In this article, we will discuss the top 5 dividend stock picks of Tiger Cub Lee Ainslie’s portfolio. If you want to read our comprehensive analysis of Ainslie’s investment strategy, history, and stock picks, go directly to 10 Dividend Stocks in Tiger Cub Lee Ainslie’s Portfolio.
5. Kinder Morgan, Inc. (NYSE:KMI)
Maverick Capital’s Stake Value: $2.45 million
Percent of Maverick Capital’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 43
Dividend Yield: 6.49% (as of January 4)
Kinder Morgan, Inc. (NYSE:KMI) is an energy company that operates in North America through its segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. Maverick Capital reported owning 146,760 shares in the company with a value of $2.45 million.
In December, Kinder Morgan, Inc. (NYSE:KMI) announced a multi-year partnership with software company Palantir Technologies (PLTR). This venture will see Kinder Morgan, Inc. (NYSE:KMI) deploy Palantir’s data integration software platform, Foundry, at its US-based gas storage operations to drive efficiency and safety.
Kinder Morgan, Inc. (NYSE:KMI) posted revenue of $3.82 billion for Q3 2021, outperforming estimates by $594.90 million. EPS for the quarter came in at $0.22, missing estimates by $0.02.
Investors are loading up on this heavy-dividend stock, with 43 hedge funds reporting ownership of stakes in Kinder Morgan, Inc. (NYSE:KMI) at the end of the third quarter, in comparison to 38 hedge funds a quarter ago.
4. British American Tobacco p.l.c. (NYSE:BTI)
Maverick Capital’s Stake Value: $591,000
Percent of Maverick Capital’s 13F Portfolio: 0.001%
Number of Hedge Fund Holders: 9
Dividend Yield: 7.82% (as of January 4)
Lee Ainslie’s Maverick Capital owns 16,800 shares in British American Tobacco p.l.c. (NYSE:BTI) at the end of the third quarter, valued at $591,000. The company’s cigarette-alternative segment is driving sales growth and is estimated to bring profitability and £5 billion in total revenue by FY’25.
British American Tobacco p.l.c. (NYSE:BTI) is a UK-based company that provides tobacco and nicotine products around the globe. On December 8, UBS analyst Nik Oliver maintained a ‘Buy’ rating on British American Tobacco p.l.c. (NYSE:BTI) stock, upping the price target to 3,700 GBP from 3,500 GBP.
9 hedge funds were long British American Tobacco p.l.c. (NYSE:BTI) at the end of the third quarter, holding $724.4 million in combined value. In contrast, 12 hedge funds held stakes worth $1.01 billion in the company a quarter ago.
3. AT&T Inc. (NYSE:T)
Maverick Capital’s Stake Value: $1.96 million
Percent of Maverick Capital’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 66
Dividend Yield: 8.08% (as of January 4)
AT&T Inc. (NYSE:T) is a holding company that deals in the provision of telecommunications, media, and technology services.
On December 16, Morgan Stanley analyst Simon Flannery upgraded AT&T Inc. (NYSE:T) stock to ‘Overweight’ from ‘Equal Weight’, revising the price target to $28 from $32. The analyst also raised the company’s Telecom Services industry rating to ‘In-Line’ from ‘Cautious’. Flannery believes that valuations are at attractive levels, owing to the company’s recent underperformance.
66 hedge funds were bullish on AT&T Inc. (NYSE:T) stock, holding $3.21 billion at the end of the third quarter. In comparison, 68 hedge funds were holding the company stock in the previous quarter.
2. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Maverick Capital’s Stake Value: $1.05 million
Percent of Maverick Capital’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 23
Dividend Yield: 18.13% (as of January 4)
Next up is Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), a Brazilian state-owned company that deals in the production and sale of oil and gas around the world. According to regulatory filings for the third quarter, Maverick Capital owns 101,600 shares in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) worth $1.05 million, amounting to a 0.01% chunk of the fund’s total portfolio.
On December 15, Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to ‘Buy’ from ‘Neutral’ setting a $14.20 price target. The company posted an EPS of $0.47 in the third quarter, exceeding estimates by $0.14.
At the end of the third quarter, 23 hedge funds reported ownership of stakes worth approximately $3 billion in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR). In the previous quarter, 25 hedge funds owned $2.8 billion worth of stakes in the company.
1. Vale S.A. (NYSE:VALE)
Maverick Capital’s Stake Value: $90,000
Percent of Maverick Capital’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 27
Dividend Yield: 19.90% (as of January 4)
With a yield of 19.90%, Vale S.A. (NYSE:VALE) ranks 1st on the list of dividend stocks in Lee Ainslie’s portfolio. The Brazil-based company provides iron ore as raw material to steelmaking operations around the globe and operates through its segments: Ferrous Minerals, Base Metals, and Coal. The firm posted an EPS of $1.26 in the third quarter, beating consensus estimates by $0.19.
On December 9, Morgan Stanley analyst Carlos De Alba upgraded Vale S.A. (NYSE:VALE) to ‘Overweight’ from ‘Equal Weight’, revising the price target to $16.50 from $16. The analyst noted that the stock has corrected, as shares of the company fell 41% from their recent peak after uncertainty around China’s property sector and lower iron prices. De Alba believes the company will benefit as iron ore prices are set to increase in the first half of 2022, on the back of sequentially higher steel output in China.
As of the third quarter, 27 out of 867 elite hedge funds tracked by Insider Monkey disclosed ownership of stakes in Vale S.A. (NYSE:VALE), with a combined value of approximately $1.98 billion. The same number of hedge funds reported owning stakes in the company a quarter ago as well.
You can also take a look at 15 Best Undervalued Stocks to Buy Now and Top 10 Logistics Companies In The World.
