In this article, we discuss the 10 dividend stocks to buy according to Andreas Halvorsen’s Viking Global. If you want to read our detailed analysis of Viking Global’s past performance and recent developments, go directly to read 10 Dividend Stocks to Buy According to Andreas Halvorsen’s Viking Global.
5. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 39
Dividend Yield as of May 23: 2.04%
Viking Global’s Stake Value: $898,195,000
Parker-Hannifin Corporation (NYSE:PH) is an American manufacturing company that specializes in motion and control technologies. The company has operations in over 50 countries across the world.
Parker-Hannifin Corporation (NYSE:PH) announced its fiscal Q3 2022 results on May 5 and posted an EPS of $4.83, surpassing analysts’ expectations by $0.18. The company generated revenue of over $4 billion, up 9% from the prior-year quarter. Following the strong quarterly results, Stifel set a $338 price target on Parker-Hannifin Corporation (NYSE:PH), with a Buy rating on the shares.
Along with Viking Global, Diamond Hill Capital was one of the major shareholders of Parker-Hannifin Corporation (NYSE:PH) in Q1 2022, holding shares worth over $444 million. Overall, 39 hedge funds tracked by Insider Monkey remained bullish on the company in Q4 2021, the same as in the previous quarter. These stakes hold a collective value of $1.3 billion.
In April, Parker-Hannifin Corporation (NYSE:PH) announced a 29% increase in its quarterly dividend to $1.33 per share. The company maintains a 66-year streak of consecutive dividend growth. Parker-Hannifin Corporation (NYSE:PH) has been paying dividends consistently for the past 286 quarters. The stock’s dividend yield, as of May 23, stood at 2.04%.
Viking Global increased its position in Parker-Hannifin Corporation (NYSE:PH) by 4% during the first quarter of 2022, equaling shares worth roughly $900 million. The company constituted 3.63% of Andreas Halvorsen’s portfolio.
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
Dividend Yield as of May 23: 2.55%
Viking Global’s Stake Value: $659,163,000
Comcast Corporation (NASDAQ:CMCSA), an American multinational telecommunications company, recently announced a joint venture with Charter to develop a next-generation streaming platform, which will be available on 4k streaming devices and smart TVs. This will provide consumers with a world-class user experience and navigation.
Viking Global pulled its entire stake from Comcast Corporation (NASDAQ:CMCSA) in 2013 and started reinvesting during 2019, purchasing shares worth over $13 million, at an average share price of $44.5. At the end of Q1 2022, the hedge fund held shares worth roughly $660 million in the company, which represented 2.66% of Andreas Halvorsen’s portfolio.
In January, Comcast Corporation (NASDAQ:CMCSA) announced a quarterly dividend of $0.27 per share, after increasing it by 8%. The company has increased its annual dividend for the past 14 years, with a 5-year dividend CAGR of 12.34%. As of May 23, the stock’s dividend yield came to be recorded at 2.55%.
Acknowledging the broadband business of Comcast Corporation (NASDAQ:CMCSA), Rosenblatt, in April, initiated its coverage on the stock with a Neutral rating and a $51 price target. The analyst further noted that the company derived 55% of its sales from cable in 2021 and believes that it should focus on expanding its broadband business further.
Insider Monkey’s Q4 2021 data shows that the hedge fund interest has slightly declined in Comcast Corporation (NASDAQ:CMCSA), as 78 hedge funds held stakes in the company, down from 80 in the previous quarter. The consolidated value of these stakes is $7.1 billion.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm has to say:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
3. Perrigo Company plc (NYSE:PRGO)
Number of Hedge Fund Holders: 28
Dividend Yield as of May 23: 2.72%
Viking Global’s Stake Value: $97,046,000
Perrigo Company plc (NYSE:PRGO) is an Irish-registered pharmaceutical company, that derives 70% of its net sales from the US healthcare system.
In February, Perrigo Company plc (NYSE:PRGO) announced a quarterly dividend of $0.26 per share, an 8.3% increase from the prior dividend of $0.24 per share. The company has been growing its annual dividend consecutively for the past 19 years. Moreover, in the past five years, Perrigo Company plc (NYSE:PRGO) has raised its dividend at an annual average rate of 12.34%.
