:ENB) in the third quarter, worth about $211.48 million. The number of hedge funds holding stakes in the company in the second quarter was 19, worth $166.07 million.
ClearBridge Investments, in its first-quarter 2021 investor letter mentioned Enbridge Inc. (NYSE:ENB) . 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.”
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.”
3. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Dividend Yield: 8.56%
Enterprise Products Partners L.P. (NYSE:EPD) is a holding company specializing in natural gas and petrochemicals production and trading. In October, Wolfe Research analyst Keith Stanley downgraded Enterprise Products Partners L.P. (NYSE:EPD) to “Peer Perform” from “Outperform” and gave a price target of $24. Stanley advises investors in a research note that the next midstream earnings season looks good but not extraordinary.
In the third quarter of 2021, Enterprise Products Partners L.P. (NYSE:EPD) had an EPS of $0.53, beating the estimates by $0.02. The company’s revenue was $10.83 billion, up 54.9% year over year and beating estimates by $2.32 billion.
Our data shows 25 hedge funds holding stakes in Enterprise Products Partners L.P. (NYSE:EPD) in the third quarter, worth $233.26 million. In the second quarter, 28 hedge funds held stakes in the company worth $246.06 million, in comparison.
ClearBridge Investments, in its first-quarter 2021 investor letter, mentioned Enterprise Products Partners L.P. (NYSE:EPD). Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 66
Dividend Yield: 9.01%
AT&T Inc. (NYSE:T) is a global telecommunications, media, and technology company. In October, KeyBanc analyst Brandon Nispel upgraded AT&T Inc. (NYSE:T) to “Sector Weight” from “Underweight.”
AT&T Inc.’s (NYSE:T) third-quarter EPS came in at $0.87, beating the estimates by $0.08. Revenue over the period was $39.9 billion, down 5.7% Y/Y. GAMCO Investors holds more than 1.04 million shares in AT&T Inc. (NYSE:T) worth $28.15 million. This represents 0.24% of their portfolio. However, the hedge fund’s stake in the company decreased by 3% in the third quarter of 2021.
66 hedge funds in Insider Monkey’s database held stakes amounting to $3.21 billion in AT&T Inc. (NYSE:T) in the third quarter of 2021. This is compared to 68 hedge funds in the previous quarter, with stakes worth $2.90 billion.
1. United-Guardian, Inc. (NASDAQ:UG)
Number of Hedge Fund Holders: 2
Dividend Yield: 9.95%
United-Guardian, Inc. (NASDAQ:UG) manufactures and markets cosmetic ingredients, medicines, medical lubricants, and specialist industrial goods. Out of the hedge funds being tracked by Insider Monkey Jim Simons’ Renaissance Technologies is the leading shareholder of United-Guardian, Inc. (NASDAQ:UG), with a $3.50 million stake in the company.
United-Guardian, Inc. (NASDAQ:UG) declared a $0.65/share semi-annual dividend in November, up 35.4% from the previous dividend of $0.48. The company also reported third-quarter earnings per share of $0.22, vs. the EPS of $0.16 for the third quarter of 2020. The actual revenue for United-Guardian, Inc. (NASDAQ:UG) was $3.18 million, 35.9% Y/Y.
In the third quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $5.61 million in United-Guardian, Inc. (NASDAQ:UG), same as in the preceding quarter worth $6.06 million.
You can also take a peek at 10 Best Data Center REIT Dividend Stocks to Buy and 15 Dividend Stocks People Buy for Early Retirement