Perrigo Company plc (NYSE:PRGO) is one of the latest holdings of Viking Global. The hedge fund started building its position in the company with shares worth over $97 million, which made up 0.39% of Andreas Halvorsen’s portfolio.
In Q1 2022, Camber Capital Management was one of the leading shareholders of Perrigo Company plc (NYSE:PRGO), with shares worth over $96 million. Moreover, 28 hedge funds in Insider Monkey’s database held a $502 million worth of stake in the company in Q4 2021.
Heartland Advisors mentioned Perrigo Company plc (NYSE:PRGO) in its Q4 2021 investor letter. Here is what the firm has to say:
“Shares of many Health Care companies were down as the continuing threat of COVID-19 dampened demand for elective medical procedures and health care providers struggled to maintain adequate staffing in the face of burnout and resistance to vaccine mandates. The Fund’s holdings performed in line on a relative basis but detracted from absolute results.
Instead of trading on every new wrinkle in the ongoing pandemic, we’ve taken the long view by focusing on owning businesses that we believe are well positioned to drive consistent growth when the shadow of COVID-19 fades.
Perrigo Company PLC (PRGO), a pharmaceutical business and leading maker of private-label over-the-counter products, is one such opportunity. While the company is lumped in with more volatile pharma companies, we view it as a consumer-packaged goods business that offers a one-of-a-kind product platform characterized by a stable, growing, and valuable cash flow stream.
A new management team with a strong track record was hired in late 2018 to rectify stumbles made by previous leadership. We’ve been pleased with the strides taken and believe recent supply chain issues and reduced demand for its cold and cough products are directly related to COVID-19 and are, therefore, temporary. With shares trading at close to stated book value and 13X next year’s estimated earnings before interest, taxes, depreciation, and amortization (EBITDA), the team views Perrigo as a compelling opportunity for the quarters to come.”
2. MetLife, Inc. (NYSE:MET)
Number of Hedge Fund Holders: 39
Dividend Yield as of May 23: 3.14%
Viking Global’s Stake Value: $95,733,000
MetLife, Inc. (NYSE:MET) is an American insurance company and is the largest provider of insurance and employee benefit programs. The company was popular among hedge funds in Q4 2021, as 39 hedge funds in Insider Monkey’s database held stakes in the company, up from 36 in the previous quarter. These stakes hold a consolidated value of $945.5 million.
MetLife, Inc. (NYSE:MET) pays a quarterly dividend of $0.50 per share, having raised it by 4% in February. The company maintains an 8-year track record of consistent dividend growth, with a 5-year CAGR of 6.35%. As of May 23, the stock’s dividend yield was recorded at 3.14%.
Viking Global initiated its position in MetLife, Inc. (NYSE:MET) during the first quarter of 2022, with shares worth over $95.7 million. The company accounted for 0.38% of Andreas Halvorsen’s portfolio. In April, JPMorgan appreciated the company’s strong balance sheet, ongoing share repurchases, and improving sales. On account of this, the firm lifted its price target on the stock to $75, with an Overweight rating on the shares.
1. Unum Group (NYSE:UNM)
Number of Hedge Fund Holders: 30
Dividend Yield as of May 23: 3.42%
Viking Global’s Stake Value: $35,847,000
Unum Group (NYSE:UNM), an American insurance company, has been raising its annual dividend for the past 13 years. In 2021, the company raised its quarterly dividend by 5.3%, which now stands at $0.30 per share. The stock’s dividend yield was recorded at 3.42%, as of May 23.
At the end of December 2021, 30 hedge funds tracked by Insider Monkey were bullish on Unum Group (NYSE:UNM), up from 28 in the previous quarter. These stakes hold a consolidated value of over $323.5 million.
Unum Group (NYSE:UNM) is the latest holding of Viking Global. The hedge fund initiated a position in the company with shares worth over $35.8 million, at an average share price of $27.9. The company represented 0.14% of Andreas Halvorsen’s portfolio.
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